HSBC seeks to reassure investors
10-03-2009
HSBC has attempted to shore up confidence among small shareholders in Hong Kong, after its share price tumbled 24-percent yesterday. Its chief executive for Asia Pacific, Sandy Flockhart, said the slump was caused by "technical trade". He rejected comments that there'd been panic selling in the market yesterday."This bank is making money, and it's making money for shareholders," Mr Flockhart said. "We will come through this storm." He said the bank had a "loyal base of shareholders". He was speaking just one day before a deadline for small investors to decide whether to take up additional HSBC shares. Mr Flockhart didn't answer questions on why the bank had failed issue a profit warning, why it failed to sell extra shares earlier and why it insisted it didn't need extra capital ahead of the rights issue announcement. HSBC shares rebounded 14 percent today to HK$37-60. The sudden drop in the bank's stock has triggered an inquiry by the Securities and Futures Commission, which is examining transactions during yesterday's 10-minute post-trading auction. "The SFC is aware of the movement of HSBC share prices during the closing auction yesterday. We are now making inquiries," said an SFC spokesman. The financial secretary, John Tsang, said the government is concerned about HSBC's sharp losses and that he had already met with SFC officials to discuss the issue. "I know many Hong Kong people are are very concerned about the ups and downs of the prices," Mr Tsang said.
