HSBC has listed 12 countries in Europe and the US as it expands its business operations in Asia. After a special review, the decision to wind up the business from the countries will be taken. The decision is being taken under the pressure of Chinese insurance company Fing An, the company’s top investor. This is what Chief Economic Officer George Elhederi said in a recent interview said News agency Reuters.
78 percent of the company’s overall revenue comes from Asia. As a result, Phing An applied pressure to target Asia. As part of which the plan is to sell the business in France, Greece, Russia and Canada. The market there may have been relatively small, but the decision was important. Businesses in South America and Europe are currently being closely monitored. Europe posted a net loss in 2022. Meanwhile, the share of Latin America in the total income was less than 5 percent.
It was officially revealed at the annual meeting of investors on May 5. Although Phing An’s spokesperson did not comment further on the issue, Elhederi said, “The matter is now clear to us.” What most investors really want is that all attention is now focused on the business and the customers.’
First, implementing the decision to sell assets; secondly, the ongoing price war with existing competing institutions and thirdly, the ongoing political tension between East and West. A $1 trillion asset transfer to the Canadian unit is expected to be delayed until next year. Ownership will be determined in accordance with Royal Bank of Canada policy. The case of France is also under process. A failure of either process could have dire consequences for HSBC.
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