PanamaTimes

Tuesday, Oct 27, 2026

HSBC shares fall to 25-year low as fears for China business grow

HSBC shares fall to 25-year low as fears for China business grow

HSBC's shares plunged to historic lows on Monday as the bank was hit by new fears about its business in China and a report accusing it and other major lenders of failing to stop criminals from moving dirty money around the world.

The stock closed down more than 5% in Hong Kong at its lowest level since 1995, according to data provider Refinitiv. The pain continued in London, where the bank's shares were last trading down 6% at another multi-decade low.

This has already been a terrible year for HSBC's shareholders as the bank grapples with a global recession, plunging profits, US-China tensions and a political firestorm in Hong Kong.

But the bank was slapped with even more bad news this weekend, with Chinese state media suggesting that it could be included on a list of companies which could face restrictions on doing business in China.

"It isn't good," said Stephen Innes, chief global market strategist at AxiCorp. "Fear of the unknown is what triggers investors to cut and run."


Trouble in China

HSBC's woes in China have been well documented. The London-based lender traces its roots to Hong Kong and has carved out a lucrative role in global banking for decades by straddling East and West. Asia delivered more than 80% of HSBC's profits last year.

But tensions between Beijing and the West have made HSBC a popular punching bag in Chinese state media, and the bank has long been floated as a potential candidate for a list of "unreliable" entities that Beijing could sanction.

On Saturday, investors were given another reason to worry about China when the country's Commerce Ministry laid out for the first time how that long-rumored list would work.

Any business placed on the so-called "unreliable entity list" could be restricted from investing in China, participating in Chinese imports or exports, or having its staff enter the country, the ministry said in a statement.

The ministry did not say which companies are on that list. But HSBC's possible inclusion was once again mentioned this weekend by the Chinese state-run tabloid Global Times, which also cited several American companies as possible targets.

HSBC has warned investors about the potential consequences from worsening US-China relations. CEO Noel Quinn said last month that the tensions "inevitably create challenging situations for an organization with HSBC's footprint."

And in July, the bank denied longstanding accusations from Chinese state media that it "framed" Huawei to help the US government. (The Chinese tech firm is in a tense legal battle with the United States, and a Canadian court is considering whether to extradite Huawei's CFO to stand trial in the United States.)

Further action from China may not be imminent, though. The Global Times also said that "there was no timetable or specific companies earmarked for the list," citing an official at China's Commerce Ministry. Instead, the message was meant to show that "China is sending a stern warning," according to the publication.

Innes said the move reminded investors of the bank's vulnerabilities. "If they can't do business in China, it's going to be a tremendous hit to both top and bottom lines," he told CNN Business.


Suspicious activity

Adding to HSBC's problems, BuzzFeed reported on Sunday that some of the world's biggest banks, including HSBC, "continued to move money for suspected criminals" despite documented concerns about certain transactions.

The publication said it had investigated more than 2,100 suspicious activity reports (SARs) compiled by the US Treasury Department's Financial Crimes Enforcement Network, which is known as "Fincen," to support its claims.

BuzzFeed said it shared the documents with the International Consortium of Investigative Journalists, an organization that has published other investigations involving suspicious financial activity, such as the Panama Papers and the Paradise Papers. CNN Business has not independently verified any of the Fincen documents.

In a statement Monday, HSBC said that it would "not comment on suspicious activity reporting."

It defended its efforts to "combat financial crime," saying that it had worked with a third-party monitor to overhaul its practices starting in 2012. It added that the bank is a "much safer institution" than it was back then.

In December 2012, HSBC agreed with US regulators to pay $1.9 billion to resolve money-laundering allegations. The Department of Justice and US Treasury said then that HSBC had allowed the most notorious international drug cartels to launder billions of dollars across borders.

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Advertising trick: Pepsi’s Harrier Jet Commercial Led to a $700,000 Court Fight
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Trump’s Top General Seeks an Exit Strategy From Iran War, Report Says
Brock Lesnar Retires From Wrestling, Closing a Career of Rare Athletic Range and Lasting Controversy
Trump-Era Policy Shifts Test the Boundaries of U.S. Institutions
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Breaking With the Past: One of the World’s Smallest Countries Changes Its Name
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Cuba’s Grid Fails Again as Fuel Crisis Deepens
Nazca Lines Flight Crash Kills Thirteen as Peru Suspends Aerodiana
OpenAI Faces Demands for Full Disclosure After Models Breach Hugging Face
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Why Americans Queue for $15 Ice Cream and a $100 Caviar Pint
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Spain Defeats Argentina in Extra Time to Win Second World Cup
Venezuela’s Earthquake Devastation Turns U.S. Investment Opportunity Into a Thirty-Seven Billion Dollar Reconstruction Challenge
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The AI Race Enters Its Infrastructure Era
Colombia Influencer Dies After Cosmetic Procedure at Unlicensed Bogota Salon
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
On the Island That Did Not Yield to Trump, There Is No Electricity, and 10 Million Live in Darkness
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Global Crisis Alert: Escalating Middle East Tensions and UK Political Upheaval
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
×