HSBC share price: Bank decides to keep UK domicile
HSBC Holdings Plc (LON:HSBA) will remain headquartered in the UK after the bank’s board decided that this offered the best outcome for customers and shareholders. The unanimous decision follows a complex 10-month review that evaluated potential candidates for a new HSBC home against 11 criteria including the scale of the bank’s existing presence, robustness of the regulatory environment, economic importance, future growth and financial impact.
HSBC said that in the latter stages of the assessment the list of options was narrowed to moving to Hong Kong or staying in the UK. The bank has chosen the latter, because of the UK’s “internationally respected regulatory framework and legal system, and immense experience in handling complex international affairs”.
With Increasing tax burden and tougher regulations in Britain, a move to Hong Kong has been viewed as a likely outcome, especially given HSBC’s Asia-centred strategy. But after months of “exhaustive” deliberation the bank’s board concluded that with a UK headquarters it would be able to combine “the best of both worlds”.
HSBC’s chairman, Douglas Flint, commented:”As we evaluated jurisdictions against the specified criteria, it became clear that the combination of our strategic focus on Asia and maintaining our hub in one of the world’s leading international financial centres, London, was not only compatible, but offered the best outcome for our customers and shareholders.”
Chief executive officer Stuart Gulliver added: “Having our headquarters in the UK and our significant business in Asia Pacific delivers the best of both worlds to our stakeholders.”
In today’s trading, HSBC shares were up 1.1 percent at 445.25p, as of 08:20 GMT. The stock has fallen nearly 17 percent since the start of the year and the company’s market capitalisation currently stands at £87.5 billion
As of February 13, 2016, the consensus forecast amongst 27 polled investment analysts covering HSBC had it that investors should hold their position in the company. The same consensus estimate has been maintained since January 20, when the sentiment of investment analysts deteriorated from “outperform”.
As of 09:52 GMT, Monday, 15 February, HSBC Holdings plc share price is 446.63p.