HSBC shares hit year-to-date low after May's surprise election plan
Other British-related stocks show mixed reactions
NORIKO OKEMOTO, NQN staff writer
HONG KONG -- Shares in British bank HSBC Holdings are facing selling pressure resulting from Europe's political risk on Wednesday, after British Prime Minister Theresa May on Tuesday announced plans to call a snap general election on June 8.
At one point on Wednesday, HSBC shares fell 0.550 Hong Kong dollars, or 0.88%, from Tuesday to a year-to-date low of HK$61.850, their lowest point since Dec. 30, 2016.
HSBC, a stock that represents the Hong Kong market, is popular among foreign investors. Alex Wong, director of asset management at Ample Finance Group, said the selling of financial stocks in the U.S. the previous day dragged down HSBC shares on Wednesday.
Some market watchers believe the pound's appreciation against the dollar on Tuesday in New York is a boon for HSBC, which has properties and other assets in the U.K. Wong, on the other hand, predicted that HSBC, which mainly operates in Hong Kong, is less likely to benefit from the strong pound, as most of its sales are in Hong Kong dollars, which move in tandem with the U.S. dollar.
Meanwhile, shares in British bank Standard Chartered rose on Wednesday in Hong Kong. Among companies that are owned by business magnate Li Ka-shing and operate businesses in the U.K., shares in CK Hutchison Holdings and Power Assets Holdings fell slightly, while Cheung Kong Infrastructure Holdings saw its share price increase.