HSBC shares climb in Hong Kong as release of Huawei exec seen easing tensions
Hong Kong-listed shares of HSBC rose by the most in four
months on Monday as the release of an executive at telecoms company Huawei
fuelled hopes the global bank would benefit from an easing in tensions between
the United States and China.
Huawei Chief Financial Officer Meng Wanzhou arrived in China on Saturday ending her near three-year U.S. extradition fight, the same day two Canadians detained by Beijing for more than 1,000 days returned home.
Meng heir-apparent-prepares-life-after-three-years-canada-court-battle-2021-09-24,
the daughter of Huawei Technologies founder Ren Zhengfei, was allowed to go
home after reaching an agreement with U.S. prosecutors on Friday over fraud
charges for allegedly misleading HSBC in 2013 about the telecommunications
equipment giant's business dealings in Iran.
HSBC stock rose as much as 3.5per cent to HKUS$41.10 in
their biggest intraday percentage gain since May 28. HSBC was the
second-biggest gainer in the Hang Seng Finance Index. The stock was up 2.1per
cent in the afternoon trade.
"Anticipation that the bank's mainland business may
benefit from the easing tension provides an additional support to HSBC,"
said Linus Yip, chief strategist at First Shanghai Group, adding bank stocks
were being broadly supported by rising U.S. Treasury bills.
HSBC, whose mainland and Hong Kong operations accounted for
39per cent of its annual US$50.4 billion in revenue in 2020, declined to comment.
The extradition drama had been a central source of discord
between Beijing and Washington, with Chinese officials signalling that the case
needed to be dropped to help end a diplomatic stalemate.
The agreement opens U.S. President Joe Biden to criticism
from Washington's China hawks who argue his administration is capitulating to
China and one of its top companies at the centre of a global technology rivalry
between the two countries.
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