UK News: Big Short investor targets Standard Chartered and HSBC in bid to cash in on Hong Kong crisis - PressFrom - United Kingdom
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UK NewsBig Short investor targets Standard Chartered and HSBC in bid to cash in on Hong Kong crisis

01:45  15 september  2019
01:45  15 september  2019 Source:   thisismoney.co.uk

Hong Kong protests combine with Mid-Autumn lantern celebrations

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British banks HSBC Holdings (005. Hong Kong ) and Standard (2888. Hong Kong ) have excellent Yet neither bank is wholly dependent on Asia, providing some cushion for investors worried about And both banks offer substantial payouts. HSBC boasts a dividend yield of nearly 5%, compared with

HSBC and Standard Chartered are exploring the feasibility of quitting London for a new home in Asia after Britain raised a tax on U.K. banks by Steve Slater and Sinead Cruise at Reuters believe HSBC could move back to Hong Kong , one of the few places that could handle its .6 trillion balance sheet

The investor made famous by the Hollywood movie The Big Short has placed bets against British banks Standard Chartered and HSBC in a bid to cash in on the Hong Kong crisis.

Steve Eisman, who was played by the actor Steve Carell in the Oscar-winning film about the sub-prime mortgage meltdown, was one of several managers who ran a fund at Neuberger Berman that ‘shorted’ Royal Bank of Scotland, Lloyds and Barclays.

But now he is in charge of his own fund at the New York firm, and is targeting two more British banks – Standard Chartered and HSBC – both of which have a focus on Hong Kong.

Big Short investor targets Standard Chartered and HSBC in bid to cash in on Hong Kong crisis © Provided by Associated Newspapers Limited The investor made famous by the Hollywood movie The Big Short has placed bets against British banks Standard Chartered and HSBC in a bid to cash in on the Hong Kong crisis

Eisman, who made his name betting that the US housing market would crash just before the financial crisis of 2008-9, said both were bets on the ‘risks in Hong Kong’ and rising violence in the former British colony.

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HSBC is grossly undervalued in Hong Kong or London. I had originally recommended shorting Standard Chartered Bank at 1,500 pence, written successive column this summer outlining the bearish case for the stock and projected a target of 650 pence in This target has now been achieved.

HSBC Holdings and Standard Chartered both trace their origins back to the days of the British HSBC ’s incoming Chairman Mark Tucker should be a happy man. The former chief of Hong Kong One is raising the bank ’s return on equity, which remains low versus international peers and short of

His newly formed Absolute Alpha Fund has taken out a short position worth about £1.4 million against Standard Chartered, according to analysts at short-selling expert Breakout Point.

It is one of the fund’s largest short positions – a trading tactic where investors borrow shares from another for a fee, sell them, and hope to buy them back later at a lower price, pocketing the difference before they are returned to their original owner.

Standard Chartered is the only British company listed among the fund’s major positions. However, in a video update posted on the firm’s website earlier this month, Eisman also revealed that he was shorting HSBC.

Hong Kong has been shaken by huge anti-government protests in the past few months, triggered by a controversial extradition bill.

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Find the latest STANDARD CHARTERED PLC ORD USD0 (STAN.L) stock quote, history, news and other vital information to help you with your stock And of all possible IPO venues, Kellner has chosen Hong Kong , which has of late resembled more of a war zone between protesters and police than a

Some investors are expected to quiz the banks ’ bosses on the issue at shareholder meetings, including an investor gathering in Hong Kong on Monday. Standard Chartered is set to pay 0 million, or about 9 percent of earnings. HSBC says it has two home markets, Britain and Hong Kong .

The protests, which began peacefully, have escalated into violent clashes between protesters and police. Last month, Standard Chartered and HSBC both spoke out against the violence and took out newspaper adverts calling for a peaceful resolution.

Big Short investor targets Standard Chartered and HSBC in bid to cash in on Hong Kong crisis © Provided by Associated Newspapers Limited The protests, which began peacefully, have escalated into violent clashes between protesters and police

Eisman said: ‘The new risk in the marketplace is Hong Kong. There are tremendous fears that this will not end well, that it will end in violence, and that will have bad ramifications for the global economy.’

His fund’s short position in Standard Chartered is far larger than that his previous fund took out against the other trio of British banks. Together, those three positions were worth just £1.1 million.

Eisman, who was given the name Mark Baum in the 2015 movie, also revealed he had raised his bets against other UK banks because of the rising risk of a No Deal Brexit.

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Standard Chartered Hong Kong offers a range of personal and business banking services: bank accounts, credit cards, loans, mortgages, investments, MPF and Market: Welcome to Standard Chartered Hong Kong . Enjoy the benefits of a flexible cash flow and no fixed repayment amount.

Making Hong Kong dollar or Renminbi transfers to most of the banks in Hong Kong is free*. For your own protection you are required to register these transfer accounts by submitting a request form to any HSBC branch in Hong Kong .

He said he doesn’t own shares in a European bank because of the state of the economy.

‘When European bank analysts come to see me, there’s a contest of who can convince Steve Eisman to buy [shares in] one European bank,’ he said. ‘No one’s won that contest yet. The way things are going it’s not going to happen for a while.’

Neuberger Berman declined to comment further.

SHORT-SELLERS BET £100 MILLION THAT CENTRICA WILL FALL

HEDGE funds are betting a record £100 million that shares in British Gas owner Centrica will continue to cool.

A disastrous year has seen chief executive Iain Conn step down after failing to stop customers switching suppliers, causing the share price to lose half its value. It closed on Friday at 76p.

Centrica narrowly avoided relegation from the FTSE 100 earlier this month but looks to be at risk at the next reshuffle in three months’ time. If it does drop out, investors betting against the shares will have cashed in.

Short positions – a way of making money if a share price falls rather than rises – in Centrica are at a record high, data from the Financial Conduct Authority reveals. More than 2.2 per cent of the shares – worth almost £100 million – are now in the hands of two short-sellers, London hedge fund Marshall Wace and investment giant BlackRock.

Marshall Wace, founded by billionaires Paul Marshall and Ian Wace, cranked up its bet, doubling the position in just two months.

Thousands of private investors hold Centrica shares bought when British Gas was privatised in 1986.

British Gas, still Britain’s largest energy supplier with 7.2 million customers, faces new competition. OVO Energy has broken into the ‘Big Six’ following a £500 million deal to buy SSE’s retail division.

Treasury ready to block £32bn LSE takeover over fears about national security and financial stability.
Government can wade in to potential takeovers if they threaten the national interest. Hong Kong Exchanges and Clearing, which wants the LSE, is 6 per cent-owned by the Hong Kong government. But the territory, officially part of China though it rules itself, has been rocked by violent pro-democracy protests as citizens worry that Beijing's Communist regime is tightening its grip. MPs and LSE shareholders have raised fears that selling the LSE could let China exert influence over Britain's financial system.

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