HSBC sinks to lowest level since April 2009 on concerns about Beijing punishment, investigative report

HSBC sinks to lowest level since April 2009 on concerns about Beijing punishment, investigative report

  • HSBC may be penalised for its role in assisting the US probe on Huawei, according to a report by state-owned media Global Times
  • An investigative report also ties HSBC and other lenders to their role in moving cash for people and groups potentially involved in financial crimes

HSBC Holdings slid to its lowest level in more than a decade in Hong Kong trading on concerns the UK lender may face sanctions by China, and was accused of helping move funds for individuals and companies that committed financial crimes.

The London-based lender fell by as much as 4.4 per cent to HK$29.60 at the lunch break, on course for the lowest close since April 2009. About 71 million shares changed hands, more than five times the 30-day average daily trading volume, according to Bloomberg data.

Fuelling the sell-off was a weekend report by the Global Times, a tabloid owned by the Chinese Communist Party, that HSBC may be sanctioned by Beijing for assisting the US in the investigations into Huawei Technologies.