HSBC CEO completes move to HK
Updated: 2010-01-28 07:27
By Joey Kwok(HK Edition)
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Michael Geoghegan, chief executive officer of HSBC Holdings Plc, arrives at his new office at the company's headquarters in Central yesterday, where he was welcomed by the press. Bloomberg News |
Arrival coincides with and symbolizes shift of focus to Asia
HONG KONG: Greeted by the applause of over 100 staff waiting in the headquarters main building in Central yesterday, HSBC Group Chief Executive Officer Michael Geoghegan arrived at his new office in Hong Kong to signify the bank's focus on emerging markets - especially China.
"I'm delighted to be back in Hong Kong. This is a key market for HSBC in our most strategically important region. One where we see tremendous opportunities, as many, if not more than, when HSBC was first founded in Hong Kong and Shanghai 144 years ago," Geoghegan said.
Geoghegan's relocation from London to Hong Kong, announced in September last year, also emphasizes the growing importance of the Asian market in fueling HSBC's future growth.
"We want to be the predominant bank and the principal bank in the region. I think we've got some way to go," Geoghegan said in Hong Kong yesterday.
Geoghegan added that HSBC will focus more on Asia in coming years, while the bank also hopes to list on a new international board in Shanghai this year.
The global banking giant has been actively seeking an initial public offering in Shanghai, in order to raise its reputation and expand its operation on the mainland.
Analysts believe HSBC's move of its CEO's office to Hong Kong will also help the bank position itself for the global economic gravity shift from West to East, after it suffered significant setbacks in the US market amid the global financial crisis.
By the first half of 2009, HSBC's pretax earnings slumped 51 percent to $5 billion, weighted down by the $3.7 billion loss from its North American operations.
"In the foreseeable future, the world's economic growth engine will be here in Asia, in particular China, rather than in the US or Europe," said Paul Lee, a banking analyst at Taifook Securities.
Lee added that it is more convenient for HSBC to make deals and meet government officials in Asia, as the bank's group chief executive is now based in Hong Kong.
"Given Obama's proposal to overhaul the banking industry in the US and the tightening of banking regulations in the UK, there is a trend for financial corporations in the US and the UK to move their power bases towards the East," Lee said.
He expects more financial corporations in the US and Europe will move their senior management and other assets to Asia, where the economy is relatively more resilient.
Starting from February 1, Geoghegan will also succeed Vincent Cheng to become Chairman of the Hongkong and Shanghai Banking Corporation Limited, while Cheng remains a member of the Board of HSBC Holdings Plc and chairman of HSBC Bank (China) Company Limited and of HSBC Taiwan.
Shares in HSBC yesterday dropped 0.06 percent, or HK$0.05, to close at HK$84.05, despite reaching HK$85.6 in the morning trading session, while the benchmark Hang Seng Index fell 0.38 percent or 76.26 points to 20,033.07.
(HK Edition 01/28/2010 page4)