HSBC Holdings rose as much as 3% in Hong Kong, hitting an all-time high, after its capital reduction was approved by the court, increasing its distributable reserves.

HSBC announced that following shareholder approval at its Annual General Meeting on May 2, 2025, the High Court of England and Wales has confirmed the cancellation of US$14.8 billion from the company’s share premium account and US$1.755 billion from its capital redemption reserve as of June 24. The capital reduction is intended to boost distributable reserves, giving the company greater flexibility to return value to shareholders in the form of dividends and/or share buybacks over the coming years.

Notably, earlier this month, media reports suggested that HSBC Holdings plans to expand its investment banking business to meet the IPO demand of startups in Asia and the Middle East. The move is said to align with the bank’s broader restructuring strategy, which focuses on high-return markets like Hong Kong and India, while scaling back in less profitable regions such as Europe and the U.S.