Company: HBCYF
Filing Date: 2025-02-25
Form Type: 424B5
Source: 0001193125-25-034819
Chunk: 55

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-25
Form: 424B5
Chunk 55
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 non-transitional CET1 Ratio. In addition, we continue to test and refine our models for purposes of determining expected credit losses, and any revisions to our models may result in
significant changes to our regulatory capital position. Even if changes in applicable accounting rules, or changes to regulatory adjustments that modify the regulatory impact of accounting rules, are not yet in force as of the relevant calculation
date, the Relevant Regulator could require us to reflect such changes in any particular calculation of the non-transitional CET1 Ratio. Moreover, the HSBC Group’s
non-transitional CET1 Ratio is a non-IFRS measure, and our interpretation of the Capital Instruments Regulations and the basis of our calculation of this financial
measure may be different from those of other financial institutions. The estimates are also based on a number of assumptions. For further information, see the section entitled “Capital Overview” in the 2024 Form 20-F.

S-36

Because of the inherent uncertainty regarding whether a Capital Adequacy Trigger Event will
occur, it will be difficult to predict when, if at all, an Automatic Conversion may occur. Accordingly, the trading behavior of the Securities, including prices, volatility and liquidity, may be affected by any threat of a Capital Adequacy Trigger
Event and, as a result, the Securities are not necessarily expected to follow the trading behavior associated with other types of securities, including our debt securities. As a result, you may not be able to sell your Securities easily, or at all,
or at prices that will provide them with a yield comparable to other types of subordinated securities. In addition, the risk of an Automatic Conversion could lead to a decline in the price of our ordinary shares, which could have a material adverse
effect on the market value of the Conversion Shares you receive.

The non-transitionalCET1 Ratio, and more generally, our overall capital position, will be affected by our business decisions and our and your interests may not be aligned.

As discussed in “—Risks Relating to the Securities—The circumstances surrounding or triggering an Automatic Conversion are unpredictable” and “—Risks Relating to the Securities—Existing or new capital or leverage requirements may result in restrictions on making interest payments in respect of the Securities, in which case interest payments will be cancelled, which you may not be able to anticipate,” the non-transitional CET1 Ratio, and more generally, our overall capital position, could be affected by a number of factors, including the
HSBC Group’s decisions relating to its businesses and operations,