Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

HSBC shares climb in Hong Kong as release of Huawei exec seen easing tensions

Published 27/09/2021, 06:44
Updated 27/09/2021, 07:21
© Reuters. FILE PHOTO: A logo of HSBC is seen on its headquarters at the financial Central district in Hong Kong, China August 4, 2020. REUTERS/Tyrone Siu/File Photo  GLOBAL BUSINESS WEEK AHEAD

© Reuters. FILE PHOTO: A logo of HSBC is seen on its headquarters at the financial Central district in Hong Kong, China August 4, 2020. REUTERS/Tyrone Siu/File Photo GLOBAL BUSINESS WEEK AHEAD

HONG KONG (Reuters) - Hong Kong-listed shares of HSBC rose by the most in four months on Monday as the release of an executive at telecoms company Huawei fuelled hopes the global bank would benefit from an easing in tensions between the United States and China.

Huawei Chief Financial Officer Meng Wanzhou arrived in China on Saturday ending her near three-year U.S. extradition fight, the same day two Canadians detained by Beijing for more than 1,000 days returned home.

Meng https://www.reuters.com/business/huawei-heir-apparent-prepares-life-after-three-years-canada-court-battle-2021-09-24, the daughter of Huawei Technologies founder Ren Zhengfei, was allowed to go home after reaching an agreement with U.S. prosecutors on Friday over fraud charges for allegedly misleading HSBC in 2013 about the telecommunications equipment giant's business dealings in Iran.

HSBC stock rose as much as 3.5% to HK$41.10 in their biggest intraday percentage gain since May 28. HSBC was the second-biggest gainer in the Hang Seng Finance Index. The stock was up 2.1% in the afternoon trade.

"Anticipation that the bank's mainland business may benefit from the easing tension provides an additional support to HSBC," said Linus Yip, chief strategist at First Shanghai Group, adding bank stocks were being broadly supported by rising U.S. Treasury bills.

HSBC, whose mainland and Hong Kong operations accounted for 39% of its annual $50.4 billion in revenue in 2020, declined to comment.

© Reuters. FILE PHOTO: A logo of HSBC is seen on its headquarters at the financial Central district in Hong Kong, China August 4, 2020. REUTERS/Tyrone Siu/File Photo  GLOBAL BUSINESS WEEK AHEAD

The extradition drama had been a central source of discord between Beijing and Washington, with Chinese officials signalling that the case needed to be dropped to help end a diplomatic stalemate.

The agreement opens U.S. President Joe Biden to criticism from Washington's China hawks who argue his administration is capitulating to China and one of its top companies at the centre of a global technology rivalry between the two countries.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.