HSBC Secures Hong Kong Waiver for Contingent Convertible Securities

TL;DR

**HSBC got a special waiver for its CoCo bonds in Hong Kong, which is a big deal for its capital structure.**

AI Summary

HSBC Holdings PLC filed a 6-K on March 25, 2026, regarding a Hong Kong Waiver for Contingent Convertible Securities. This filing indicates that HSBC has received a specific regulatory exemption related to these complex financial instruments. For investors, this matters because contingent convertible securities (CoCos) are a type of bond that can convert into equity or be written down if a bank's capital falls below a certain level, and a waiver could impact the terms or regulatory treatment of these securities, potentially affecting the bank's capital structure and risk profile.

Why It Matters

This waiver could alter the regulatory landscape for HSBC's contingent convertible securities, potentially impacting the bank's capital requirements and the risk associated with these instruments for bondholders.

Risk Assessment

Risk Level: medium — The filing itself is administrative, but the underlying subject of contingent convertible securities and regulatory waivers can introduce complexity and potential risk to a bank's capital structure.

Analyst Insight

An investor should research the specific terms of the 'Hong Kong Waiver' and its implications for HSBC's capital structure and existing contingent convertible securities to understand any potential changes in risk or yield.

Key Numbers

• 2026-03-25 — Filing Date (the date the 6-K was filed and accepted)
• 0001089113 — CIK (HSBC Holdings PLC's Central Index Key)

Key Players & Entities

• HSBC HOLDINGS PLC (company) — the filer of the 6-K
• Hong Kong Waiver (other) — the subject of the filing, related to contingent convertible securities
• Contingent Convertible Securities (other) — the financial instruments for which the waiver was obtained

Forward-Looking Statements

• The Hong Kong waiver will simplify the regulatory treatment of HSBC's contingent convertible securities. (HSBC HOLDINGS PLC) — medium confidence, target: 2026-12-31

FAQ

Filing Documents

• a0580y.htm (6-K) — 24KB
• 0001654954-26-002712.txt ( ) — 25KB

From the Filing

KONG WAIVER-CONTINGENT CONVERTIBLE SECURITIES a0580y FORM 6-K   SECURITIES AND EXCHANGE COMMISSION   Washington, D.C. 20549       Report of Foreign Private Issuer   Pursuant to Rule 13a - 16 or 15d - 16 of   the Securities Exchange Act of 1934       For the month of March   HSBC Holdings plc   8 Canada Square, London E14 5HQ, England   (Indicate by check mark whether the registrant files or will file annual reports under   cover of Form 20-F or Form 40-F).   Form 20-F X Form 40-F           On 25 March 2026, HSBC submitted the below announcement to the Stock Exchange of Hong Kong Limited regarding a waiver from strict compliance with the requirements of Rule 13.36(1) of the Hong Kong Listing Rules relating to contingent convertible securities.   Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document.     25 March 2026   (Hong Kong Stock Code: 5)   HSBC HOLDINGS PLC   Waiver granted pursuant to Rule 13.36(1) of the Hong Kong Listing Rules relating to contingent convertible securities   HSBC Holdings plc (the " Company ") has applied for, and The Stock Exchange of Hong Kong Limited has granted, a waiver from strict compliance with the requirements of Rule 13.36(1) of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the " Hong Kong Listing Rules ") pursuant to which the Company is permitted to seek (and, if approved, to utilise) an authority (the " Mandate ") to issue Contingent Convertible Securities (" CCSs ") (and to allot ordinary shares into which they may be converted or exchanged) in excess of the limit of the general mandate of 20 per cent of the Company's issued share capital (the " Waiver ").   CCSs are debt securities which convert into ordinary shares in certain prescribed circumstances, and which benefit from a particular regulatory capital treatment under European Union and United Kingdom legislation.   The Company typically seeks at each annual general meeting (" AGM ") a general authority to allot shares both on a pre-emptive and non-pre-emptive basis (" General Allotment Authority "). The General Allotment Authority is consistent with institutional guidelines issued by The Investment Association and the Pre-Emption Group's of the Hong Kong Listing Rules including Rule 13.36(2) which limits the general mandate for non-pre-emptive issues to 20 per cent of the Company's issued share capital.   The Mandate, if approved, will be in addition to the General Allotment Authority referred to above. The Company will only issue CCSs pursuant to the authority granted under the Mandate and not under its General Allotment Authority.   The Waiver has been granted on terms that permit the Mandate, if approved, to continue in force until: (i) the conclusion of the first AGM of the Company following the date on which the Mandate is approved (or an earlier date which the Company may specify) at which time the Mandate shall lapse unless it is renewed, either unconditionally or subject to conditions; or (ii) such time as it is revoked or varied by ordinary resolution of the shareholders in general meeting.   The Waiver is granted subject to the conditions that the Company must announce the Waiver before seeking the Mandate; and that any announcement of the Waiver, and any announcements and circulars in connection with the Mandate, should clearly indicate the Mandate is in addition to the general mandate under Rule 13.36(2).   For and on behalf of HSBC Holdings plc Angela McEntee Group Company Secretary     The Board of Directors of HSBC Holdings plc as at the date of this announcement comprises: Brendan Robert Nelson*,   Georges Bahjat Elhedery, Geraldine Joyce Buckingham † , Wei Sun Christianson † , Rachel Duan † , Dame Carolyn Julie Fairbairn † ,   James Anthony Forese † , Ann Frances Godbehere † , Steven Craig Guggenheimer † , Manveen (Pam) Kaur, Dr José Antonio Meade Kuribreña † , Kalpana Jaisingh Morparia † , Eileen K Murray †  and Swee Lian Teo † .   * Independent non-executive Chairman †   Independent non-executive Director                HSBC   Holdings plc   Registered   Office and Group Head Office:   8 Canada Square, 

View Full Filing

View this 6-K filing on SEC EDGAR