HSBC's top executives faced intense scrutiny from shareholders Monday in Hong Kong, where the bank is a mainstay of many retail investors' portfolios. The lender's largest market has been at the forefront of calls to separate its Asian business from the rest of the bank, citing concerns that underperforming regions are dragging down profits.
Chairman Mark Tucker and CEO Noel Quinn defended their strategy, telling shareholders that their current approach is working and dividends are on the rise. However, they acknowledged that HSBC has been facing criticism over its performance in other regions, which some argue are not being adequately addressed.
The bank's largest shareholder, Ping An Insurance Group, has also been pressing for a reorganization of the lender, citing a desire to simplify regulatory obligations and boost valuation. While Ping An has not recommended a specific path forward, it will support any initiatives that could benefit its stake in HSBC.
HSBC's acquisition of the British arm of Silicon Valley Bank (SVB) UK has also raised questions about due diligence and the potential risks to customers. Executives defended the purchase, saying it was a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers.
The lender's leaders were also asked about recent turmoil in the banking industry, including the collapse of smaller regional banks and the takeover of Credit Suisse. While they acknowledged some impact on share prices, they did not believe this represented a systemic risk to the sector.
Shareholders are set to vote in May on a resolution that would require HSBC to come up with a plan to spin off or reorganize its Asian business. The proposal has gained significant traction, with Ken Lui, an activist shareholder, doubling down on his call for support ahead of the meeting.
The resolution will require 75% of votes to be passed, but Lui remains optimistic that it could succeed. He and other activists have been canvassing districts in Hong Kong to educate shareholders about the benefits of separating HSBC's Asian business from the rest of the bank.
For many small investors in Hong Kong, the issue is personal: they rely on the dividend payments made by HSBC to support their regular expenses, such as mortgage payments, insurance premiums, and school fees. The cancellation of these payments three years ago had a significant impact on these individuals, who are now calling for change.
Chairman Mark Tucker and CEO Noel Quinn defended their strategy, telling shareholders that their current approach is working and dividends are on the rise. However, they acknowledged that HSBC has been facing criticism over its performance in other regions, which some argue are not being adequately addressed.
The bank's largest shareholder, Ping An Insurance Group, has also been pressing for a reorganization of the lender, citing a desire to simplify regulatory obligations and boost valuation. While Ping An has not recommended a specific path forward, it will support any initiatives that could benefit its stake in HSBC.
HSBC's acquisition of the British arm of Silicon Valley Bank (SVB) UK has also raised questions about due diligence and the potential risks to customers. Executives defended the purchase, saying it was a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers.
The lender's leaders were also asked about recent turmoil in the banking industry, including the collapse of smaller regional banks and the takeover of Credit Suisse. While they acknowledged some impact on share prices, they did not believe this represented a systemic risk to the sector.
Shareholders are set to vote in May on a resolution that would require HSBC to come up with a plan to spin off or reorganize its Asian business. The proposal has gained significant traction, with Ken Lui, an activist shareholder, doubling down on his call for support ahead of the meeting.
The resolution will require 75% of votes to be passed, but Lui remains optimistic that it could succeed. He and other activists have been canvassing districts in Hong Kong to educate shareholders about the benefits of separating HSBC's Asian business from the rest of the bank.
For many small investors in Hong Kong, the issue is personal: they rely on the dividend payments made by HSBC to support their regular expenses, such as mortgage payments, insurance premiums, and school fees. The cancellation of these payments three years ago had a significant impact on these individuals, who are now calling for change.
. It's time for HSBC to back up their claims with concrete actions. Just saying that profits are rising and dividends are secure won't cut it when investors are clamoring for change. The bank needs to show its commitment to addressing underperforming regions and simplifying regulatory obligations. After all, shareholders aren't just paying lip service, they want tangible results 
.
I'm getting so tired of these big bank execs just shrugging off concerns about underperforming regions. They're like, "our current strategy is working" and then they ignore the fact that it's not working for smaller investors like my aunties in Hong Kong who are counting on those dividend payments 
. It's not just about the money; it's about people's livelihoods. If HSBC can't even be bothered to address these issues, why should we trust them with our savings? 
I'm getting so sick of these top execs just brushing off the concerns about HSBC's underperforming regions! They need to admit that something's not working and come up with a plan to address it, like a reorg or spin-off. 
It's not just about profits, it's about those regular investors who are relying on their dividend payments to make ends meet. I mean, can you imagine if your mortgage payment got cancelled?! 
It's time for some real accountability and change at HSBC! 
It's like, HSBC is saying their strategy works and dividends are rising, but at the same time, they're being like "oh, yeah, some regions might be struggling a bit." 
but what about when it affects us, right? The regular people who rely on those dividend payments? 
