Macronomicon

Tier 3 Hsbc Hong

4 min read

Tier 3 Hsbc Hong

The Thesis

  • [UNVERIFIED] HSBC acquired a 63% controlling stake in Hang Seng Bank in 1965. Hang Seng Bank was founded in 1933 and operates a substantial port business. HSBC is now proposing to take Hang Seng private for approximately HK$290 billion (approximately $37 billion).

    Hangsen was founded in 1933 and I think it was 1965 that HSBC took controlling interest with 63% of Hangsen. The privatization proposal is around 290 billion or 37 billion

  • [UNVERIFIED] On January 1, 2025, HSBC announced a major restructuring dividing its operations into four distinct units, with Hong Kong and the UK each becoming separately focused business lines. HSBC cited growing geopolitical tension between the US and China as the driver for this structural change.

    on January 1st, 2025, HSBC announced a major U restructuring dividing HSB’s operations of four distinct units, but Hong Kong and UK each becoming focused business lines. The change was grown by growing geopolitical tension

    • Correction: This claim requires verification from current financial news sources and HSBC official announcements, as it appears to be beyond the verification knowledge cutoff.
  • [VERIFIED] Shareholder campaigns led by Ping An and other investors between 2022 and 2023 sought higher dividends, increased stock buybacks, and a potential spin-off of HSBC’s Asian operations. These proposals were overwhelmingly rejected by shareholders.

    there were multiple high-profile shareholder campaigns between 2022 and 23 led by Ping and uh so forth. But in the end, what they wanted from them was higher dividends and more stock buyback. Ultimately the proposals were overwhelmingly rejected

  • [UNVERIFIED] HSBC disclosed in August 2024 that it classified 73% of its Hong Kong commercial property loans as risky, indicating significant stress in the Hong Kong commercial real estate sector.

    in August, HSBC flagged 73% of Hong Kong commercial property loans as risky. Now, there are many numbers being thrown out. I’ve seen 25 billion in bad real estate in Hong Kong. I’ve seen 50 billion

    • Correction: This specific claim requires verification from HSBC’s 2024 interim/half-year reports or official regulatory disclosures to confirm the 73% figure and August 2024 timing.
  • [MISLEADING] In 2009 during the Global Financial Crisis, HSBC reduced its annual dividend by 29%, representing the first dividend cut in decades. HSBC simultaneously raised capital to absorb loan losses and manage global financial stress.

    in the depths of the great financial crisis 2009 HSBC cut its annual dividend by 29%. The first cut in decades and it raised capital to weather loan losses and the global stress

    • Correction: HSBC’s dividend cut in 2009 was approximately 53%, not 29%. The dividend fell from $0.93 to $0.44 per share, marking the first reduction in at least a decade. HSBC also raised £12.5 billion in a rights issue to absorb loan losses.
  • [UNVERIFIED] HSBC announced the suspension of share buyback programs to fund the Hang Seng acquisition, having conducted $11 billion in buybacks the prior year. The announcement caused HSBC’s stock to decline approximately 7.3%.

    we’re not going to have any stock buybacks this year. so we can pay for this, which you know that’s why the stock went down yesterday. They did 11 billion last year. Now HSBC’s went down 7.3% because it would not make any share buybacks

  • [UNVERIFIED] HSBC’s non-performing loan ratio reached 6.7% at the end of June 2024, an all-time high for the institution.

    their non-performing loan ratio that they admit to is 6.7% at the end of June. an all-time high

  • [FALSE] In 2020, the UK Financial Services Authority (FSA), which governs the Bank of England and by extension HSBC’s UK operations, formally requested that HSBC and all other UK banks suspend their dividends as a COVID-19 prudential measure.

    during the 2020 COVID, the FSA which rules over the you know the Bank of England which rules over HSBC formally requested HSBC and all the other UK banks suspend their dividend

    • Correction: The UK regulator that requested dividend suspensions in 2020 was the Bank of England’s Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA), not the FSA. The FSA was restructured out of existence in 2013.
  • [UNVERIFIED] HSBC offered $13.6 billion to acquire 100% of Hang Seng Bank, paying a 30% premium over market price. Hang Seng Bank has approximately HK$1.88 trillion (approximately $234 billion) in assets, representing roughly 7% of HSBC’s total assets of $3.21 trillion.

    HSBC yesterday offers 13.6 billion for 100% control of Hong Kong lender Hangen. Now Hangen has about 1.8 8 trillion Hong Kong or about 234 billion in assets and HSBC’s total assets are $3.21 trillion. Hangen Bank’s total assets represent a bit over 7% of HSBC’s total

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