After opening today’s trading session with a huge gap down of over 2 per cent, HSBC share price intraday trading in the past few hours has seen it crawling back to a loss of less than a percentage point.
The early morning hours drop comes amidst concerns by the company, which is one of the largest lenders in Asia, about the ongoing protests in China, one of HSBC’s major markets in the world. According to reports, the rare protests across China have been in response to its government’s zero-tolerance to covid approach from the authorities that has inhibited the freedoms of Chinese citizens since the pandemic started in 2020.
However, despite the drop in the early hours of the trading session, it is likely we might see HSBC recovering throughout the session and possibly closing the markets with a price gain. The long-term outlook of the company is also positive, based on reports of multiple financial institutions, including the Royal Bank of Canada, which has recently set its HSBC price objective to 675p.
Other financial institutions have also been very bullish on the company, including Deutsche Bank Aktiengesellschaft, whose target is 650p. Citigroup’s rating of the company is also bullish, with a price target of 700p.
As seen in the early hours of today’s trading session, the impact of China’s zero-tolerance policy is likely to continue affecting HSBC in the short term due to its high exposure in the Asian markets. However, other factors, such as a recovering UK economy and the recent rate hikes, may also play a significant role in the company’s standings.
However, I still remain bullish for the company, with my short-term HSBC share price prediction expecting it to trade above the 500p price level. Like other experts have highlighted above, I also believe that we might see HSBC’s share price trading above the 600p price level for the long term. However, dropping below the 450p price level will invalidate my bullish analysis.
This post was last modified on %s = human-readable time difference 11:32