HSBC tries to raise more cash

HSBC PLC plans to raise billions of pounds in a new share issue to increase its capital reserves amid the economic downturn, newspapers reported on Saturday.

The Financial Times and The Wall Street Journal, both citing unidentified sources, said that HSBC ?? Europe's largest bank by market value - has plans to announce the new share issue today when it publishes its annual results.

According to the reports, the bank, which has fared relatively well in the downturn, plans to raise more than 12 billion pounds (US$17 billion) from existing shareholders rather than Britain's government.