Should I Buy HSBC Stock in 2025? Insights for South Africans

What is HSBC?

How much is the HSBC stock?

The price of HSBC stock is rising this week. Currently trading at $59.20 on the NYSE, HSBC is up $0.50 (+0.85%) over the last 24 hours, while showing a mild decline of 0.35% across the week. The company’s market capitalisation stands at $204.87 billion, supported by an average daily trading volume of 2.88 million shares over the past three months. HSBC posts a price-to-earnings ratio of 10.96, an attractive dividend yield of 5.54%, and a stock beta of 0.72—indicating lower volatility compared to the broader market. With its robust fundamentals and steady performance, HSBC may offer a balanced opportunity for South African investors seeking income and stability.

Our full analysis on HSBC stock

Having thoroughly reviewed HSBC Holdings PLC’s latest financial results and scrutinized the stock’s robust performance for the past three years, our analysis integrates key financial indicators, technical signals, market data, and competitive benchmarking—leveraging proprietary algorithms to build a 360° view. HSBC’s recent operational and market milestones underline a growing momentum underpinned by strategic expansion and digital transformation. So, why might HSBC stock once again become a strategic entry point into the global banking and financial technology sector in 2025?

Recent Performance and Market Context

Over the last twelve months, HSBC has demonstrated a powerful acceleration in shareholder value creation. As of 30 May 2025, the ADR has reached $59.20 on the NYSE, up 33.6% from this time last year and 19.69% year-to-date—a clear outperformance compared to many peers in the diversified global banking space. While there was a slight intraday dip recently (-0.35% for the week), the prevailing trend is distinctly bullish. The stock is currently trading just below its 52-week high ($61.88), signaling persistent investor enthusiasm.

This resurgence is not occurring in a vacuum. The macroeconomic landscape over the past six months has become significantly more conducive to international banking: resilient global liquidity, central bank policy stability in key markets, and a recovery in Asian economic activity have all combined to create fertile ground for HSBC’s core business. Moreover, the sector is benefiting from digital banking adoption, rising wealth management flows, and a robust pipeline of corporate lending—all themes where HSBC is exceptionally well positioned.

Recent strategic milestones amplify this favourable backdrop:

• Q1 2025 results exceeded consensus: Profit before tax reached $9.5 billion (+11% YoY), and revenues rose to $17.6 billion (+7% YoY).
• Massive share buybacks and attractive dividends: The board has announced a $3 billion buyback for Q1 after delivering $11 billion in repurchases in 2024, alongside a consistently strong 5.54% dividend yield.
• Restructuring delivers savings: Annual cost reductions of $1.5 billion are supporting margin expansion and freeing capital for digital and Asian growth.

HSBC’s impressive performance, set within a supportive macro-financial environment, makes the stock increasingly hard for global and local investors to ignore.

Technical Analysis

A survey of HSBC’s technical positioning as of late May 2025 reinforces the bullish narrative. Key indicators are converging in favour of further upside:

• Relative Strength Index (14 days): 59.72 — hovering just below overbought, reflecting sustainable momentum with ample headroom before technical correction risk.
• MACD (12,26,9): 1.26 (Buy Signal) — marking a clear bullish crossover which often precedes medium-term rallies.
• Moving Averages (all strong buy signals):
• 20-day: $57.76
• 50-day: $55.57
• 100-day: $53.85
• 200-day: $48.60

Current price action remains well above these moving averages, reinforcing the presence of a sustained uptrend. The technical consensus (13 bullish, 5 neutral, 4 bearish) is overwhelmingly positive, backed up by solid support levels at $57.31 and resistance at $58.03—both recently surpassed. Classical pivot points (S1: $58.93, R1: $59.34) also suggest a breakout phase might be underway.

Favourable technical structure, with both short- and medium-term momentum intact, points towards HSBC potentially entering another bullish leg, particularly if global financial conditions remain constructive.

Fundamental Analysis

Looking beneath the surface, HSBC's fundamental metrics and financial strength are compelling:

• Revenue Growth & Profitability: Q1 2025 revenues increased to $17.6 billion, with profit before tax jumping 11% YoY—indicative of structural growth.
• Return on Tangible Equity (RoTE): Hit an impressive 18.4% (annualised, adjusted), comfortably at the upper end of global peer comparisons.
• Capital Adequacy: CET1 ratio at 14.7% offers a significant buffer for both compliance and future expansion.
• Attractive Valuation: At a P/E of just 10.96, HSBC trades at a material discount to comparable global banks, despite matching or exceeding their growth and profitability profiles. The stock’s price-to-sales ratio and low PEG further underscore its underappreciated growth potential.
• Dividend Yield: 5.54%, paid from strong free cash flow—substantially above local and international benchmarks.
• Buybacks: Ongoing, large-scale share repurchases (over $14 billion in two years), offering additional support for earnings per share and stock price appreciation.

Structurally, HSBC enjoys:

• Dominant position in Asia: Particularly in Hong Kong and across the fast-growing Asia-Pacific rim.
• Strong, trusted global brand: Facilitates new client acquisition in both retail and wealth management.
• Tech-led transformation: Digital investments are improving cost-to-income ratios and enabling innovation.

These foundations support a high level of operational resilience, while current valuation metrics suggest the market may not be fully pricing in HSBC’s medium-term growth and transformation prospects.

Volume and Liquidity

HSBC stands out for its consistent, robust trading activity—with a 65-day average daily volume of 2.88 million shares (NYSE). This depth:

• Provides outstanding liquidity for both retail and institutional investors, helping to ensure tight bid/ask spreads and ease of entry/exit.
• Reinforces market confidence, as sustained volume often accompanies periods of meaningful accumulation by sophisticated investors.
• Favourable float dynamics: With 3.52 billion shares outstanding, buybacks have a magnified impact on valuation.

Such liquidity is particularly relevant in the South African context, offering an accessible way for institutions and individuals to diversify globally without liquidity risk.

Catalysts and Positive Outlook

HSBC is poised to benefit from a string of powerful catalysts in the coming quarters:

• Growth in Wealth and Asset Management: Q1 saw a 23% increase in fee-based income, as both HNWI and mass affluent clients in Asia continue to expand their assets under management with HSBC.
• Market-leading performance in FX and securities markets: Positions the group at the intersection of secular financial megatrends, including dollar remittances and digital asset custody.
• Accelerated Asian Expansion: Deepening market share in Asia-Pacific, led by Hong Kong’s rebound and new investments in Southeast Asia.
• Digital transformation: Ongoing tech investment is improving client experience, reducing cost-to-serve, and opening new product avenues—an essential lever for future profitability.
• Substantial shareholder returns: With ongoing and newly announced buyback plans and a resilient dividend, HSBC resets the standard for total return within the sector.
• Restructuring programme effects: Streamlining operations into four major divisions (from January 2025) is unlocking further efficiency gains.
• ESG and sustainability initiatives: New green lending, decarbonisation finance, and sustainable investment products will likely attract incremental capital, aligning HSBC with global sustainability trends.

Upcoming milestones—such as interim results, updates on Asian market strategy, and digital innovation rollouts—may all serve as near-term catalysts for the share price.

Investment Strategies

Arguments in favour of considering entry positions into HSBC stock—across time horizons—are increasingly persuasive:

• Short-term: Strong upward momentum and recent technical breakouts make HSBC well suited for momentum-driven exposure. Entry at or just above the $59 support, below resistance and after minor pullbacks, seems tactically attractive.
• Medium-term: Ongoing restructuring, robust buyback pipeline, and sector-wide recovery dynamics point towards multi-quarter outperformance. Positioning before key earnings or capital markets updates can capture positive sentiment reversals.
• Long-term: For those seeking global banking exposure, HSBC offers market leadership, proven capital return, and high dividend reliability. The projected 15–19% RoTE through 2027 provides a solid earnings growth anchor.
• Ahead of Catalysts: Entering around technical lows or in anticipation of the next buyback announcement/interim results could maximise upside optionality.
• Portfolio Diversification: For South African investors, HSBC’s international profile and balanced exposure to both developed and emerging markets make it a core position for diversification beyond local equities.

Overall, HSBC appears to offer substantially more upside potential than downside risk at current levels, especially given supportive technical and fundamental backdrops.

Is it the Right Time to Buy HSBC?

In aggregate, HSBC’s investment case is underpinned by a convergence of strong financial results, proven capital allocation discipline, and a renewed growth trajectory in strategically vital Asia-Pacific markets. The combination of above-average yield, aggressive buybacks, and digital transformation provides additional levers for re-rating. Technical indicators, sustained trading volume, and supportive sector trends all suggest HSBC may be entering a new bullish phase.

While no stock is ever free of risk, HSBC’s dominant market position, healthy capital buffer, robust earnings trajectory, and shareholder return profile seem to represent an excellent opportunity for those seeking exposure to the next structural wave in global banking. For ZA-based investors in particular, the stock’s liquidity, USD focus, and Asia-driven future growth add further layers of defensiveness and return potential.

HSBC has consistently demonstrated its ability to generate value across cycles, and, with a significant roadmap of catalysts on the horizon, the current environment may well justify renewed interest among savvy investors—both for tactical allocation and as a core long-term portfolio holding. This is a moment where conviction in HSBC is not just justified, but increasingly supported by a breadth of powerful indicators.

In this context, HSBC stands out as a compelling gateway to global banking growth and digital finance innovation, offering a blend of stability, yield, and upside potential that is hard to match in today’s market.

How to buy HSBC stock in ZA?

Buying HSBC stock online is both straightforward and secure for South African investors who use regulated brokers. Today, you can purchase HSBC shares in just a few clicks, fully online, ensuring your transactions take place within a safe legal environment. There are two main approaches: the classic "spot buying" of shares (giving you real ownership) or trading via CFDs (Contracts for Difference), which lets you trade on price movements with leverage. Each method offers unique advantages depending on your goals. Below, we explain these options in detail so you can assess which suits you best—don't miss our broker comparison further down the page.

Spot buying

When you buy HSBC shares "for cash," you become the direct owner of the stocks, with all shareholder rights, including dividend eligibility. For SA investors, this usually means buying HSBC shares listed on the NYSE (USD) or LSE (GBP) through an online broker. Typical fees include a fixed commission per order—often around $5–$10 (about R90–R180), depending on the platform.

Example

If HSBC is trading at $59.20 per share (NYSE) and the brokerage fee is $5, you can invest $1,000 (approx. R18,200) and buy around 16 shares:

- 16 shares × $59.20 = $947.20 for the shares
- $1,000 - $947.20 = $52.80 left after buying shares
- Pay $5 brokerage fee ⇒ Total cost: $952.20

✔️ Gain scenario:
If HSBC’s share price rises by 10% to $65.12, your 16 shares are now worth $1,041.92.
Result: +$94.72 gross gain (around +10% on your investment, before fees and taxes).

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on HSBC’s share price with leverage, without actually owning the underlying shares. You can go long (bet on prices rising) or short (bet on prices falling), increasing your market exposure with a fraction of the capital. CFD fees typically include the spread (the difference between buy/sell price) and overnight financing charges if you hold positions beyond a day.

Example

You open a CFD position on HSBC with $1,000 capital and use 5x leverage, giving market exposure of $5,000.

✔️ Gain scenario:
If HSBC shares rise by 8%, the value of your CFD position jumps 8% × 5 = 40%.
You gain $400 on your initial $1,000 outlay (excluding platform fees and possible overnight costs).

Final advice

Before investing, always compare brokers’ fees, available markets, account types, and support for SA residents. Each broker has its own conditions, which can make a real difference over time. Ultimately, the most suitable option depends on your investment objectives: direct share ownership is ideal for building long-term wealth, while CFDs offer more flexibility and leverage for active traders. For a detailed side-by-side comparison of leading brokers in South Africa, refer to our table further down the page.

Our 7 tips for buying HSBC stock

The latest news about HSBC

HSBC’s Q1 2025 financial results strongly beat analyst expectations, with double-digit profit and revenue growth. In its trading update, HSBC reported a pre-tax profit of $9.5 billion and revenue of $17.6 billion for the first quarter of 2025, up 11% and 7% respectively from the previous year (excluding notable items). The return on tangible equity reached 18.4% and the bank’s CET1 capital ratio stood at a robust 14.7%. Analysts noted this performance was above consensus forecasts, highlighting the resilience of HSBC’s business model despite a complex macroeconomic context—an important signal for institutional investors, including those in South Africa where HSBC maintains a local presence through investment banking, capital markets, and corporate banking services.

The board confirmed a $0.10 interim dividend and further capital returns to shareholders, including a $3 billion buyback programme for Q1 2025. These actions follow an already substantial $11 billion buyback completed in 2024 and signal HSBC’s strong capitalisation and ongoing commitment to shareholder value. The attractive dividend yield (currently 5.54%) and continued buybacks are likely to appeal to yield-focused investors and pension funds across global markets, including South Africa, where institutional investors often prioritise consistent income streams and capital preservation.

HSBC finalised its major strategic restructuring into four global divisions in January 2025, with $1.5 billion in annualised cost savings targeted. This organisational revamp, combined with digital transformation investments, is meant to drive further operational efficiency while supporting profitable growth in core markets. Cost reduction and structural flexibility are poised to make HSBC significantly more competitive globally and more responsive to regulatory trends and regional requirements. For the South African business community, these changes introduce greater service integration and potential expansion of product lines in cross-border finance, treasury, and trade.

Technical indicators remain decisively bullish, with buy signals across most moving averages and momentum metrics. As of 29 May 2025, key technicals—including the MACD and four major moving averages—register clear buy calls. HSBC’s stock remains close to the upper end of its 52-week range ($39.42–$61.88), with consensus technical outlooks generally positive. Such strong market momentum, complemented by a relatively low price/earnings ratio (10.96) and moderate beta (0.72), could continue to underpin price stability and risk-adjusted returns, making it an attractive pick for portfolio managers operating in emerging and developed economies alike.

HSBC’s wealth business achieved a notable 23% year-on-year increase in fee income, supported by growth in Asia and robust performance in financial markets. This surge underscores the bank’s ability to capture growing savings and investment flows, especially among high-net-worth and institutional clients. Given South Africa’s status as a gateway market for pan-African and global investors, HSBC’s focus on wealth management, together with the expansion of digital platforms and market products, increases local relevance, facilitates cross-border capital flows, and enhances competitive advantage in a region where international banking services are in high demand.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.