London, March 17, 2026, 14:55 GMT
HSBC Holdings Plc’s New York shares climbed 1.3% to $81.38 on Tuesday, following a Bloomberg News report that the bank is looking to raise at least $1 billion in additional tier 1, or AT1, dollar bonds. These AT1 notes, considered the most junior rung of bank capital, are intended to take losses if the lender faces financial stress. 1
This is notable: HSBC has effectively become a barometer for Gulf-related risk. Last week, JPMorgan flagged HSBC and Standard Chartered as the top European banks with Middle East exposure. For HSBC specifically, regional lending stands at approximately $23 billion, making up near 2% of its overall loan book. 2
If the deal proceeds, investors would get fresh insight into bank funding demand, with oil prices still elevated and rate expectations unsettled. UK banking shares edged higher Tuesday. Brent crude remained stuck above $103 a barrel, as markets looked ahead to upcoming decisions from the Fed, Bank of England and ECB. 3
Chief Executive Georges Elhedery has looked to calm nerves. Speaking this month, he said HSBC’s “conviction in the GCC’s fundamentals and its future is unchanged,” reaffirming the bank’s confidence in the region’s long-term prospects. 4
The landscape can shift fast. Morningstar’s Kathy Chan points to rising economic uncertainty as adding pressure on trade finance—the short-term cash that keeps goods moving internationally—and says credit costs could climb, too. Hargreaves Lansdown’s Matt Britzman notes that swings in volatility might actually boost appetite for currency services and cash management. Since Feb. 28, HSBC shares have slumped 14%, Reuters reported on March 12. Standard Chartered dropped 11.4%, while the STOXX Europe banks index is off 9.5%. 5
The stock’s latest rebound comes after a powerful stretch earlier this year. Back in January, HSBC pushed past the $300 billion mark in market cap for the first time ever and set a fresh record high, according to Reuters. 6
Earnings helped fuel that rally. Back in February, HSBC reported a 2025 pretax profit of $29.9 billion, topping analyst forecasts and bumping up its return on tangible equity goal to at least 17% through 2028. That metric—profit on shareholder capital, minus intangibles like goodwill—is a standard for banks. 7
HSBC gained 0.9% to HK$125.40 in Hong Kong, according to delayed Reuters data from earlier Tuesday. Investors are watching to see if an AT1 sale will attract firm bids as oil volatility continues and worries about the Middle East conflict linger. 8
