The bank planned to shift its headquarters as it was concerned that the country’s stringent regulations may increase tax burden, BBC reported.
As part of the review, the bank evaluated the scale of existing HSBC presence, robustness of the regulatory environment, economic importance, future growth and financial impact.
During the later stages of the review, the analysis was narrowed down to the bank’s home markets, the UK and Hong Kong which are considered to be world-class financial centers with quality regulatory regimes capable of hosting a global systemically important bank such as HSBC, the bank said in a statement.
HSBC chairman Douglas Flint said: "As we evaluated jurisdictions against the specified criteria, it became clear that the combination of our strategic focus on Asia and maintaining our hub in one of the world’s leading international financial centres, London, was not only compatible, but offered the best outcome for our customers and shareholders."
HSBC will continue to operate out of its UK headquarters as the country has an internationally respected regulatory framework and legal system.
The UK has potential to become the leading western financial center as it supports the internationalisation of the renminbi, in addition to growing its trade and investment flows with China, and building co-operation in key areas of infrastructure financing, ‘green’ bond financing and mutual access to traded markets.
HSBC decided that it is not necessary to continue the previous practice of reviewing the location of the headquarters every three years, and will only revisit the matter if there is a material change in circumstances.
Image: HSBC world headquarters in Canary Wharf, London. Photo: courtesy of Michael Pead / Wikipedia.
