HSBC plans to broaden its investment banking operations to cater to the increasing needs of businesses from Asia and the Middle East. initial public offerings The co-CEOs of the bank's primary profit generator mentioned (IPOs).
This strategy syncs with the bank’s overhaul aimed at concentrating on lucrative regions such as Hong Kong and India, along with withdrawing from less profitable markets including Europe and the United States.
Hong Kong leads the global IPO rankings, with 27 firms securing US$9.96 billion through initial public offerings so far this year up until last week, as reported by the London Stock Exchange Group. Meanwhile, India’s exchanges—the National Stock Exchange and the Bombay Stock Exchange—secured the fourth and fifth spots respectively during the same timeframe, with 113 businesses raising a total of US$7.72 billion.
Are you looking for insights into the most significant issues and global trends? Find your answers here. SCMP Knowledge Our latest platform features handpicked content including explainers, FAQs, analyses, and infographics, all provided by our prestigious team.
In our restructuring efforts, we've removed the mergers and acquisitions along with the equity capital market operations from both the UK and US markets," stated David Liao, who serves as one of HSBC’s co-CEOs for Asia and the Middle East, during an interview on Thursday. "Our strategy now involves concentrating more deeply on growth prospects within Asia and between Asian countries.
Hong Kong, one of the two cities where HSBC Founded in 1865, it served not only as a listing market but also as a focal point for international investors, according to Liao. This led the bank to increase its capabilities to cater to the expanding number of clients. wealth management clients outside of the city's 7.5 million inhabitants.
"Some Southeast Asian and Chinese enterprises are considering Hong Kong as an option for listings," noted Surendra Rosha, who also serves as one of the co-CEOs for Asia and the Middle East. He further mentioned that the bank aims to introduce global investors to firms listed in India.
On Saturday, Liao and Rosha celebrated their fourth anniversary as joint CEOs of the area, a unconventional appointment from 2021 when Peter Wong Tung-shun transitioned to become the non-executive chairman for Asia-Pacific.
In January, their responsibilities grew larger due to the inclusion of HSBC's operations. Middle East , increasing the total headcount of their combined team to over 142,000 employees spanning 27 markets located across 10 different time zones.
As referred to by their peers, the twins co-manage the most profitable division within one of the globe’s leading financial institutions, generating US$6.41 billion in pretax earnings during the initial quarter of 2025, accounting for 68 percent of the total. group total They hold two spots within the 12-member HSBC Group Operating Committee.
Their partnership is built on "trust, driven by common goals" to grow the Asia business, Liao said. The duo were "interconnected in real time", while their mandates were unconstrained by geography, business types or functions, he said.
As we efficiently allocate our time, we aim towards achieving this objective," Liao stated. "Once we push a decision ahead, the subsequent step would be refining that initial choice to improve it further.
Rosha stated that they ensure consistency by being on the same wavelength, adding that they support one another. If David makes a decision, he can count on her full backing, and vice versa.
Liao stated that there’s no necessity to await approval from both executives, as “the bank doesn’t operate like that, nor does the world.” This sentiment aligns with what Rosha had mentioned earlier.
Risk and compliance, one of the most vital regulatory issues facing global banks and one that HSBC has been penalised for In the past, it has been neglected and now needs the focus of both executives, Rosha pointed out.
Rosha, having pursued studies in commerce from Mumbai University, became part of HSBC’s team in India back in 1991. In contrast, Liao began his journey with HSBC eight years later in 1997. Over the span of his career, Liao dedicated approximately fifteen years serving on the Chinese mainland, culminating in a tenure of five years as the Chief Executive Officer of HSBC China.
HSBC is engaged in the Middle East, a region where approximately US$3 trillion in investments is fueling Saudi Arabia’s Vision 2030 initiative aimed at diversifying the country’s oil-dependent economy.
Hang Seng Investment Management, which is part of HSBC's group Hang Seng Bank A subsidiary listed the $500 million SAB Invest Hang Seng Hong Kong ETF on the Saudi stock exchange. in October HSBC also served as the custodian bank for the Saudi government. sukuk ETF listed in Hong Kong on May 29 .
The biggest trade-finance bank globally also spots potential for Hong Kong and Asia amidst US-China trade disagreements. This includes the ten economies of ASEAN. Asean They represent a potential growth market.
Rosha stated that global tariffs are compelling certain economies to consider ways of collaborating to assist businesses and corporations capitalize on a substantial market comprising over 600 million individuals within ASEAN.
During the initial three months, HSBC acquired an additional 300,000 clients, bringing their total customer count in Hong Kong to 6 million. mainland visitors poured into the place to purchase items for accumulating wealth, insurance and other investments.
As stated by Liao, we must remain competitive and pertinent relative to our customers' home banks, be they located in cities like Shanghai, Guangzhou, Beijing, or within Southeast Asia.
Do they ever disagree?
“Consistently,” Rosha stated, however, any disputes are “discussed and resolved.”
We've known each other for quite some time," Rosha stated. "He understands my shortcomings, and I recognize his talents, which allows us to find solutions together. Our guiding star is ensuring the protection of both the brand and the franchise as well as taking care of our customers and employees.
"We all strive for this shared principle," Liao noted.
More Articles from SCMP
China's next-generation fighter jets: new images suggest advancements in cruise capabilities and drone manipulation abilities
What thoughts crossed the minds of two Chinese scientists who brought a pathogen into the U.S.?
Britney Wong strikes twice more at Sha Tin as Cheval Valiant keeps everyone entertained.
Students from Hong Kong planning to apply to U.S. universities are recommended to review their social media profiles.
The article initially appeared on the South ChinaMorning Post (www.scmp.com), which is the premier source for news coverage of China andAsia.
Copyright © 2025. South China Morning Post Publishers Ltd. All rights reserved.
Post a Comment