HSBC Chief Executive Stuart Gulliver didn’t tackle the issue of whether the bank would move its headquarters to Hong Kong during his strategic presentation yesterday (that decision can wait until year-end) – but he did provide clues as to HSBC’s future hiring priorities in Asia.
The firm is set to further “pivot to Asia”, reports the Wall Street Journal, even as it cuts up to 50,000 jobs globally by 2017. Although about 75% of its 2014 profits were generated in the region, only about a third of its staff are based there. HSBC appears to have room to expand its Asian headcount – and here’s where it is likely to focus its regional recruitment, based on Gulliver’s new strategy:
1) HSBC jobs in the Pearl River Delta
Gulliver touched upon expanding in India and Australia, but the Pearl River Delta – which encompasses Hong Kong and the neighbouring Chinese province of Guangdong – is where the real growth will be. The area is home to an expanding middle class that can provide business for HSBC’s markets capabilities and mortgage products. Gulliver said there is an opportunity to create “another Hong Kong in Shenzhen”, Guangdong’s financial hub which is set to link its stock market to Hong Kong’s.
2) Wealth management roles
Wealth management will be one of the firm’s priorities in Asia, HSBC executives said yesterday. While a myriad of firms are bulking up their private banks in Asia and the sector is short of talent, HSBC is at least trying to build from a solid base – it already ranks fourth in terms of assets and headcount in Asia’s private wealth industry.
3) HSBC jobs in asset management and insurance
HSBC wants to grow its asset management and insurance businesses in Asia, where an ageing population is fuelling increased demand for insurance and retirement products.
4) Renminbi products
If you want a job at HSBC is Asia, it would pay to be well versed in the Chinese currency. HSBC hopes to further cash in on the increasing global use of the renminbi, with executives describing its growth as a “very significant opportunity”. HSBC has offered RMB-linked products for several years, according to the WSJ, giving it an edge over other international banks in the region.
Hong Kong financial sector seeks exemption from new tax reporting rule. (South China Morning Post)
And the latest Chinese bank to announce a Hong Kong IPO is…Bank of Qingdao. (Wall Street Journal)
HKMA backs a plan to stop fat fingers and rogue algorithms from causing erroneous swings in the city’s biggest stocks. (Bloomberg)
Bond madness fuels London banking jobs boom. (CNN)