Stock Movers HSBC Slumps, Taylor Wimpey Down, Lloyds Falls
Oct 9, 2025
HSBC faces a sharp decline in shares following a privatization move for Hang Seng Bank, raising worries over capital and share buybacks. Meanwhile, Taylor Wimpey and other UK homebuilders are struggling as estate agents express pessimism about the housing market's future, leading to lowered profit expectations. Lloyds Banking Group shares also drop significantly, as the bank must allocate more funds to address issues related to missold car loans, adding to investor anxiety.
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HSBC’s Big Hong Kong Bet
- HSBC will privatise 63% of Hang Seng Bank, spending about $14 billion to buy shares it doesn't own.
- The move pauses buybacks for three quarters and pressures the bank's CET1 ratio, worrying investors about returns.
Growth Play Amid Hong Kong Risks
- HSBC frames the Hang Seng deal as a growth investment in Hong Kong amid rising dealmaking there.
- But it happens while the banking sector faces stress from a real estate slump and bad commercial property debt.
Housebuilders Feel Budget Uncertainty
- Housebuilders like Taylor Wimpey, Persimmon and Redrow are trading lower as reservations and orders soften.
- Tax rise fears plus earlier stamp duty increases are weighing on demand and developer pipelines.