Why HSBC's share price plunged today?

Global Banking GroupHSBC (NYSE: HSBC)Investors are clearly worried about the apparent trouble on the Eastern front. The bank's U.S.-listed shares fell by more than 2% after investors sold off the company's stock following news of layoffs in two major Asian markets.

Pink Sheet coming soon?

HSBC is laying off a number of staff at its investment banking operations in two financial centers in mainland China - Hong Kong and Singapore - Reuters reported. Reuters quoted three "people familiar with the matter" who asked not to be named as saying that the affected staff were mainly assistants and vice presidents of mass production at the international bank, which has a large portfolio.

If the reports are true, HSBC will not be the first bank in Asia to cut investment banking staff, and it is unlikely to be the last. Stock markets in China and Hong Kong have been struggling, mainly due to structural problems in the Chinese economy. Investment banks tend to lay off staff in downturns.

HSBC did not respond directly to the Reuters report. A spokesman for the bank, speaking on condition of anonymity, told Reuters: "Our headcount fluctuates in any given year.

Nowadays, my job is unstable.

While the news is not encouraging, it's also not a huge surprise, which is probably one reason why HSBC's shares didn't take a bigger hit on Tuesday. China and its neighboring markets have been struggling for some time, and investment banks will inevitably take a hit. If the downturn in Asian markets continues, we can expect more layoffs.

Should you invest $1,000 in HSBC Holdings now?

Before buying HSBC Holdings shares, please consider the following:

Motley Fool Stock AdvisorThe analyst team has just selected what they think is the best name for investors to buy now.10Only ...... and HSBC Holdings are not among them. These 10 stocks could generate huge returns in the coming years.

Consider this April 15, 2005Nvidia) at the time of listing ...... If you invested $1,000 at the time of our recommendation, theYou will have $526,933.! * *The

Stock AdvisorIt provides investors with an easy-to-understand blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. Stock Advisor The rate of return for the service since 2002 has been the same as that for the S&P 500 index, but the rate of return for the service has been the same as that for the S&P 500 index.quadruple*.

View 10 Gift Certificates

*Stock Advisory Rates as of April 15, 2024

HSBC Holdings is an advertising name partner of The Ascent, a Motley Fool company. Eric Volkman does not hold any of the above shares. the Motley Fool recommends HSBC Holdings. the Motley Fool maintains a disclosure policy.

Why did HSBC stock plunge today?