10:12 AM EDT, 04/29/2025 (MT Newswires) -- HSBC Holdings ( HSBC ) said Tuesday it expects its stake in Bank of Communications to decline to about 16% from 19.03% due to the Chinese bank's plan to sell shares to raise up to 120 billion renminbi ($16.45 billion).

The UK-based lender said it expects the stake reduction to result in a pre-tax loss of $1.20 billion to $1.60 billion to be recognized in the income statement, subject to the timing of execution, foreign exchange and other factors.

HSBC ( HSBC ) also said that the loss is expected to have "no material impact" on its capital ratios or distribution capacity.

HSBC ( HSBC ) shares were nearly 3% higher in recent trading.

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