23rd November 2015
One of HSBC’s largest investors has asserted that shareholders in the bank would back the group if it choose to move its headquarters out of the UK.
Speaking to BBC Radio 4’s Today programme, Standard Life Investments head of equities David Cumming said that HSBC was being put at a “competitive disadvantage” by “ever-increasing capital requirements”.
“Logically, we would be supportive of a move if they chose to do that.”
He added that an exit would mean “better growth, earnings and dividend prospects unless the regulator changes tack”.
Presently Standard Life has a 1% stake in Europe’s biggest bank. Earlier in 2015 HSBC said that it was mulling over whether to move its HQ.
At that time, it stated that its motivation for making such a decision was in the wake of “regulatory and structural reforms”
The bank, which has been headquartered in the UK since 1992 said it will make a decision by the end of the year and while it has not yet mentioned where it could potentially go, the consensus anticipates given that Asia accounts for about 80% of its overall profits, Hong Kong would be prioritised.