Investing News

Top 3 Shareholders of HSBC

bpperry / Getty Images
bpperry / Getty Images

Reviewed by Somer AndersonReviewed by Somer Anderson

HSBC Holdings PLC (HSBC) is a multinational investment bank and financial services institution headquartered in the U.K. The company’s U.S.-based subsidiary, HSBC USA, has its operational headquarters in New York.

The company has a presence in 62 countries and territories. The company has over 42 million customers and there are a total of 221,000 full-time equivalent staff who work for HSBC worldwide.

The company’s business lines include wealth and personal banking, commercial banking, global banking, and global markets. As of June 10, 2024, the company had a market capitalization of $166.5 billion.

Its largest shareholders include several major global investment institutions with a high level of interest in the company and its banking sector position. This article highlights the top three institutional shareholders of HSBC Holdings PLC based on the number of shares owned.

Key Takeaways

  • HSBC Holdings PLC is a multinational investment bank and financial services institution.
  • HSBC is headquartered in the United Kingdom while its U.S-based subsidiary is based in New York.
  • The company’s business lines include wealth and personal banking, commercial banking, and global banking and markets.
  • Texas-based Dimensional Fund Advisors is the largest institutional shareholder of HSBC.
  • Morgan Stanley and Goldman Sachs round out the top three largest institutional shareholders of HSBC.

Dimensional Fund Advisors

Dimensional Fund Advisors is the top shareholder of HSBC Holdings PLC. The firm held 11.4 million shares of the financial services company as of March 31, 2024. This represents 0.30% of HSBC’s outstanding shares.

Dimensional was founded in 1981 by David Booth and has over 1,600 employees in 15 global offices. The firm focuses on index funds and was one of the earliest firms to focus on these investments. DFA currently offers almost 150 equity and fixed-income mutual funds. DFA had $719 billion in assets under management (AUM). DFA’s investment philosophy is rooted in the efficient market hypothesis.

Note

Though HSBC was founded in Hong Kong, it is a U.K. bank, not a Chinese one. Hong Kong was under British control at the time of the bank’s founding in 1865.

Morgan Stanley

As of March 31, 2024, Morgan Stanley held about 6.15 million shares of HSBC Holdings PLC. That’s 0.16% of the total shares outstanding in the firm.

Morgan Stanley is a global financial services firm. It has three major business units: Institutional Securities, Wealth Management, and Investment Management. Its investment management unit has more than $1.5 trillion in AUM across a variety of asset classes. Morgan Stanley is also involved in investment research, sales, and trading.

Founded in 1935, the company employs more than 80,000 people across the globe with its headquarters in New York. Morgan Stanley’s private banking division is among the top 20 largest commercial banks in the United States.

Goldman Sachs

Goldman Sachs holds approximately 5.4 million shares of HSBC Holdings PLC as of March 31, 2024, which equates to 0.14% of the total shares outstanding.

Goldman Sachs is one of the world’s premiere financial institutions and was founded in 1869. The company has offices around the world and as of Q1 2024, manages $2.85 trillion in assets. The company offers a variety of financial services, including asset management, investment banking, research, and wealth management.

What Does HSBC Stand For?

HSBC stands for “The Hong Kong and Shanghai Banking Corporation.” This was the founding member of the bank, which was established in 1865 to facilitate trade between Europe, India, and China.

Who Are the Main Shareholders of HSBC?

The main shareholders of HSBC as of March 31, 2024, are Dimensional Fund Advisors, Morgan Stanley, Goldman Sachs, Bank of America, Sanders Capital, and BlackRock.

Is HSBC Private or Public?

HSBC is a public company whose shares trade on the London, Hong Kong, New York, and Bermuda stock exchanges. Investors looking to purchase shares of HSBC can do so on one of these exchanges.

The Bottom Line

The position of HSBC within the banking sector is of high interest to these three companies. HSBC was the seventh-largest bank in the world according to the S&P Global Market Intelligence report, which ranked banks based on their assets under management (without accounting for different accounting practices).

The bank’s 2023 full-year earnings per share came in at 6.95 and its P/E ratio was 6.40 as of June 2024. HSBC reported 2023 full-year net income of $30.34 billion on $65.93 billion of revenue.

Read the original article on Investopedia.

Articles You May Like

What Are the DOL Rules for 401(k) Cybersecurity?
Top Wall Street analysts recommend these stocks for the long haul
3 Robotics Stocks to Buy Now: June 2024
3 EV Charging Stocks to Buy Now: June 2024
7 Stocks to Buy if You Think We’ll See Nasdaq 20K in 2024