European Stocks Decline as HSBC’s Hang Seng Privatization Bid Hits Bank Shares
European stock markets traded mostly lower on Thursday, as HSBC’s proposal to privatize its Hong Kong–based subsidiary, Hang Seng Bank, weighed on the regional banking sector.
The pan-European Stoxx 600 fell 0.4%, while the FTSE 100 in the United Kingdom slipped 0.3%.
HSBC Shares Fall After Privatization Proposal
HSBC, Europe’s largest bank, announced a privatization bid that would make Hang Seng Bank a wholly owned subsidiary of its Asia Pacific division. The move would also see Hang Seng delisted from the Hong Kong Stock Exchange.
Following the announcement, HSBC’s London-listed shares dropped over 5%, dragging the Stoxx 600 banks index down 1.3%, reflecting broader weakness across the European financial sector.
France’s Political Crisis Adds to Market Uncertainty
Meanwhile, investor attention shifted back to France’s political turmoil.
President Emmanuel Macron is expected to appoint a new prime minister within 48 hours, following the resignation of Sebastien Lecornu earlier this week. Lecornu’s short-lived government collapsed just hours after announcing its cabinet, pushing Europe’s second-largest economy into further instability.
Although speculation of a snap parliamentary election has grown, Macron’s office confirmed that most lawmakers oppose such a move.
The CAC 40 in France edged 0.1% lower, while Germany’s DAX gained 0.2%, showing mixed performance among Europe’s top indexes.
Stock Movers Across Europe
Among individual stocks, Lloyds Banking Group fell after warning that it may need to set aside more funds to compensate motor finance customers.
German medical equipment manufacturer Gerresheimer also declined after cutting its full-year financial outlook.
On a positive note, tech stocks advanced following a governance overhaul at Alten, which lifted the French IT consultancy’s share price. Rising copper and iron ore prices also boosted Europe’s basic resources sector, helping limit the region’s overall losses.
