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Business deals

HSBC investors cheer $10bn deal to sell Canada unit

Shares jump on hopes for beefed-up dividends and Asia focus

HSBC Holdings will book a $5.7 billion pretax gain on the sale of its Canadian business to Royal Bank of Canada and may use the proceeds to pay shareholders a one-off dividend or buy back shares.   © Reuters

HONG KONG -- Investors on Wednesday backed HSBC Holdings' planned $10.1 billion sale of its Canadian business as part of an international pullback by the bank, which faces pressure to focus on Asia to boost profits.

The lender's shares rose as much as 2.8% in Hong Kong after HSBC said late Tuesday it would book a $5.7 billion pretax gain on the sale to Royal Bank of Canada and may use the proceeds to pay shareholders a one-off dividend or buy back shares. The stock finished Wednesday's session at 47.15 Hong Kong dollars, up 1.95%.

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