HSBC's top executives have been defending their strategy against frustrated shareholders in Hong Kong, where the bank is a mainstay of many retail investors' portfolios, amid calls for a breakup of its Asian business.
Chairman Mark Tucker and CEO Noel Quinn took questions from over 1,000 shareholders at an informal meeting in Hong Kong, addressing issues such as how the bank is approaching demands for an overhaul of its business and its purchase of Silicon Valley Bank's UK arm.
The board, including Tucker and Quinn, has unanimously opposed a resolution that would force the bank to come up with a plan to spin off or reorganize its Asian business, citing that it would not be in the interest of shareholders. They argue that such an alternative would "materially destroy value for shareholders," including dividends.
However, some investors, including small shareholder Christine Fong, who represents 500 affected investors, believe that HSBC's performance has been dragged down by its businesses in other regions and are calling for the bank to separate its Asian business from the rest of the bank. They point out that the bank's profits in Hong Kong and the UK are no longer being impacted by underperformance elsewhere.
HSBC's largest shareholder, Ping An Insurance Group of China, has also backed calls for the bank to rethink its structure. The insurance giant has said it will support any initiatives, including a spinoff of its Asian business, that could boost its stock performance or value.
The bank's leaders have defended their acquisition of Silicon Valley Bank's UK arm, calling it a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers. However, critics have questioned HSBC's ability to perform adequate due diligence on SVB UK's customers due to the speed of the deal.
Despite the controversy, Tucker remains optimistic about the bank's strategy, stating that their current approach is working and dividends are increasing. He also downplays concerns about recent turmoil in the banking industry, saying he does not expect an "immediate impact" on HSBC.
Chairman Mark Tucker and CEO Noel Quinn took questions from over 1,000 shareholders at an informal meeting in Hong Kong, addressing issues such as how the bank is approaching demands for an overhaul of its business and its purchase of Silicon Valley Bank's UK arm.
The board, including Tucker and Quinn, has unanimously opposed a resolution that would force the bank to come up with a plan to spin off or reorganize its Asian business, citing that it would not be in the interest of shareholders. They argue that such an alternative would "materially destroy value for shareholders," including dividends.
However, some investors, including small shareholder Christine Fong, who represents 500 affected investors, believe that HSBC's performance has been dragged down by its businesses in other regions and are calling for the bank to separate its Asian business from the rest of the bank. They point out that the bank's profits in Hong Kong and the UK are no longer being impacted by underperformance elsewhere.
HSBC's largest shareholder, Ping An Insurance Group of China, has also backed calls for the bank to rethink its structure. The insurance giant has said it will support any initiatives, including a spinoff of its Asian business, that could boost its stock performance or value.
The bank's leaders have defended their acquisition of Silicon Valley Bank's UK arm, calling it a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers. However, critics have questioned HSBC's ability to perform adequate due diligence on SVB UK's customers due to the speed of the deal.
Despite the controversy, Tucker remains optimistic about the bank's strategy, stating that their current approach is working and dividends are increasing. He also downplays concerns about recent turmoil in the banking industry, saying he does not expect an "immediate impact" on HSBC.
. I mean, why keep dragging it down with all the underperforming regions? It's time to give the Asian arm its own separate entity and let it shine without affecting the rest of the bank. And yeah, if Ping An Insurance Group is backing this, that just adds more weight. The current top brass might think their approach is working, but I'm not convinced 
. And let's be real, how can you truly know the impact on customers after a deal like this goes down so fast? HSBC needs to be transparent and prioritize shareholders' interests for once! 
. i mean, 500 small investors and ping an insurance group are all saying the same thing - separate the business or risk losing more value for shareholders.
. i hope hsbc starts listening to their shareholders for once 
! Can't they just acknowledge the elephant in the room? The Asian business is literally sucking the life out of this bank and it's only a matter of time before shareholders start to feel the heat 
. I mean, Ping An Insurance Group is even saying it'll support any move that boosts its stock performance - it's like they're trying to distance themselves from HSBC's mess 
.
. The speed of the deal was so quick, I'm surprised they didn't just give away all their cash 
.
. The bank's profits are not being impacted by underperformance elsewhere - that's just code for "we're hiding the problems in our Asian business". And what's with all the assurances about dividends increasing? That's just a Band-Aid on a bullet wound 
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. Until then, I'll just be over here, shaking my head in disappointment 
The bank's Asian business is strugglin' but they dont wanna split it from the rest... like wut r dey even thinkin'? 
I'm literally shocked by HSBC's top execs refusing to even consider a breakup of their Asian business 
And Ping An Insurance Group is on board with this idea too? 
That's some serious backing from one of China's biggest players in the market