HSBC Posts Biggest Intraday Jump Since 2009 After Selloff posted on Company News Board.

[idpickering]

Here; viewtopic.php?p=343314#p343314

Including this bit re dividends;

HSBC Holdings Plc rose the most in Hong Kong trading since 2009, recovering from a 25-year low, as its biggest shareholder raised its stake in a bet the embattled lender will return to paying dividends.

Ping An Insurance Group Co., which last week bought 10.8 million shares to boost its stake to 8%, remains confident in HSBC’s long-term prospects, a spokesperson said. The recent slump in the share price and valuation only increases HSBC’s appeal, the spokesperson said.

“Ping An believes HSBC’s suspension of dividend payments is a short-term issue and has been actively communicating with the lender about the possibility of restoring dividends in the future,” the spokesperson said

HSBC shares on Monday rose as much as 8.5%, the biggest intraday gain since April 2009, clawing back some of last week’s 8.9% loss. They were up 7.8% to HK$30.40 as of noon in Hong Kong.

[Dod101]

We all know that HSBC is likely to restore its dividends eventually so nothing new there. What is interesting is that Ping An is increasing its stake. It is a very large Chinese entity and as far as I know is a quasi State enterprise (although with its own quote) and I think the fact that it is showing faith in HSBC is excellent news. So does the Hong Kong market it would seem. As I said recently once it resumes its dividends it share price should come back.

It also may or may not indicate that HSBC might well throw in its lot with the Chinese as I have been advocating for a while. I wonder if the PRA has given them any indication of the OK to resume dividends or maybe make an announcement before the year end? That would presumably affect the other banks as well.

Thanks Ian. By the way this is of course from Bloomberg and not an official announcement.

Dod

[Dod101]

They are now quoted in London at about £3.10, a jump of about 10% reflecting the Hong Kong movement but really just taking it back to a still very low level. No RNS or anything but HK seems pretty happy and they probably know more than us about the Chinese activity on the share register.

Dod

[GoSeigen]

They are now quoted in London at about £3.10, a jump of about 10% reflecting the Hong Kong movement but really just taking it back to a still very low level. No RNS or anything but HK seems pretty happy and they probably know more than us about the Chinese activity on the share register.

Dod

Yes, still a classic falling knife.

GS

[Dod101]

Correct Ian, at least I had no issue and do not see the problem. Your post helped explain the sudden rather unexciting jump in the HSBC share price.

Dod

[daveh]

Ok. Thanks for coming back on this. I’m not an English major, but I’ve got to be almost 59 alright with how I use my words. it seems no one else has an issue?

Ian.

No issues, I did think the subject heading amusing as it looked as if HSBC had jumped in price due to a post on the company news board, but the post was pretty clear. I had more problems parsing GoSiegen's post as I hadn't noticed he had changed the subject heading!

[Dod101]

Ping An has only increased its stake by 0.05% before everyone gets carried away and I think the amount involved is small change for them but it is at least a positive although not exactly world shattering. I would not call HSBC a classic falling knife though. I just do not see it as too significant either way at this time. Could easily drift back again.

Dod

[csearle]

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