HSBC 2006 Annual Report Download - page 389

387
Collateral accepted as security for assets
The fair value of financial assets accepted as collateral that HSBC is permitted to sell or repledge in the absence of
default is US$188,008 million (2005: US$138,303 million).
The fair value of financial assets accepted as collateral that have been sold or repledged was US$135,998 million
(2005: US$97,113 million). HSBC is obliged to return equivalent securities.
These transactions are conducted under terms that are usual and customary to standard stock borrowing and lending
activities.
37 Minority interests
2006 2005
US$m US$m
Minority interests attributable to holders of ordinary shares in subsidiaries .................................... 4,026 3,618
Preference shares issued by subsidiaries ........................................................................................... 2,550 2,176
Total minority interests ...................................................................................................................... 6,576 5,794
Preference shares issued by subsidiaries
2006 2005
US$m US$m
US$575m 6.36% non-cumulative preferred stock, Series B1 .................................................. 559 559
US$518m Floating rate non-cumulative preferred stock, Series F2 ........................................ 518 518
US$374m Floating rate non-cumulative preferred stock, Series G3......................................... 374 374
US$374m 6.50% non-cumulative preferred stock, Series H3 .................................................. 374 –
CAD175m Non-cumulative redeemable class 1 preferred shares, Series C4............................. 150 150
CAD175m Non-cumulative class 1 preferred shares, Series D4 ............................................... 150 150
US$150m Depositary shares each representing 25% interest in a share of
adjustable rate cumulative preferred stock, Series D5 ............................................. 150 150
US$150m Cumulative preferred stock6 .................................................................................... 150 150
US$125m Dutch auction rate transferable securities preferred stock, Series A and B7........... 125 125
2,550 2,176
1 The series B preferred stock is redeemable, at the option of HSBC Finance Corporation, in whole or part, from 24 June 2010 at par.
2 The series F preferred stock is redeemable at par, at the option of HSBC USA Inc., in whole or part, on any dividend payment date on or
after 7 April 2010.
3 The series G and Series H preferred stock are redeemable at par, at the option of HSBC USA Inc., in whole or part, at any time from
1 January 2011 and 1 July 2011, respectively.
4 The Series C and Series D preferred stock are redeemable at a declining premium above par, at the option of HSBC Bank Canada, in
whole or part, from 30 June 2010 and 31 December 2010, respectively.
5 The preferred stock has been redeemable, at the option of HSBC USA Inc., in whole or part, from 1 July 1999 at par.
6 The preferred stock is redeemable, at the option of HSBC USA Inc., in whole or part, at any time on or after 1 October 2007 at par.
7 The preferred stock of each series is redeemable, at the option of HSBC USA Inc., in whole or part, on any dividend payment date at
par.
All redemptions are subject to the prior consent of the Financial Services Authority and, where relevant, the local
banking regulator.
38 Called up share capital
Authorised
The authorised ordinary share capital of HSBC Holdings at 31 December 2006 and 2005 was US$7,500 million
divided into 15,000 million ordinary shares of US$0.50 each.
At 31 December 2006 and 2005, the authorised preference share capital of HSBC Holdings was 10 million non-
cumulative preference shares of £0.01 each, 10 million non-cumulative preference shares of US$0.01 each, and
10 million non-cumulative preference shares of €0.01 each.
At 31 December 2006 and 2005, the authorised non-voting deferred share capital of HSBC Holdings was £301,500
divided into 301,500 non-voting deferred shares of £1 each.