HONG KONG • HSBC Holdings is considering relocating a handful of senior executives from London to Hong Kong or Singapore as Europe's largest lender bets its future on Asia.
The bank is mulling over moving London-based Greg Guyett and Georges Elhedery, the co-heads of its investment bank, to Asia, people familiar with the matter said, declining to be identified as the details are private.
Other direct reports to chief executive Noel Quinn are also being considered for relocations, placing more top decision-makers in the region where it makes the bulk of its money, the people said.
The moves are being considered as HSBC prepares to announce the outcome of a strategic review this month. A spokesman for HSBC in London declined to comment.
Despite the news, HSBC shares in Hong Kong fell 0.85 per cent to close at HK$41, while the broader Hang Seng Index lost 0.66 per cent.
HSBC is planning to shift billions in capital to Asia, in particular to China, to reignite profitability as it scales back or exits businesses in Europe and the United States where less economic momentum and rock-bottom interest rates have made it difficult to make money.
Having more executives in the region will show investors and policymakers that it is serious about its expansion plans, at a time when an occasionally tense relationship with Beijing is on the mend.
HSBC is almost a year into a major restructuring that was partially held back by the Covid-19 pandemic, and is expected to update its plans and results on Feb 23.
The lender this week announced the opening of a new office in Guangdong to steer a push into the Greater Bay Area, a Beijing-backed project to tie Hong Kong closer to southern mainland cities such as tech-hub Shenzhen, and create an economic powerhouse of a region with more than 72 million people.
The London-based bank makes about two-thirds of its pre-tax income in Hong Kong, but is still relatively small on the mainland even though it has outlets across more than 50 cities.
Hong Kong leader Carrie Lam has 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 backing a sweeping national security law imposed on the financial hub.
It has also received praise over its expansion plans from Communist Party-backed media, after earlier having to defend itself over its cooperation with the US probe into Huawei Technologies.
HSBC has also been seeking to deploy more resources in South-east Asia, where it has struggled to compete with dominant players such as DBS Group and rival Standard Chartered. HSBC also recently announced it would expand into private banking in Thailand.
Along with its rivals, HSBC is also poised to benefit from increased trade flows after the Regional Comprehensive Economic Partnership was signed late last year.
BLOOMBERG
