Shares of Europe’s largest bank, HSBC, could climb after the company said current AIA chief Mark Tucker will take over as chairman, with its Hong Kong listing potentially hitting 70 Hong Kong dollars per share, one analyst told CNBC.
By noon HK/SIN, HSBC shares in Hong Kong were 2.22 percent higher at 64.4 Hong Kong dollars per piece, outperforming the Hang Seng Index that was up 0.89 percent. Shares of insurance firm AIA went the opposite direction to trade 2.78 percent down at 48.9 Hong Kong dollars.
“Now, with this new perspective, I think the bank would go up a little bit more to 70 dollars, I think investors should hold. For buying, if it’s below 63 dollars, I think investors should get into this stock,” Jackson Wong, executive director at Huarong International Securities, said on CNBC’s “Street Signs.”
“I think this is great news for HSBC. With Mark Tucker on board, it’s good to bring some new energy. We know AIA is a very aggressive company in Asia and they have been achieving high growth for a very long time… Mark Tucker has the Asia know-how, he knows how to do business in Asia so I think this is good.”
HSBC said Tucker would join the bank as chairman, replacing Douglas Flint in a management overhaul that it hopes could bring in new sources of growth. Tucker will join the bank’s board on Sept. 1 and take over as chairman on Oct. 1.
He will be tasked to identify a successor to HSBC chief executive Stuart Gulliver, who plans to step down in 2018, the bank said.
Wong said Tucker, the first external candidate to take up the role of HSBC chairman in the bank’s 151-year history, would likely bring in a fresh face to be chief executive instead of promoting someone internally.
“I don’t have any candidates in mind that would do the CEO job, but I think he’s going to find someone that would be a little bit more aggressive than (a candidate) from promoting internally,” he said.