HSBC's top executives faced intense questioning from shareholders in Hong Kong on Monday, with investors calling for a breakup of the bank due to its underperforming Asian businesses.
Chairman Mark Tucker and CEO Noel Quinn defended the bank's strategy, stating that it was "working" and that dividends were being moved up. However, they also acknowledged that some shareholders believed the bank's performance had been dragged down by its businesses in other regions.
The bank's largest shareholder, Ping An Insurance Group of China, has backed calls for a reorganization of HSBC to boost its valuation and simplify regulatory obligations. Although Ping An did not specify how it planned to vote at the upcoming general meeting, its chairman has stated that the company will support any initiatives conducive to improving HSBC's performance.
The bank is also facing pressure over its recent purchase of SVB UK, a British unit of Silicon Valley Bank that collapsed in the US. Critics have questioned HSBC's ability to conduct thorough due diligence on the customers of SVB UK before completing the acquisition.
In response, Quinn and Tucker defended the deal as a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers. They pushed back on the notion that management hadn't had time to carry out proper due diligence.
As the banking sector faces turmoil, with recent collapses of smaller regional banks and the takeover of Credit Suisse, HSBC's executives expressed confidence in their ability to navigate the uncertainty. However, they acknowledged that such developments represented a period of uncertainty before nerves settled.
The resolution calling for a breakup of the bank requires 75% of votes to be passed in May, but activist shareholders remain undeterred, with some calling on investors to target institutional shareholders and canvas districts in Hong Kong to protect their rights through voting.
Chairman Mark Tucker and CEO Noel Quinn defended the bank's strategy, stating that it was "working" and that dividends were being moved up. However, they also acknowledged that some shareholders believed the bank's performance had been dragged down by its businesses in other regions.
The bank's largest shareholder, Ping An Insurance Group of China, has backed calls for a reorganization of HSBC to boost its valuation and simplify regulatory obligations. Although Ping An did not specify how it planned to vote at the upcoming general meeting, its chairman has stated that the company will support any initiatives conducive to improving HSBC's performance.
The bank is also facing pressure over its recent purchase of SVB UK, a British unit of Silicon Valley Bank that collapsed in the US. Critics have questioned HSBC's ability to conduct thorough due diligence on the customers of SVB UK before completing the acquisition.
In response, Quinn and Tucker defended the deal as a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers. They pushed back on the notion that management hadn't had time to carry out proper due diligence.
As the banking sector faces turmoil, with recent collapses of smaller regional banks and the takeover of Credit Suisse, HSBC's executives expressed confidence in their ability to navigate the uncertainty. However, they acknowledged that such developments represented a period of uncertainty before nerves settled.
The resolution calling for a breakup of the bank requires 75% of votes to be passed in May, but activist shareholders remain undeterred, with some calling on investors to target institutional shareholders and canvas districts in Hong Kong to protect their rights through voting.
... these HSBC execs are getting roasted by shareholders and it's hard not to wonder if they're just trying to sweep things under the rug 
... Ping An Insurance Group being all supportive of a breakup is a bit concerning though - what does that even mean for HSBC employees? 
It sounds like they're just gonna lose their jobs no matter what happens 
... and honestly, it's hard not to think about SVB UK's customers who were affected by the acquisition... how did that deal go so wrong? 
... these banking execs need to be on top of their game, ya feel me? 
. I think what Ping An Insurance Group is doing is just trying to protect their investment interests. And yeah, the SVB UK deal was a big risk, but it could pay off in the long run... let's hope 
. But at the same time, they're trying to simplify things and boost valuation 
. It's like, what's going on? 
. I get why they're upset, but 75% of votes is like, a lot of people 
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. But hey, at least Mark Tucker and Noel Quinn are trying to spin it as a positive for HSBC. I guess you could say that's a silver lining – they're willing to take risks and try new things. And Ping An Insurance Group backing the reorganization plans? That's some serious firepower right there