HSBC Undecided on Relocation to Hong Kong

HSBC says news of a likely move of its headquarters from London to Hong Kong is entirely speculative and presumptuous.

A Sunday Telegraph report said the bank was considering relocating to Asia because of high taxes and red tape, but HSBC responded by saying it preferred to stay in the UK.

But the joint statement from Chairman Douglas Flint and CEO Stuart Gulliver also adds shareholders are asking about additional costs.

A British tax on banks is being introduced this year, in addition to other expected regulatory changes to improve oversight and reduce future crises.

HSBC says the tax alone would cost around $600 million, based on its balance sheet as of December.

Europe’s largest bank reviews its domicile every three years, and the latest review comes amid rising public anger at the cost of taxpayer bailouts to RBS and Lloyds, and generous bonuses to bankers.

In hard hitting comments over the weekend, Bank of England Governor Mervyn King, accused banks of focusing on short term profits at the expense of their customers.

King says a failure to push through reforms would lead to another financial crisis.

The comments are seen as significant, as the central bank is taking over regulation of the UK banking industry.

Foto: NTD