HONG KONG: HSBC is considering selling its 20 billion (HK$235.36 billion) worth of British retail bank, The Sunday Times said, soon after a plan to move its headquarters out of Britain was revealed.
Directors of the second-largest company in Britain are considering the future of its retail operations in the country, as a so-called “ring-fencing” scheme may let it lose control over the retail arm, The Sunday Times said in an article yesterday.
It is said that the scheme, brought in after the financial crisis, requires lenders to put retail operations into separate companies with independent boards and chairmen.
The report said that no move was imminent and the ring-fence does not take effect until 2019, but HSBC chief executive Stuart Gulliver will be asked about it when he discloses a strategy update in June.
HSBC declined to comment. Last Friday, HSBC ordered a review into whether it should move its headquarters out of Britain and potentially back to its former home in Hong Kong, due to the stress brought on by taxes and regulations in Britain.
The announcement from HSBC, founded in Asia, but a key part of the British establishment, prompted a warm response from Hong Kong and silence from the British government.
“HSBC is the largest bank in Hong Kong and has deep historical links with Hong Kong. The HKMA takes a positive attitude should HSBC consider relocating its headquarters back to Hong Kong,” the Hong Kong Monetary Authority said last Friday.
HSBC shares closed 4.24 percent up to HK$73.80, hitting its three-month high after a quick surge on Friday afternoon.
