27 Sept 2021
HSBC Shares Rise after Huawei Exec Released
The Index Today
HSBC shares listed in Honk Kong stock exchange rose on Monday after four months of fall. The share rise was seen as a result of the release of Huawei executive and the easing tensions between US and China.
Meng Wanzhou, CFO at Huawei was freed by Canadian authorities after a three year extradition case. In return, Chinese officials allowed two detained Canadians to finally fly home after forming an agreement with prosecutors.
HSBC stocks rose by 3.5% to HK$41.10, recording their first biggest intraday percentage since May. The firm had the biggest gain on the Hang Seng Finance Index with stocks going up 2.1% during the afternoon trade.
Linus Yip, chief strategist at First Shanghai Group commented, “Anticipation that the bank’s mainland business may benefit from the easing tension provides an additional support to HSBC.” In addition to this, the rising U.S Treasury bills have added to bank stocks.
Mainland operations of HSBC account for 39% of its $50.4 billion revenue recorded for last year. Due to the ongoing extradition case, relations between Washington and China deteriorated and were forced to end the stalemate.