HSBC Holdings reported a sharper-than-expected drop in profit on Wednesday, hurt by write-downs from exposures to a Chinese bank and Hong Kong real estate, while the bank pushed ahead with a global restructuring.

The UK-based lender, which generates the bulk of its profits in Asia, also recorded a $2.1bn impairment on its stake in China’s Bank of Communications after the country’s finance ministry recapitalised the lender. HSBC last year reported a $3bn charge on the value of its stake in the Chinese bank.

HSBC Holdings reported a 26 per cent slide in first-half pretax profit on Wednesday (Jul 30), missing analyst estimates, as impairments from its investment in China's Bank of Communications and exposure to Hong Kong real estate weighed.