Hong Kong
Cnn
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The HSBC’s top brass defended its strategy on Monday for disappointing shareholders in the borrower’s largest market, as Europe’s largest bank faced calls to separate.
At a meeting of informal shareholders in Hong Kong, Chairman Mark Tucker and CEO Noel Queen raised questions from investors on the issues that the bank was approaching. Demand for restoration of his business Silicon Valley Bank’s UK’s arm for its purchase.
In the remarks made, Tucker and Queen reaffirmed the board’s recommendation that the shareholders vote against a resolution on the doctor for its annual general meeting in May, which would force the bank to develop a plan to remove or reorganize its Asian business – the main source of profit of the lender.
Tucker said the board is unanimous in opposition to the resolution, and clearly stating: “Distribution of a bank will not be in your interest.”
He said that the board had previously reviewed the various options for the restructuring of the bank, and concluded that such alternatives would “eliminate the price of shareholders materially,” including profit.
“Our strategy is working,” Tucker told the room of more than a thousand shares. ” “Our current strategy is advancing profit.”
HSBC has faced calls to separate its Asian business from the rest of the bank over the past one year.
Hong Kong’s shareholders-HSBC, where HSBC is an important place for many retail investors, claims that the performance of a lender-based lender in London has been dragged through it. Business in other regions.
Queen praised the complaints on Monday, “Our profits in Hong Kong and the UK are no longer dragging anywhere else to be dragged. The group is fully performing.”
When a shareholder was suppressed by a shareholder on the issue, Quinn said that the bank’s breakdown would result in a “reduction in significant revenue” as most of its business relies on cross -border transactions.
At the request of British Regulators, investors are also unhappy with the HSBC in 2020 eliminating their profits. He argues that if the lender ends his activities in Asia, he will no longer have to expose Hong Kong shareholders for applications in other jurisdictions.
Christine Fong, a member of the District Council in Hong Kong, said she represents about 500 500 small shares who were affected by the profitability of the profit.
“Street hackers, taxi drivers or teachers – all of them rely on their regular costs, such as mortgage, insurance payments, pay for school fees,” Fong told CNN.
“That’s why, three years ago, what did the HSBC bothered to these small minority shares.”
Fong has now joined calls to vote in favor of shareholders in favor of a proposal to abolish their Asian business, yet the lender returned his profit in 2021, although at the lower levels.
Ken Louie, a worker shareholder in Hong Kong, who kept the resolution together, doubled his call on Monday before the meeting.
The resolution will require 75 % of the votes to be approved in May, but “nothing is impossible,” he told reporters outside the meeting.
Louis, who said he personally shared 100 million Hong Kong dollar (7 12.7 million), has planned to focus on access to the target for his team “company shareholders to present our case and get their support.”
He added that his group would also be cans to 18 districts of Hong Kong “to tell HSBC shareholders that they would eventually have the opportunity to speak for themselves and protect their rights through voting.”
HSBC also faces pressure from its biggest shareholder.
Ping n
(pngay)China’s largest insurance, holds 8 % shares in HSBC, and has supported calls to revise its structure.
In a series of Remarks “We will support a move that includes a spin -off that is suitable for improving HSBC performance and value,” said Huang Yong, chairman of Ping N’s assets management last November.
Since then, according to the person familiar with the matter, the views of the insurance giant have not changed.
Sources told CNN that Ping has been demanding the ANHSBC demanding to seek reorganization, raising its price and facilitating its regular responsibilities all over the world.
The man added that the insurance company has not recommended any particular route but will support any move, including a spin off of its Asian business, which can increase its stock performance or cost. Ping N did not immediately respond to the request for the comment on how he planned to vote at the next general meeting.
HSBC leaders were also asked that Monfade was also asked why the bank had set up a British unit of SVB after the amazing end of his parents in the United States. The purchase was made last month in £ 1 (20 1.20), just a few days after the SVB connecting.
Critics have questioned the HSBC’s ability to perform proper conspiracy on SVB UK users as how quickly the deal was combined.
“Did HSBC see SVB clients in detail? They say, Financial statement – Can they repay the loan?” Fong said.
Queen and Tucker defended the acquisition, and declared it a good business opportunity, which gave the bank the opportunity to get hundreds of modern startup as consumers. He pushed back the idea that the administration did not have time to fulfill proper diligence.
Tucker also weighed over recent turmoil in the banking industry, saying he did not expect “immediate impact” on HSBC.
“After the elimination of several small regional banks and the occupation of credit Swiss, shares of all banks have been suppressed,” he said.
But he said he was not convinced that such advancements had represented the sector to a “systemic threat”. “I expect uncertainty” before the nerves settled, he added.
