HSBC’s potential move to Asia generates deal speculation

The weekend’s financial press saw the story break about HSBC threatening to relocate its headquarters to Asia, specifically Hong Kong, citing tougher financial regulations in the UK which have been introduced since the Global Financial Crisis. The Hong Kong Monetary Authority has reportedly welcomed the move “home” for the bank that started life as the “Hong Kong Shanghai Banking Corporation” and was quoted as saying it would take a “positive attitude should HSBC consider relocating its Headquarters back to Hong Kong”.

Off the back of this story, yesterday saw speculation that if the bank were to quit the UK, then it might consider spinning off its UK retail banking division under the old “Midland Bank” brand. A deal value of around £20bn has been put forward by some sources, which would be a nice “withdrawal” for HSBC if it were to quit the UK.