HSBC’s management has indicated the bank is unlikely to relocate its headquarters to Hong Kong, despite the threat of new European bonus restrictions, according to the Financial Times.
The bank’s main office is currently in London, but HSBC has a practice of reviewing where it is based every three years. This process has now been “postponed indefinitely”.
This is thought to be partly due to the belief that London is the right place for the business, but also long-term uncertainty around the global rules governing the sector and how they will be adopted in different jurisdictions.
In recent years HSBC has threatened to relocate on several occasions for different reason, most recently to avoid the added regulatory cost of complying with the UK’s incoming Vickers rules on ringfencing retail banking operations.