HSBC's top execs face tense shareholders calling for a breakup

HSBC's top executives faced intense scrutiny from shareholders on Monday, with many calling for a breakup of the bank due to its struggling Asian business. At an informal meeting in Hong Kong, Chairman Mark Tucker and CEO Noel Quinn defended their strategy, which has been criticized by investors who argue that it is not working.

Tucker and Quinn reiterated their opposition to a resolution at the upcoming annual general meeting that would force the bank to come up with a plan to spin off or reorganize its Asian business. The board of directors had previously reviewed various options for restructuring but concluded that such alternatives would "materially destroy value" for shareholders.

However, some investors remain unconvinced and are pushing for a breakup. They argue that HSBC's performance in other regions is dragging down the bank's overall success and that separating its Asian business would be beneficial. The resolution requiring 75% of votes to pass has gained support from activist shareholder Ken Lui, who claims that he has "targeted outreach" to institutional investors to present his case.

The largest shareholder, Ping An, China's biggest insurer, also supports a breakup but does not recommend a specific path forward. The insurer has called for HSBC to explore reorganization options that could boost its valuation and simplify regulatory obligations globally.

HSBC's acquisition of the British unit of Silicon Valley Bank (SVB) has also raised concerns among investors. Critics have questioned whether the bank did adequate due diligence on SVB's customers, particularly in light of the rapid collapse of its parent firm in the US.

Despite these criticisms, Tucker and Quinn defended the deal, calling it a good business opportunity that allowed HSBC to gain hundreds of innovative startups as customers. They pushed back on the notion that management had not had time to carry out proper due diligence.

The banking sector is facing turmoil, with recent collapses of smaller regional banks and the takeover of Credit Suisse affecting share prices across the industry. However, Tucker remains optimistic, stating that he does not expect an "immediate impact" on HSBC's operations. He acknowledged a period of uncertainty but believes it would settle down soon.

As the debate over HSBC's future continues, one thing is clear: the bank's executives must address the concerns of investors and stakeholders if they hope to maintain support for their strategy.

I don't trust these top execs at all ... They're just trying to keep everything under wraps, but it's obvious they're struggling with that Asian business . Breaking up the bank would be a good idea, I'd say... It's like HSBC is holding onto something toxic and hoping it'll magically get better . And now this Silicon Valley Bank deal? What were they thinking? Those startups are probably just going to end up being liabilities. Mark Tucker's optimism sounds like just a PR stunt to me... The banking sector is in shambles, and people are still expecting everything to be okay?

I'm getting so tired of these endless forum discussions where no one ever actually sticks to the topic . Like, I get it, HSBC is struggling with its Asian business and some people think a breakup is the answer... BUT can we please just discuss the actual pros and cons of this proposal instead of rehashing every single article about it? I mean, come on, folks, let's keep things organized and focus on having a productive conversation. And what's with all these vague comments from Ping An not recommending a specific path forward? Can't they just state their opinion like everyone else?

I'm really surprised by this whole thing with HSBC . I mean, some people are saying it should just break up its Asian business because that's where the problem is, but others think separating it would be too much of a hassle and might not even solve anything . The shareholders seem to be divided on this one.

I feel like the top execs aren't doing enough to address these concerns, you know? They just keep defending their strategy without really listening to what investors have to say . And with all the recent bank collapses and stuff happening in the industry, it's hard not to wonder if they're being too optimistic about things .

I think it's interesting that Ping An, one of the largest shareholders, is just kind of... meh about the whole thing . They want HSBC to explore some options, but they don't have a clear plan in mind, you know? And with all the controversy around the Silicon Valley Bank deal, I'm not sure how that's going to shake out .

Anyway, it's gonna be super interesting to see how this plays out . Will HSBC be able to address its investors' concerns and stay on track, or is a breakup of its Asian business the only way forward? We'll just have to wait and see

I think this whole Asian business thing is just not working out . I mean, it's like trying to put a square peg in a round hole, you know? They've been trying to make it work for years but nothing seems to be happening . It's time to cut their losses and spin off or break up the whole operation . I'm not saying it'll be easy, but come on, shareholders are tired of holding their breath every quarter waiting for some miracle fix . Maybe if they did reorganize or breakup, it'd clear the air and let them focus on more successful areas like the US market .

I'm worried about HSBC's Asian business ... seems like they're dragging down the whole company. I think a breakup would be a good idea , especially with all the banking troubles going on right now. We need more transparency in those acquisition deals too , can't just take over someone's customers without checking their records. Ping An is right to want them to explore reorganization options . What do you guys think should be done?

I'm like "come on guys, break up the Asian business already!!" it's been struggling for years and dragging down the whole company. The execs keep saying there are no good options but honestly who doesn't want more control over their own business? Ping An is right to call for reorganization, maybe they can actually get it done this time . And another thing, what's with all these activist shareholders trying to take over? Can't they just chill and let the CEOs do their jobs?

I mean think about it ... some people are really worried about HSBC's Asian business, but I'm like, what if breaking up into smaller banks would be a good thing? We've seen how much the banking sector is struggling lately and I guess maybe splitting HSBC's assets wouldn't make sense. But at the same time, I get that investors want to see growth in other areas too. And yeah, that Silicon Valley Bank deal is super interesting... it's like, what did they know about SVB's customers? Maybe it's not as bad as everyone thinks. Tucker seems pretty chill about the whole thing too, and I respect that. He's all about finding a solution that works for everyone.

omg can't believe these execs think they can just ignore the struggles in Asia like, come on guys, get real... a breakup or reorg would be a huge win for shareholders... Ping An is right on this one and Ken Lui's activism might actually lead to some positive change not sure about Tucker and Quinn tho, still trying to spin that SVB deal as if it was a total risk-free zone guess they're just hoping no one asks too many questions

Can't believe all these big investors wanting to break up HSBC just 'cause its Asian business isn't killing it like they thought . I mean, come on, it's a bank, not a one-trick pony. And what about all the people who work for them, their families? Do shareholders even think about that when they're pushing for a breakup? It just feels like some folks are more concerned with short-term gains than long-term consequences. And honestly, I don't think anyone really knows what's best for HSBC or its future

this whole hsbc thing feels like a big mess... asian business struggles are weighing on the rest of the company and it's not fair to the shareholders . i think a breakup or reorg might be the way forward, but it's gotta be done in a way that doesn't hurt anyone too much . ping an's support for exploration is cool, but we need concrete plans too . what if they just spin off the asian biz and keep the rest of hsbc intact? that'd be a win-win, right?

I mean, can you blame 'em? The Asian business is tanking , it's like a big elephant with its leg stuck in the mud . Investors are getting frustrated, and honestly, who wouldn't want to break up a losing unit? It's like trying to put diesel fuel in an electric car - not gonna work, right?

But here's the thing: HSBC needs to listen to their investors and stakeholders. They can't just ignore everyone's concerns and expect everything to be okay . The banking sector is already in chaos, what with all these bank collapses and takeovers... it's like a bad soap opera .

I'm not saying Tucker and Quinn are wrong, but they need to own up to the fact that their strategy isn't working . They should be having more open conversations about the issues, rather than just defending their approach . The board of directors might have done some research, but at the end of the day, it's up to the executives to make things right .

Anyway, I think this is all part of a bigger trend: banks need to be more agile and responsive to changing market conditions . They can't just sit back and wait for everything to fix itself . Time will tell what happens next, but one thing's for sure - the stakes are high!

The banking sector is so stressful rn I mean, HSBC's Asian business is really struggling and it's like, gotta be fixed ASAP But at the same time, the bank's big shareholders are all like "break up the bank" and I'm just over here thinking... isn't that gonna cause more problems? I guess only time will tell but one thing for sure is that HSBC's top execs need to get on board with what investors are saying

I'm kinda surprised that some investors are pushing for a breakup, considering how interconnected banks are nowadays . But hey, it's not all bad! If HSBC does decide to spin off its Asian business, it could be an opportunity for both the bank and its shareholders to restructure and come out stronger . And who knows, maybe this is just what the banking sector needs - a shake-up? The whole SVB thing has got everyone on edge, but I think HSBC made a good move by acquiring those startups . Now they've got access to all that innovative tech and expertise! And let's not forget, Tucker seems like a pretty chill CEO who's just trying to do what's best for the bank . Fingers crossed everything settles down soon and we can get back to business as usual .

I'm so frustrated with HSBC right now! They need to listen to their shareholders and investors, it's like they're not taking the criticism seriously at all. I mean, a breakup or restructuring is not a bad idea, especially if it means simplifying things for regulatory purposes. And let's be real, their Asian business has been struggling for ages . It's not like they can just ignore it and hope it goes away.

And don't even get me started on the Silicon Valley Bank acquisition . I'm sure HSBC did the best they could under the circumstances, but some level of due diligence is a must! You can't just rush into deals without thinking about the risks involved.

I think what really matters here is that the bank's executives need to have an open and honest conversation with their stakeholders about the concerns being raised. It's not about dismissing people's worries or opinions, it's about working together to find solutions . HSBC needs to show some transparency and accountability if they want to regain investor trust.

I don't get why HSBC's execs are so set on keeping the Asian business under one umbrella. I mean, if it's really struggling, shouldn't they consider spinning it off or restructuring? It just seems like a lose-lose situation either way... They're basically saying that separating their Asian business would "materially destroy value" for shareholders, but what about the value of all those investors who are already losing faith in the bank's strategy? And what about Ping An's concerns about regulatory obligations? I need to see some concrete plans from HSBC on how they plan to address these issues before I believe they're doing the right thing...

I was just thinking about my favorite coffee shop in Tokyo and how I'm planning a trip there next year... have you ever been to Asia? I've heard great things about the food, but also that the banking system can be really different from what we're used to here. Speaking of HSBC's strategy, I think it's kinda like trying to find your way in a big city when you don't know where you're going ... or maybe it's just like navigating a puzzle with missing pieces? Anyway, hope HSBC's executives can figure out their plan and make some smart moves. By the way, have you tried that new coffee blend they have there?

just got out of bed this morning only to see that HSBC's top execs are getting roasted by shareholders over their Asian business struggles like, what did they expect? The bank is struggling and it's no secret... a breakup or reorg sounds like the best option but the board thinks it'll destroy value meanwhile, Ping An is just sitting back and saying "hey, maybe we should explore some options" but seriously, when will these execs admit they're wrong?