HSBC's top executives are facing intense pressure from shareholders to break up the bank. The lender's largest market, Hong Kong, is where the heat is on, with many retail investors holding shares in HSBC. Shareholders are concerned that the bank's performance has been dragged down by its businesses in other regions.
At an informal meeting in Hong Kong, Chairman Mark Tucker and CEO Noel Quinn defended their strategy against frustrated shareholders. They reiterated that the board recommends a "no" vote on a resolution to spin off or reorganize HSBC's Asian business, which is the main source of profits. Tucker stated that splitting the bank would not be in shareholders' interests.
The shareholders are unhappy with the decision to scrap the dividend in 2020 at the request of British regulators, arguing that it exposed Hong Kong shareholders to requests from other jurisdictions. They believe that if HSBC were to separate its Asian business, it would no longer have to expose itself to such risks.
HSBC's largest shareholder, Ping An Insurance Group, is also backing calls for the bank to rethink its structure. The Chinese insurer holds an 8% stake in HSBC and has supported initiatives that could boost the bank's performance and value.
The purchase of Silicon Valley Bank's UK arm has also come under scrutiny. Critics have questioned whether HSBC performed adequate due diligence on SVB UK's customers, given how quickly the deal was made. However, CEO Noel Quinn defended the acquisition as a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers.
Despite the turbulence in the banking sector, Tucker expressed confidence that HSBC would not be significantly impacted. He noted that while share prices have been suppressed due to recent developments in the industry, he did not believe this represented a systemic risk to the sector.
At an informal meeting in Hong Kong, Chairman Mark Tucker and CEO Noel Quinn defended their strategy against frustrated shareholders. They reiterated that the board recommends a "no" vote on a resolution to spin off or reorganize HSBC's Asian business, which is the main source of profits. Tucker stated that splitting the bank would not be in shareholders' interests.
The shareholders are unhappy with the decision to scrap the dividend in 2020 at the request of British regulators, arguing that it exposed Hong Kong shareholders to requests from other jurisdictions. They believe that if HSBC were to separate its Asian business, it would no longer have to expose itself to such risks.
HSBC's largest shareholder, Ping An Insurance Group, is also backing calls for the bank to rethink its structure. The Chinese insurer holds an 8% stake in HSBC and has supported initiatives that could boost the bank's performance and value.
The purchase of Silicon Valley Bank's UK arm has also come under scrutiny. Critics have questioned whether HSBC performed adequate due diligence on SVB UK's customers, given how quickly the deal was made. However, CEO Noel Quinn defended the acquisition as a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers.
Despite the turbulence in the banking sector, Tucker expressed confidence that HSBC would not be significantly impacted. He noted that while share prices have been suppressed due to recent developments in the industry, he did not believe this represented a systemic risk to the sector.
. I mean, it's not like they've got all the profits tied down with that region already. They need to shake things up and get some fresh ideas in there. The fact that Ping An Insurance Group is backing this move just proves my point. It's time for HSBC to think outside the box (or in this case, the bank) 
. I don't buy the argument that splitting the bank would expose them to more risks – that's just a cop-out. And let's be real, who needs hundreds of startups as customers anyway? Sounds like a bunch of nonsense to me 
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. They're trying to split their Asian business, but some shareholders don't think that's a good idea. It's like if we were studying for one subject, but then the teacher told us to focus on another one instead of reviewing what we already know 
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It's like when we're working on group projects and some members aren't pulling their weight, but at the same time, we still gotta work together 
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. Either way, I hope they can figure it out without too much trouble 
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. The argument about exposing Hong Kong shareholders to risks makes sense, though - it's not a great way for HSBC to operate 
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. Maybe instead of a hardline "no" vote on spinning off the Asian business, they could explore some middle ground 
?
. Like, come on, shareholders, do you really think splitting it off is going to make things better? I mean, sure, we've had some rough patches in Hong Kong, but the bank's still making bank (no pun intended) elsewhere too. And let's be real, who wants to deal with all that regulatory stress? 
! Those retail investors are literally losing it, and I feel them 
. The situation in Hong Kong is heating up, and I hope those CEOs can get on the same page as the majority of shareholders. Separating the Asian business would be a major win for everyone involved 
. I'm all about innovation and startups, but come on, did they really do their due diligence? 
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Tucker seems confident, and that's what matters right now 
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Ugh, I'm so conflicted! 
they're being super patient with the bank's performance, and it's already affecting their investments 
but chairman Mark Tucker & CEO Noel Quinn r like "nah, we good" 
. They say splittn the bank wudnt be in shareholders' best interests lolol. And its not just shareholders, Ping An Insurance Group is also gettin in on the action 
Did HSBC really do their due diligence or wut?
Just wondering...
and what's with ping an insurance group supporting this? are they trying to help hsbc out or is it just a smart move for them? 
? Shareholders are all up in arms over breaking up the bank, but honestly, it's like they're saying "hey, let's stick together and hope for the best... or get stuck in a bad relationship 
". I mean, I get it, splitting the Asian business would reduce risks, but on the flip side, you'd be like "good riddance" to all those problems 
. It's like choosing between a comfy pair of slippers and a fancy new shoe 
... which one do you want?