HSBC, Europe’s biggest bank, may seek to raise about $14bn as increasing bad-loan provisions erode profit, according to CLSA Asia-Pacific Markets, reports Bloomberg. The bank may raise funds through a share placement or a rights offering, CLSA analysts said in a client note on Tuesday. They cut CLSA’s share price target for HSBC by 30% to HK$64, citing the risk that rising loan defaults in the UK and US will hurt earnings.

This entry was posted by Gwen Robinson on Tuesday, December 16th, 2008 at 5:18 and is filed under Capital markets. Tagged with hsbc. Edit this entry.