HSBC collapses in Hong Kong under pressure from several fronts
Shares of HSBC Holdings Plc plummeted this morning on the Hong Kong Stock Exchange by 4.4% to their lowest level since 1995 and below their latest low in March 2009, closing at HK $29.60. The British bank also closed Friday's session lower on the London Stock Exchange, with a 2.19% drop to 304 pounds.
Europe's largest bank is facing several conflicts that have led to investor mistrust. In China, it is a candidate for the "list of untrustworthy entities", according to Bloomberg, which means that the Chinese government has put this entity on a list of threats to national security.
These problems were exacerbated by the publication of a report by the International Consortium of Investigative Journalists that revealed that several banks have breached the basic regulations in the fight against money laundering.
All of this is added to the problems that the international banking sector is already dragging on due to low interest rates and the impact of the coronavirus pandemic.
Source: Admiral Markets MetaTrader 5. HSBC CFD monthly chart. Data range: May 1995, to September 2020. Prepared on September 21, 2020, at 8 am. Keep in mind that past performance does not guarantee future profitability.
The monthly chart of the Contract for Difference (CFD) on HSBC, in dollars, clearly shows the minimum that the bank's shares have marked.
If you want to invest in CFDs on HSBC and take advantage of the downtrend in its shares, you can open a live trading account with Admiral Markets UK Ltd. Just click on the following banner:
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