Tag: HSBC

HSBC continues to voice its ambitions to pivot to Asia with plans to extend its onshore private banking services to ten mainland cities in the coming five years.

Days after securing $3.5 billion in investments for its wealth unit over the next five years, HSBC reiterated its ambitions in Asia, home to nearly half of the bank’s $1.6 trillion of wealth balance and 65 percent of group revenue.

Regional head of wealth and personal banking Greg Hingston set out plans for the mainland market during this five-year period including the extension of private banking to ten cities onshore and the doubling of its client base for Jade – a segment targeting clients with a $1-5 million in investable assets (the private bank targets clients with $5 million or more), according to a statement.

Hinston said the bank also aims to double its Jade client base in Singapore and become a lead foreign bank for non-resident Indians.

The bank also reiterated its hiring goals with plans to add more than 5,000 client-facing wealth-related roles in the next five years. These roles include relationship managers, investment counselors and specialists to support clients in Hong Kong, Singapore, and mainland China.

The bank also underlined its intention to improve its distribution in the three markets; digital and platform capabilities in the broader region; and product development, especially for high and ultra-high net worth clients.

We have a bold but achievable ambition, to be Asia’s leading wealth management provider by 2025, said Nuno Matos, HSBC’s chief executive for wealth and personal banking.

The bank is reportedly considering moving a number of its top executives to Hong Kong or Singapore to strengthen its push in Asia.

Among the relocations being considered are the two co-heads of its investment bank, Greg Guyett and Georges Elhedery, who are currently located in London, reported on Thursday.

The move of its top decision-makers to Asia, where the bank makes most of its money, comes almost a year into its restructuring under chief executive Noel Quinn. The bank is preparing to announce the outcome of a strategic review later this month.

HSBC has been undergoing an overhaul to focus on fee-generating businesses and reducing its operating costs. The bank has also said it intends to increase its rate of investment in Asia, particularly in wealth, the Greater Bay Area, South Asia, trade finance, and sustainable finance while scaling back investments in Europe and the U.S.

Earlier this week, HSBC has internally appointed Daniel Chan, its current Hong Kong business and commercial banking head, to lead the bank’s new Greater Bay Area office, located in Guangdong.

HSBC chief executive Noel Quinn is scheduled for a virtual session tomorrow with the U.K.’s Foreign Affairs Committee where he is expected to face tough questions about the bank’s relationship with Beijing.

HSBC’s Noel Quinn alongside chief compliance officer Colin Bell will face questioning from the British parliament’s Foreign Affairs Committee (FAC) this week regarding political developments in Hong Kong.

This occurs just days after self-exiled activist Ted Hui called on British member of parliament (MP) to investigate the British lender over frozen accounts and an apology from Quinn saying he had «no choice» after being instructed by Hong Kong police.

The virtual session between FAC and top HSBC executives is scheduled for tomorrow with a private meeting followed by a public one at 2:30 pm in the U.K.

The FAC meeting is expected to cover a number of recent events in Hong Kong including the passing of the national security law and the freezing of accounts belonging to activists involved in local protests.

On Quinn’s emailed apology to Hui last week, Conservative MP and FAC chair Tom Tugendhat called the response «extraordinary» adding that the HSBC CEO was clearly defending his actions by denying responsibility, according to a  report.

Companies listed in London should expect to be scrutinized according to the values we hold, not those of a foreign dictatorship,» he said.

According to Hui, who self-exiled to the U.K., he has recently shared evidence and detailed information regarding the recent account freezes, as requested by FAC members.

Any banks, businesses or organizations helping the communist tyranny to suppress the freedom of Hong Kong people will inevitably pay a heavy price internationally, Hui said in a social media post over the weekend.

I will do everything I can to make these organizations face the consequences.

Self-exiled lawmaker Ted Hui publicly shared and criticized HSBC CEO Noel Quinn’s apology over frozen accounts which claimed that the bank was done on orders by the Hong Kong police.

I regret that HSBC is not able to operate your bank and credit card accounts, said Quinn in an email dated January 11 and sent to Hui who has shared an image on his Facebook account.

Quinn explained that the bank had no choice but to take action after being instructed by the Hong Kong police, Hui said, and he also apologized over communications with HSBC.

The ex-Democratic Party member and his family’s accounts were allegedly frozen by HSBC alongside Hang Seng Bank and Bank of China after police said they were probing for a money laundering linked to a crowdfunding campaign.

According to Hui, there is no legal basis for freezing his nor his family’s accounts, underlining a specific concern that he had not received questions regarding any suspicious transactions prior to the move.

Hui has since said his family accounts were unfrozen and his personal accounts were partially released. He also noted that HK$200,000 ($25,800) had been frozen, less than the initial HK$850,000 ($110,000) claimed by local police.

HSBC said it would not comment on specific accounts and maintains its stance that it must comply with the jurisdictions in which it operates.

Hui also said that the bank had initially chosen to cancel his account before changing its decision to just freezing it.

I can hardly accept the nearly laughable U-turn explanation given by HSBC regarding my credit cards, from ‘a commercial decision to cancel’ to ‘frozen only’ after enormous public criticisms, he said. This is not so much a mistake made by a frontline staff member.

HSBC’s asset management arm the former Asia Pacific head of ETF capital markets from State Street Global Advisors.

HSBC Global Asset Management hired Jacqueline Pang in the newly created Hong Kong-based role of APAC head of exchange-traded fund sales, according to a statement, reporting to global head of ETF sales Olga De Tapia. She will be tasked with expanding HSBC Global Asset Management’s ETF business, including sales and distribution.

Pang is a 20-year investment management veteran and was previously with SSGA for eight years. Prior to that, she was with Amundi Asset Management for five years where she ran its capital markets business and overseeing ETFs covering brokers and market makers across Europe.

«ETFs are one of the fastest-growing investment products in Asia and we’re expanding our sales team to continue to meet the investment needs of our Asian clients,» said de Tapia. «[Pang] extensive client-facing and ETF market experience will be invaluable to help grow our ETF platform in the region.»