HSBC share price declined after Hong Kong and Singapore suspended their planned travel bubble as the number of coronavirus cases rose in Singapore. The bank’s shares are down by more than 1% and are trading at 444p in London. Similarly, Standard Chartered share price also retreated because of the announcement.
What happened: In a statement released today, Edward Yau Tang-wah, Hong Kong’s commerce minister, and Singapore’s S. Iswaran, said that the two cities would suspend their travel bubble for the second time. The announcement came as the cities continued to battle a new wave of the coronavirus illness.
Meanwhile, HSBC is continuing its pivot to the Asia region. The company has already transferred some of its senior leaders to the city and the company is banking on the upcoming Wealth Management Connect scheme. According to the SCMP, it expects the scheme wlll help it to double its profit from high net-worth customers in Hong Kong. For starters, the scheme will allow residents of Macau and Hong Kong to buy assets offered by banks in the Greater Bay Area. In a statement, a bank’s representative said:
“We are ready to roll out our services once the regulators announce the launch timetable and other details. We aim to be one of the largest players in the scheme.”
HSBC share price forecast
A look at the daily chart shows that the HSBC stock has been moving sideways in the past few days. The shares have struggled moving above the important resistance at 456p. It has also formed a rectangle pattern whose support is at 412p.
It is also being supported by the 50-day and 100-day exponential moving averages (EMA) and is slightly above the 50% Fibonacci retracement at 440p. Therefore, there is a possibility that the stock will soon bounce back higher, with the next main target being at 477p, which is at the 38.2% retracement and 7% above the current price.