HSBC has angered the United States over the recent situation in Hong Kong with U.S. Secretary of State Michael Pompeo accusing the bank of aiding the Chinese government’s clampdown in the country.
Pompeo was reacting to reports that HSBC had stopped executives of Hong Kong publisher Next Media from accessing credit cards and bank accounts following the arrest of the company’s founder, Jimmy Lai. The Secretary also claimed that the bank was continuing to provide banking to individuals which have been sanctioned by the U.S.
The criticism is another piece of negative news for the bank in what has been a troubling period. Last year’s protests in Hong Kong saw country’s GDP turn negative in the third quarter of 2019 and as the situation began to improve, the coronavirus outbreak struck. A further souring of events in Hong Kong has seen China move to increase its influence in the region, which led to problems with the U.K., who considered offering U.K. citizenship to Hong Kong nationals- a move which angered China.
HSBC recently reported a drop in profit-before-tax of 67% in the second quarter of 2020. The bank also confirmed it was “accelerating” its turnaround plans, which will see 35,000 jobs cut.
HSBC Technical Outlook
HSBC is moving closer to the key support level at 287 and it is likely that the share price will test this target. The monthly setup looks bearish and HSBC is struggling to find friends. Investors will need to wait for a buy setup if they want to buy the stock. The Investing Cube Trading Course is a good source for learning how to identify bullish setups in different assets.
HSBC Monthly Chart