HSBC CEO Relocates To Hong Kong

by Mary Swire, Tax-News.com, Hong Kong

29 September 2009

HSBC Group, the international bank, is to relocate the principal office of its Group Chief Executive from London to Hong Kong, in line with its stated strategy to focus on emerging markets.

The bank stated that the move further positions it for the shift in the world's centre of economic gravity from West to East. Located in and operating from Hong Kong, the hub for HSBC's Asia-Pacific business, the Group Chief Executive, Michael Geoghegan, will focus on ensuring its growth potential in the region is fully realised, and will also assume responsibility for developing Group strategy in agreement with the Group Chairman and as chair of HSBC's executive management team, the Group Management Board.

However, it was confirmed that HSBC Holdings, the Group holding company, remains domiciled in the UK and has no plans to move. It will continue to be resident in the UK for tax purposes. The Group Chairman and two Executive Directors will continue to be based in London. The UK Financial Services Authority remains the lead regulator of the Group. The Group Chief Executive, who will move to Hong Kong from February 1, 2010, will also maintain an office and a regular presence in London.

"The additional management presence in Hong Kong and focus on our faster-growing markets is absolutely right for HSBC and entirely consistent with the strategy we set out in 2006," said Stephen Green, the group’s Chairman. "There is absolutely no question of HSBC pulling away from London,” he continued. “We will operate from two equally strategically important centres for the company. Based in London, where we are domiciled and regulated, I will oversee the stewardship of our business and our globally strategic relationships with governments, regulators and with our owners. Based in Hong Kong, Mike will drive the continued development of our business and oversee the executive management team.”

The Chief Executive of the Hong Kong Special Administrative Region, Donald Tsang, also welcomed HSBC's decision to relocate the group's Group Chief Executive’s principal office from London to Hong Kong. He said the relocation is a significant move for the bank, highlighting Hong Kong's position as the focal point in Asia for global finance.

"HSBC's decision is a clear and timely 'thumbs-up' for Hong Kong as a stable, reliable and vibrant base for the banking industry in the wake of the global financial tsunami,” he said. "I am encouraged by HSBC's commitment to Hong Kong and its confidence in our city as the best platform for tapping opportunities in emerging markets in Asia and, in particular, the Mainland."

Hong Kong’s Financial Secretary, John Tsang, said the relocation reflected the focus of HSBC towards emerging markets in this part of the world. It also strengthened the unique and enduring bond between Hong Kong and HSBC. "Not only does HSBC's decision represent a clear vote of confidence in Hong Kong as an international financial centre, it also demonstrates the bank's long-term commitment to our city,” he added. "The government will continue with its efforts to further develop Hong Kong as an international financial centre."

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