HSBC may cut over 10,000 jobs

Banking group HSBC Holdings Plc may cut more than 10,000 jobs worldwide as part of its plan to slash costs by up to $3.5 billion a year, Sky News reported on Thursday.

New HSBC Chief Executive Stuart Gulliver in May announced a far-reaching plan to cut costs and revive flagging profits by exiting dozens of countries and refocusing on its areas of strength. Gulliver did not say how many jobs would go as part of the cuts, but analysts expect the bank to axe thousands from its 300,000 global workforce.

Two sites sold for HK$7.2b

A residential site in Hong Kong's Tung Chung district was awarded to Pacific Earth Enterprise Ltd for HK$3.8 billion, and a commercial site in the city's Kowloon Bay district was awarded to Smart Edge Ltd for HK$3.4 billion, according to a statement posted on the government website on Thursday.

Yuan deposits 550b: HKMA

Hong Kong's yuan deposits climbed at the slowest pace in 21 months in June as payments to mainland China for cross-border trade outstripped those flowing into the city, according to the head of HKMA. Deposits were 550 billion yuan at the end of June, Hong Kong Monetary Authority Chief Executive Norman Chan said in a statement on the bank's website today. That compares with 548.8 billion yuan in May, according to HKMA data. The increase is the smallest since October 2009. The HKMA is scheduled officially to report on June's deposits today.

Li & Fung to shed 40 city staff

Apparel exporter Li & Fung Ltd said on Thursday it would lay off 40 staff in Hong Kong to meet the changing needs of its European business.

Shares of Li & Fung fell 4.5 percent to HK$13.62 on Thursday afternoon, on track for its biggest daily percentage decline in two weeks. That compared with a 1.09 percent fall in the Hang Seng Index.

Stocks drop on US debt fight

Most Hong Kong stocks dropped as exporters declined after US lawmakers failed to break a deadlock over raising the federal debt limit and China increased lending restrictions to local governments. Cheung Kong Infrastructure Holdings Ltd rose after earnings surged.

The Hang Seng Index (HSI) gained 0.13 percent to 22570.74 at the close, with the gauge rallying in the final hour of trading and erasing losses of as much as 1.4 percent. The Hang Seng China Enterprises Index lost 0.56 percent to 12517.53. Futures on the HSI added 0.3 percent even as US lawmakers sparred over separate plans to raise the federal debt limit and avoid a default by August 2. Standard & Poor's, Moody's Investors Service and Fitch Ratings have said they may cut the country's top AAA rating if the issue isn't resolved.

US equities also declined after a report Wednesday showed orders for durable goods unexpectedly dropped in June, raising the risk that a slowdown in business investment will weigh on the world's largest economy in the second half of the year.

The HSI Volatility Index gained 0.2 percent to 19.67.

Chinese lenders dropped after the China Banking Regulatory Commission said banks are prohibited from moving their loans off their balance sheets through trust firms, wealth-management services or bill financing.

China Construction Bank, the nation's second-largest lender by market value, dropped 0.9 percent to HK$6.30. Bigger rival Industrial & Commercial Bank of China decreased 0.5 percent to HK$5.96. Bank of China Ltd, the fourth-biggest, fell 0.6 percent to HK$3.64.

Bloomberg - Reuters

(HK Edition 07/29/2011 page2)