HSBC recommended as 'growth shares'
Expert recommends trading shares in HSBC.
An investment advisor has recommended that HSBC stockholders to contact their share dealing companies and take part in the biggest rights issue in banking history.Nick Raynor, investment adviser at retail stockbroker the Share Centre, says that the bank is in a good position compared to its peers and the size of the rights issue should not worry investors.
HSBC has announced that it is seeking $17.7 billion (£12.6 billion) from its shareholders, a bigger sum than expected, in order to augment its balance sheet.
"We are advising investors who can afford to take up the rights issue to do so. The City has fully underwritten and supported the rights issue so investors should be confident in joining them," says Mr Raynor.
Investors who do not take part in the rights issue will have their allocation sold, which could dilute their ownership stake.
The advisor also suggests that anyone who is yet to buy into HSBC should wait until after the rights issue has passed before they consider investing.
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