Regarding the Herald Fund SPC lawsuit linked to the Madoff fraud, HSBC HOLDINGS (00005.HK)  +4.500 (+4.412%)    Short selling $610.72M; Ratio 19.212%   announced that the Luxembourg Court of Cassation denied last Friday (24th) HSBC Securities Services Luxembourg's (HSSL) appeal in respect of Herald's securities restitution claim, but accepted HSSL's appeal in respect of Herald's cash restitution claim. HSSL will now pursue a second appeal before the Luxembourg Court of Appeal.

If HSSL is unsuccessful in that second appeal, it will contest the amount HSSL is required to pay in subsequent proceedings before the Court of Appeal.

Related NewsRatings & TPs on HSBC HOLDINGS (00005.HK) (Table) (Update)
Following this development, HSBC HOLDINGS will recognize a provision of USD1.1 billion in its consolidated financial results for 3Q25, an around 15 bps impact on the group's CET1 capital ratio.

Given the pendency of the second appeal and the complexities and uncertainties associated with determining the quantum of restitution, the eventual financial impact could be significantly different. The provision will be classified as a material notable item and will not impact FY25 RoTE excluding notable items or any dividend.

HSBC HOLDINGS' 3Q25 results will be announced as planned tomorrow (28th).
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-10-28 16:25.)

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