HSBC Relocates CEO To Hong Kong For Asia Expansion

While HSBC is making this move to China, the senior executive, who will relocate to Hong Kong from the February 1 of 2010, will maintain an office in Londong and regularly visit UK. Whether this is the first move to fully relocated HSBC's international headquarters to China is not clear, but if you are in charge of such a huge international bank, you visit your branches and other international divisions regularly. Therefore, saying that CEO will regularly visit London, is not a strong argument that HSBC is not moving fully to China as some U.S. companies like Halliburton, that oppened a corporate headquarter in Dubai.

HSBC statement reads that "Michael Geoghegan, will be located in the Group's strategically most important region, with a focus on ensuring its growth potential is fully realized." Geoghegan will work from Hong Kong, the hub of business of HSBC in the Asia-Pacific. He will also assume responsibility for development of group strategy according to the board's recommendations.

Yet, the Holding says it has no intention to permanently move to Hong Kong.

"The additional management presence in Hong Kong and focus on our faster-growing markets is absolutely right for HSBC and entirely consistent with the strategy we set out in 2006," said Stephen Green, Group Chairman.

"There is absolutely no question of HSBC pulling away from London. We will operate from two equally strategically important centres for the company. Based in London, where we are domiciled and regulated, I will oversee the stewardship of our business and our globally strategic relationships with governments, regulators and with our owners. Based in Hong Kong, Mike will drive the continued development of our business and oversee the executive management team."

The Group Chairman and two Executive Directors, Douglas Flint and Stuart Gulliver will keep their posts and offices in London. The British Financial Services Authority will still remain bank's primary regulator.

Written by Armen Hareyan
Materials from HSBC Release and Cinco Dias are used in this report.