Movers | HSBC and Standard Chartered Both Fall Over 4% Dragged Down by Private Credit Concerns

Due to concerns over the escalation of Middle East conflicts and private credit withdrawals, HSBC Holdings (00005) and Standard Chartered (02888) saw their stock prices decline, both falling over 4%.

As of 3:20 PM, HSBC was trading at HKD 123.1, down 4.5%, with a turnover of HKD 3.364 billion; Standard Chartered was at HKD 165.1, down 4.8%, with a turnover of HKD 445 million.

On the news front, Morgan Stanley and Cliffwater restricted redemptions of their private funds, triggering a sharp decline in the stock prices of major U.S. banks and alternative asset management firms.

JPMorgan Chase recently released a report stating that HSBC and Standard Chartered have the largest Middle East risk exposure among European banks, contributing 4% and 12% respectively to their pre-tax profits in the region.

JPMorgan noted that other European banks have limited risk exposure in the Middle East. Overall, loans to companies potentially most affected by rising energy costs account for about 13% of total loans in the European banking sector. These energy-linked industries include agriculture, forestry and fisheries, manufacturing, construction, transportation, and warehousing.