HSBC share price dropped by more than 1.6% in Hong Kong today as part of the overall sell-off of stocks in the city. The stock will also be in the spotlight today ahead of a key testimony of its senior executives by UK MPs. The HSBC stock ended the day at 398p, which is about 5.6% below its highest level this year.
HSBC news: HSBC will be in the spotlight today as a UK parliamentary committee questions key executives about its dealings in China. Of particular interest is why the bank signed a letter that supported the Hong Kong security law.
Also, the bank will be questioned about its decision to close the account of Ted Hui, a pro-democracy activist. HSBC has also closed or suspended accounts of other activists in the city. Notably, according to The Times, the officers will be questioned on the number of employees who are members of the Communist party.
HSBC has been under pressure from both Western governments like the UK and the US. It has also been eyed critically by Chinese authorities because of its Western ties. Of important note is that the bank is attempting to expand to the Chinese market where it is eying the wealthy. Its share price is about 30% below its 2020 high.
HSBC share price will also be in the spotlight because of the strong earnings by UBS. The Swiss bank said that its profit surged in the fourth quarter. The profit rose by 137% to more than $1.37 billion while the operating income rose to more than $8.12 billion. The company increased its dividend and launched a buyback program.
HSBC share price forecast
The daily chart shows that the HSBC share price has been moving sideways in the past few weeks. The stock found substantial resistance at 422p, which was along the 38.2% Fibonacci retracement level. Also, the shares are along the 25-day and 15-day exponential moving averages.
Therefore, in my view, the stock will likely continue dropping as investors eye the important support at 372p, which is the lower side of the channel.
HSBC Shares Chart