In recognition of the growing financial might of Asia, HSBC bank, the largest company in the U.K and one of the largest banks in the world, is moving the main office of its Chief Executive Michael Geoghegan from London to Hong Kong.
Speaking at a news briefing in Hong Kong on Friday Mr Geoghegan, who will be relocating as of February 1 2010, said that the principal reason for his move is that his organization wants to be at what he described as the "gateway to China".
According to the
Wall Street Journal he added:
Being in China itself is a logical goal and the place to work on it is Hong Kong. You must expect Asian businesses to grow, and logically we are going to be here
The
London Times reports that HSBC emphasized the importance of Asia to its future operations, and those of its competitors, when it said:
The move further positions the group for the shift in the world's centre of economic gravity from West to East, while HSBC's continued strong presence in the major developed markets reflects the increasingly interconnected nature of the global economy and the profile of the group's customers
HSBC was actually founded in Hong Kong in 1865, HSBC stands for Hongkong and Shanghai Banking Corporation, and only moved its headquarters to London in the early 1990s when it acquired the Midland Bank.
Group Chairman Stephen Green and two executive directors will remain in London, with the bank continuing to be subject to the U.K tax regime and answerable chiefly to the U.K. Financial Services Authority when it comes to regulatory matters.
As well as recognizing the historical connection between HSBC and Hong Kong, Donald Tsang, the Chief Executive of and leading politician in Hong Kong, said that the announcement of the move being made by the Chief Executive of HSBC was a "thumbs up" for his city and proved that it was a "stable, reliable and vibrant base for the banking industry in the wake of the global financial tsunami".
HSBC, which is authorized to print Hong Kong's local currency, has a presence in many different parts of the world but still has more than half its assets in Europe. It has grown its activities in the U.S. through the acquisition of companies such as Household International, formerly Household Finance, and Marine Midland and now has a fifth of its total assets in North America.
Vincent Cheng, currently chairman of HSBC in Asia, will step aside for Mr Geoghegan and then concentrate his efforts on developing business in China, Hong Kong and Taiwan, whilst remaining an executive director. Another Hong Kong-based executive director Sandy Flockhart is taking on the role of chairman of commercial and personal banking, and all HSBC business in Europe and the Middle East will become the responsibility of Stuart Gulliver, head of investment banking.
