HSBC says 'no decision' to move HQ from London to HK

HSBC is "routinely asked by institutional investors about the costs of being headquartered in the UK"

HSBC, Europe's biggest bank, has denied reports it is planning to move its head office from London to Hong Kong.

A spokesman told the BBC it had not made any preparations to rebase after 19 years of being London-based.
The Sunday Telegraph quoted a major, unnamed investor as saying "we were told that a move [to Hong Kong] is now more than likely".
The report said shareholders had begun to ask about the cost of its London base and the new bank levy in the UK.
The bank has said the levy is unfair to its business, which has substantial overseas operations.
The report comes one day after the Bank of England Governor, Mervyn King, gave an interview in which he was highly critical of the banks in general, saying they put "profit before people".
As head of the Bank, he will take charge of bank regulation once the forthcoming new banking watchdog, the Prudential Regulatory Authority (PRA), is set up.
The PRA will be part of the Bank of England.
30 percent premium The Sunday Telegraph quoted one top institutional investor in HSBC as saying: "HSBC has a review of its domicile every three years, normally it's a formality (but) this time we were told that a move is now more than likely."
It quoted another shareholder as saying: "Instinctively we were very surprised by the change of tone. But you can't argue with the numbers. Moving to Hong Kong could deliver a 30% premium [to the share price] overnight."
An HSBC spokesman said: "No decision whatsoever has been made. London is ideally positioned as an international financial centre and we have been clear that it is our preference to remain headquartered here.
"However, we are routinely asked by institutional investors about the costs of being headquartered in the UK and it's clear that the City's competitive position needs protection."
Last Monday, HSBC reported pre-tax profits of $19bn (£11.8bn) for 2010, more than double the $7.1bn figure for 2009.
At the time, the bank's chairman, Douglas Flint, expressed concerns over new regulations that will mean banks have to hold sufficient capital to stop them requiring government bail-outs in any future financial crisis.
The BBC's business editor, Robert Peston, said HSBC was "lobbying the government - through the media - over the structure of the banking levy and possible future bank reforms".
HSBC makes a small percentage of its profits in the UK and sees Asia as an increasingly important market.
Its chief exeutive, Stuart Gulliver, has his principal office in Hong Kong.
From. BBC

Posted in: Business