HSBC share price: Lender to seek wealth management asset acquisitions

on Feb 9, 2017
Updated: Oct 21, 2019

HSBC Holdings (LON:HSBA) is planning to pursue deals to expand in asset and wealth management, Bloomberg has revealed. The move would come with the blue-chip lender looking to capitalise on the growing funds of the middle class in Asia and diversify its business away from traditional lending.

HSBC’s share price has been steady in London this morning, having inched 0.37 percent higher to 682.40p as of 08:12 GMT, slightly outperforming the broader market, with the benchmark FTSE 100 index currently 0.05 percent better off at 7,192.39 points. The group’s shares gained more than 58 percent over the past year, and are up by some four percent in the year-to-date.
People with knowledge of the matter told Bloomberg yesterday that HSBC was looking to make three or four acquisitions globally this year, with a particular focus on China. The targets would be portfolios of assets or platforms allowing the blue-chip bank to offer a wider range of products, rather than sizeable asset-management companies.

The move would come with the group’s chief executive Stuart Gulliver under pressure to improve profitability and share price performance at Europe’s biggest lender. HSBC is currently in the middle of a programme which will see the group invest in the Pearl River Delta region around Hong Kong. Europe’s biggest bank meanwhile is set to relocate staff responsible for generating around a fifth of its UK-based trading revenue to Paris with Britain moving to leave the European Union.
In analyst news, Deutsche Bank, which has a ‘neutral’ rating on HSBC, set a price target on the shares of 579p this week. According to MarketBeat, the FTSE 100 lender currently has a consensus ‘hold’ rating and an average price target of 590.43p. HSBC is scheduled to update investors on its full-year performance on February 21.
As of 08:32 GMT, Thursday, 09 February, HSBC Holdings plc share price is 683.00p.

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