London, Jan 13, 2026, 08:46 GMT — Regular session
HSBC Holdings Plc (HSBA.L) shares ticked up 0.5% to 1,208.4 pence in early London trading Tuesday, after opening at 1,205.0 pence. The stock last changed hands at 1,208.0 pence, swinging within a range of 1,203.4 to 1,209.2 pence. (London South East)
The move follows HSBC’s announcement yesterday that it’s launching an onshore asset management business in the UAE, along with 10 locally regulated funds. The bank is clearly positioning itself to tap into the Gulf’s booming wealth, which is attracting global asset managers. “Our investment … is about capturing the significant and long-term wealth opportunity in the UAE,” said Dinesh Sharma, HSBC’s regional head of international wealth and personal banking for the Middle East and Turkey. HSBC also appointed James Grist as general manager of the new UAE entity and reported its asset management division held $852 billion under management as of the end of September. (Reuters)
European shares climbed to a record high on Tuesday, as investors held their breath ahead of U.S. inflation figures that might reshape interest rate outlooks — a crucial factor for bank valuations and funding costs. (Reuters)
HSBC’s UAE venture offers investors a clear model to work with. Wealth and asset management arms usually churn out fee income, which tends to be less tied to the ups and downs of lending than standard banking. That said, cash flows can shift fast when markets get shaky.
Politics continue to seep into bank stocks. Trump’s call for a one-year credit card interest rate cap of 10% starting Jan. 20 rattled financial shares on Monday, pulling down UK-listed lenders as well. UBS Global analysts noted that implementing such caps would require “an Act of Congress.” Barclays shares slid to their lowest level in almost a month during the session. (Reuters)
Still, the downside looks messy even if the policy never takes effect. Banking and payment firms say a 10% cap would choke credit access, pushing lenders to hike fees and cut rewards. Morningstar’s Michael Miller called such a cap unlikely but warned it would deal “dire consequences” to credit card profits if put in place. (Reuters)
The combination of a strategy headline pushing one way and policy risks pulling the other helps explain why bank rallies tend to lose steam. Traders remain fixated on a familiar puzzle: will rates rise, fall, or shift because of politics?
HSBC investors are closely monitoring whether new growth plans can expand without triggering a surge in costs. Typically, expenses on staff, compliance, and distribution appear before any boost in revenue.
The next major date for the company is Feb. 25, when HSBC will release its annual results for 2025. (HSBC)
