HSBC to Close China Credit Card Business Amid Expansion Struggle

Zacks12-02

HSBC Holdings PLC HSBC plans to close its credit card operations in China as it faces challenges to achieve growth and profitability in the region. This was reported by sources with knowledge of the ...

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This was reported by sources with knowledge of the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/hsbc-close-china-credit-card-135600638.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>HSBC to Close China Credit Card Business Amid Expansion Struggle</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHSBC to Close China Credit Card Business Amid Expansion Struggle\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-02 21:56 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/hsbc-close-china-credit-card-135600638.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>HSBC Holdings PLC HSBC plans to close its credit card operations in China as it faces challenges to achieve growth and profitability in the region. This was reported by sources with knowledge of the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/hsbc-close-china-credit-card-135600638.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://finance.yahoo.com/news/hsbc-close-china-credit-card-135600638.html","article_id":"2488572999","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/yM2AAyXrqTaXtKtrw4bnvQ--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/59744b4fcca70e73cbe3b535b1bc283a"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2488572999","pubTimestamp":1733147760,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"HSBC Holdings PLC HSBC plans to close its credit card operations in China as it faces challenges to achieve growth and profitability in the region. This was reported by sources with knowledge of the matter to Reuters.HSBC has ceased the issuance of new cards and is aiming to wind down the service offered to a major chunk of China's onshore customers. The closure is taking place following unsuccessful attempts to divest the business.The bank is still finalizing the plans and might keep offering credit cards to a small segment of “high-end” clients.HSBC’s “stand alone” credit card clients, those who haven’t subscribed to the company’s banking services in China, will be unable to renew their cards upon expiry. Such clients account for a significant portion of the business in the nation.Currently, HSBC carries a Zacks Rank #2 . 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This was reported by sources with knowledge of the matter to Reuters.\nDetails of HSBC’s Credit Card Operations Closure\nHSBC has ceased the issuance of new cards and is aiming to wind down the service offered to a major chunk of China's onshore customers. The closure is taking place following unsuccessful attempts to divest the business.The bank is still finalizing the plans and might keep offering credit cards to a small segment of “high-end” clients.HSBC’s “stand alone” credit card clients, those who haven’t subscribed to the company’s banking services in China, will be unable to renew their cards upon expiry. Such clients account for a significant portion of the business in the nation.\nHSBC’s Rationale Behind the Pullback\nThis move signifies the obstacles faced by HSBC in expanding its footprint in China as the company aimed to shift its emphasis to the Asian region and deepen its presence in major regional economies.After launching the business in late 2016, the bank faced headwinds such as Covid-induced lockdowns, leading to tightened consumer spending in a subdued economy, shrinking the credit card market. Further, intense competition, regulatory restrictions, acquisition costs and fraud undermined the business prospects.In addition to competition from Chinese peers, HSBC has been facing challenges from rapidly growing local digital platforms, which offer consumer loan services at significantly reduced costs, thus exerting additional pressure on margins amid competitive pricing.Last month, Bloomberg reported that HSBC plans to reduce its workforce by removing hundreds of top bankers to lower costs as part of its efforts to streamline the vast organization. This revamp is part of the initiative orchestrated by the new CEO, Georges Elhedery, who aims to achieve $300 million in cost savings.\nHSBC’s Zacks Rank & Price Performance\nOver the past year, shares of HSBC have rallied 22.3%, outperforming the industry’s growth of 15.4%.\nImage Source: Zacks Investment Research\nCurrently, HSBC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nDivestitures by Other Finance Firms\nLast month, Bloomberg reported, citing persons familiar with the matter, that Ally Financial ALLY is considering selling its credit card business. Bloomberg noted that ALLY is working with a financial advisor to find buyers for the business. As of Sept. 30, 2024, the company had $2.13 billion in average credit card loans, with 1.25 million active cardholders.Similarly, the bank subsidiary of Flagstar Financial, Inc. FLG, Flagstar Bank, N.A., completed the sale of its residential mortgage servicing, mortgage servicing rights, and the third-party origination platform to Mr. Cooper Group Inc. for $1.3 billion in cash.The transaction is projected to increase FLG's common equity tier 1 capital ratio by nearly 60 basis points on a pro-forma basis as of Sept. 30, 2024.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nHSBC Holdings plc (HSBC) : Free Stock Analysis Report\nAlly Financial Inc. (ALLY) : Free Stock Analysis Report\nFlagstar Financial, Inc. (FLG) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2488572999"}