HSBC explores bolstering Singapore to balance China reliance

Detailed summary

HSBC explores making Singapore operations more independent as it seeks to balance reliance on China and Hong Kong. Read more at straitstimes.com.

HSBC’s review highlights how some of the world’s largest financial groups are moving to insulate their Asian assets from mounting geopolitical risks.

HSBC Holdings has been exploring ways to ease its reliance on China including Hong Kong and give more independence to its Singapore operations, as the bank seeks to diversify risk across its Asia business, according to people familiar with the matter.

The London-based lender, which generated about 40% of its pretax profit in the first half from Hong Kong, has internally discussed several options to give its Singapore arm greater autonomy, the people said, asking not to be identified discussing a private matter. The initiative is carried out under the name “Project Sirena”.

HSBC’s review highlights how some of the world’s largest financial groups are moving to insulate their Asian assets from mounting geopolitical risks. Singapore, bolstered by relative political stability and its standing as a premier wealth and banking hub, has emerged as a top beneficiary as firms look beyond Greater China for operational flexibility.

It comes even as Chief Executive Officer Georges Elhedery has repeatedly voiced confidence on Hong Kong’s prospects, predicting the city would overtake Switzerland to become the world’s largest cross border wealth hub by the end of the decade even before it happened late in 2025.

In a first step, HSBC plans to combine its major banking services in Singapore under one entity over the next few years. A possible next move would be to bring in the other regional operations under the Singapore subsidiary, with the ultimate goal of establishing a second regional base alongside Hong Kong, according to the people.

In a statement, Surendra Rosha, co-CEO of Asia and the Middle East, confirmed the bank will combine its separate units in Singapore as part of a simplification drive, though said it had no further plans after that.

“All of our Asia-Pacific banking entities remain under the ownership and management of the…

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