HSBC Holdings PLC plans to increase its wealth management staff in Asia as CEO John Flint bets on growth in the region.
The bank plans to add more than 1,300 positions, split roughly between retail and private banking, by 2022, according to the heads of the two divisions, which together currently employ just more than 32,000 people in the region.
The bulk of the hires, some of which could be internal, would be in Hong Kong and Singapore.
The wealth strategy is part of Flint’s plan to grow HSBC by expanding in Asian markets, including greater China and Southeast Asia.
The CEO, promoted in February, in June said that HSBC would pour as much as US$17 billion by 2020 into expanding the region’s business and improving technology.
The bank aims to grow revenue from Asia by at least US$1 billion during the same period.
“We have a real opportunity to do more and that’s to further build on Hong Kong and to materially build what we do today in Singapore,” HSBC Asia-Pacific head of retail banking and wealth management Kevin Martin said in an interview.
“Both businesses need to do it in concert,” he said, referring to the retail and private banking units.
The London-based bank’s plans for wealth management in Asia, which is dominated by global banks such as UBS Group AG, Citigroup Inc and Credit Suisse Group AG, come as regional firms including DBS Group Holdings Ltd and BOC Hong Kong (Holdings) Ltd are also expanding amid an unprecedented rise in the region’s assets.
HSBC on Monday said Antonio Simoes, who was head of UK and Europe, would run global private banking from Jan. 1 next year.
Peter Boyles, who currently runs the group, is to retire after 43 years at the company.
Offshore wealth in Asia, excluding Japan, has been growing at about 10 percent per year, according to Boston Consulting Group data, faster than the 5 percent globally.
Offshore wealth from China alone has amounted to about US$1 trillion this year, the consulting firm said.
Hong Kong’s wealth managers expect to double the money they handle over the next five years to about US$2 trillion, the territory’s Private Wealth Management Association said in a report published with KPMG China, citing increasing interest by Chinese looking to diversify their holdings.
“The wealth that the Chinese have already offshore is a massive piece of opportunity for us,” HSBC Asia-Pacific head of global private banking Tan Siew Meng said.
The expected growth in the industry might exacerbate Hong Kong’s shortage of relationship managers, the report said.
Two-thirds of respondents said a “limited talent pool” was the biggest supply-side constraint.
Martin said the 1,300 staff increase is “not a big scary number” given that his retail bank, including subsidiary Hang Seng Bank Ltd (恒生銀行), employs about 31,000 people in the Asia-Pacific region.
Staff within the group might transfer to the wealth business, he said.
Hiring would be both internal and external, and include relationship managers, product specialists and advisers, Tan said.
Her private bank had 1,100 staff in the region at the end of last year.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last