5 billion loss in 2009 and no dividend payment

Goldman cut its target price on the Hong Kong stock to HK$49from HK$77 and added it to its "conviction sell" list,predicting a $1.5 billion loss in 2009 and no dividend payment. "We question the prudence of HSBC payingdividends in 2009." Ian Smillie, analyst at RBS, cut his rating on HSBC to"sell" from "hold" due to a global slowdown causing higher baddebts. He predicted cash dividends will be scrapped until after2011. The gloomy comments follow forecasts from analysts at MorganStanley earlier this week that stoked fears HSBC could raisebetween $20 billion and $30 billion and halve its dividend,sparking a sharp two-day sell-off. nLE245760 Bank of America (BAC.N) and Citigroup (C.N) have also beenhit hard this week by concern they need to raise more capital. RLAM's Coffey said raising $30 billion would be "at the topend of what they (HSBC) may have to raise and will give them avery good capital ratio." Dresdner upgraded its stance on HSBC to "buy" from "hold" onFriday, but it also predicted a cut in dividend. "We think that at current prices a dividend cut is fullydiscounted," analyst Arturo de Frias said in a note.

He said HSBC may need to top up its capital by $10 billionif impairments on its available-for-sale assets provedefinitive, which has not yet happened, but he said the fall inshare price had created a buying opportunity. (Reporting by Parvathy Ullatil and Nerilyn Tenorio in Hong Kongand Steve Slater and Raji Menon in London; Editing by JacquelineWong and Simon Jessop) Stocks. MUMBAI, Jan 16 (Reuters) - Indian shares provisionally rose2.95 percent on Friday, boosted by the U.S. The main 30-share BSE index .BSESN provisionally gained266.77 points to 9,313.51, with 26 components gaining. (Adds details, backgrounds) China By Polly Yam HONG KONG, Jan 16 (Reuters) - BHP Billiton (BLT.L)(BHP.AX)and large Chinese copper smelters are expected to settle termtreatment and refining charges (TC/RCs) for 2009 soon at $75 atonne and 7.5 cents a pound, smelter sources said on Friday.

The charges would represent a rise of nearly 60 percentover what BHP paid in 2008, and would be in line with whatJapanese smelters settled with the world's biggest diversifiedglobal miner. "China and BHP's TC/RCs would be almost certain at $75 and7.5 cents," a smelter source said. BHP would give the same TC/RCs to all Chinese smelters,including Jiangxi Copper (0358.HK)(600362.SS), Tongling(000630.SZ) and Jinchuan Group, another smelter source said. The charges would be paid by BHP to the smelters forconverting copper concentrate from its majority-owned Escondidamine in Chile into metal.