HSBC has seen its shares drop for four consecutive months and may slide further due to its exposure to the troubled US mortgage market, some analysts predict.
Shares in the Hong Kong-based bank have been badly hit by problems in the US subprime loan industry, in which HSBC is a key player, which supplies high-interest loans to borrowers with a poor credit rating, a low income or no down-payment.
However many analysts fear the problems could continue. Adam Topalian, a fixed income strategist at the New York City-based financial services firm Lehman Brothers, warned that the looming mortgage crisis was a "real concern".
The bank expanded into the subprime lending market in 2003 through its acquisition of Household International for $15.5 billion (£7.9 billion) yet the Mortgage Bankers Association revealed on Tuesday that late payments by subprime borrowers are at a four year peak of 13.3 per cent while house prices continue to decline.
New Century Financial and Accredited Home Lenders Holding, both rivals of HSBC in the market, have witnessed a difficult week. The former lost its listing on the New York Stock Exchange (NYSE) on Tuesday due to failing funds while the latter reported it would sell loans worth $2.7 billion (£1.3 billion) to pay its bankers.
Digg 
Delicious 
Reddit 
StumbleUpon 
Google 
Technorati 
Netvouz