- HSBC cuts Trade Desk rating on agency fallout and structural headwinds
May 11, 2026
Investing.com -- HSBC downgraded The Trade Desk to Reduce from Hold and lowered its price target for the stock to $20 from $31 in a note on Monday.
Analyst Mohammed Khallouf pointed to a deteriorating relationship with major agency partners, growing competitive pressure, and an unproven AI advertising opportunity, leaving the company facing its most challenging outlook since going public in 2016.
Khallouf told investors that Trade Desk's second-quarter revenue guidance of just 8% year-on-year growth (the slowest since the company's 2016 listing) reflects pressures that go beyond previously flagged structural issues.
"What we failed to appreciate at the time… are the additional second-order impacts on TTD's relationships with its partner global ad agencies," Khallouf wrote, noting that agency partners account for more than 40% of Trade Desk billings.
HSBC said Publicis's decision to curtail use of Trade Desk's platform over transparency concerns was partly a response to a "DSP market that has grown vastly more competitive."
The bank adds that ongoing negotiations between Trade Desk and its agency partners are "unlikely win-win, in our view, given the strengthened agencies' hand," and sees growing downside risks to both ad spend volumes and take rates.
On the AI opportunity, HSBC flagged that OpenAI's launch of a self-service advertising product with a cost-per-click bidding model on May 5 brings the platform "a step closer to the 'Walled Garden' BigTech approach to ads," potentially limiting the scope for a meaningful Trade Desk partnership.
HSBC cut its 2026-2027 revenue estimates by 3%-5% and adjusted EPS by 14%-17%, applying a lower 6.0 times target multiple to its revised 2027 EBITDA estimate of $1.38 billion.
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- Tech Is Keeping the Stock Market Afloat. Why There Could Be a Pullback on the Horizon.
May 11, 2026
“Too good to miss” or “why can’t anything else rally” might be the pithiest summations of the stock market’s current status, with the at record highs but driven largely by a cohort of tech stocks that have left their rivals in the dust since the Iran war started in late February. The benchmark has gained more than 8.5% this year, powered by a 16.8% rally since the last days of March, amid a stunning comeback for tech and chip stocks that has carried U.S. markets to record highs. “What started as an AI/semiconductor conversation, however, should now be shifting to the rest of the market,” said Jonathan Krinsky, managing director and chief market technician at BTIG.
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- Earnings Bonanza That Trounced Forecasts Fuels Record Stocks Run
May 9, 2026
(Bloomberg) -- The war in Iran was supposed to derail the rally in US stocks and weigh on company outlooks. Instead a blowout earnings season is providing fresh fodder for Wall Street bulls.
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Corporate America has outstripped expectations by the widest margin outside the Covid-19 era since at least 2013, according to Bloomberg Intelligence data. First-quarter profits at S&P 500 companies have surged 27% so far, more than double the roughly 12% analysts had penciled in. The last time year-on-year earnings grew at that pace outside of recoveries from major shocks was over two decades ago, in 2004.
“I don’t think I remember a time that sell-side consensus missed actual earnings number by so much,” said Charles-Henry Monchau, chief investment officer at Banque Syz & Co SA. He began the year positioned for international markets to outperform, but the war and AI boom prompted him to tactically shift back toward US stocks, noting that regions such as China and Europe “might not be the winners of this war.”
It’s been a wake-up call for Wall Street as stocks race from record to record, the S&P 500 and Nasdaq 100 both closed at all-time highs on Friday. Economic resilience has silenced fears of a slowdown in global growth, while concerns that massive investments in hyperscalers and adjacent industries wouldn’t translate into tangible profit growth appear equally overdone.
Market forecasters have struggled to keep up. Minneapolis-based US Bank started the year forecasting that S&P 500 earnings would hit $305 in 2026. The first quarter has been so strong that the firm will need to raise its estimates for the year and probably its year-end S&P 500 target, according to Robert Haworth, senior investment strategy director at the bank’s wealth management arm. “We’re clearly low,” he said.
This earnings season is shaping up to be all the more remarkable as beats have turned out to be as impressive in scope as they have been in size, with about 85% of companies surpassing analyst forecasts. That amounts to the best hit rate in five years, according to Societe Generale strategists.
“The market starts to catch up with future earnings power in AI-related companies,” said Wendy Soong, a BI equity strategy analyst. “Though the Iran war created supply chain interruption, it also attracted appeal to invest in the US as risk diversification.”
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Unsurprisingly, the bulk of the growth in S&P 500 earnings continues to come from the technology behemoths viewed as the major beneficiaries of artificial intelligence development. The so-called Magnificent Seven firms — Nvidia Corp., Microsoft Corp., Alphabet Inc., Amazon.com Inc., Meta Platforms Inc., Apple Inc. and Tesla Inc. — are expected to post a 57% jump in profits in the first quarter, BI-compiled data show. For the rest of the S&P 500, profits are expected to climb 17% in the January to March period.
“I can’t think of a time when you’ve had this long of a string of earnings growth,” said Thomas Martin, senior portfolio manager at Globalt Investments LLC. He expects the current rally to be sustained as quarterly earnings growth continues in the double digits for 2026. AI is “going to drive growth for a while.”
But the power with which the upbeat atmosphere is sweeping through Corporate America has also started to capture sectors that investors have treated with caution on tariff worries and subdued consumer sentiment. Profits for the S&P’s “other 493” firms — which are on track for their eighth-straight quarterly increase — are projected to accelerate.
All eleven sectors posted positive growth for the first time in four years, Deutsche Bank strategists highlighted in a recent note. They raised their 2026 earnings-per-share forecast by nearly 7% to $342. Even laggards like consumer cyclicals, telecommunications and healthcare have staged a return to growth.
“Sure, the oil price outlook and geopolitical tensions do matter for rates and FX markets,” said Max Kettner, HSBC’s chief multi-asset strategist. “But for equities – especially the US large-cap universe – and by extension credit and the broader risk-asset spectrum too, what really matters is broader activity and the earnings backdrop.”
Yet, rock-solid earnings haven’t erased all concerns — the Iran conflict continues to drive swings in energy prices and the S&P 500’s just over 16% rally from a March low has developed a momentum of its own.
The stocks benchmark has hovered near overbought levels since mid-April, a technical signal that a pullback may be imminent. The recent run on semiconductor stocks is also concerning, while hedge funds have turned the most underweight North America stocks relative to a gauge of global equities that they’ve ever been, according to Goldman Sachs Group Inc.
To keep the rally running, breadth needs to keep expanding and US shoppers will need to stop feeling the pinch, according to John Cunnison, chief investment officer at Baker Boyer Bank.
“To maintain this level of earnings growth, consumer spending and sentiment will need to improve from here to help support US stocks at records in the coming months,” Cunnison said. “With consumer confidence hovering at record lows, this prosperity needs to be shared by the average consumer — not just by wealthy individuals — and translate into profit growth well beyond technology.”
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- HSBC's head of wealth says the old retirement model is dead — and 87% who've tried the new one say it changed their life
May 9, 2026
Americans are worried about saving enough for retirement, but they may want to start thinking about retirement differently.
Racquel Oden, head of international wealth and private banking at HSBC, told MarketWatch that retirement is no longer a single destination (1).
"HSBC research shows a new work-retire-work model is emerging where people take intentional career pauses to pursue passions, start businesses, take care of children or parents and reinvent themselves," she said.
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HSBC's study The Rise of Multi-Retirements indicates a shift toward what it calls a "multi-retirement" model, where an individual takes intentional career breaks, ranging from six to 12 months, in cycles of five to six years. And millennials and Gen Xers are leading the charge (2).
Oden said HSBC's research — surveying "affluent" adults in 12 global markets — found that 37% of respondents planned to take a mini-retirement. Among those who had already taken one, 87% said it had improved their quality of life.
Here is why more people are questioning the traditional model of retirement.
Traditional retirement doesn't add up
The traditional model is based on a number of assumptions: You retire at 65 (give or take a few years), your mortgage is paid off, you receive a regular workplace pension as well as Social Security benefits and your spending drops.
But many American retirees haven't paid off their homes (3) and the cost of living continues to rise, with the U.S. facing the worst inflation in the G7 this year. Healthcare costs are another source of concern.
Workplace pensions have largely disappeared, and for workers who have 401(k)s, the median balance is just $40,000, according to the National Institute on Retirement Security (NIRS).
That means Social Security isn't just a supplement, but represents 52% of retirement income for many. But it was never intended to be a primary source of income. Meanwhile, Social Security's future (and that of Medicare) is uncertain.
No wonder more than a third (36%) of Americans don't feel confident that they'll have enough money to live comfortably in retirement, according to the 2026 Retirement Confidence Survey from the Employee Benefit Research Institute (EBRI) and Greenwald Research (4).
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Add it all up, and many retirees may have to dip into their personal savings to supplement their retirement income for 30 years or more. That has people looking for alternatives to full retirement.
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Taking mini-retirements as a trend
Mini-retirements are a way to take a break from full-time work and then return to earn more income.
"This trend can be seen across all generations," according to HSBC, particularly for Gen X and millennials, who see 47 as the ideal age for a first break (5).
But Oden stressed a mini-retirement "takes careful planning."
They planned to fund them through personal savings (49%), investment income (41%) and, in some cases, new income streams like part-time work (36%).
Notably, they said they aimed to save a $530,000 nest egg before taking a break..
The report focused on affluent individuals who may already have substantial savings and investment income, not all Americans are in a position to take mini-retirements.
Alternatives to traditional retirement
Regardless of whether you are affluent or not, the new approach is about determining when you want to retire rather than having it determined for you.
After all, it's one thing for Social Security to declare your full retirement age (FRA), but it may not align with your personal savings or lifestyle preferences. Multi-retirement is part of a broader desire to redefine retirement.
Mini-retirements are not the only option. Some people may prefer semi-retirement, where they transition to part-time work before full retirement.
Or they may want to transition to an 'encore' career, such as turning a passion into a side hustle.
For those who've spent years honing their professional skills — and aren't excited by the idea of a life of leisure — retirement from a full-time job may be an opportunity to transition to a consulting gig, joining a board or starting a new business.
A different approach to retirement, whether taking mini-retirements or finding new passions or purpose in your golden years, can also help to combat the loneliness and isolation that can come with an abrupt end to your career, an empty calendar and a quiet house.
Ultimately, the cookie-cutter retirement model doesn't work for everyone — and it may be time to redefine it.
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Article Sources
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MarketWatch (1); HSBC (2); National Institute on Retirement Security (3); Employee Benefit Research Institute (4); HSBC U.K. (5)
This article originally appeared on Moneywise.com under the title: HSBC's head of wealth says the old retirement model is dead — and 87% who've tried the new one say it changed their life
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- HSBC Fraud Charge Puts Private Credit Risks And Controls Under Review
May 8, 2026
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HSBC Holdings has reported a £400 million fraud related charge linked to the collapse of UK mortgage lender Market Financial Solutions. The charge is tied to alleged fraud and has increased HSBC's credit loss provisions, drawing attention to its exposure to private credit. Regulators are scrutinising how the bank became indirectly exposed to this case and what it means for broader risk oversight.
For investors watching LSE:HSBA, this development comes with the stock trading at £13.198 and posting a 10.7% return year to date. Over the past year the share price has gained 62.0%, while the 3 year return is 170.0% and the 5 year return is 298.1%. The recent 2.9% decline over the past week and 1.1% decline over the past month sit against that stronger multi year picture.
This fraud related charge puts HSBC's risk controls and links to private credit under a brighter spotlight, and investors may watch for any follow on impacts to provisions, capital or funding costs. The situation could also influence how regulators and banks approach indirect exposure to private lenders, which might shape how HSBC structures similar relationships in future.
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For HSBC, the £400 million fraud related charge is material because it feeds directly into credit loss provisions and has already contributed to a weaker first quarter profit outcome. The exposure ran through private credit channels, so regulators are now focused not only on the loss itself but on how a large bank became indirectly tied to the collapse of Market Financial Solutions. That scrutiny could translate into tighter expectations on due diligence, counterparty selection and look through risk assessments for structures involving private lenders such as Apollo’s Atlas SP.
How This Fits Into The HSBC Holdings Narrative
The charge and subsequent disclosures on private credit give investors more detail on how HSBC manages non traditional lending exposures, which connects to the wider story of reallocating capital toward higher return areas while keeping risks in check. Higher expected credit losses and questions over fraud controls challenge the idea that cost efficiency and capital redeployment alone will support stronger, more resilient earnings, especially when compared with peers like Barclays and Standard Chartered. The narrative around Asian wealth, fee income and digital efficiency does not specifically address governance and monitoring of complex private credit structures, which are now a clearer focus point for regulators.
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Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for HSBC Holdings to help decide what it is worth to you.
The Risks and Rewards Investors Should Consider
⚠️ The £400 million fraud related charge and higher expected credit losses highlight that HSBC already has a high level of bad loans and a low allowance for bad loans, so further issues in private credit or other portfolios could put more pressure on provisions. ⚠️ Regulatory scrutiny of how HSBC gained indirect exposure to the failed lender may lead to tighter rules, potential fines or product limits, particularly as authorities look more closely at banks’ links to the private credit sector compared with groups like JPMorgan or BNP Paribas. 🎁 Management has responded with additional disclosures on private credit, which some analysts have welcomed, and this transparency may help investors judge how contained this specific issue is within the wider loan book. 🎁 Despite the charge, analysts still highlight rewards such as trading at a discount to fair value and expectations for earnings growth, so some investors may view the current situation as a test of risk management rather than a shift in the entire investment case.
What To Watch Going Forward
Investors should watch for updates on investigations into the alleged fraud, any indication of further provisions linked to this exposure and how regulators frame new guidelines for bank interactions with private credit funds. Commentary from upcoming earnings calls on expected credit loss trends, risk appetite and changes to approval processes for structured lending will be important. It is also worth tracking how rating agencies and analysts respond, including any changes to profit expectations, dividend plans or capital targets if regulatory responses become more demanding.
To stay updated on how the latest news impacts the investment narrative for HSBC Holdings, head to the community page for HSBC Holdings to follow the top community narratives.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include HSBA.L.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- HSBC sees shareholder pushback against chair at AGM amid climate action concerns
May 8, 2026
HSBC saw pushback against its new chairman at the company’s annual general meeting (AGM) amid concerns about the lender’s progress on climate action.
Nearly 8% of investor votes opposed the election of Brendan Nelson at the meeting in London on Friday – an unusual result for a new chairman, who would expect almost unanimous support in their first year.
Just over 8% of votes also went against the re-election of James Forese as an independent non-executive director and chair of the group risk committee.
In comparison, last year’s AGM saw former chairman Mark Tucker receive less than 2% opposition, and Mr Foreses was backed by almost 100% of votes.
While neither resolution received the 50% needed to fail or attracted a substantial shareholder rebellion, the dissenting votes this year can still be seen as a protest against the board.
It came after activists criticised HSBC over a series of recent decisions to soften its targets for reducing the planet-heating emissions driven by its lending to polluting firms.
ShareAction, which campaigns for responsible investment, recommended investors vote against Mr Nelson’s and Mr Forese’s elections to the board ahead of the AGM.
During the meeting, a representative of the group also read out a letter signed by 70 climate scientists, which said the bank’s decision to weaken its climate ambitions was irresponsible and dangerous.
Responding to the results on Friday, Jeanne Martin, head of banking programme at ShareAction, said: “Shareholders have sent a strong message of dissent at HSBC’s decision to weaken its approach to coal, oil and gas, undermining long-term financial resilience and feeding into climate impacts people are already facing, from flooded homes and towns to heat stress and rising costs impacting the UK economy.
“The board must take this vote seriously.”
During the meeting, Mr Nelson agreed to meet with ShareAction and investors to engage over the issue, with the group welcoming the move.
But Ms Martin warned the bank would only be able to rebuild confidence among investors with “decisive action to halt further climate backsliding”.
Last May, HSBC announced it was pushing back its ultimate target to cut emissions across its supply chain to net zero by 20 years, from 2030 to 2050.
The bank cited a “slower pace of the transition across the real economy” and a “slower than envisioned” pace of decarbonisation globally.
Later in the year, it then watered down its near-term goal by setting its targets for reducing its 2030 financed emissions for polluting sectors – such as oil and gas – as a range, rather than a single figure.
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Following in the wake of several major US lenders, HSBC became the first British bank to leave the banking sector’s global alliance for setting climate target last year.
The changes come amid a wider trend of lenders softening their green commitments in the face of a global breakdown in political consensus over climate action.
Other British banks have also faced criticism from climate activists, with both Barclays and NatWest being targeted by protesters and shareholder criticism over climate action at their AGMs in recent days.
HSBC has been contacted for comment.
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- No AI, Poor Returns Drive Indian Investors to Foreign Markets
May 8, 2026
(Bloomberg) -- Investors in India, long focused almost entirely on domestic markets, are increasingly starting to look outward.
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A growing number are moving money abroad, seeking diversification after a stretch of weaker relative returns and sustained foreign outflows from local equities that have driven the rupee to record lows.
Indians invested more than $2.2 billion in overseas equities and debt in the 11 months through February, a 60% jump from the year-ago period, according to Reserve Bank of India data. Meanwhile, assets in global feeder funds run by local money managers hit a record $4 billion in March, data from the Association of Mutual Funds in India show.
What’s changing is how local investors are thinking about their portfolios. India is only about 3% of the global equity market, and its stocks don’t always move in line with the rest of the world, making overseas investing a simple way to spread risk. A weaker rupee is making foreign assets attractive, as overseas returns get a currency boost, while easier access is attracting more people.
The shift is also being driven by the performance of local shares. The MSCI India Index has trailed its emerging markets counterpart by about nearly 50% over the past year, even after recovering from its March lows. This is mainly due to slower earnings growth and limited exposure to themes like semiconductors. Meanwhile, markets such as Taiwan and South Korea have reached new highs.
“I wanted to be where the real innovation is happening,” said Abhishek Dadhich, a 38-year-old tech employee in the Indian city of Pune, who has been investing in US stocks since 2023. Dadhich said his grasp of technology helped him more than triple his investments to over $300,000, exceeding his expectations.
Investors like him are driving growth in platforms that let Indians trade foreign stocks. Assets with Vested Finance Inc. topped $1 billion in April, about doubling from a year ago, founder Viram Shah said in an interview. The firm aims to reach $5 billion over the next three years, he said.
India allows individuals to remit up to $250,000 abroad, but the policy has been underutilized for investment purposes mainly due to the lack of convenient platforms for transactions.
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That’s changing. Clearer rules for global products from GIFT City — India’s low-tax hub — and mobile apps that allow direct overseas investing are lowering barriers for retail investors.
Local asset managers are responding to this demand. Firms like DSP Asset Managers and PPFAS Asset Management have launched outbound funds from GIFT City for retail investors. The first was DSP’s Global Equity Fund in June, which invests mainly in the US but also picks stocks from Taiwan, China, and Europe.
The attraction is about what’s in short supply at home. Exposure to themes such as artificial intelligence, memory chips and data-center infrastructure — a major driver of gains in markets like Korea and Taiwan — is still limited in India’s $5 trillion equity market.
“Diversification benefits are real” as they give investors an exposure to a broad swath of tech stocks, said Sandipan Roy, chief investment officer at Motilal Oswal Private Wealth, which manages $21 billion. “Investors have grown wary of the continuing headwinds that have hit Indian markets.”
To be sure, global investing still makes up a small share of overall flows, with most money staying in local stocks and bonds. Recurring investment plans by mutual funds alone have brought in about $3 billion every month recently, helping offset record foreign outflows from Indian equities.
Even so, overseas-focused funds from India have delivered strong returns. The HSBC Brazil Fund, run by the bank’s local fund management arm, has gained nearly 70% in the past year, and the Axis Greater China Fund is up 65%.
While platforms like Interactive Brokers and Vested are popular, other players are starting to step in.
Zerodha Broking Ltd., which pioneered zero-brokerage stock trading in India, aims to roll out access to global stocks, CEO Nithin Kamath said on the firm’s Youtube channel. State Street Corp. is set to bring out model portfolios of overseas stocks for local retail investors, a person familiar with the matter said earlier.
“I see 2026 as the year global investing goes mainstream,” Vested’s Shah said.
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- Wall Street Dares to Ask If China’s Property Turnaround Is Close
May 7, 2026
(Bloomberg) -- Just months into China’s housing downturn, the nation’s second-biggest developer declared the worst is over. A year later, its chairman backtracked on the call, and by 2025, it was teetering on the brink of a default.
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China Vanke Co.’s miscalculation was just one of what would be many premature calls for an end to a crisis that has wiped out trillions of dollars in household wealth since late 2021. Just last November, UBS Group AG scrapped its prediction that a turnaround was imminent.
Now, though, a small chorus of analysts, including those at Citigroup Inc. and Bank of America Corp., are proclaiming once again that the battered industry is finally stabilizing. The latest data offers some support: In March, nearly a fifth of the cities covered by official data saw higher used-home prices — the biggest proportion since 2023 — while the amount of completed but unsold housing fell for the first time in almost five years.
“It certainly looks like the shape is bottoming,” said Leonid Mironov, a portfolio manager at Gavekal Capital Ltd.
As China faces risks abroad from protectionism and geopolitical turmoil, a steadier real estate industry is crucial to restoring household confidence and encouraging spending with policymakers seeking to shift growth toward consumption and away from exports. In a market that’s had false starts before, more evidence is now emerging of stabilization and even recovery.
“It will not only play a crucial role for real estate companies, but also reflect an improvement in consumers’ willingness and ability to spend, which would be beneficial for the overall economy,” said Shen Meng, a director at Beijing-based investment bank Chanson & Co.
Home-price declines have slowed to their weakest pace in a year, while secondary transactions in Beijing and Shanghai have jumped to multi-month highs, even as smaller cities continue to struggle. The slump in existing home prices has narrowed every month this year, the longest such stretch since 2024.
A few builders have made a comeback in the debt market. Wang Jianlin’s Dalian Wanda Commercial Management, and Seazen Group, one of the few major private developers to avoid a public default so far, both sold dollar bonds this year.
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Eurizon SLJ Capital, an asset manager led by Stephen Jen, said 2026 will likely be the year when the market bottoms as demand starts to recover. Citi’s analysts upgraded the property sector to positive from neutral, saying the market is “positioned for recovery.” They cited stronger data and improving sentiment, and see “a slow recovery in key cities as an optimal scenario for property names amid policy support.”
BofA Global Research also sees indications a recovery is taking hold. It favors developers with concentrated exposure to top cities and minimal legacy inventory, such as China Resources Land Ltd., China Overseas Land & Investment Ltd. and C&D International Investment Group.
The largest US bank, JPMorgan Chase & Co., said “the real test is in July and August” after the recent momentum in the industry. “If data continues to be solid until then, we could turn even more positive on the sector,” Karl Chan, an analyst at JPMorgan, wrote in a note.
But the story of China’s property distress is littered with premature optimism. Back in 2024, Goldman Sachs Group Inc. said an “inflection point” has arrived, and the more aggressive policy measures rolled out by Beijing showed “this time is different.”
It wasn’t. Government support hasn’t been enough to reverse the downturn, as officials could afford to act with less urgency with booming exports sustaining the economy. A record share of Chinese households at the end of last year expected housing prices to decrease in the quarter ahead, according to a survey by the central bank.
That lesson isn’t lost on the likes of Morgan Stanley, which believes the recent uptick may be flattered by base effects, one-off policy support and pent-up demand from last year.
“We remain skeptical about sustainability, and think the recovery spreading into more lower tier cities is still elusive at this stage,” analyst Stephen Cheung wrote in a note dated April 26.
Even as China’s benchmark CSI 300 Index has advanced nearly 6% this year, a Bloomberg gauge of Chinese developers is flat after gaining every day this week. If the property sector bottoms out, it could unlock a broader, more balanced equity revival beyond the narrow confines of tech, which had been driving most of gains.
Recent signs of improvement have materialized mainly in the used-home segment, particularly in major cities like Beijing and Shanghai, according to China Index Holdings, a real estate information provider. It remains unclear if such bright spots will remain isolated or even last long without stronger policy support.
In a sign of scarring in the economy after a downturn lasting for almost five years, the contribution of property-related industries has already fallen near to 18% of gross domestic product in 2025, according to Bloomberg Economics, down from a peak of about 25% during 2015-2018.
The large overhang of unsold homes will also take time to clear, and property investment remains in deep contraction. Over the longer term, structural challenges — including a soft job market, weak income expectations and a shrinking population — are likely to keep a lid on housing demand.
A longer timeline for recovery is likely, according to Michelle Kwok, HSBC Holdings Plc’s regional head of real estate research, with any improvements starting in top-tier cities before gradually spreading. She expects 2026 to be a “critical year of inflection.”
What Bloomberg Economics Says...
“The decline in property investment required to bring supply into line with underlying residential housing demand is about 70% complete, according to our estimates. It could take another one or two years to close the remaining 30% gap.”
— Eric Zhu and Chang Shu. To read the analysis, click here.
For many investors who’ve spent years bracing for worse, the mood is as upbeat as it’s been in a long time.
Mizuho Securities senior China economist Serena Zhou said housing sales and investment are unlikely to keep shrinking at double-digit rates, and could even end up close to flat from the second half of the year.
With expectations already low and much of the downturn priced in, the focus is less on how bad things can get and more on whether even early signs of stabilization can begin to shore up sentiment.
“If this is another false dawn, the overall negative impact will be limited as the sector has shrunk substantially over the years and become a well-known factor for investors,” said Homin Lee, a strategist at Lombard Odier Singapore. “If we are seeing genuine green shoots, then it could at least change the market narrative for China’s domestic economy.”
--With assistance from Charlotte Yang, Winnie Hsu, James Mayger, Jeanny Yu and Pearl Liu.
(Updates market performance in 16th paragraph.)
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- HSBC Hong Kong introduces Asia Pacific's first World Legend Mastercard
May 7, 2026
SINGAPORE, May 7, 2026 /PRNewswire/ -- HSBC Hong Kong Privé cardholders are the first in Asia Pacific to experience Mastercard's most premium consumer credit tier through HSBC Privé World Legend Mastercard, with access to The Mastercard Collection, a new suite of elevated dining, entertainment and travel benefits accessible around the world.HSBC Privé World Legend Mastercard marks the debut of Mastercard’s most premium consumer credit tier in Asia Pacific.
Designed for individuals who increasingly prioritize meaningful connections over traditional rewards, HSBC Privé World Legend Mastercard transforms priorities into memorable moments. Mastercard research shows that 59% of consumers in higher income segments globally, including in Hong Kong SAR, value experiences over possessions, with a growing desire to invest time and money in dining, entertainment and travel to build memories with loved ones. In Hong Kong SAR, 40% also cite overseas travel as a top personal goal, highlighting the importance of benefits that remain relevant across destinations.
Together, HSBC Hong Kong and Mastercard are bringing these passions to life by combining a global platform of curated benefits with bespoke lifestyle privileges — giving cardholders exceptional access to the places, experiences and interests that matter most, wherever they are.
"Launching the first World Legend Mastercard in Hong Kong and Asia Pacific with HSBC Privé reflects the direction premium banking is moving toward," said Sunny Chow, Head of Cards and Unsecured Lending, Retail Banking and Wealth, HSBC Hong Kong. "Privé clients increasingly value meaningful experiences and this invitation-only card for HSBC Private Bank clients allows us to respond with a proposition that is more distinctive, more portable and more personal. Backed by Mastercard's global reach and HSBC's service expertise, it strengthens how we support our clients' internationally connected lifestyle, wherever they choose to be."
Experiences that travel with you
HSBC Privé is an invitation‑only credit card designed for internationally connected lifestyles. As HSBC's most prestigious credit card, it brings together elevated travel, dining, and lifestyle privileges in Hong Kong SAR and destinations worldwide.
Cardholders enjoy access to HSBC Privé exclusive privileges, including:
Travel
Complimentary hotel night programs at over 800 properties globally, including Belmond, Rosewood, Raffles, Waldorf, and Fairmont Companion travel privileges, including complimentary first and business class air tickets Complimentary limousine service, airport lounge access and travel insurance Dining
Complimentary dining experiences at Michelin-starred and acclaimed restaurants Priority reservations at select prestigious restaurants in the Chinese Mainland Entertainment & Experiences
Access to HSBC-sponsored concerts and shows, including premium suite experiences at Kai Tak Sports Park Priority ticket bookings for selected Live Nation events Global access to private clubs and lounges, including Hong Kong Golf and Tennis Academy (HKGTA), HKGTA Town Club, Carlyle & Co., and selected clubs worldwide
Story Continues
In addition, a Mastercard‑exclusive dining club will launch at Hong Kong International Airport later this year, with more such clubs planned at major airports globally. As part of The Mastercard Collection, HSBC Privé primary and supplementary cardholders will enjoy unlimited complimentary access on each visit with up to three guests. The space is designed to offer a refined pre‑flight experience, combining comfort, locally inspired fine dining and essential travel amenities.
"Internationally minded consumers today live increasingly global lives — moving between cities, cultures and communities," said Sandeep Malhotra, Executive Vice President, Core Payments, Asia Pacific, Mastercard. "As their lives become more mobile, expectations of value have evolved — from physical rewards to access and experiences that remain relevant wherever they are. With HSBC Privé World Legend Mastercard and The Mastercard Collection, we're enabling financial institutions to meet those expectations through curated, globally connected experiences that fit how people travel, connect and enjoy life today."
HSBC Privé cardholders will see their existing World Elite Mastercard card elevated to World Legend Mastercard, unlocking the enhanced privileges under The Mastercard Collection.
Appendix – The Mastercard Collection
HSBC Hong Kong Privé cardholders can enjoy additional privileges under The Mastercard Collection, including exclusive dining credits in select restaurants in Australia, Hong Kong SAR, and Singapore; booking access at over 400 acclaimed restaurants in 10 Asia Pacific markets; and globally connected dining, travel and entertainment experiences.
The Mastercard Collection and World Legend Mastercard give financial institutions a platform to deliver relevant, differentiated value as premium propositions evolve to experiences that travel with cardholders globally.
For more information about The Mastercard Collection, visit Priceless.com/themastercardcollection.
About The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 56 countries and territories. With assets of US$3,306bn at 31 March 2026, HSBC is one of the world's largest banking and financial services organisations.
About Mastercard
Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we're building a resilient economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential.
www.mastercard.comMastercard (PRNewsfoto/Mastercard)Cision
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- Companies Rush to Sell Bonds in Europe’s Market at Record Pace
May 6, 2026
(Bloomberg) -- Companies are selling new debt in Europe at the busiest pace ever on Wednesday, storming into the market after earnings to lock in funding while borrowing costs remain low.
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Sales include Airbus SE’s first bond in nearly six years, beer giant Carlsberg Breweries A/S with debut hybrid debt and pharmaceutical company Novartis AG with a three-part deal. Both investment-grade and junk-rated firms are joining the rush, and in total 17 borrowers are offering 24 tranches — each a record, according to data compiled by Bloomberg.
“Credit spreads remain near historic tights given the rate environment,” said James Cunniffe, HSBC Holdings Plc’s head of corporate and structured debt capital markets syndicate for Europe. “Investors are well positioned to take down anticipated supply, with May being one of the busiest months of the year.”
The flurry of sales during a traditionally active month comes on a day when global bonds are rallying and gauges of credit risk are sliding on optimism that the US and Iran are nearing a peace deal. The iTraxx Europe index of investment grade credit default swaps has fallen to the lowest since April 17, while the equivalent index for junk-rated firms is at a near two-month low.
By tapping a buoyant market after quarterly earnings, firms will be able to shore up balance sheets and lock in new debt to tackle maturities coming due.
Overall, including financial firms and sovereign players as well as companies, a total 34 borrowers are in the primary market with 43 tranches of new bonds on offer, also the most on record, the data compiled by Bloomberg shows.
Limited Window
Investor demand is strong enough to encourage a wide range of junk-rated issuers — including chemicals firm Ineos, housing company DomusVi and telecoms provider Telekom Srbija — to take part in the rush for deals.
Selling now avoids the risk that credit’s rally could potentially evaporate if the war drags on, given consumers would start to feel the fallout from higher prices and resurgent inflation may lead central banks to start hiking rates next month.
Borrowers are also taking advantage of a constrained window for sales this month, given public holidays in various countries across Europe. The UK was closed on Monday, while France will be shut on Friday and then Ascension Day on May 14 will also stop trading in some markets.
Story Continues
“People are just trying to get deals done in the gaps where there are no holidays,” said Marco Baldini, global head of investment-grade syndicate at Barclays Plc.
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