{"id":42064,"date":"2025-07-30T11:36:15","date_gmt":"2025-07-30T11:36:15","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/30\/heres-why-the-hsbc-share-price-crashed-in-hong-kong-after-earnings\/"},"modified":"2025-07-30T11:36:15","modified_gmt":"2025-07-30T11:36:15","slug":"heres-why-the-hsbc-share-price-crashed-in-hong-kong-after-earnings","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/30\/heres-why-the-hsbc-share-price-crashed-in-hong-kong-after-earnings\/","title":{"rendered":"Here\u2019s why the HSBC share price crashed in Hong Kong after earnings"},"content":{"rendered":"
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The HSBC share price plummeted in Hong Kong after the company reported weaker-than-expected results and announced a $3 billion share buyback. It was trading at $97.50 on Tuesday, a few points below the year-to-date high of $102p. It has crashed to the lowest point since July 21.<\/p>\n

HSBC share buyback and earnings<\/h2>\n

The HSBC stock price plummeted after the company published weaker-than-expected financial results. In a report, the company said that the profit before tax came in at $6.3 billion in the second quarter, lower than the expected $6.99 billion. <\/p>\n

HSBC\u2019s revenue came in at $16.5 billion in the second quarter, lower than the median estimate of $16.67 billion. This performance happened after the company recorded a $2.1 billion impairment charge linked to its Bank of Communications. <\/p>\n

HSBC\u2019s profit before tax plunged by $5.7 billion in the year\u2019s first half. It blamed this crash to its BoCom impairment and the adverse impact of the $3.6 billion net gain related to its exit of the Canadian operations.  HSBC also blamed the ongoing trade war, with the CEO noting<\/a>:<\/p>\n

\n

\u201cWhile we would expect the direct impact from tariffs to have a relatively modest impact on our revenue, the broader macroeconomic deterioration may see RoTE excluding notable items fall outside of our mid-teens targeted range in future years.\u201d<\/p>\n<\/blockquote>\n

More data released today, July 30, were weaker-than-expected. For example, the return on tangible equity (RoTE) was 14.7%, much lower than the previous 21.4%. <\/p>\n

One of the few positive aspects of the report was that HSBC will continue to reduce its outstanding shares by implementing a $3 billion share buyback. Data shows that the outstanding shares have been falling in the past few years, moving from over 20 billion in Hong Kong to 17.71 billion today. <\/p>\n

However, the $3 billion buyback was in line with expectations, as we wrote here<\/a>. <\/strong>This is one of the top reasons why the stock pulled back after its buyback announcement. <\/p>\n

The other notable news was that the company\u2019s wealth management business continued doing well. Its fee and other income jumped by 22%, helped by its insurance, investment distribution, and private banking businesses. This business will continue to offset the others as interest rates fall.<\/p>\n

HSBC share price analysis<\/h2>\n
HSBC stock chart | Source: TradingView<\/a><\/figcaption><\/figure>\n

The daily chart shows that the HSBC stock price retreated from the year-to-date high of $102.3 to $97.50 today. It has tumbled to the lowest level since July 21. <\/p>\n

This decline happened after the stock formed a rising wedge pattern, which comprises of two ascending and converging trendlines. This is one of the most bearish patterns in technical analysis.<\/p>\n

The Relative Strength Index (RSI) was also in the overbought level, while the two lines of the MACD have formed a bearish crossover pattern. <\/p>\n

Therefore, the HSBC share price will likely continue falling to the 50-day moving average at $95 and then resume the uptrend. <\/p>\n

The post Here\u2019s why the HSBC share price crashed in Hong Kong after earnings<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The HSBC share price plummeted in Hong Kong after the company reported weaker-than-expected results and announced a $3 billion share buyback. It was trading at $97.50 on Tuesday, a few points below the year-to-date high of $102p. It has crashed to the lowest point since July 21. HSBC share buyback and earnings The HSBC stock <\/p>\n","protected":false},"author":1,"featured_media":42065,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-42064","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=42064"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42064\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/42065"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=42064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=42064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=42064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}