Intel stock spikes after report of possible US government stake
HONG KONG - HSBC Holdings plc (NYSE:HSBC) has obtained a waiver from The Stock Exchange of Hong Kong Limited, allowing the bank to exceed the usual 20% limit on issuing contingent convertible securities (CCSs) as part of its capital strategy. The waiver, announced on Wednesday, grants HSBC the ability to seek additional authority to issue CCSs beyond the general mandate, which is typically renewed at the company’s annual general meeting (AGM).
CCSs are hybrid capital securities that convert into ordinary shares under certain conditions and are recognized for their particular regulatory capital treatment under European Union and United Kingdom (TADAWUL:4280) legislation. HSBC’s request aligns with institutional guidelines and complies with the Hong Kong Listing Rules, except for the general mandate’s limit on non-pre-emptive issues.
The additional Mandate, if approved by shareholders, will be separate from the General Allotment Authority, which is consistent with the guidelines issued by The Investment Association and the Pre-Emption Group’s Statement of Principles. The Mandate will be valid until the conclusion of the first AGM following its approval, or until it is revoked or varied by an ordinary resolution of the shareholders.
The granted waiver is conditional upon HSBC announcing it before seeking the Mandate, and any related announcements or circulars must clearly indicate that the Mandate is supplementary to the general mandate under Rule 13.36(2) of the Hong Kong Listing Rules.
This strategic move by HSBC Holdings plc, detailed in a press release statement, allows the bank to potentially strengthen its capital base by issuing CCSs over the existing limit, providing additional flexibility in its capital management. The information from this announcement is based on a press release statement and has been approved by the Financial Conduct Authority as a Primary Information Provider in the United Kingdom.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.