London Daily

Focus on the big picture.
Tuesday, Sep 16, 2025

HSBC head dismisses idea China is trying to get hold of the bank's Asian operations

HSBC head dismisses idea China is trying to get hold of the bank's Asian operations

Cuts are being made across HSBC's business as pressure mounts from the bank's largest shareholder.

Ever since April, when HSBC's biggest single shareholder, Ping An, began lobbying the lender to spin off its Asian operations into a separate business, there has been speculation over what has motivated the Chinese insurer to do so.

Some, including a number of analysts covering the banking sector, have speculated that Ping An, which owns 8.29% of HSBC, has been doing so with the backing of the Chinese government.

The thinking is that, shorn of its operations outside Asia, a standalone HSBC in the region could be more easily influenced by Beijing as it seeks to extend its influence over Hong Kong's financial markets in particular. HSBC effectively controls the money supply in the former British colony.

Others wonder whether China is simply trying to get hold of the jewel in HSBC's crown - its highly profitable Asian operations - as the standalone business would more easily become a takeover target.

So it was interesting today to hear Noel Quinn, HSBC's chief executive, dismiss the conspiracy theories as stridently as he did.

Mr Quinn had previously indicated in August this year that he had not regarded Ping An's campaign as "an issue of politics".

However, participating in the Financial Times global banking summit, he expanded on the theme.

He said: "I do not believe it is politically motivated based on all the dialogue we've had with various stakeholders. Quite the contrary.

"We're viewed in Asia, in Hong Kong, in China as an important international bank. We're an international bank that has been there for 157 years, helping Hong Kong develop as an economy, helping China develop.

"Based on the conversations we've had, that is a position that is still valued and people want us to take."


A Chinese national flag flies in front of HSBC headquarters in Hong Kong, July 28, 2020

A campaign driven by Beijing?

His comments are instructive because, even within HSBC itself, some employees have speculated that Ping An's campaign is being driven by Beijing.

A former senior executive of the bank told the FT in May this year that Ping An "would have had air cover from Beijing" in saying what it has been.

Ping An has certainly had close ties in the past to Beijing. The family of Wen Jiabao, a former Chinese premier, were at one point major shareholders in the company and profited enormously from their investment. And Dhanin Chearavanont, Thailand's richest man, was known to have close ties to China's Communist Party when, in 2012, he bought HSBC's 15.4% stake in Ping An itself.

Three of Ping An's biggest investors are investment firms which are owned by the Chinese government, And Xie Yonglin, Ping An's co-chief executive and president, is a member of the Chinese Communist Party, as are a number of senior executives at the insurer.

So it would certainly be no surprise were Beijing to be behind Ping An's calls.

But Mr Quinn clearly thinks it is simply business.

The difficulty separating politics from business


It is, however, difficult to separate politics from business when HSBC is concerned.

There was widespread unhappiness in Hong Kong when, in 2020, HSBC cancelled its dividend after the Bank of England urged lenders to conserve capital at the outset of the pandemic. HSBC has many shareholders based in the territory - both institutional and retail - who depend heavily on its dividends.

HSBC's head office in Hong Kong found itself picketed by shareholders demanding the reinstatement of pay-outs and for executives to have their pay docked.

A separation in Asian and non-Asian arms would, it was argued at the time, enable the Asian part of HSBC to avoid UK regulations that were seen as acting to the detriment of Hong Kong based shareholders.

But it would also represent an acknowledgement from HSBC that it was finding it impossible to reconcile its interests in the West, particularly the United States and the UK, with those in China - and that, in turn, would have undermined the lender's entire raison d'etre of enabling Western customers to do business in Asia and Asian customers to do business in the West.

HSBC's rebuttal of Ping An's arguments, which have so far failed to gain public support from any of its other major institutional shareholders, has not dampened the insurer's determination.


Upping the ante and going public


Having lobbied behind closed doors for most of the year, Ping An last month went public, upping the ante in the process.

Michael Huang, chairman of Ping An's asset management business, said: "The global finance model that once dominated and shaped the global financial industry in the last century is no longer competitive."

He also said that HSBC needed to be "much more aggressive" in terms of cutting costs.

He added: "This is the most important, urgent and absolutely needed action for HSBC to improve its business performance, reducing costs and increasing efficiency, particularly amid slowing growth in the global financial industry."

A programme of cuts


In fairness to Mr Quinn, he has been doing just that, committing back in October to making $1bn worth of extra cost savings next year and pledging to keep cost increases to just 2%. In many ways, even before Mr Quinn was handed the role on a permanent basis, he seems to have spent most of his time cost-cutting.

He did, however, also produce a major rabbit from the hat on Wednesday with the sale of HSBC's Canadian business for $10bn and at a highly attractive valuation. Much of this is likely to find its way back to investors in a move that the lender will hope assuages some of the disappointment lingering from the dividend suspension two years ago.

If he could pull off a few more asset sales like that, at a similarly compelling valuation, Mr Quinn will certainly find it easier to live with his Shenzhen-based headache.

Newsletter

Related Articles

0:00
0:00
Close
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
×