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HSBC shifts focus to Asia, plans to invest $6 billion in the region

HSBC shifts focus to Asia, plans to invest $6 billion in the region
HSBC shifts focus to Asia, plans to invest $6 billion in the region

In a bid to drive double-digit growth, British multinational investment bank, HSBC, has reportedly shifted its focus towards countries in Asia. Intending to invest $6 billion in the region, the bank is targeting commercial banking and wealth management areas, singling out Asian markets comprising Hong Kong, Singapore, and China.

As per reliable sources, the update in strategy comes after HSBC reported a reduction of 34 per cent in profits for 2020, partially due to the impact from the COVID-19 pandemic.

As per Noel Quinn, Chief Executive of HSBC, the bank exhibited a solid financial performance in the context of the coronavirus pandemic, especially in Asia, which lays robust foundations for the company’s future growth.

Back in September 2020, HSBC was under fire for supporting a controversial national security law that was imposed by China on Hong Kong. Earlier in February 2021, the bank had also faced severe criticism by U.S. politicians and British MPs for closing the accounts of pro-democracy activists.

During the announcement of results, HSBC had stated that it would recommence paying a dividend of $0.15 per share in cash, which is the first payout declared since October 2019. The pre-tax profit of the largest bank in Europe fell to $8.8 billion as recorded on 31st December 2020, down from $13.35 billion a year ago.

While there has been a decline of slightly more than a third in annual profits, sources add that they are marginally better than analysts’ expectations.

According to the Chairman of HSBC, Mark Tucker, there are real opportunities for the growth of the bank’s wealth business, and its expansion across South Asia.

Bruce Pang, the Head of Macro and Strategy research, China Renaissance Securities, stated that while the economic backdrop is still uncertain, it is considered that Asia, primarily China, will act as the key engine and crucial stabilizer for the global economy.

Source credit: https://www.bbc.co.uk/news/business-56150430

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