HSBC shares down on subprime fears

Shares in global banking giant HSBC tumbled 2.77 percent in Hong Kong Monday on reports of yet more exposure to US subprime problems, sparking further fears over the worldwide credit crisis.
The bank ended trading on the Hong Kong bourse down 3.90 Hong Kong dollars at 137.10, helping drag down the benchmark Hang Seng Index which lost 3.90 percent on the day's trading.
Reports at the weekend said the company is set to reveal a further 1.0 billion US dollars (7.8 billion Hong Kong) of bad debt stemming from its American mortgage business HSBC Finance, previously known as Household International.
Analysts said investors are worried that the provision may be followed by more charges in the future as major banks reveal more US subprime loans-related losses.
"Problems in the US subprime market are far from over and major US banks are setting aside billions of US dollars for bad debts," said Lee Yuk-kei, an analyst at Core Pacific-Yamaichi International.