HSBC's executives faced intense questioning from shareholders on Monday over their strategy for the bank's Asian business, with many calling for the unit to be spun off or reorganized. The lenders' top brass defended their approach, saying that splitting the bank would not be in shareholders' interests and could even result in significant revenue losses.
The calls for a breakup come as HSBC has faced criticism over its handling of its Asian operations, which have been seen as underperforming compared to other regions. Shareholders in Hong Kong, where HSBC is a mainstay of many retail investors' portfolios, have expressed frustration with the bank's performance and argued that it should be separated from the rest of the company.
HSBC's CEO Noel Quinn addressed these concerns, saying that profits in Hong Kong and the UK are now no longer being dragged down by underperformance elsewhere. However, critics argue that this is not a guarantee, as many small shareholders who rely on the bank's dividend payments to cover their regular expenses are still worried about the future of their investments.
One district council member, Christine Fong, said she represented around 500 small shareholders who had been affected by the dividend cancellation and were now calling for HSBC to spin off its Asian business. Ken Lui, an activist shareholder in Hong Kong, also doubled down on his call for support ahead of the meeting Monday, saying that "nothing is impossible" when it comes to changing the bank's structure.
HSBC's largest shareholder, Ping An Insurance Group, has backed calls for the bank to rethink its structure and explore a reorganization. However, the Chinese insurer has not recommended a specific path forward but will support any initiatives that could boost its stock performance or value.
The bank's executives were also asked about their decision to acquire the British unit of Silicon Valley Bank just days after SVB collapsed in the US. Critics have questioned HSBC's ability to carry out proper due diligence on the acquisition, citing concerns over how quickly the deal came together and whether management looked into the clients' financial statements.
HSBC's CEO Noel Quinn and Chairman Mark Tucker defended the acquisition, saying it was a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers. They pushed back on the notion that management had not had time to carry out proper due diligence.
The calls for a breakup come as HSBC has faced criticism over its handling of its Asian operations, which have been seen as underperforming compared to other regions. Shareholders in Hong Kong, where HSBC is a mainstay of many retail investors' portfolios, have expressed frustration with the bank's performance and argued that it should be separated from the rest of the company.
HSBC's CEO Noel Quinn addressed these concerns, saying that profits in Hong Kong and the UK are now no longer being dragged down by underperformance elsewhere. However, critics argue that this is not a guarantee, as many small shareholders who rely on the bank's dividend payments to cover their regular expenses are still worried about the future of their investments.
One district council member, Christine Fong, said she represented around 500 small shareholders who had been affected by the dividend cancellation and were now calling for HSBC to spin off its Asian business. Ken Lui, an activist shareholder in Hong Kong, also doubled down on his call for support ahead of the meeting Monday, saying that "nothing is impossible" when it comes to changing the bank's structure.
HSBC's largest shareholder, Ping An Insurance Group, has backed calls for the bank to rethink its structure and explore a reorganization. However, the Chinese insurer has not recommended a specific path forward but will support any initiatives that could boost its stock performance or value.
The bank's executives were also asked about their decision to acquire the British unit of Silicon Valley Bank just days after SVB collapsed in the US. Critics have questioned HSBC's ability to carry out proper due diligence on the acquisition, citing concerns over how quickly the deal came together and whether management looked into the clients' financial statements.
HSBC's CEO Noel Quinn and Chairman Mark Tucker defended the acquisition, saying it was a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers. They pushed back on the notion that management had not had time to carry out proper due diligence.
They got some major shareholders calling for 'em to spin off their Asian business, and I gotta say, I kinda get it. Those operations have been underperforming, and it's only a matter of time before someone gets hurt.
Ken Lui's all in too, saying "nothing is impossible" when it comes to changing the bank's structure. I love his enthusiasm!
It's a massive organization with so many connections and responsibilities. Plus, Ping An Insurance Group backing calls for reorganization? That's some serious weight right there.
I mean, what were they thinking?! Acquiring SVB's British unit just days after it collapsed in the US? It's like playing poker with a bunch of shaky cards... 
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. It seems like they're trying to brush it off by saying profits in other regions are making up for it, but what about the long-term implications? I mean, 500 small shareholders affected by dividend cancellations is a big deal 
. And what's with the acquisition of Silicon Valley Bank? Did they really not do their due diligence on that one? 
It's hard to shake the feeling that there are some skeletons in HSBC's closet that need to be addressed 
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. The bank does have a massive operation in Asia and if it's not performing well, it might be better to cut ties rather than risk dragging down the rest of the company 
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. Will HSBC's executives be able to convince shareholders that their strategy is working? Or will the pressure from critics like Christine Fong and Ken Lui lead to a reorganization or spin-off? Only time will tell 
Like, didn't they have time to do a proper due diligence on that one? 
I mean, I get that it was a good business opportunity and all, but come on, prioritizing profits over people's livelihoods isn't cool 
. And now with Silicon Valley Bank's collapse, I'm wondering if they're taking too many risks to expand their operations 
... it sounds like they rushed into something they didn't fully understand. But at the same time, I guess that's what happens when you're trying to stay ahead of the game 
... still, gotta keep an eye on this one 
. HSBC says it's a great business opportunity, but how can you trust that when they're still trying to figure out the deal? 
. I mean, who needs all these different parts of the bank scattered around the world? It's like trying to manage a bunch of unrelated franchises. Just keep it simple and let them handle their own regional issues. And as for the dividend payments, what's wrong with a little risk? Small shareholders need to think outside their comfort zones and not just rely on easy money. Ping An Insurance Group knows a thing or two about smart investments, but even they're not saying it's a done deal. It's all just speculation at this point 
I mean, one minute you're being underperforming and the next you're a good opportunity for innovation... sounds like a bunch of spin to me 
. Like, why fix what ain't broke, right? The bank's got a huge presence in Asia and it's still raking in profits, so let's not get rid of the gravy train just yet 
. And yeah, maybe there are some underperforming areas, but that's not necessarily a reason to break everything up. I mean, think about all the jobs and investments at stake... plus, the Chinese insurer Ping An is all like "let's support reorganization" 
but at the same time, u gotta feel for the small shareholders who rely on the bank's dividend payments 
hope they can figure out a way to boost their profits without screwing over their investors