LONDON, Feb 13, 2026, 07:42 GMT — The market is shut.
- HSBC dropped roughly 3% in London on Thursday, lagging the FTSE 100.
- HSBC’s Orion platform has been tapped by the UK for a pilot run of tokenised government bond issuance.
- Next up for investors: HSBC’s annual results on Feb. 25, with fresh signals on capital returns in focus.
HSBC Holdings Plc slipped 2.97% to close at 12.67 pounds on Thursday, with volume coming in lighter than normal. Over in New York, the bank’s U.S. shares last changed hands at $86.79, a 2.9% drop from the previous session. The London listing currently trades about 4% below its 52-week peak. (MarketWatch)
HSBC drew attention ahead of Friday, as a sharp “risk-off” move sent equities lower and dragged London’s FTSE 100 away from its intraday peak. Meanwhile, UK GDP figures showed economic growth barely budged in the fourth quarter, fueling expectations that the Bank of England might opt for another rate cut in March. (Reuters)
Bank shares slumped across Europe. The sector’s sub-index shed 1.8% on Thursday. Both HSBC and Banco Santander dropped over 2%. (Reuters)
HSBC has picked up a prominent assignment in a UK market trial. The government tapped the bank’s Orion blockchain platform for a pilot to issue tokenised government bonds—digital gilts on a distributed ledger. When the first bond will actually launch isn’t yet known. Patrick George, HSBC’s global head of markets and securities services, called the bank “delighted” to back the project and highlighted Orion’s “proven track record,” adding it’s facilitated more than $3.5 billion in digital bond deals worldwide. (Reuters)
HSBC is taking steps to streamline its capital structure. In a Feb. 11 notice, the bank announced plans to redeem $1 billion of its 4.000% perpetual subordinated contingent convertible securities—known as CoCos—on March 9, repaying holders at par with any accrued interest. HSBC has also asked Euronext Dublin to delist the notes on that date. The instruments, designed to absorb losses, either convert or get written down if capital drops past certain thresholds.
Earnings are front and center right now. HSBC will post its 2025 annual numbers on Feb. 25, and then host investors and analysts in London later that morning. (HSBC)
Traders have to weigh whether Thursday’s dip signals basic profit-taking after a rally, or marks the beginning of a broader correction in bank valuations if more rate-cut bets pile up. Banks, after all, are exposed to rate shifts—lower rates typically bite into net interest margins, shrinking the gap between what they make on loans and what’s paid out on deposits.
HSBC’s digital gilt project in the UK gives the bank bragging rights in the plumbing of capital markets, but there’s no clear revenue stream here for investors to pencil in. No timeline yet from the government for the tokenised gilt’s launch, and pilots like this have run aground before once legal and operational tangles show up.
There’s also a clear risk here: if HSBC stumbles on costs, credit quality, or guidance, shares could drag down with the sector if global markets stay cautious. Investors may also eye the bond redemption, wondering how the bank plans to refill that capital—and what price it might pay—should funding markets sour.
Friday’s trade puts the spotlight on European banks, following a sector-driven pullback. Investors are also eyeing HSBC, which is hovering close to recent highs, to see if it can hold the line. The real test comes Feb. 25: that’s when HSBC unveils its annual results, opening the door for scrutiny on earnings momentum, capital return plans and what’s ahead for 2026.
