HSBC Holdings Plc has rescinded a memorandum that presented a gloomy forecast for Qatar’s economy, issued earlier this year. The bank subsequently disseminated research painting a more optimistic picture of the country’s economic landscape.
According to sources privy to the matter, a Dubai-based equity sales trader authored the original memo following a visit to Qatar in May. The trader, who requested anonymity due to the confidential nature of the information, cited feedback from local investors, who portrayed a rather bleak economic outlook.
The memo highlighted weaknesses in Qatar’s real estate and stock markets, characterizing the economy as “in the doldrums. ” However, the document was promptly retracted after its circulation. Days later, HSBC published fresh research adopting a more bullish stance, entitled “Well Anchored. “
Senior HSBC executives initiated contact with heads of prominent Qatari institutions following the release of the research. In at least one of these conversations, the bank emphasized that the trader’s views did not represent HSBC’s official position. It remains uncertain whether the trader will face disciplinary action.
Follow Arabian Post
Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.
