(Reuters) -HSBC ( HSBC ) shares fell 6% in London from near record levels after the British bank announced plans to buy out minorities in its majority-held Hang Seng Bank ( HSNGF ) subsidiary in a deal worth around $13.6 billion.
"While strategic rationale is compelling, and this seems a sensible overall use of capital, we expect investors will query why now and at this price," Citi analyst Andrew Coombs wrote.
Hang Seng Bank ( HSNGF ) has come under fire for its performance and exposure to property markets in Hong Kong and mainland China.
HSBC ( HSBC ) was the biggest faller on the FTSE 100 in early morning and set for its largest one-day drop since early April. The stock is still up over 25% so far in 2025.