Hong Kong to become largest cross-border wealth hub by 2030: HSBC CEO

HSBC Group CEO Georges Elhedery expressed strong conviction in Hong Kong's economy, citing its role as a wealth management hub and "super connector" due to its access to the Chinese mainland and growing outbound investments. Elhedery predicts Hong Kong will become the largest cross-border wealth hub by 2030, with HSBC acquiring 100,000 new clients per month. Hong Kong's sustained performance in the Global Financial Centres Index and open capital market further solidify its status as an international financial center.

HSBC Group CEO Georges Elhedery has expressed strong confidence in Hong Kong's economic prospects, highlighting its potential as a global wealth management hub and a "super connector" due to its access to the Chinese mainland and growing outbound investments. Elhedery predicts that Hong Kong will become the largest cross-border wealth hub by 2030, with HSBC acquiring 100,000 new clients per month. The sustained performance of Hong Kong in the Global Financial Centres Index and its open capital market further solidify its status as an international financial center.

On October 9, HSBC Holdings proposed to privatize Hang Seng Bank at a 30% premium and withdraw its listing status. This move represents a strategic investment to drive growth, reflecting HSBC's confidence in Hong Kong's future. The 30% premium is seen as a substantial and attractive offer, indicating the group's commitment to doubling down on Hong Kong HSBC CEO Georges Elhedery: The privatization of Hang Seng Bank is a strategic decision based on commercial considerations, and it is expected to suspend share buybacks for three quarters.^[1].

The privatization is not related to Hang Seng Bank's non-performing loans or the recent leadership change. HSBC's CEO Noel Quinn emphasized that the bank is a "financially strong" entity, with a CET1 ratio of approximately 21% and a loan-to-deposit ratio of 60%. The transaction aims to maintain HSBC's dividend payout ratio for 2025 but will pause share buybacks for three quarters HSBC CEO Georges Elhedery: The privatization of Hang Seng Bank is a strategic decision based on commercial considerations, and it is expected to suspend share buybacks for three quarters.^[1].

HSBC expects to integrate Hang Seng Bank's balance sheet, which may reduce its CET1 ratio by 160 basis points but offset around 40 basis points, resulting in a net impact of approximately 125 basis points. The group anticipates regaining its target capital levels within three quarters HSBC CEO Georges Elhedery: The privatization of Hang Seng Bank is a strategic decision based on commercial considerations, and it is expected to suspend share buybacks for three quarters.^[1].

Elhedery's prediction aligns with Hong Kong's ongoing efforts to solidify its position as a global financial hub. The city's strategic location and robust financial infrastructure make it an attractive destination for international investors and businesses. By acquiring Hang Seng Bank, HSBC aims to capitalize on this potential and further strengthen its presence in the region.