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HSBC Holdings Plc plans to relocate a handful of senior executives from London to Hong Kong or Singapore as Europe’s largest lender bets its future on Asia.
The bank plans to relocate London-based Greg Guyett and Georges Elhedery, the co-directors of its investment bank, Asia, said people familiar with, declining to be identified as the details are private. Further direct reports to CEO Noel Quinn are also being considered for offshoring, placing more top-level decision makers in the region where he makes most of his money, people said. The changes are being considered as HSBC prepares to announce the outcome of a strategic review this month.
An HSBC spokesperson in London declined to comment.
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HSBC plans to transfer billions of capital to Asia, particularly to China, to boost profitability as it cuts or leaves companies in Europe and the United States, where weaker economic momentum and lower rates lower interest made profitability difficult. Having more executives in the region will show investors and policymakers that its expansion plans are serious, at a time when a sometimes strained relationship with Beijing is on the mend.
HSBC is almost a year into a major restructuring that has been partially held back by the pandemic outbreak and is expected to update its plans alongside its annual results on February 23.
The lender this week announced the opening of a new office in Guangdong to lead a push in the Greater Bay Area, a Beijing-backed project to bring Hong Kong closer to southern mainland cities such as the technology hub of Shenzhen and create an economic power in a region of more than 72 million people. The London-based bank earns about two-thirds of its pre-tax income in Hong Kong, but remains relatively small on the mainland even though it has outlets in more than 50 cities.
Hong Kong leader Carrie Lam endorsed a stronger presence for the bank in the former British colony, where it has come under heavy criticism for freezing the accounts of pro-democracy activists and supporting it. ‘a radical national security law imposed on the financial center. He also received praise for his expansion plans from Communist Party-backed media, having previously had to defend himself from his cooperation with the US investigation into Huawei Technologies Co.
HSBC has also sought to deploy more resources in Southeast Asia, where it has struggled to compete with dominant players such as Singapore’s DBS Group Holdings Ltd and rival Standard Chartered Plc. HSBC also recently announced its expansion into private banking in Thailand.
Along with rivals, HSBC is also poised to benefit from increased trade flows after 15 Asia-Pacific countries agreed to cut tariffs as part of the comprehensive regional economic partnership signed in late 2020.
“Economic realities mean that what we were planning to do in February we need to be even more urgent to do,” President Mark Tucker told the Virtual Asian Financial Forum in January. “We are accelerating the plan by confirming the areas of intervention of the bank, particularly in Asia where we see real opportunities to develop our wealth management business and expand in South Asia,” he said. .
Tucker’s contract must be renewed prior to HSBC’s annual general meeting.
This story was posted from an agency feed with no text editing.
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