The HSBC share price soared by more than 2% in Hong Kong as investors waited for tomorrow’s earnings. They are also reacting to the latest news that the company is intensifying its emphasis on the Chinese market.
HSBC news: In a report earlier today, the Financial Times reported that the company is increasing its pivot to Asia program. It has already moved some of its top executives from London to Hong Kong and scrapped some of its retail operations in the US.
Some of the top executives who have moved to Hong Kong are the head of banking and markets, head of wealth and personal banking, and global commercial banking. The bank has also increased its wealth managers in China as it tries to compete with UBS and Credit Suisse.
HSBC share price is also rising a day ahead of its annual results. Analysts expect the bank to report relatively strong results helped by its Asian business. This will be unlike what Barclays and NatWest Banks reported last week.
HSBC share price forecast
After being under pressure last year, HSBC shares in London rose by more than 50% from September. The stock ended the week at 423p, which is a few points below the year-to-date high of 433p.
On the four-hour chart, we see that the stock has been moving sideways. In fact, it has formed what seems like a horizontal channel whose support is at 372.60p. The price has also remained slightly above the 25-day and 15-day weighted moving averages.
While the outlook for the stock is neutral, it has a bullish bias. If this happens, the next key level to watch will be the psychological level of 450p. However, there is also a possibility that bears will come in and retest the support at 377p.
HSBC shares chart