Home is Not Where the Heart is for HSBC

HSBC - Choosing London for the HQ

 «Asia remains at the heart of the Group's strategy,» HSBC said yesterday as it announced it would be keeping its headquarters ensconced in London.

In a statement yesterday HSBC Holdings announced that its Board of Directors had concluded its review of the best location for the headquarters of the Group, and has decided to remain headquartered in the U.K.

The decision of the Board was unanimous.

The statement went on to say that - Asia remains at the heart of the Group’s strategy. In its investor update in June 2015, the Group announced a ‘Pivot to Asia’ as a core part of its strategy. Led from its heartland in Hong Kong, itself a top three global financial centre and where The Hongkong and Shanghai Banking Corporation Limited is headquartered, HSBC is putting particular emphasis on investing further in the Pearl River Delta and ASEAN region. This reflects increasing shifts in global trade and capital flows to and from Asia, in respect of which Hong Kong will play a pivotal role.

Exploiting Their Asian Roots

So Asia according to HSBC is at the heart of the group's strategy - but the Asian soul obviously does not does not beat loud enough to merit being called the bank's home.

HSBC said as we evaluated jurisdictions against the specified criteria, it became clear that the combination of our strategic focus on Asia and maintaining our hub in one of the world’s leading international financial centres, London, was not only compatible, but offered the best outcome for our customers and shareholders

Both HSBC Group Chairman, Douglas Flint and Group Chief Executive, Stuart Gulliver reinforced the decision. «Having our headquarters in the UK and our significant business in Asia Pacific delivers the best of both worlds to our stakeholders,» said Gulliver.

No Further Reviews

In their statement HSBC also said that the Board has decided that it is not necessary to continue the previous practice of reviewing the location of the Group’s headquarters every three years, and will only revisit the matter if there is a material change in circumstances.

Such «circumstances» that might require another ten-month tactical huddle will come before the end of 2017. Should the UK electorate decide in their coming referendum to exit the European Union then HSBC may have to undertake another round of soul searching.









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