HSBC, the British banking giant, reported an 80% decline in profits, all due to its stake in the Chinese Bank of Communications (BoCom). The loss amounts to nearly $4 billion.

BoCom is the fifth largest bank in mainland China and the first publicly traded commercial bank in state ownership.

Results from 2022 amounted to $1 billion in profit.

For the same period in 2023, profits were $5 billion, even though they increased despite this unexpected loss, amounting to $30 billion. Analysts had expected $34 billion. The difference accounts for this unexpected loss in China.

The Chinese economy has opened up and achieved a growth rate of X%, although it still feels the effects of the real estate crisis from 2021.

HSBC continues to state that BoCom remains a strong partner with whom it will continue to maintain close cooperation. The banking sector is achieving excellent results this year despite the weaker performance of Chinese banks.