By Joe Wallace

World trade isn't grinding to a halt but it is changing shape, according to the chief executive of HSBC, a major funder of global commerce.

"We've seen a significant drop in volumes along the U.S.-China corridor in the sectors that have not been given a waiver or a reduction in tariffs," Georges Elhedery said Tuesday, as HSBC reported results.

Elhedery said he doesn't believe globalization is over, but that trade is getting rewired, with more activity within regions such as Asia and the Middle East. He said the bank stands to benefit from that reconfiguration because it has more than 5,000 trade specialists, though the uncertainty is likely to weigh on demand for loans this year.

HSBC occupies a critical role in the world economy, financing trade, processing transactions and moving capital across borders from its bases in the U.K. and Hong Kong. For several years, it has been pivoting toward Asia, its most profitable market-a strategy Elhedery doubled down on after taking over as CEO last fall.

Shares rose Tuesday after the bank reported unexpectedly high quarterly pretax profit, bolstered by earnings from volatile foreign-exchange, debt and stock markets.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

April 29, 2025 06:00 ET (10:00 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.