Category: 3. Business

In September, securities lending revenues hit $1,412 million, marking an impressive 46% year-on-year increase. All asset classes performed remarkedly well with positive year-on-year revenue growth being seen across the board.  Revenues remained strong, following on from an impressive summer period. A continuation in the strong performance in both Asia equities and Exchange Traded Products continued as the two asset classes remained the standout performers.

All equity markets performed well during the month with Americas equities average fees growing by 27% year-on-year, leading to a 61% increase in revenues.  Balances continued to reach new highs as valuations grew throughout the period with lendable surpassing $26T.  Asia equities experienced a similar trend with demand in Hong Kong and South Korea continuing to push regional returns higher.  Growth in revenues continued to stall across Taiwan as average fees declined by 13% year-on-year to 2.41%.  In Europe Sweden, Germany and the UK all topped the revenue table with double digit year-on-year revenue growth, three stand out European markets included Denmark, Turkey and Italy which showed year-on-year revenues growth of 205%, 1496% and 84% respectively.  Substantial increases in balances were also seen across all three of these countries.

Exchange Traded Products continued their impressive run as revenues continued to show strong year-on-year growth and average fees increased by 24%. This revenue growth was seen across all three regions with Asia ETFs posting 121% growth.  Average fees also increased as did balances and lendable.  Utilization topped 10%, increasing in relation to August.

Across the fixed income asset classes year-on-year revenue growth was strong across Asian government bonds (+39%) and European government bonds (+9%).  Americas government bonds posted a 5% year-on-year decline in revenues as average fees fell 8% to 18bps.  This was despite a 3% increase in balances.

Corporate bond revenues remained steady during the month, posting a more modest 1% year-on-year increase.  Average fees continued to decline but balances grew which offset any financial impact.

Reinforces HSBC’s strategic priorities and long-term investment in Hong Kong
Preserves Hang Seng’s brand, heritage, and distinct customer proposition

• The Proposal includes an offer of HK$155 for each Scheme Share, representing a 33% premium over the undisturbed 30-days average closing price of HK$116.5 per share.
• HK$106 billion privatisation offer values 100% of Hang Seng at HK$290 billion on an equity value basis.
• The Proposal represents a significant investment into the Hong Kong economy and includes a commitment to retain Hang Seng’s brand, heritage, and distinct customer proposition.
• The proposal is in line with HSBC’s strategy to increase leadership and market share in areas where it has clear competitive advantages and the greatest opportunities to grow and support its clients.
• HSBC aims to grow in Hong Kong by strengthening the banking presence of HSBC Asia Pacific and Hang Seng, focusing on their relative strengths and competitive advantages, while allowing all customers to choose where to bank.

All capitalised terms which are used in this press release but not otherwise defined herein shall have the meanings ascribed to them in the Joint Announcement dated 9 October 2025. This press release should be read in conjunction with the Joint Announcement, a copy of which is available here (opens in new window).

9 October 2025 – HSBC Holdings plc (“HSBC Group” or “HSBC”) today announced that HSBC Group, together with The Hongkong and Shanghai Banking Corporation Limited (“HSBC Asia Pacific”), a wholly owned subsidiary of HSBC, has put forward a conditional proposal to privatise Hang Seng Bank Limited (“Hang Seng”) through a scheme of arrangement (the “Proposal”). If approved, the Proposal would result in HSBC Asia Pacific acquiring all remaining shares of Hang Seng held by the minority shareholders and the withdrawal of listing of the Hang Seng shares from the Hong Kong Stock Exchange.

Providing immediate cash returns to Hang Seng minority shareholders at an attractive and significant premium

The Proposal offers a Scheme Consideration of HK$155 for each Scheme Share, representing a 33% premium over the undisturbed 30-days average closing price of HK$116.5 per share. This represents an attractive and significant premium to Hang Seng’s historical trading prices, and analyst consensus targets, and is more than Hang Seng’s highest share price in 3.5 years.

The valuation of Hang Seng implied by the Scheme Consideration is HK$290 billion, representing a 1.8x 1H25A price-to-book multiple, which is significantly higher than comparable Hong Kong peers. This offer is final and will not be increased further, underscoring HSBC’s confidence in the fairness and attractiveness of the offer.

Through this Proposal, HSBC is providing Hang Seng minority shareholders with an opportunity for immediate cash realisation, enabling them to realise the benefits from HSBC’s investment in Hang Seng without needing to wait for future dividends.

Capturing Growth Opportunities in Hong Kong

The Proposal is aligned with HSBC’s strategic priority to grow its business in Hong Kong while becoming simple and agile. Hong Kong is one of HSBC’s home markets and HSBC benefits from the proud heritage and brand strength of both HSBC Asia-Pacific and Hang Seng.

The Proposal represents a significant investment into Hong Kong, which underlines our confidence in the growth potential for both HSBC Asia-Pacific and Hang Seng. The Proposal will unlock opportunities for further investment and improvements in operational leverage.

Preserving Hang Seng’s Brand and Heritage While Unlocking Growth

HSBC recognizes the proud legacy and near-100-year history of Hang Seng and is committed to retaining Hang Seng’s separate authorization as a licensed bank under the Hong Kong Banking Ordinance with its own governance, brand, distinct customer proposition and a branch network. Hang Seng’s existing customers will continue to enjoy Hang Seng’s products and services while gaining greater access to the full breadth of HSBC’s global network and full product suite. This strategic alignment is expected to drive stronger growth by leveraging Hang Seng’s competitive strengths and HSBC’s network and products.

Proposal to be fully funded by HSBC’s own resources

HSBC Group will fund the Scheme Consideration with its own financial resources. The expected day one capital impact of the Proposal is approximately 125 basis points which would arise following the approval of the relevant resolutions by the requisite majority at each of the Hang Seng Court Meeting and the Hang Seng General Meeting.

HSBC expects to restore its CET1 ratio to its target operating range of 14.0%-14.5% through a combination of organic capital generation and not initiating any further buybacks for three quarters following the date of this announcement. A decision to recommence buybacks will be subject to HSBC’s normal buyback considerations and process on a quarterly basis. The share buyback announced on 31 July will continue in accordance with its terms. HSBC continues to target a dividend payout ratio for 2025 of 50% of earnings per ordinary share excluding material notable items and related impacts.

HSBC expects that this investment in Hang Seng will be accretive to earnings per ordinary share.

Georges Elhedery, Group CEO of HSBC, commented:

“Our offer is an exciting opportunity to grow both Hang Seng and HSBC. We will preserve Hang Seng’s brand, heritage, distinct customer proposition and a branch network, while investing to unlock new strengths in products, services, and technology to deliver more choice and innovation for customers. Our offer also represents a significant investment into Hong Kong’s economy, underscoring our confidence in this market and commitment to its future as a leading global financial centre, and as a super-connector between international markets and mainland China.

“This proposal fully meets our criteria for value-accretive investments: it aligns with our strategy, enhances growth and scale, does not distract us from organic growth, and delivers greater shareholder value than buybacks.

“Together, HSBC and Hang Seng form a well-positioned platform with two iconic banking brands working side by side to deliver lasting value for customers, employees, and shareholders.”

Further information on conditions to the Proposal is provided in Hang Seng 3.5 announcement

A Scheme Document will be dispatched to Hang Seng minority shareholders in due course, providing further information on the Proposal. The Scheme will become effective subject to the satisfaction of conditions, including Hang Seng shareholder approvals, and sanction by the High Court.

Further information is provided in the 3.5 Announcement issued by HSBC Group, HSBC Asia-Pacific and Hang Seng earlier today.

Media enquiries:

Aman Ullah
+852 3941 1120
aspmediarelations@hsbc.com.hk

Neil Fleming
+44 (0)7384792051
neil1.fleming@hsbc.com

Pakistan is a country of intelligent people who are seriously thinking about creating a niche for cryptocurrency mining through blockchain technology.

That is precisely why the government took the initiative to form the Pakistan Crypto Council and the Pakistan Virtual Asset Regulatory Authority. The Pakistan Crypto Council is responsible for developing policies, infrastructure and regulations for blockchain technology and digital assets.

The Virtual Asset Authority will oversee compliance protocols and issue licenses to virtual asset service providers, such as cryptocurrency exchanges, for the trading of cryptocurrencies. The State Bank of Pakistan has yet to recognise cryptocurrency as legal tender for the digital economy. The crypto bet is too big to ignore. It has its own pros and cons.

It is a complex digital world developing through the strong backing of AI as a resource. A country like Pakistan needs to tread carefully when developing and dealing with this immense treasure trove. Cryptocurrency is one of the businesses Pakistanis are already engaged in, with millions currently venturing through illegal, informal channels. Now that the government has announced the allocation of 2,000 megawatts of electricity for crypto mining, it is a significant step forward in realising the dream of creating virtual asset reserves to boost investment and economic growth. There is an immediate need to establish a regulatory framework for creating such reserves based on crypto mining using the most modern blockchain technology. Pakistan can become a regional digital hub if resources are properly utilised. Proper utilisation of resources requires a policy framework with adequate digital infrastructure and a regulatory mechanism in place.

Cryptocurrency mining is a lengthy and energy-intensive process that consumes a significant amount of electricity. A country like Pakistan, which faces significant constraints in generating and consuming power affordably, may encounter substantial difficulties when venturing into such mining businesses involving blockchain technology. However, it is a fact that Pakistan has significant potential to generate cheap power by utilising its abundant resources in the form of water, wind and solar energy.

Hydropower, wind, and solar energy may be the best forms of clean energy for such ventures to create digital and virtual asset reserves. Fossil fuels, coal and thermal power are the most expensive forms of energy and are not ideally suitable for crypto mining businesses. Pakistan is more reliant on such expensive forms of energy, for which we are paying capacity charges that add to the volume of ever-rising circular debt. The utilisation of expensive electricity may not be beneficial for crypto mining businesses, and this needs to be thoroughly reviewed as a policy for better outcomes in utilising energy for virtual digital assets.

Bitcoin devours more electricity than many countries. There is a long-standing debate on multiple options for utilising cryptocurrency mining to create inexpensive, secure, and reliable digital reserves for economic growth. One can discuss Bitcoin, often considered digital gold, and the amount of electricity its mining consumes. Countries like Iceland, Paraguay and Norway have the largest share of renewables in their energy mix but represent only 1.1 per cent of the Bitcoin network.

The most popular cryptocurrencies in vogue are Bitcoin, Ethereum, Tether, XRP, Cardano, Solana, etc. They have their own value systems determined by the demand and supply mechanism. They are all major energy consumers in their mining operations. Although Pakistan has a capacity of around 45,000MW of electricity generation, it may, as experienced by Iran and Kazakhstan, face the worst kinds of electricity shortages.

Financial experts hold varying viewpoints on the incorporation of cryptocurrencies into national reserves. The government’s decision has already sparked intense debate among political economists and technological circles regarding the best way to utilise cryptocurrency mining to create virtual digital asset reserves in countries like Pakistan. Proponents consider cryptocurrencies, in support of their arguments, as contributing to financial stability, hedging against inflation and being business-friendly. The regulation of cryptocurrencies and their volatility will remain a major concern.

The cybersecurity of digital currencies is another significant concern for policymakers. Financial fraud and the illegal use of money, including terror financing, may become a headache if these currencies are not strictly regulated with strong security protocols in place. Despite all sorts of reservations, most economists today favour cryptocurrency options as the only way forward for the digital world.

There is a real danger that virtual digital currency options may become new cryptocurrency casinos, which must be avoided at all costs. The real economy, based on large-scale manufacturing and industrial growth that boosts exports, needs to be developed. Virtual assets, unless brought under a strict policy framework, often become imaginary reserves. Nevertheless, the importance of digital currencies cannot be overstated, as new digital currencies and stablecoins are becoming new rails for cross-border settlement, avoiding invisible taxes and traditional transfer fees that unnecessarily create hurdles for businesses. If digital currencies are left unregulated, they will expand through informal channels. Smart integration through a strong regulatory framework and oversight may deliver results. Financial inclusion can revolutionise the country’s economy.

A strong policy framework, digital infrastructure and regulatory mechanism can ensure a thriving financial landscape based on virtual asset reserves, transforming Pakistan into a regional digital currency hub. It requires a lot of energy, along with substantial power bills, to keep the crypto regime afloat. Crypto mining using blockchain technology is an expensive affair, burdening the economy itself unless its full potential is exploited. It also entails social and political costs in case of failure. The fallout is so severe that no one can recover from crypto shocks, as seen in the Binance exchange scandal, where billions were lost in no time. Such situations must be avoided at all costs. A strong crypto infrastructure, a well-defined regulatory framework and a robust cybersecurity regime can prevent such scandals. These need to be developed.

Another serious concern is that inequality can dangerously increase, as 38 per cent of the population is uneducated and illiterate and cannot benefit from the rapid modern transition in the field of digital currencies. The example of Nigeria is particularly relevant here, where people could not benefit from the digital transformation in the cryptocurrency world simply because a few wealthy individuals extracted the majority of the value by utilising cryptocurrencies. Wealth concentrated in a few hands, with the elite diaspora outpacing economic growth, creates the specter of inequality, stifling real progress as capital flows into unproductive sectors of the economy. Crypto businesses may become gambling dens. The need of the hour is to avoid such a worst-case scenario in the days to come.

Stringent regulatory conditions enforced through a regulatory framework can help avoid traps in illegal cryptocurrency transfers and plug loopholes. The need of the hour is to empower the people of Pakistan through fast and efficient digital transfer mechanisms, free from invisible taxes and transfer fees. That is quite possible through cryptocurrency. We can revolutionise our economy by creating digital virtual asset reserves, avoiding traditional gold, silver or dollar reserves. The government must ensure a very strong regulatory regime, digital infrastructure and cybersecurity oversight mechanism to prevent any future major crypto scams.

Where the risks loom large in the face of AI-backed crypto and digital currency businesses, there are innumerable benefits and opportunities as well. Pakistan’s crypto bet can transform the entire economic and financial landscape. There is an immediate need to harness cheap power generation potential to help realise the crypto mining digital dream. Renewable clean energy options will work well to capitalize on crypto mining using blockchain technology. Avoiding invisible taxes on transferring money through traditional channels can boost economic transformation.

The risks of attracting FATF conditions are real due to the volatility of cryptocurrency and its payment systems. However, the fact remains that significant investments and trade inflows resulting from the digital cryptocurrency transformation can substantially boost economic growth.

The writer is a former additional secretary and can be reached at: hassanbaig2009@gmail.com

Among pregnant women with HIV infection, oral rilpivirine-based antiretroviral regimens were associated with similar rates of adverse pregnancy and birth outcomes as nonrilpivirine regimens. The prevalence of overall birth defects was lower in the rilpivirine group and did not vary by timing of exposure.

METHODOLOGY:

• Researchers analyzed data from the Antiretroviral Pregnancy Registry to compare adverse pregnancy and birth outcomes among pregnant women with HIV infection who received oral rilpivirine-containing antiretroviral regimens and those who did not.
• They analyzed 4617 pregnancies from the US between 2011 to 2023 (median maternal age, 29 years); 781 received oral tablets or oral fixed-dose combinations of rilpivirine, and 3836 received regimens without rilpivirine.
• Outcomes included reported stillbirth, induced abortion, and live birth outcomes such as low birth weight (< 2500 g), very low birth weight (< 1500 g), premature birth (< 37 weeks’ gestation), and birth defects.

TAKEAWAY:

• The oral rilpivirine and nonrilpivirine groups had similar prevalence for induced abortion (age-adjusted prevalence ratio [aPR], 1.1), stillbirth (aPR, 0.6), premature birth (aPR, 0.8), and very low birth weight (aPR, 0.7; P > .05 for all).
• The prevalence of overall birth defects was lower in the oral rilpivirine group than in the nonrilpivirine group (aPR, 0.4; P = .0054). Similarly, rates of low birth weight were significantly lower in the oral rilpivirine group (aPR, 0.7; P = .0046).
• No significant difference was observed in the prevalence of overall birth defects between offspring of women exposed to oral rilpivirine in the first trimester and offspring of women exposed in the second and/or third trimester.

IN PRACTICE:

“These findings on the safety of oral RPV [rilpivirine]-containing ARV [antiretroviral] regimens in pregnant women and their offspring are reassuring for patients and HCPs [healthcare providers] and further support the use of oral RPV as per the current guidelines for the treatment of HIV infection during pregnancy,” the authors wrote.

SOURCE:

This study was led by William R. Short, Perelman School of Medicine, University of Pennsylvania, Philadelphia. It was published online on September 11, 2025, in HIV Medicine.

LIMITATIONS:

The registry relied on voluntary reports of cases from healthcare providers, which may have led to differential reporting. It was primarily designed to detect teratogenic effects, limiting the robustness of data on pregnancy outcomes. Enrollment of women after negative prenatal testing could have lowered the observed prevalence of birth defects. Moreover, this study could not distinguish the individual effects of other antiretroviral drugs on birth outcomes.

DISCLOSURES:

This study was supported byJohnson & Johnson. Six authors reported being employees of the funder and disclosed that they may be holding company stock or stock options. Other authors disclosed receiving consultancy fees or honoraria or having other financial ties with pharmaceutical companies.

By Devyani Gholap

Oct 8 (Reuters) – French authorities on Wednesday denied an important maritime concession for the Aquind electricity interconnector project, effectively halting progress on the planned high-voltage link between France and the United Kingdom.

While the project received environmental approval in July, the concession required a national-level recognition of public interest, which was not validated, the Seine-Maritime prefecture said in a statement on Wednesday.

Sign up here.

“We are surprised by this decision, given the growing need for interconnection identified at the European level, particularly between France and Great Britain, and the policies implemented in this respect,” said Martin Dubourg, Aquind director for France.

While presenting a risk for the project, the decision does not call into question its relevance or eventual completion, he added.

With a capacity of 2 gigawatts, the interconnector is expected to transmit over 17 TWh of electricity annually between France and Great Britain, according to the project’s website.

Our Standards: The Thomson Reuters Trust Principles., opens new tab

BBC

‘Promote curiosity’

‘When you use it in the correct way it can help you’

What is AI?

What are teachers using AI for?