Why HSBC Stock Got Rocked Today
There's apparently trouble on the Eastern front for global banking conglomerate (NYSE: HSBC), and investors are clearly concerned. On news of layoffs in two major Asian markets, they traded out of the company's stock, to the point where the bank's U.S.-listed shares lost more than 2% of their value.
HSBC is in the process of laying off a clutch of workers in its investment-banking operations in two of the continent's financial hubs, Hong Kong and Singapore, according to reporting from Reuters. Citing three unidentified "people with knowledge of the matter," the news agency said the affected workers are mainly associates and vice presidents at the sprawling international bank.
If the report is accurate, HSBC wouldn't be the first to reduce its investment banking workforce in Asia, nor is it likely to be the last. The mainland China and Hong Kong stock markets have both been struggling, largely due to structural issues in the Chinese economy. When markets are in the doldrums, investment banks tend to cut headcounts.
Source Fool.com
