HSBC: Failed in America, try Hong Kong (again)

After its painful foray into the American subprime market, HSBC is now re-focusing on Hong Kong in emerging markets.

HSBC will relocate the principal office of the Group Chief Executive to Hong Kong to focus on emerging markets and utilise its international connectivity.

Chief Executive, Michael Geoghegan, will be located in the Group's now strategically most important region, with a focus on maximizing its growth potential. The responsibility for developing the Group’s strategy will fall on him along with the Group Chairman.

Says Stephen Green, Group Chairman: "The additional management presence in Hong Kong and focus on our faster-growing markets is absolutely right for HSBC and entirely consistent with the strategy we set out in 2006."

"Operating from Hong Kong, I will be on the ground in our largest and most important region," said Michael Geoghegan, Group Chief Executive. "What sets HSBC apart is our leadership across the world's faster-growing markets and our ability to connect them to customers in developed markets."

HSBC Holdings plc, the Group holding company, will remain domiciled in the UK with no plans to move so for tax reasons. Its Group Chairman and two Executive Directors, Douglas Flint and Stuart Gulliver, will also continue to be based in London. The UK Financial Services Authority remains the lead regulator of the Group. The Group Chief Executive, who will move to Hong Kong from 1 February 2010, will also maintain an office and a regular presence in London.