HSBC Holdings PLC (GB:HSBA) has reportedly exited its credit card business in China after facing challenges in achieving growth after eight years of launch. According to Reuters, the bank has halted the issuance of new cards and is in the process of gradually phasing out the service for the majority of its customers in China.
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HSBC Holdings is a global bank that serves approximately 42 million customers globally. Notably, it is one of Europe’s largest banks by assets.
HSBC Pulls the Plug on China Credit Cards
As per the sources cited by Reuters, HSBC was unable to sell its credit card business, leading to the decision to close it down. Further, plans are still in the finalization stage and HSBC will continue servicing credit cards for a select group of upscale clients.
Meanwhile, HSBC’s credit card customers in China who do not have other banking accounts with the bank will not be able to renew their cards when they reach their expiration date.
Asia remains a key focus for HSBC, as it generates the majority of its profits from this region. However, intense competition and macroeconomic challenges have made it difficult for global banks to expand their presence in Asia. Additionally, the newly elected U.S. President Donald Trump’s plan to impose an extra 10% tariff on all goods from China has added further uncertainty and increased geopolitical risk.
Are HSBC Shares a Good Buy?
According to TipRanks’ consensus, HSBA stock has received a Moderate Buy rating based on a total of eight recommendations. It includes three Buy and five Hold ratings from analysts. The HSBC share price target is 755.11p, which is 3% above the current trading level.
Year-to-date, HSBC shares have gained over 16.3% in trading.
