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HSBC (0005)'s management heads are personally courting clients to revive its underperforming investment banking business in Hong Kong, including acquirers and hedge funds, Bloomberg reported, citing people familiar with the matter.
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Georges Elhedery, HSBC's chief executive, along with other senior management, has reportedly been marketing projects to Hong Kong clients over recent months. He has also sent personalized video messages to key clients in the Greater Bay Area and directed teams to contact about 400 important clients to reclaim a leadership role in cross-border deals and grow market share.
The bank's approach follows Elhedery's major reforms to HSBC's investment banking businesses since he took the helm in 2024, aimed at building a more performance-driven, competitive corporate culture.
HSBC restructured its global investment banking business earlier last year, leading to the resignation of several senior bankers. While some of these departures were part of HSBC's intended personnel adjustments, they also caused the bank to lose its dominant position in a landmark cross-border transaction.
HSBC, which derives most of its profits from Asia, is now betting it can capitalize on the geopolitical pressures and regulatory constraints its competitors face in the Chinese market to re-expand its footprint.
People said HSBC has hired more than ten bankers for its China investment banking business over the past year, poaching talent from peers including JPMorgan and Goldman Sachs. HSBC has since increased its involvement in 40 Hong Kong initial public offering projects, a significant increase compared with the five IPO mandates it had in 2025.
However, HSBC faced setbacks recently. Although it was a major bank for Li Ka-shing of CK Hutchison (0001), it was not appointed as an arranging bank for A.S. Watson's IPO, even as some believed HSBC might still participate, details remain unclear.
People revealed that HSBC currently has approximately 70 IPO mandates in Asia, including 40 in Hong Kong. As US banks have been retreating due to ongoing geopolitical tensions and regulatory sensitivities between China and the US, HSBC is actively positioning itself to seize the opportunity.
An HSBC spokesperson said in the report that HSBC leads in Asia across many products, with strong capital markets and advisory services. Its Asian revenues grow as it expands market share by advising large corporations on high-value transactions.
