World

HSBC was stung by China’s economic slowdown after a “messy” quarter including a $3bn (£2.4bn) writedown sent its share price tumbling by 8pc in one of the worst falls in the bank’s history. China’s crippling economic woes prompted the Asia-focused lender to slash the value of its investment in Bank of Communications (BoCom), one of China’s “Big Five”. The devaluation of the Argentine peso in December because hyperinflation in the country also shaved $500m from profits. This contributed to an 80pc fall in fourth-quarter profits to $1bn, marring an annual record as gains for the entire year rose to $30.3bn. Citigroup analyst Andrew Coombs said the final quarter was “messy” due to the one-off impairments, with the share price fall wiping £10bn from the bank’s value. HSBC chief...

The start of the year saw Chinese stocks tumbling to five-year lows on growth concerns and deflation deepening to levels unseen since the global financial crisis, prompting comparisons with the 2015 turmoil that forced policymakers into action. As the annual meeting of China's parliament approaches next month, its leaders are facing the greatest pressure in almost a decade to take bold policy decisions that safeguard the economy's long-term growth potential. The start of the year saw Chinese stocks tumbling to five-year lows on growth concerns and deflation deepening to levels unseen since the global financial crisis, prompting comparisons with the 2015 turmoil that forced policymakers into action. "The last time the Chinese leadership faced this kind of pressure was in 2015," sa...

As China grapples with the fallout from a $7 trillion stock decline, officials are gearing up to brief President Xi Jinping on measures to stabilize the market. This move signifies Beijing’s urgency to restore investor confidence and halt the market’s slide, which has erased a significant value from Hong Kong and China equities since their 2021 peaks. The Shanghai Composite Index, for example, is down over 21% from its high in December 2021. The downturn has been attributed to a variety of factors, including regulatory crackdowns, geopolitical tensions, real estate defaults and internal economic pressures, prompting a call for decisive action to prevent further damage to consumer confidence, especially as the country approached the Lunar New Year holiday. China’s real estate sector ...

Analysts say Beijing needs to roll out measures to stimulate greater domestic consumption amid slowing growth. China last year narrowly beat its economic growth target of 5 percent, one of its lowest benchmarks in decades. Looking ahead, analysts expect the economy to face stiff headwinds in the Year of the Dragon. Against the backdrop of a crisis-stricken property market, subdued export earnings and crackdowns on private industry, international investors are pulling out of Chinese stocks at record rates. With business sentiment faltering, economists broadly agree that Beijing needs to roll out measures to stimulate more domestic consumption. While some analysts are calling for radical measures to jolt China’s economy, expectations are subdued owing to Beijing’s aversion to br...