HSBC update Sept. 4th, 2021
HSBC is one of the biggest banks in the world with a market capitalization of about 120 bn$. It makes business in 5 continents. It is present in retail banking, commercial banking and global banking with about the same share of each division in EBT.
HSBC seemed to have managed the corona panic without big damages thanks to its profitable Asian business. It further seems that HSBC managed to bring the European business back to profitability. It is to hope that this development will stabilize.
The bank sits in the conflict between USA and China between the chairs. China put it - for some time - on a "unreliable entity list"and the USA and UK did as well critizise it. As its most profitable business is situated in HK & China it seems to make sense to take the chinese side. In the long run HSBC might become in the cold war US vs. China part of the chinese influence zone and a bridge head to the US influence zone.
This is not a recommendation or proposal to do anything. The data written in this article is not guarranteed. It is my private personal opinion. I`m not independing as I own a position of HSBC shares.
Opportunities & Risks
HSBC makes business in 5 continents. But most of its profits are generated in Asia a lot of it in Hongkong. It seems that HSBC reacted by allocating more efforts on Asia. Relocating key business heads from London to Hong Kong to better support clients and the business. In Q1/21 it seems likely that HSBC is able to fix the European business. But anyway it is going to become an Asian bank with some branches in Europe.
The big risk is that during the last years plenty of imbalances built up in the world. Debt is very high in most of the established 1st world nations and increasing even faster. If this imbalances would offset it would hit nearly all investments including HSBC.
I had an HSBC account in the Middle East. I had the impression that the employees worked according to plenty of strict, static rules and regulations and had very small room for own decisions and initiatives. I appreciated it as it is in some countries a big fear is that the account fades away over night. In Europe with its qualified well paid employees such a bureaucracy is an efficient hurdle vs. success.
It seems that HSBC wastes some of its energy with European left ideology as a gender campaign and a task force on climate-related financial disclosures. It is to hope that it will stop when the company becomes more Chinese/Asian.
At April 30, 2021, the number of issued ordinary shares of US$0.50 is 20,750,200,008. It includes 325,273,407 shares in treasury. Therefore, the total number of voting rights in HSBC Holdings plc is 20,424,926,601.
2020 jan 11, HSBC is going HSBC Holdings Plc has kicked off the sale of its French retail operations, (11). This is more or less a surrender as HSBC does not see the option to make this business sufficiently profitable again.
(21) 2021, August 20 https://seekingalpha.com/news/3732721-hong-kong-gets-reprieve-on-law-banning-anti-china-sanctions?mail_subject=hsbc-hong-kong-gets-reprieve-on-law-banning-anti-china-sanctions&utm_campaign=rta-stock-news&utm_content=link-1&utm_medium=email&utm_source=seeking_alpha
(20) 2021, May 27 https://seekingalpha.com/news/3700623-hsbc-backs-out-of-us-retail-banking?mail_subject=hsbc-hsbc-backs-out-of-u-s-retail-banking&utm_campaign=rta-stock-news&utm_content=link-1&utm_medium=email&utm_source=seeking_alpha
(16) 2021, Jan. 4 http://iis.aastocks.com/20210104/9566027-0.PDF
(15) 2020, Sept. 28 https://seekingalpha.com/news/3617509-ping-insurance-modestly-adds-to-hsbc-stake-shares-up-7?utm_medium=email&utm_source=seeking_alpha&mail_subject=hsbc-ping-an-insurance-modestly-adds-to-hsbc-stake-shares-up-7&utm_campaign=rta-stock-news&utm_content=link-1
(14) 2020, Sept. 21st https://fortune.com/2020/09/21/hsbc-stock-shares-today-fincen-china/
(12) 2020, Feb 18 https://seekingalpha.com/news/3542526-major-overhaul-hsbc-results-in-35k-layoffs?utm_medium=email&utm_source=seeking_alpha&mail_subject=hsbc-major-overhaul-at-hsbc-results-in-35k-layoffs&utm_campaign=rta-stock-news&utm_content=link-1
(1) 2019/jan/09 https://www.theguardian.com/business/2019/jan/08/uks-most-unequal-bank-hsbcs-gender-pay-gap-grows-to-61