HSBC rises 3pc to 22-month high

Shares of HSBC (0005) rose 3.2 percent to a 22-month high of HK$51.7 yesterday, as local investors shrugged off a report that the lender is holding 2.2 million pounds (HK$23.3 million) of shares in a unit of a US-sanctioned Chinese firm that is said to be linked to alleged Uighur atrocities.

The bank bought the shares in Xinjiang Tianye, whose parent is the state-owned Xinjiang Production and Construction Corps, for an anonymous customer last year, The Sunday Times said.

It continues to be the custodian for the client which means it can earn money by holding the shares, the report added.

HSBC said it has complied with all relevant laws and restrictions.

XPCC has been sanctioned by the US since last year and all investments related to it by US persons or within the country is prohibited.

Meanwhile, HSBC Asset Management has launched the HSBC Global Sustainable Multi-Asset Income Fund, with a portfolio that aims to have a higher weighted average ESG score and lower weighted average carbon intensity rating than the market, with investments spanning across 50 countries and over 30 currencies with multiple asset classes.

Its base currency is US dollars but it is also available in six other currencies including the Hong Kong dollar, yuan and British pound. The offer period ends on January 21 and trading starts the same day.

In other news, the Bank of East Asia's (0023) unit in China was fined 16.74 million yuan (HK$20.5 million) for violating credit information collection requirements, a filing of the People's Bank of China showed.