HSBC’s top three shareholders

HSBC Holdings Limited (HSBC) is a multinational investment bank and financial services organization. It is headquartered in the United Kingdom, and its US subsidiary HSBC Bank USA is headquartered in New York City, and its nominal headquarter is in McLean, Virginia. The company operates in 64 countries and regions, including Europe, Asia, North America and Latin America, the Middle East and North Africa. The company has more than 40 million customers and 235,000 full-time employees worldwide work for HSBC.

Key points

  • HSBC Holdings plc is a multinational investment bank and financial services organization.
  • The company’s business scope includes retail banking and wealth management, commercial banking, global banking and markets, and global private banking.
  • Its largest shareholders include Dimensional Fund Advisors, Renaissance Technologies, JPMorgan Chase Securities and many other major global investment institutions.

The company’s business scope includes retail banking and wealth management, commercial banking, global banking and markets, and global private banking. As of June 12, 2020, the company’s market value was US$95.802 billion. Its largest shareholders include several major global investment institutions that are highly interested in the company and its banking status. At the time of writing, these are the top three shareholders of HSBC Holdings plc based on the number of shares owned.

Dimensional Fund Advisors (DFA) LP

As of June 12, 2020, Dimensional Fund Advisors (DFA) LP holds approximately 9.6 million shares of HSBC, accounting for a total of 0.24% of the outstanding shares. The shares are valued at approximately US$220.3 million.

Dimensional Fund Advisors LP is a private investment company headquartered in Austin, Texas. In addition to the US headquarters, the company also has branches in Canada, the UK, Germany, the Netherlands, Australia, Singapore and Japan. DFA was founded in 1981 by David G. Booth, Rex Sinquefield, and Larry G. Klotz. The company focuses on index funds; it is one of the first companies to focus on index funds, and currently offers more than 100 stocks and fixed income mutual funds. As of March 31, 2020, DFA’s assets under management were US$454 billion. DFA’s investment philosophy is rooted in the efficient market hypothesis.

Renaissance Technology Co., Ltd.

As of June 12, 2020, Renaissance Technologies LLC holds approximately 8.98 shares of HSBC, accounting for a total of 0.22% of the issued shares. The value of the shares is approximately US$207.1 million.

Renaissance Technologies LLC is a hedge fund based in East Setauket, New York. The company specializes in systematic trading and uses quantitative models derived from mathematical and statistical analysis. The company was founded in 1982 by the award-winning Cold War code cracker and mathematician James Simons and is now considered one of the most successful hedge funds in the world. In 1988, the company established its most profitable investment portfolio, the Medallion Fund. The fund is responsible for approximately US$10 billion out of approximately US$10 billion in assets managed by Renaissance. Since 1988, this special fund has also achieved an average annual income after expenses of 38%. Renaissance uses a quantitative-oriented investment strategy, which means it only relies on mathematical and statistical models

JPMorgan Chase Securities Co., Ltd.

As of June 12, 2020, JPMorgan Chase Securities Co., Ltd. holds approximately 5.83 million shares of HSBC, accounting for 0.14% of the issued shares. The value of the shares is approximately US$134.5 billion.

JP Morgan Securities is the investment banking division of the larger JP Morgan Chase & Co. banking institution. It has offices in many cities in the United States, including New York, Chicago, Los Angeles, Boston and Atlanta. The company’s main clients are large market companies and institutional investors, providing debt and equity underwriting, mergers and acquisitions (M&A) and corporate restructuring consulting, securities trading and brokerage, and transaction execution services. For individuals, the company also provides financial planner and investment advisory services.

Bottom line

These three companies are very interested in HSBC’s position in the banking industry. According to the Standard & Poor’s Global Market Intelligence report, HSBC was the seventh largest bank in the world in 2019. The report ranks banks based on their assets under management (regardless of different accounting practices).

As of June 12, 2020, HSBC’s earnings per share (EPS) was 0.89 and its price-to-earnings ratio was 26.79. The company’s profit margin is 10.10%. The beta coefficient (five years) is 0.51. HSBC’s revenue in fiscal year 2018 was US$86.1 billion, and its net income was US$13.7 billion.

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