HSBC's top executives faced tense questioning from shareholders at an informal meeting in Hong Kong on Monday, as investors continued to push for the bank's Asian business to be spun off.
The London-based lender has been under pressure from shareholders in its largest market, where many retail investors hold shares. They argue that HSBC's performance in Asia is being dragged down by struggling businesses in other regions.
Chairman Mark Tucker and CEO Noel Quinn defended their strategy, saying it was working and dividends were on the rise. However, they acknowledged that the bank had previously reviewed options for restructuring its business and concluded that any alternatives would "materially destroy value" for shareholders.
The board recommended that shareholders vote against a resolution at HSBC's annual general meeting in May that would force the bank to come up with a plan to spin off or reorganize its Asian business. Tucker stated that the board was unanimous in its opposition, saying it would not be in shareholders' interest to split the bank.
Quinn addressed concerns about underperformance in other regions, saying profits in Hong Kong and the UK are no longer being dragged down by weaker businesses. He also pushed back on criticism of HSBC's acquisition of SVB UK, calling it a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers.
However, shareholders remain skeptical about HSBC's ability to perform adequate due diligence on SVB UK's customers, and questioned whether management had sufficient time to carry out thorough checks. The bank's leaders acknowledged that there may be an "immediate impact" from recent turmoil in the banking industry, but said they did not expect it to be a systemic risk.
HSBC is facing pressure from its largest shareholder, Ping An Insurance Group, which has backed calls for the bank to rethink its structure. The Chinese insurer holds an 8% stake in HSBC and has stated that it will support any initiatives that could boost its stock performance or value.
The stakes are high for HSBC, with investors seeking to protect their dividends and interests. Shareholders have been unhappy with the bank's decision to scrap its dividend in 2020 at the request of British regulators, arguing that it would no longer be exposed to requests from other jurisdictions if it were to spin off its Asian business.
As the battle for control of HSBC continues, investors are demanding that the bank's leadership takes a closer look at the proposal and responds to their concerns. With the annual general meeting just months away, the outcome is far from certain, and the future of HSBC's structure remains uncertain.
The London-based lender has been under pressure from shareholders in its largest market, where many retail investors hold shares. They argue that HSBC's performance in Asia is being dragged down by struggling businesses in other regions.
Chairman Mark Tucker and CEO Noel Quinn defended their strategy, saying it was working and dividends were on the rise. However, they acknowledged that the bank had previously reviewed options for restructuring its business and concluded that any alternatives would "materially destroy value" for shareholders.
The board recommended that shareholders vote against a resolution at HSBC's annual general meeting in May that would force the bank to come up with a plan to spin off or reorganize its Asian business. Tucker stated that the board was unanimous in its opposition, saying it would not be in shareholders' interest to split the bank.
Quinn addressed concerns about underperformance in other regions, saying profits in Hong Kong and the UK are no longer being dragged down by weaker businesses. He also pushed back on criticism of HSBC's acquisition of SVB UK, calling it a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers.
However, shareholders remain skeptical about HSBC's ability to perform adequate due diligence on SVB UK's customers, and questioned whether management had sufficient time to carry out thorough checks. The bank's leaders acknowledged that there may be an "immediate impact" from recent turmoil in the banking industry, but said they did not expect it to be a systemic risk.
HSBC is facing pressure from its largest shareholder, Ping An Insurance Group, which has backed calls for the bank to rethink its structure. The Chinese insurer holds an 8% stake in HSBC and has stated that it will support any initiatives that could boost its stock performance or value.
The stakes are high for HSBC, with investors seeking to protect their dividends and interests. Shareholders have been unhappy with the bank's decision to scrap its dividend in 2020 at the request of British regulators, arguing that it would no longer be exposed to requests from other jurisdictions if it were to spin off its Asian business.
As the battle for control of HSBC continues, investors are demanding that the bank's leadership takes a closer look at the proposal and responds to their concerns. With the annual general meeting just months away, the outcome is far from certain, and the future of HSBC's structure remains uncertain.
... it's kinda weird 'cause they say profits in hk and uk are on the rise 
... but shareholders r still all skeptical about svb uk customers 
... ping an insurance group is like, super invested in this situation 
... can't wait to see what happens at their annual meeting in may 
... one thing's for sure, hsbc needs to take care of its shareholders' concerns or else they'll be all over 'em 
anyway, i get why they're worried about underperforming regions but come on, HSBC's been through worse & still managed to bounce back... or so they say 
and btw, Ping An Insurance Group is all over HSBC's shoulder rn, trying 2 stir up some trouble, like a bad habit 
anyone think these shareholders are just trying 2 get their hands on more shares & value? 
8% stakeholder or not, it's like they're saying "hey we care about ur profits" but really it's just about protecting those dividends 
And what's up with Ping An Insurance Group holding an 8% stake in the bank? That sounds like some pretty big influence 
... And what about all these new startups that HSBC got from SVB UK? Are they really going to make a difference in the bank's performance?