HSBC Bank Detailed Analysis (2018)

The Hong Kong and Shanghai Banking Corporation (HSBC) is one of the most well known and largest asia banks that we could find worldwide. In Hong Kong, it is one of the most important stocks that could directly influence the Hang Seng Index performance. It was founded since 1865 and it could be considered as one of the oldest bank on earth. A few years ago, HSBC's headquarter has moved to London, United Kingdom.

HSBC Bank 

Recently, HSBC has announced their final year report of 2017 and i will highligh a few important tips for investors based on their annual report since HSBC has announced on their huge positive profit in 2017, is that true? Let's see

1) Basic Earning Per Share

Although the annual report showed that HSBC has increased on the basic earning per share, it is still not the best results compared to the past few years. In 2015 the Basic Earning Per Share for HSBC is 5.028 but in 2016 fall down to 0.510 (It has fallen more than 90% within a year).

HSBC Financial Annual Report 2017

And now, they've reported that it has increased to 3.789. To be honest, it is still not a good result because it has not yet fully recovered from the losses they have made in the past few years. It takes time for them to be as strong as before. Check out the reaction of the investors globally on their stock market performance.

HSBC declined since 2013 till 2016

HSBC has been declining since 2013 till mid of 2016 (More than 50%) due to their serious financial losses. And now, HSBC is slowly picking up from the losses they have made.

2) Ping An Insurance China

Ping An of China is one of the largest Insurance companies in China and it used to be one of the greatest assets for HSBC own investment portfolio. In 2006-2007, HSBC has acquired 19.99% of Ping An Insurance and it used to provide around 17% positive return annually for HSBC. However, in 2012, HSBC decided to sell off all their 19.99% shares of Ping An Insurance to cover up the legal case in United States. This could be one of the worst decisions because Ping An Insurance is the only asset of HSBC that could provide huge positive return each year.

HSBC acquired Ping An Insurance is to enter into the China Market but eventually failed. In 2018, HSBC might have another chance of re-entering into china market due to Ping An China has started to acquired HSBC shares of around 6.17% (around $188 Billion). Hence, HSBC has announced that their main focus of 2018 is "HSBC QianHai Securities", for re-tackling into China Market.

3) Fundamental Analysis

Based on the latest annual report released, the fair price for HSBC is $80.3 and it cannot drop any lower than $75.6.

4) Technically Analysis

HSBC Technically Analysis

Unfortunately, HSBC has dropped through a support line which does not look too good in the market especially a huge company that just released the annual report. Anyway, there is one more important support at around $75.6 and it should not drop through it, or else $69.9 will be coming.

To be advised:
1) HSBC is not a good company for long term investment.
2) The overall annual report of HSBC is still not as strong as before.
3) HSBC Support: $75.65 and Resistance: $86 for short term investment.