Last checked at (Sharecast News) - HSBC surged on Monday after its biggest shareholder, China's Ping An Asset Management, lifted its stake in the bank.
Ping increased its stake to 8% from 7.95% despite escalating tensions between the US and China.
A spokesperson from Ping told Bloomberg that it remains confident in HSBC's long-term prospects and that the recent drop in the share price and valuation only increases HSBC's appeal.
"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 told Bloomberg.
At 0840 BST, the shares were up 10.3% at 312.50p.
In Hong Kong trading, HSBC shares rose the most since 2009, recovering from a 25-year low.
Neil Wilson, chief market analyst Markets.com, said that while the shareholding increase was only marginal, "the vote of confidence" has translated into a very substantial rally for the shares both in Hong Kong and London.
"HSBC had lately sunk to a 25-year low after being named in reports relating to money laundering, so maybe this was some simple averaging-in by Ping An.
"Shares are only back to where they were a fortnight ago - when stocks have been beaten down as much as HSBC they are often ripe for larger percentage swings as investors try to figure out what is the real value."
29 Nov 2023 16:40
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