Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 80

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 80
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| Average                     |        466.9 |        292.9 |                    -204.5 |   555.3 |
| Maximum                     |        691.3 |        342.4 |                           |   799.5 |
| Minimum                     |        292.1 |        242.4 |                           |   408.7 |

1 When VaR is calculated at a portfolio level, natural offsets in risk can occur when compared with aggregating VaR at the asset class level. This difference is called portfolio diversification. The asset class VaR maxima and minima reported in the table occurred on different dates within the reporting period. For this reason, we do not report an implied portfolio diversification measure between the maximum (minimum) asset class VaR measures and the maximum (minimum) total VaR measures in this table. Non-trading VaR excludes equity risk on securities held at fair value, non-trading book foreign exchange risk, insurance operations and the risks managed in HSBC Holdings arising from long-term capital issuance. HSBC’s management of market risk in the non-trading book is described in ‘Treasury risk’ on page 200 of the Annual Report and Accounts 2024.

Market risk Overview Market risk is the risk of an adverse financial impact on trading activities arising from changes in market parameters, such as interest rates, foreign exchange rates, asset prices, volatilities, correlations and credit spreads. Exposure to market risk is separated into two portfolios: trading portfolios and non-trading portfolios. Market risk in the first half of 2025 There were no material changes to the policies and practices for the management of market risk in the first half of 2025. Ñ A summary of our current policies and practices for the management of market risk is set out in ‘Market risk management’ on page 216 of the Annual Report and Accounts 2024. We continued to manage market risk prudently in the first half of 2025. Market risk was managed using a complementary set of risk measures and limits, including stress testing and scenario analysis. Main sensitivity exposures and VaR remained within appetite as the business pursued its core market-making activity in support of our customers. We ran stress testing for scenarios focusing on the potential financial impact of US trade tariffs, conflict in the Middle East and the Russia-Ukraine war. Trading portfolios Value at risk of the trading portfolios Trading VaR was predominantly generated by Markets and Securities Services. As of 30 June 2025, trading Va