HSBC's top executives faced intense scrutiny from shareholders at a tense meeting in Hong Kong, with many calling for the bank to be broken up due to its struggles in regions outside Asia. The resolution, which would have required HSBC to create a separate entity for its Asian business, was met with resistance from the bank's leadership.
Chairman Mark Tucker and CEO Noel Quinn defended the bank's strategy, stating that it has been working well and moving dividends upwards. However, they acknowledged that the performance of certain businesses outside Asia had dragged down overall profits.
Shareholders in Hong Kong, where HSBC is a mainstay of many retail investors' portfolios, argue that the bank's underperformance in regions such as Europe and North America has made its Asian operations a significant drag on the business. Many small shareholders, including district council members, have spoken out against the bank's decision to scrap its dividend in 2020, citing reliance on the income for regular expenses.
The largest shareholder of HSBC, Ping An Insurance Group from China, also supports breaking up the bank, with chairman Huang Yong stating that any initiatives would be conducive to improving HSBC's performance and value. However, it remains to be seen how Ping An will vote at the upcoming annual general meeting.
Critics have questioned HSBC's ability to perform adequate due diligence on SVB UK, a British unit acquired by the bank for £1 last month just days after its parent collapsed in the US. The acquisition has raised concerns about potential exposure to customers and financial risks.
HSBC's leaders defended the deal, stating that it was a good business opportunity and allowed the bank to gain hundreds of innovative startups as customers. However, they acknowledged that recent turmoil in the banking industry may have suppressed share prices and said that they did not expect an "immediate impact" on HSBC.
Despite the pushback from shareholders and critics, the board remains united in its opposition to the resolution, with Tucker stating that splitting the bank would not be in shareholders' interests. The proposal for a spin-off of HSBC's Asian business still has support among activist shareholders and will require 75% of votes to pass at the upcoming annual general meeting.
Chairman Mark Tucker and CEO Noel Quinn defended the bank's strategy, stating that it has been working well and moving dividends upwards. However, they acknowledged that the performance of certain businesses outside Asia had dragged down overall profits.
Shareholders in Hong Kong, where HSBC is a mainstay of many retail investors' portfolios, argue that the bank's underperformance in regions such as Europe and North America has made its Asian operations a significant drag on the business. Many small shareholders, including district council members, have spoken out against the bank's decision to scrap its dividend in 2020, citing reliance on the income for regular expenses.
The largest shareholder of HSBC, Ping An Insurance Group from China, also supports breaking up the bank, with chairman Huang Yong stating that any initiatives would be conducive to improving HSBC's performance and value. However, it remains to be seen how Ping An will vote at the upcoming annual general meeting.
Critics have questioned HSBC's ability to perform adequate due diligence on SVB UK, a British unit acquired by the bank for £1 last month just days after its parent collapsed in the US. The acquisition has raised concerns about potential exposure to customers and financial risks.
HSBC's leaders defended the deal, stating that it was a good business opportunity and allowed the bank to gain hundreds of innovative startups as customers. However, they acknowledged that recent turmoil in the banking industry may have suppressed share prices and said that they did not expect an "immediate impact" on HSBC.
Despite the pushback from shareholders and critics, the board remains united in its opposition to the resolution, with Tucker stating that splitting the bank would not be in shareholders' interests. The proposal for a spin-off of HSBC's Asian business still has support among activist shareholders and will require 75% of votes to pass at the upcoming annual general meeting.
. It's a bit concerning that they're relying on Ping An Insurance Group for support, though - what's in it for them? 
Shouldn't they be pushing for more transparency around SVB UK acquisition? Don't want to see HSBC getting caught with its pants down... 
, I mean, why would you break up a bank that's working just fine? 
HSBC is like a big ol' family, and if some branches are having trouble, doesn't that just mean the family needs to find a way to support them more? 
It's not all or nothing, you know? And what's with these activists always trying to stir up drama? 
Newsflash: banks need to make money, it's what they do! If they can't figure out how to do that in Europe and North America, maybe they should just focus on Asia instead? 
I mean, Ping An Insurance Group is like the cool aunt who thinks breaking up the bank will be good for everyone... but probably not 
. And honestly, what's the harm in having a few branches outside of Asia? It's not like they're losing money left and right or anything 
asia is such a huge part of hsbc's profits, its crazy that europe n north america are holding them back 
i wish those district council members had more say in this whole thing, they must be losing money on hsbc shares left and right 
they're trying to defend their strategy but it sounds like things aren't looking great for those outside asia markets. small shareholders in hong kong seem particularly upset about the scrapped dividend - who wouldn't be? 
it's kinda funny that Ping An Insurance Group from China is all for breaking up HSBC though - maybe they just wanna get rid of some competition 
anyway, I'm keeping an eye on this whole thing 
. Whether it's breaking up the bank or making some other adjustments, I think it's time for them to get their act together 
.
. Those Chinese investors always seem to have their finger on the pulse 
. And can you believe they bought SVB UK for just £1? That's a risk even I wouldn't take 
. But hey, I guess that's what happens when banks start getting too big and too bold 
. But I still remember when HSBC was a stable player in the market, and now it seems like they're just trying to keep their head above water 
. Time will tell if this spin-off idea really pays off 
. And of course, Ping An Insurance Group is all like "yeah, break up the bank" and now we have no idea what they'll do 
. I'm no expert, but isn't that kinda like saying "oh, this part of the business is bad, let's just get rid of it" 
". meanwhile, china's ping an insurance group is all like "yeah, let's do this" 
. My uncle has his money in HSBC and he's always complaining about how his dividends are getting cut back 
. Anyway, here's some more stats to chew on:
I don't get why some investors are so attached to breaking up HSBC just because it's not performing well outside Asia 
...it doesn't mean they should give up! 
The Asian business has been doing well, and it's not fair to penalize other parts of the bank for that 
.
. And what about SVB UK? They need to be more transparent about those acquisitions 
. And what's up with this SVB UK acquisition? It's like HSBC is trying to spread its risks too thin, you know? 