HSBC investors demand greater focus on Asia under new boss

Mr. Quinn's unexpected resignation prompted a search for a new CEO. Photo: Andres Kudacki/AP < HSBC Hong Kong shareholders have demanded the bank appoint an Asia-based chief executive and focus more on the region following the surprise retirement of Noel Quinn.

Activist Ken Lui, who heads Hong Kong-based subsidiary HSBC Asia Concern Group, said: «The group should consider candidates from Asia or Hong Kong who have more experience of doing business in the region.»

Another shareholder, Surich Asset Management founder Simon Yuen, told Reuters: «I expect the candidate to be someone with extensive experience in the Asian and Middle East markets, who is open-minded about the bank's strategy and can reconsider the restructuring option.» — domicile HSBC's headquarters in Asia.»

Hong Kong is HSBC's largest market and home to thousands of ordinary investors who own shares in the company.

Mr Ken told Reuters: «For our small shareholders of HSBC — a Hong Kong company.»

The need for a closer focus on the region comes after Mr Quinn, the current head of HSBC, surprised investors on Tuesday by announcing plans to step down this year and rushing to find his successor.

The vacancy has reignited tensions between the bank and Hong Kong shareholders, who say the £185 billion lender is focusing too much on London.

Last year, HSBC crushed a revolt by shareholders of Chinese insurer Ping An, its biggest investor, who called for the group to break up. Ping An called for HSBC Asia to be listed on the stock market, with HSBC retaining a stake.

The company accused HSBC of failing to pay enough attention to Asian talent. Although it makes most of its profits in Asia, the bank is still run from London and overseen by British regulators through the Bank of England.

Mr Quinn and all his predecessors resided in the UK.

After taking over in 2019, Mr Quinn sought to improve the bank's presence in Hong Kong by moving two executives responsible for the bank's profit sources — wealth and commercial banking — to the former British colony.

However, Asians remain underrepresented in the bank's senior ranks. Only a small proportion of HSBC's current executives are from Asia. David Liao, co-head of HSBC's Asia-Pacific division, is the only executive to come from Hong Kong.

Mark Tucker, the bank's chairman, declined to specify whether the new CEO would be Asian. According to him, the search process for a new leader has just begun, but should be completed by the end of the year.