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HSBC sinks to lowest level since April 2009 on concerns about Beijing punishment, investigative report
- HSBC could be penalised for its role in assisting the US probe on Huawei, according to a report by state-owned media Global Times
- An investigative report also ties HSBC and other lenders to their role in moving cash for people and groups potentially involved in financial crimes
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HSBC Holdings slid to its lowest level in more than a decade in Hong Kong trading on concerns the UK lender may face sanctions by China, and was accused of helping move funds for individuals and companies that committed financial crimes.
The London-based lender tumbled 5.3 per cent to HK$29.30 at the close of trading, a level not seen since April 2009. About 120 million shares changed hands, more than four times the 30-day average daily trading volume, according to Bloomberg data.
Fuelling the sell-off was a weekend report by the Global Times, a tabloid owned by the Chinese Communist Party, that HSBC may be sanctioned by Beijing for assisting the US in the investigations into Huawei Technologies.
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The bank will probably be put on the list of “unreliable entities”, a punishment meted out to foreign companies seen by the Chinese government as compromising national security, according to the news report. Possible punitive measures under the list include restrictions on trade, investments and visa issuances.
Separately, HSBC was named among several global banks that transferred more than US$2 trillion for individuals and organisations tied to potential money laundering and other financial crimes, according to a report published by the International Consortium of Investigative Journalists. Other lenders named in the report include JPMorgan Chase and Standard Chartered.
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