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HSBC to raise new capital, cut jobs

By Kwong Man-ki and Joey Kwok | China Daily | Updated: 2009-03-03 08:06

HSBC to raise new capital, cut jobs

HONG KONG: HSBC Holdings yesterday said it would raise a total of $17.7 billion in new capital from shareholders in a rights issue to strengthen its financial structure after reporting a more than 50 percent fall in 2008 earnings and, as expected, a surge in bad debts in the US.

Europe's largest bank is in the process of offering 5.1 billion new shares at 254 pence apiece, or a 48 percent discount on Friday's closing price, for subscription by its existing shareholders. In Hong Kong, the issue price per new share is at HK$28, or a 50.2 percent discount to its Friday close of HK$56.95.

Group Chairman Stephen Green disagreed that the rights issue had come too late. "I think it is the right timing when we get the information about our 2008 performance."

HSBC to raise new capital, cut jobs

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