HSBC shareholders are divided over their bank's mega rights issue but Thursday's vote is tipped to give management the approval to proceed with the fresh capital raising.
The parent of Hong Kong's largest lender will host a shareholders' meeting in London on Thursday to take a vote on the issue, and its Hong Kong shareholders can exercise their votes by proxy.
A poll by the South China Morning Post shows many investors and fund managers will not take up their voting entitlement or subscribe to the issue, but analysts believe the bank will comfortably secure enough votes to proceed with the deal.
HSBC requires at least 50 per cent of the shareholders votes to be in favour of increasing the group's authorised share capital and authorising its directors to allot new ordinary shares.
The lender needs 75 per cent of votes to pass the third resolution to disapply pre-emption rights, where necessary, in connection with the rights issue.
New York-based Knight Vinke Asset Management, which owns less than 1 per cent of HSBC, said it had not yet decided on its vote but would not subscribe to the rights issue.
