Jump to content
Sign in to follow this  
hoz

Is HSBC about to crash?

Recommended Posts

spooks

I had been very happy with HSBC for over 30 years for all the reasons given.

 

 

Now it has gone all horribly wrong and I am still in the dark as to why they have done what they have done 

  • Like 1

Share this post


Link to post
Share on other sites
LastManStanding

My reason for withdrawing all my money from HSBC every time I go is that I don't trust the bank.  They just look at me as I am kidding.  They just say HSBC is the biggest bank ....blah blah blah.  

Share this post


Link to post
Share on other sites
Davaoeno

My reason for withdrawing all my money from HSBC every time I go is that I don't trust the bank.  They just look at me as I am kidding.  They just say HSBC is the biggest bank ....blah blah blah.  

 

maybe I'm a little thick but how can you remove all your money more than once ??    [ unless of course  you kept putting more money in there but why would you put more money into a bank that you dont trust?]

Edited by Davaoeno
  • Like 2

Share this post


Link to post
Share on other sites
goldote

A while ago they paid the biggest fine ever for money laundering.

They also sometimes ask me where I got the money I'm depositing.

I also see other situations where US regs allow them to rationalize rude enforcment. 

But I've always had good luck with HSBC.

It's always fun though to start panic.  I see a lot of it lately.

Especially from metal brokers.

Share this post


Link to post
Share on other sites
HeyMike

I have never been asked where I got my money for a deposit, but if I was asked, I know my standard answer would be... yo' mama.

Share this post


Link to post
Share on other sites
AdamISZ

Now is not the time to worry about bank runs. Keep your eye on the banking system within the Chinese mainland. I tend to think that current EM worries really stem from that, and if serious cracks start to appear there (rather than stuff that can just be papered over with another trillion printed RMB), there will be hell to pay all over the world. That would be the time to start thinking about whether your bank is safe.

Share this post


Link to post
Share on other sites
NHANORAK
Keep your eye on the banking system within the Chinese mainland

 

Very true, there are some serious loans sitting in some Chinese bank loan books that have little, or no chance of ever being paid back. Banks were "instructed" to give loans to local authorities and developers to fuel the building boom over there. Now there are new cities built with ten of thousands of properties sitting empty, because they've been unable to sell them. There are shopping malls built that are like ghost towns with no long term future. These banks will need Government support to survivie.

 

This is just one example:

http://www.dailymail.co.uk/news/article-2259733/New-South-China-Shopping-Mall-seven-years-opened-Dongguan-China.html

Edited by NHANORAK

Share this post


Link to post
Share on other sites
MaKe

 

 

the banking system within the Chinese mainland

 

 

Good thing that HSBC isn't a Chinese bank

Share this post


Link to post
Share on other sites
AdamISZ

Good thing that HSBC isn't a Chinese bank

Did anyone say it was?

Share this post


Link to post
Share on other sites
RogerDuMond

Good thing that HSBC isn't a Chinese bank

 

One could argue that it is. It started in Hong Kong in 1865 and 1 month later in Shanghai it became British in 1991 when they purchased UK based Midland Bank. The only way they could get approval for the purchase was to become British based thus was born HSBC Holding Company. The banking portion of the holding company is still run out of Shanghai by the current CEO Peter Wong Tung Shun.

Share this post


Link to post
Share on other sites
MaKe

Did anyone say it was?

No, but the  thread was about HSBC going belly up and then suddenly there was a comment about Chinese banks and all their

hidden debt....( side note: Fortunately for the Chinese, their central bank holds tons of foreign currency, more than country in history.  )

 

Regardless of the Chinese issue, it is good that HSBC isn't Chinese, because no one in their right mind would invest there

if it was a Chinese bank as the Chinese are not the least bit truthful with regard to much of anything, least of all monetary reporting....

 

 

Share this post


Link to post
Share on other sites
NHANORAK

This was posted by the respected FE Trustnet on Saturday.

 

http://www.trustnet.com/News/485134/michael-clark-three-safe-income-stocks-for-your-portfolio/2/1/?utm_medium=email&utm_source=FE&utm_campaign=3619116_20140131_weekend&utm_content=Article2clark&dm_i=10MZ,25KJ0,9FSM0B,7S9LE,1

 

HSBC

Clark says that HSBC is one of the highest quality banks available to investors, and with a market cap of more than £125bn it is also the second-largest company listed on the FTSE 100.

The manager says it has a good business here in the UK and also offers decent exposure to the Far East and emerging markets. However, the main reason he holds a lot of shares in the company is because the management team’s discipline makes it an ideal buy for income investors.

“HSBC is the one UK bank that didn’t need rescuing and it is clearly well-funded as it survived the financial crisis without support. It also basically stabilised interbank lending on its own,” Clark explained.

The manager says that HSBC’s forward dividend yield is at least 5.2 per cent, which is promising for income investors. However, he is more excited about the expected dividend increase this year.

On top of that, given its link to the emerging markets, the manager says that HSBC’s valuation is looking very attractive from an historical point of view and as a result he has been adding to his exposure recently.

HSBC’s shareholders have had a tough time of it recently, however, with the stock losing money over the past six and 12 months.

Performance of stock over 1yr

20140128_clark_3.png

Source: FE Analytics

It is still a very popular company, with more than 350 fund managers counting it as a top-10 holding.
 

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.
Sign in to follow this  

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use, Privacy Policy and Guidelines. We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue..