HSBC's top executives are facing intense pressure from shareholders to consider breaking up the bank, with many arguing that the Asian business is dragging down profits in other regions. At an informal shareholder meeting in Hong Kong, Chairman Mark Tucker and CEO Noel Quinn defended their strategy, saying it was working and dividends were moving upwards.
However, many small investors who rely on the dividend payouts for their expenses are unhappy with HSBC's decision to scrap the dividend in 2020 at the request of British regulators. Christine Fong, a district council member in Hong Kong, represented around 500 affected shareholders and expressed frustration that they had been left without a steady income.
The issue has gained momentum, with activist shareholder Ken Lui calling for support ahead of the annual general meeting in May, where a resolution to spin off or reorganize HSBC's Asian business will be put to a vote. The proposal requires 75% of votes to pass, but Lui believes that "nothing is impossible" and plans to target institutional shareholders with his campaign.
Ping An, China's largest insurer, which holds an 8% stake in HSBC, has also backed calls for the bank to rethink its structure. Chairman Huang Yong said that the firm would support any initiatives that could improve performance and value, including a spinoff of the Asian business.
HSBC's acquisition of SVB UK, just days after the parent company collapsed in the US, has also raised questions about due diligence and risk management. Critics have questioned how quickly the deal was made and whether the bank properly assessed the financial situation of SVB UK's customers.
Despite these concerns, HSBC's executives defended the acquisition as a good business opportunity that brought hundreds of innovative startups on board. Tucker downplayed expectations of an immediate impact on the bank's performance, saying that recent turmoil in the banking sector had suppressed share prices across the industry.
However, many small investors who rely on the dividend payouts for their expenses are unhappy with HSBC's decision to scrap the dividend in 2020 at the request of British regulators. Christine Fong, a district council member in Hong Kong, represented around 500 affected shareholders and expressed frustration that they had been left without a steady income.
The issue has gained momentum, with activist shareholder Ken Lui calling for support ahead of the annual general meeting in May, where a resolution to spin off or reorganize HSBC's Asian business will be put to a vote. The proposal requires 75% of votes to pass, but Lui believes that "nothing is impossible" and plans to target institutional shareholders with his campaign.
Ping An, China's largest insurer, which holds an 8% stake in HSBC, has also backed calls for the bank to rethink its structure. Chairman Huang Yong said that the firm would support any initiatives that could improve performance and value, including a spinoff of the Asian business.
HSBC's acquisition of SVB UK, just days after the parent company collapsed in the US, has also raised questions about due diligence and risk management. Critics have questioned how quickly the deal was made and whether the bank properly assessed the financial situation of SVB UK's customers.
Despite these concerns, HSBC's executives defended the acquisition as a good business opportunity that brought hundreds of innovative startups on board. Tucker downplayed expectations of an immediate impact on the bank's performance, saying that recent turmoil in the banking sector had suppressed share prices across the industry.
... I mean, it's a big chunk of their profits, but it's not like they're dragging down the whole bank by themselves. And what's wrong with having some international risk in the mix? It's all about balancing things out, right? 
. Like, hello, the bank's doing its thing, why are you guys so upset?
I mean, they're basically throwing caution to the wind and hoping for the best. But hey, it could pay off big time if they can make that deal work.
. It's like, come on, if it ain't broke, don't fix it, right? 
They've been flying high for years and now they're getting a little nervous? I guess when you're used to the easy money from those dividend payouts, you start to think about your own financial stability 
. And yeah, I get it, there's been some questionable acquisitions lately... SVB UK was like, what were they thinking? 
But hey, at least they brought in some cool startups, so that's a plus, I guess 
. I mean, what even is a steady income anymore? They're literally living paycheck to paycheck because of some financial decisions made by the bank. It's just not right.
. Maybe something will change if China's largest insurer gets involved. But, let's be real, this is still a mess. HSBC needs to take responsibility for their actions and find a way to make these shareholders whole again.
it's crazy how much pressure hsbc's execs are under tho 
i'm also a bit curious about what went on with svb uk... how did they not see any red flags before making that acquisition? 
HSBC should be more considerate of their shareholders, especially after what happened in 2020. It's not fair that they just scrapped it without warning 
And now Ken Lui is trying to get them to spin off the Asian business? That's just going to create more uncertainty 
I'm all for innovation and growth, but let's not sacrifice our loyal customers in the process 
Ping An is right, though - they should definitely be looking at ways to improve performance 
And what was with the SVB UK deal? It feels like a huge risk 
. And now they're trying to spin off the Asian business - it's like they don't trust their own strategy 
. But we'll have to wait and see what happens in May when the vote comes around 
like they were relying on it and now its all gone 
and btw tucker says its all good cuz the banking sector r having a rough time 
yeah ok mr chairman no one cares about your "recent turmoil" excuse 
. And what's up with Ping An backing calls for a restructure? Is that just because they want more control over HSBC's future or what? 
They're facing so much pressure from shareholders to break up their Asian business or something 
Anyway, I'll be keeping an eye on this one... [Link to more info on Ken Lui's activist campaign](https://www.bloomberg.com/news/articles/2023-11-28/h-sbc-shares-hit-as-shareholder-pressure-mounts-over-asia-business)
... like maybe they're behind the scenes pushin' for a break-up? And have you seen how quickly they acquired SVB UK? That's some suspicious business right there 
. I'm thinkin' there's more to this story than meets the eye 
...