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HSBC’s Stake in BoCom to be Diluted Following Share Issuance

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HSBC’s Stake in BoCom to be Diluted Following Share Issuance

HSBC Holdings ( (GB:HSBA) ) has issued an announcement.

HSBC Holdings plc announced that Bank of Communications Co., Ltd (BoCom) plans to issue 13,777,267,506 new A ordinary shares at an initial price of RMB8.71. This move is part of broader policy actions by Chinese financial authorities to stimulate economic growth. If approved, the issuance will dilute HSBC’s stake in BoCom from 19.03% to 16.06%. Despite this dilution, the impact on HSBC’s CET1 capital ratio is expected to be insignificant, and the company will continue to recognize its share of BoCom’s profit or loss.

More about HSBC Holdings

HSBC Holdings plc, headquartered in London, is the parent company of HSBC. It operates globally with offices in 58 countries and territories, making it one of the world’s largest banking and financial services organizations with assets totaling US$3,017 billion as of December 31, 2024.

YTD Price Performance: 12.75%

Average Trading Volume: 27,779,077

Technical Sentiment Signal: Sell

Current Market Cap: £157.1B

See more data about HSBA stock on TipRanks’ Stock Analysis page.

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