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HSBC boosts reserves after court backs capital cancellation

It cancelled US$1.8b from its capital redemption reserve.

HSBC Holdings has received court approval to reduce its capital to increase distributable reserves.

The reduction comprises the cancellation of US$14.8b from the company’s share premium account and US$1.8b from its capital redemption reserve.

HSBC said the reduction will also enhance its ability to return value to shareholders over time via dividends and share buybacks.
 

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