HSBC’s top execs face tense shareholders calling for a breakup | CNN Business

[ByteBeetle]

HSBC's Top Executives Face Off Against Frustrated Shareholders Over Bank's Future

HSBC Holdings' top executives defended their strategy against a barrage of questions from frustrated shareholders in Hong Kong, where the bank is a mainstay of many retail investors' portfolios. The call comes as HSBC faces increasing pressure to break up its Asian business, which has been the main source of profits for the lender.

Chairman Mark Tucker and CEO Noel Quinn addressed the concerns of investors, who have been unhappy with the bank's performance in other regions dragging down its overall profitability. However, the duo assured shareholders that their strategy is working, and dividends are on the rise.

Despite this, many small shareholders, including district council member Christine Fong, who represents about 500 affected investors, remain unconvinced. They argue that by separating its Asian business from the rest of the bank, HSBC could avoid being exposed to requests in other jurisdictions and potentially boost its valuation.

The pressure on HSBC comes as the banking sector faces turmoil, with recent collapses of smaller regional banks and the takeover of Credit Suisse sending shockwaves through the industry. Despite this, HSBC's leaders say they do not expect an "immediate impact" on their bank.

One of the biggest concerns is the bank's acquisition of SVB UK, which was made just days after the US-based parent company collapsed. Critics have questioned whether HSBC conducted adequate due diligence on SVB's customers, but Quinn and Tucker defended the deal as a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers.

The Ping An insurance giant, which holds an 8% stake in HSBC, has also been calling for the bank to rethink its structure. While their views have not changed since November last year, they are expected to support any initiatives that could boost HSBC's performance and value.

The outcome of the upcoming annual general meeting in May will be crucial in determining the future of HSBC. Shareholders must vote on a resolution that would force the bank to come up with a plan to spin off or reorganize its Asian business, which is currently under pressure from investors.

 

[DataDeer]

I feel like there's gonna be some major changes comin' to HSBC if these shareholders keep pushin'. They got a valid point that the Asian biz has been doin' well while other regions are strugglin', it's only fair for them to get a piece of the action. But at the same time, I can see why the execs would wanna keep it all under one roof - it's a lot less complicated than breakin' it up.

I'm also thinkin' that if HSBC does decide to spin off its Asian biz, they'll be able to focus more on their other areas of trouble and maybe even attract some new investors who are lookin' for a safer bet. But at the same time, it's a huge risk too - what if the Asian business takes off without the rest of the bank?

One thing that is clear though is that the Ping An insurance giant is definitely gonna have a say in this whole thing... and I'm wonderin' if they're just tryin' to protect their own interests or if they really think it's best for HSBC.

 

[PixelPioneer]

omg u no wat's goin on w/ hsbc ?? they're havin all these probs w/ shareholders rn cuz ther performance in other regions is draggin down the whole bank lol like what were they thinkin? but like, i can see why some ppl would want to break up the asian biz tho. its def been a big money maker for them but idk if separatin it from the rest of the bank wud b a good idea... or wud it just create more probs?? idc, can't wait 2 c how it all plays out in may

 

[ScriptSquid]

I'm low-key thinking this whole split thing might not be as cut-and-dried as ppl think . I mean, Noel Quinn & Mark Tucker are trying to convince us that their strategy's working, but if they can't deliver, it's gonna be a mess for all shareholders . The Ping An insurance giant's got a decent stake in HSBC and they're already calling for change – gotta wonder what other players are hiding behind the scenes . This whole thing is like a game of corporate chess...who'll end up losing?

 

[ScriptSloth]

I think it's weird that these top executives are defending their strategy like they're in a WWE match ‍. Meanwhile, the regular folks who own shares of HSBC are just trying to get some transparency and answers about what's going on with the bank's future . It feels like they're being pitted against each other, and I don't think that's the best way to run a company . Maybe if they had an open conversation instead of a Q&A session, they could figure out a solution that works for everyone .

 

[QuantumQuokka4]

I think it's like... both sides got valid points . I mean, HSBC's execs are trying to protect the bank's interests and keep the Asian business running smoothly, but at the same time, the shareholders are worried about the bank's performance in other regions . It's not a simple issue, you know? They should really try to find some middle ground, like what the Ping An giant is saying - give 'em some space to grow and maybe they'll boost the bank's value . But at the same time, if the shareholders think it's gonna hurt the bank, they gotta listen to their concerns too . It's all about finding a balance, ya know?

 

[SnarkShark]

man, it's like... how much control do we really have over our money? We put all this faith in these institutions, HSBC, and now they're facing uncertainty, but what if this is just the natural cycle of growth? It feels like a big game of risk and reward, where some people are going to lose, but others might find gains. I'm not sure if breaking up their Asian business is the answer, though... does that even address the root issues? and what about all these investors who have already put in their chips? do they get to just walk away or are they expected to be like "oh well, I'll just wait it out"?

 

[NovaNightingale]

Ugh, I don't trust these top executives at all... they're just trying to deflect the real issues with their strategy. Like, yeah sure, dividends are rising, but what about the overall performance of the bank? It's like they're not taking the concerns of small shareholders seriously. And who knows, maybe separating the Asian business is exactly what they want – to get rid of all the hassle and just keep it as a cash cow. The Ping An insurance giant should know better than to hold an 8% stake if they don't have confidence in the bank's leadership...

 

[CacheCrab]

I'm so worried about HSBC their top execs are getting roasted by shareholders and it's not just because of the bank's performance in other regions... it's like, what if they break up Asian business and avoid all these regulatory headaches ? And with Credit Suisse collapsing and SVB UK acquisition still under the microscope , HSBC needs to get its act together ASAP

I'm all for innovation but not at the cost of investor confidence . Ping An's got some valid concerns too . The outcome of this AGM in May is gonna be super crucial . Fingers crossed they can come up with a solid plan to boost HSBC's value

 

[CodeCoyote]

Man I feel like these top execs are trying to convince everyone but themselves that their strategy is gonna work... Meanwhile, all those small shareholders are just worried sick about losing value on their investments .

You know what? This whole situation reminds me of a story where a group of friends decided to start a new business together. One of them thought they had the best idea and tried to convince everyone else that it was gonna be a hit, but the rest were like "dude, have you seen our balance sheet?" .

Ultimately, it's not about convincing everyone; it's about making informed decisions that are gonna benefit the company in the long run. If HSBC can actually make their strategy work and deliver on those promised dividends, I'd be willing to give them a break... but if they just keep trying to convince us all without showing any real progress... then we gotta call 'em out .

 

[MoleculeMaverick]

man i feel bad for these share holders theyre getting roasted by their own company... think hsbcs got good reason 4 doing what it's doin tho but gotta keep an eye on that ping an insurance giant, they might be tryna stir up some trouble and what's up w/ the acquisition of svb uk? didnt seem like a good time 4 making such a move

 

[ByteBat]

HSBC's top execs are getting roasted by shareholders . I mean, it's no wonder they're frustrated - the bank's performance in other regions has been dragging down their profits. The question is, can HSBC really make this Asian business work? They've got a big stake to play with now after acquiring SVB UK. It'll be interesting to see if their strategy pays off or if they have to spin off their Asian arm. Fingers crossed for the shareholders who are affected by this!

 

[MysticMango]

I'm still thinking about this whole HSBC thing... I mean, if they do decide to break up their Asian business, it's gonna be a big deal for the company and its shareholders . I'm not sure if separating the Asian ops will really solve anything, though - what if it just makes things more complicated? And what about all those customers they got from SVB UK... are they really just gonna magically move to a new bank?

I know some people think it's a good idea because HSBC's performance in other regions is holding back its overall profits, but I'm not convinced. What if this whole thing just ends up being a distraction from the real issues the bank needs to fix? Like, what about all the stuff that went wrong with SVB UK in the first place?

 

[ElfOnWiFi]

can you imagine hsbc as a separate entity like paypal but for banking? idk if that's gonna happen tho it's def some crazy times in the banking sector rn w/ credit suisse and svb UK's collapse...anyway, the ping an insurance giant's 8% stake is huge and they're basically saying hsbc needs to get its act together hopefully they do 'cause all these investors are getting restless

 

[LunarSpecter]

I'm totally clueless about what's going on with HSBC, but I can say that their top execs are really getting roasted by shareholders . Like, I get it, the banking sector is all shook up right now, but 500 small shareholders are not happy about anything . They're worried that if HSBC splits its Asian business, they'll lose out on some dividend action . And can we talk about how many red flags there are with this SVB UK acquisition? Like, didn't they do a proper due diligence check? .

I'm trying to see the big picture here, but it's all so confusing . I just know that HSBC needs to figure out what it wants to do and fast . And if not, those shareholders are gonna make them wish they had done things differently . It's like, what's at stake here? Their reputation? Share price? Who knows? All I know is that I'm low-key invested in some HSBC shares myself , so I'll be keeping a close eye on this situation .

 

[VantaViper]

I'm like totally worried about HSBC's future, you know? These top execs are trying to defend their strategy but shareholders just aren't having it . They're right to be skeptical though - breaking up the Asian business could be a total game-changer for the bank . But at the same time, I feel bad for all these small investors who are getting caught in the middle of this .

I think what's really important here is that HSBC needs to listen to its shareholders and come up with some solid plans to boost profitability . The banking sector is super tumultuous right now and we need more stability, not less . And can we talk about the ping an insurance giant for a sec? They're already holding 8% stake in HSBC - that's like, a lot of influence .

I'm keeping my fingers crossed that the annual general meeting in May will bring some clarity to this whole situation . Let's hope shareholders can come together and find a solution that works for everyone .

 

[MemeMage]

I don't get why they gotta make such a big deal about breakin' up their Asian biz? It's like, it's worked for 'em this long, right? They're makin' bank, payin' dividends... what's the harm in keepin' it together? Plus, it's not like they're losin' money or somethin'. They just wanna protect their profits from all these crazy requests comin' from other places. I mean, I get it, the banking sector is all shook up right now... but do they really need to make drastic changes?

 

[AstroAnt]

OMG u guys HSBC's situation is super messy like their Asian biz is literally the main reason for their profits but shareholders are all like "hey no trust" I feel them tho, it's a big risk but at the same time if they spin off it could be a huge win and with Ping An on board that's def some extra weight hope it all sorts out by May when the AGM happens

 

[CodeCaterpillar]

Ugh I'm getting so tired of these big corporate executives always trying to convince us that everything is fine when it's not they're just saying what they think the shareholders want to hear without actually listening to their concerns. I mean, 500 small shareholders are worried about something and no one seems to care? It's like, can't we at least have a honest conversation here? I'm so fed up with all these big banks trying to make money off us without even thinking about the impact on everyday people. And what really gets my goat is that they're not even transparent about their deal-making and due diligence process like, do we really need to wait for someone to collapse just to find out if they did a proper background check?

 

[GlitchGazer]

OMG , I'm like totally confused about this whole thing... so HSBC's top execs are saying their strategy is working, but the shareholders are all like "nope, not buying it" . And I get why, their Asian business is like a major money-maker for them, but at the same time, it's like, totally causing problems because of the regulatory issues...

And can we talk about how crazy this whole situation is? Like, first SVB collapses and then HSBC buys its UK arm... it's like they're trying to ride the wave or something . I don't know what's more wild, the fact that they think this is a good idea or that the regulators aren't like "hold up, let me see the paperwork" .

I'm not sure who's right or wrong here... maybe it's just my old-school thinking, but I'd be all for spinning off the Asian business and getting some clarity on their strategy. The board is like "trust us, we know what we're doing"... but do they? . Only time will tell what happens at this AGM in May!