HSBC Slumps in Hong Kong as AT1 Debt Selloff Weighs on Banks
- HSBC shares fall by most in nearly six months on bond concerns
- Investors trying to figure out regional bank exposure to AT1s
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Source: Bloomberg
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Shares of European banks traded in Asia tumbled Monday, as investors weighed a collapse in the value of additional tier 1 bonds issued by lenders following the terms of the Credit Suisse Group AG’s rescue.
HSBC Holdings Plc shares closed 6.2% lower, the biggest drop in nearly six months, with its newly issued AT1 bond dropping by more than 5 cents. Standard Chartered Plc ended the session down 7.3%. The broader Hang Seng Index slid 2.7%.