HSBC Holdings shares the second wave of hits by assets valued at nearly 700 billion

The World Bank giant HSBC Holdings Limited (HSBC Holdings PLC) was one of the first to be hit by the crisis that hit the US, The Wall Street Journal reported. 　　Now HSBC may have to undergo a second round of blows. HSBC, which owns a large number of high-risk US consumer loans through its consumer finance business subsidiary HSBC Finance Corp., has accounted for more than $40 billion trillion (about HK $310 billion) impairment losses on such non-performing portfolios. 　　HSBC has raised 18.5 billion dollars (about HK $143.4 billion) in new capital this year, and has said it will gradually shrink most of HSBC's finance, trying to end the bad chapter in its 144-year history of HSBC Holdings. 　　Almost 700 billion per asset valuation but as economic and housing data suggest more U.S. consumers could default on their loans, CreditSights, an analyst at the US credit research agency, said the bank's lending business was likely to suffer a massive loss. The 2003 HSBC buy-out agency Household International Inc., which entered the United States on a market basis, quickly established a large portfolio of assets, mainly composed of high-risk mortgages. 　　As of March 31 this year, HSBC valued the assets at $90 billion trillion (about HK $697.5 billion), although the market price was estimated at $57.5 billion (about HK $445.6 billion). HSBC believes that while current investors are wary of buying such loans, customers are likely to end up paying off their loans. 　　A spokesman for HSBC said they know more about the value of these loans than the market, and in fact most of them are actually repaying the loans. The ratio of rescheduling arrears remains high but Steele is not so sure. 　　He and colleagues Hendler in a study that HSBC finance revised terms (that is, reducing the repayment limit for default loans, lengthening repayment periods) or changing the repayment time (the amount of repayments currently paid by lenders to repay previously defaulted payments) has steadily increased. 　　As at March 31, HSBC's mortgage rescheduling or change of repayment time of about USD 28.8 billion (HK $223.2 billion) was 12% higher than the end of last year, representing 41% of the total amount of such loans. The bad situation is that a high percentage of borrowers have defaulted on the loan. 　　As at March 31, 24% of the loans revised or rescheduled since January 2007 were again in arrears for more than 60 days, of which 3% had been reimbursed. UBS analysts said the losses were peaking in principle and that HSBC would not necessarily be affected in the event of significant losses to US subsidiaries. HSBC Finance is an independent entity with a long-term debt of $75 billion trillion (about 5,812, 500 million Hong Kong dollars), and these creditors may eventually suffer losses. 　　But HSBC management has said it will support the U.S. subsidiary. Not everyoneThe problem with HSBC finance is worsening. UBS analyst Ryan predicts HSBC's 3-year total loss will be $17 billion (about 1,317.500 million Hong Kong dollars), below his March forecast of $20 billion trillion (about HK $155 billion). 　He noted that the first quarter of this year non-performing loans only slightly increased, indicating that the losses are peaking. The Wall Street Journal