HSBC, Stanchart shares plunge in Hong Kong as Brexit vote sees ‘Leave’ camp ahead
With Brexit count continuing, banks remain silent over plans if ‘Leave’ vote wins
Shares in British banks HSBC and Standard Chartered trading in Hong Kong dropped significantly in early trading Friday morning as the results of the EU referendum were still being counted.
“A decision to leave will deal a blow to the British economy and will be felt on the balance sheets of British banks and those with exposure to the UK,” said Louis Wong, director at Phillip Securities.
HSBC Holdings shares were down 8.2 per cent in early morning trading and shares in Standard Chartered at one point were down 9.8 per cent.
Banks in the UK are keeping quiet about their plans as the Brexit referendum on EU membership is currently too close to call, but predictions in the early stages of vote counting suggest a “Leave” vote looks more likely.
Speaking in the months leading up to the referendum, senior figures from banks including JP Morgan, HSBC, and Deutsche Bank all indicated that they would consider moving staff away from the UK should the UK decide to leave the EU.
When contacted by the South China Morning Post this morning, neither Deutsche Bank nor HSBC said that they would comment on the matter, and JP Morgan could not immediately be reached.
The UK financial sector accounts for approximately a quarter of all EU financial services income, and nearly 40 per cent of European assets under management are managed from the UK.