HSBC's top executives faced intense questioning from shareholders at the bank's annual general meeting in Hong Kong, with investors pressing for a breakup of the company's Asian business.
Chairman Mark Tucker and CEO Noel Quinn defended their strategy, saying it was working and that the bank's profits were not being dragged down by underperforming businesses elsewhere. However, shareholders have been critical of HSBC's performance in other regions, arguing that the bank's focus on Asia is detrimental to its overall health.
The resolution to be voted on at the meeting would require 75% of votes to pass and 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 to the resolution, saying it would not be in shareholders' interests to split the bank.
However, the Chinese insurance giant Ping An has backed calls for HSBC to rethink its structure, and has said it will support any initiatives that could boost the bank's performance and value. Ping An holds an 8% stake in HSBC and has been calling for a reorganization of the bank's operations.
The acquisition of SVB UK, which was completed just days after the US-based parent company collapsed, has also raised questions about HSBC's ability to carry out due diligence on its customers. Critics have argued that the deal came together too quickly and that the bank did not properly assess the financial health of SVB's clients.
Despite these concerns, Tucker defended the acquisition, saying it was a good business opportunity that would allow the bank to gain hundreds of innovative startups as customers. He also downplayed the impact of recent turmoil in the banking industry, saying he did not expect an "immediate impact" on HSBC's share prices.
Chairman Mark Tucker and CEO Noel Quinn defended their strategy, saying it was working and that the bank's profits were not being dragged down by underperforming businesses elsewhere. However, shareholders have been critical of HSBC's performance in other regions, arguing that the bank's focus on Asia is detrimental to its overall health.
The resolution to be voted on at the meeting would require 75% of votes to pass and 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 to the resolution, saying it would not be in shareholders' interests to split the bank.
However, the Chinese insurance giant Ping An has backed calls for HSBC to rethink its structure, and has said it will support any initiatives that could boost the bank's performance and value. Ping An holds an 8% stake in HSBC and has been calling for a reorganization of the bank's operations.
The acquisition of SVB UK, which was completed just days after the US-based parent company collapsed, has also raised questions about HSBC's ability to carry out due diligence on its customers. Critics have argued that the deal came together too quickly and that the bank did not properly assess the financial health of SVB's clients.
Despite these concerns, Tucker defended the acquisition, saying it was a good business opportunity that would allow the bank to gain hundreds of innovative startups as customers. He also downplayed the impact of recent turmoil in the banking industry, saying he did not expect an "immediate impact" on HSBC's share prices.
. I mean, they've been focusing so much on Asia and it's showing in other regions - their profits are suffering 
. They're not doing bad, but they could be doing better if they split up their Asian business and focus on improving the rest of the bank. Ping An seems to know what they're talking about, though - 8% stake or not, they must have some insight into how to get HSBC back on track 
. The SVB UK deal was a bit of a wild card, though... I mean, it's great for innovative startups and all that, but what about due diligence? Can you really trust the bank with your money after something like that happened? 
Like, 8% stake from Ping An and they're like "um, no, we're good"? The Chinese insurance giant just wants a piece of the action, I get it. But, at the end of the day, it's all about making shareholders happy. And if that means reorganizing the bank to make it more efficient... 
I'm not holding my breath.
I mean, just because they downplayed the risks doesn't change the fact that something went amiss. And now they're saying it was a "good business opportunity" and the bank won't be affected... 
please. The whole banking industry is in chaos right now, and HSBC thinks they can just ride this out? I'm not so sure.
Fingers crossed for the shareholders who want a more transparent bank. But, for now, it's business as usual... 
. I mean, aren't they supposed to be doing due diligence on their customers or something? It just seems like a ticking time bomb waiting to happen.
Just saw the latest news about HSBC and I'm already having a terrible day 
. So, shareholders are trying to break up the bank's Asian business but the top execs are refusing 
. Meanwhile, Ping An is like "nope, we're good" with 8% stake in the bank... meanwhile, SVB UK acquisition has people worried that HSBC didn't do its due diligence on customers... and the bank's CEO just downplays everything 
. ping an's backing is a good sign tho 
but tucker and quinn are not having it 
saying it's a good strategy and won't hurt their profits
which is interesting because they already hold an 8% stake in hsbc 