Stephen M.’s Post

Under Chief Executive Noel Quinn, HSBC navigated a global pandemic and a push by rebel investors to break up the 160-year bank. His surprise departure is an opportunity to accelerate its strategic pivot to Asia, investors say. "I'd expect the candidate would be someone with vast experience in Asian and Middle East markets, who is open minded on the bank's strategy and could re-consider the option of re-domicile HSBC's headquarters to Asia," said Simon Yuen, Hong Kong-based founder of Surich Asset Management. HSBC, Europe's largest lender by assets with a balance sheet of $3 trillion, is increasingly betting on its historic Asian ties to raise profits, as competition crimps revenue growth in other regions. Since the financial crisis of 2008, HSBC has already shrunk its global footprint by around a quarter, exiting low-growth markets to plough capital and resources into Asia. Nevertheless, pressure is mounting on HSBC to reassert its position before ambitious Chinese rivals steal more of its customers and slowly erode its Hong Kong dominance. "A lot of the world's wealthy and high net worth individuals are based in Asia which means HSBC should put their first priority and major business focus in Asia, particularly China markets," said the Hong Kong-based founder. India and Dubai should be next in its focus, he added. Although Quinn was head of Commercial Banking for Asia-Pacific in Hong Kong between 2011 and 2015, some sources said he was short of the broad Asian experience believed necessary to fulfil the bank's potential in the region, and appease its increasingly vocal investor base. "The group should consider candidates in Asia or Hong Kong, who have better experience doing business in the region...For our small shareholders, HSBC is a Hong Kong company," a Hong Kong-based activist shareholder, who backed a recent campaign by HSBC's largest shareholder PING AN Insurance to spin off its Asia business, said. Source: Reuters News Agency #china #asiapacific #chineseeconomy #globalfinance #banking #capitalmarkets #crossborder #wealthmanagement #assetmanagement #investment

The allure of international markets is exerting a growing pull on UK business, according to HSBC UK’s second ‘Going Global for Growth’ report. Our survey of 1,362 businesses reveals some significant changes in ambitions and sentiment since last year. Download the report now to get all the detail: https://grp.hsbc/6042T0SAs As referenced within the report ‘Poised for growth’ and of businesses already trading internationally, 87% intend to expand further over the next year. 33% are looking to grow significantly – up by 2% from last year. #HSBCUK #GoingGlobalForGrowth #HSBCCommercialBanking #ConfidentlyInternational

HSBC's ratcheting-down of the valuation of its stake in Bank of Communications is the latest reluctant write-down on its China business, which exists through two other channels as well: its direct lending (on which it took a minor write-down in Q3 2023) and Hang Seng Bank (where no write-down has been taken). All three channels are into the same underlying market but there appears to be no valuation standard, based on credit quality of the underlying business and tested against the methodologies used by other institutions. Management repeatedly expresses optimism, and that the worst is over...until the next write-down is taken. There is a black hole there, and management cannot know how deep it is. #China #StandardChartered #HSBC #HongKong #ChinaBohaiBank #HangSengBank #FinancialStability #BaselIII #Basel3 #riskweighting #RiskWeightedAssets #RWA #RWAs #NPL #NPE #NonPerformingLoans #NonPerformingExposures #VAR #ValueAtRisk #Leverageratio #InternalRatingsBased #IRB #AdvancedInternalRatingsBased #AIRB #LCR #LiquidityCoverageRatio #NSFR #NetStableFundingRatio #stresstest #banking #CET1 #CommonEquityTier1 #CET1Ratio #Tier1Capital #AdditionalTier1Capital #AT1 #Tier1CapitalRatio #Tier2Capital #TotalCapital #TotalCapitalRatio #bailout #Resolution #bankresolution #depositinsurance #bailin Ministry of Finance of the People's Republic of China Standard Chartered HSBC Hong Kong Monetary Authority (HKMA) China Bohai Bank Hang Seng Bank Bank of Communications Co.,Ltd. Standard & Poors Ratings Services Moody's Investors Service Fitch Ratings DBRS Ratings Morningstar DBRS

A surge in Chinese companies expanding into the Middle East has spurred Deutsche Bank AG to adjust its regional structure and bring the Mideast corporate banking operations closer to Asia. Over the past 12 months, Deutsche Bank’s revenue from helping Chinese firms invest and expand in the Middle East has doubled and it’s expected to grow at a similar pace over the next couple of years. Deutsche joins rivals including HSBC Holdings Plc and Standard Chartered Plc in looking to tap increasing flows between China and the oil rich Gulf states. From government-led funds to property and electric-vehicle companies, trade and investment ties between the two regions have deepened amid US-China tensions. Sovereign wealth funds including Mubadala Investment Co. are also looking to increase their exposure in China and other parts of Asia. At the same time, demand has risen “exponentially” from multinational firms in China to seek advice on managing geopolitical risks and localizing financing. That has prompted an increase in so-called panda bond issuance, or yuan-denominated notes issued by foreign entities in the China market, and moves toward securing local supply chains such as auto-part manufacturing. Source: Bloomberg News #china #beijing #chineseeconomy #globalfinance #banking #crossborder #investments #middleeast #currency #renminbi

📉 Ping An Considers Reducing HSBC Stake 📉 In a significant move reported by Bloomberg, HSBC's largest shareholder, Ping An Insurance, is weighing options to reduce its 8% stake in the Asia-focused lender. Here’s a detailed breakdown: 🔍 Key Points:    Stake Overview: Ping An currently holds a substantial $13.3 billion position in HSBC.    Recent Activity: The Chinese insurance giant has already sold HSBC shares worth $50 million this month.    Potential Future Sales: Further share sales are under consideration as Ping An looks to decrease its stake. 📰 Background: Ping An emerged as a major shareholder in HSBC in 2017 through its asset management arm. Despite the strategic investment, the relationship has seen its ups and downs. Recently, Ping An has been advocating for significant reforms at HSBC, including the spin-off of its Asia business. HSBC, on the other hand, has been consolidating its focus on Asia, evident from its recent sale of its Argentinian business. 📈 Ping An’s Perspective: "HSBC is our long-term financial investment. The bank has maintained a unique competitive advantage in Asia. We are confident of its long-term development," said Ping An Asset Management in a statement to Reuters. 🔮 Implications:    Market Impact: The reduction of Ping An’s stake could influence HSBC’s stock price and market dynamics.    Strategic Moves: HSBC’s continued pivot towards Asia and Ping An’s call for reforms may shape the future strategies of the bank. Stay tuned for further updates on this evolving story and its implications for the global banking landscape. 🌐 #HSBC #PingAn #Investment #FinanceNews #AsiaBusiness #BankingReforms #GlobalMarkets #FinancialStrategy 💹💼

When international corporations like HSBC decide to exit a country's market, such a move undoubtedly causes regret but not catastrophic sentiment. It's crucial to remember that the foundation of any organization's success is the people working within it. In Armenia, as in any other country, there are talented professionals capable of maintaining and developing high standards of work, regardless of the brand under which they operate. The presence of major players like HSBC in the market has undoubtedly contributed to the introduction and dissemination of international standards in Armenia's banking sector. However, the departure of one company opens doors for others, including local banks like Ardshinbank CJSC, which can use the accumulated experience for further growth and improvement of their services. This also serves as a stimulus for local professionals not to rest on their laurels but to strive for new heights, applying the best global practices in practice. Faced with such changes, it's important to look to the future with optimism and readiness for new challenges. It's time for local banks and professionals to show their worth, take responsibility for the further development of the country's financial sector, and prove that quality and innovation are not dependent on an international name but are the result of hard work, knowledge, and the desire for excellence. Ultimately, any changes in the market provide a unique opportunity for growth and self-affirmation. They allow us to appreciate the present, learn lessons from the past, and look to the future with optimism, where the main role is played not by brands, but by people, their skills, knowledge, and desire to move forward.

For my first post here I wanted to share my interview with the The Hong Kong Institute of Bankers journal, Banking Today (Issue 136). I discussed how we at The Bank of East Asia, Limited (BEA) are combining our traditions with innovation to serve the evolving needs of our customers. I also spoke about the importance of the GBA to our business in the Chinese Mainland and Hong Kong, and the importance of our colleagues to achieving our missions. I hope you enjoy the article. 

#PwCChina today released its China Banking Newsletter 2023 Review and Outlook. Profit #growth among #banks surveyed has slowed as net interest margins narrow. China’s economy has been improving steadily, but still faces new pressures. The #banking sector in particular has to tackle challenges in terms of profitability, risk management, and asset and liability management.   Find out more: https://lnkd.in/erJEaJwS James 立钧 Chang 张 James Tam 叶少宽 Linda Yip Brian Yiu #PwC #FinancialServices #Transformation

HSBC, a global leader in banking and financial services, has unveiled a significant trend in investment behavior among its Chinese clientele. With China's burgeoning economy and expanding middle class, more investors are looking to diversify their portfolios by tapping into the robust opportunities offered by the US market. HSBC's latest data reveals a notable surge in client investments from China into various sectors across the United States. The increasing wealth among Chinese individuals and families has propelled this trend, as they seek avenues for long-term growth and stability. HSBC's role as a trusted financial partner has been instrumental in facilitating these cross-border investments, offering tailored solutions and expert guidance to navigate the complexities of international markets. Commenting on this trend, [insert HSBC spokesperson's name] stated, "We're witnessing a strategic shift in investment preferences among our Chinese clients, driven by their confidence in the resilience and potential of the US economy. At HSBC, we are dedicated to empowering our clients to capitalize on global opportunities and achieve their financial aspirations." This trend underscores the importance of global connectivity and collaboration in today's dynamic financial landscape. As HSBC continues to champion innovation and accessibility in wealth management, it remains committed to supporting its clients in seizing new opportunities and navigating the evolving market landscape.