Why HSBC's Hong Kong hegemony is under threat

Here are the signs.

According to CLSA, HSBC is still Hong Kong’s dominant bank, but its position is under threat as the competitive environment intensifies.

The most obvious signs are the loss of market share and core profitability at retail-banking subsidiary Hang Seng Bank.

Here's more from CLSA:

This comes at an awkward time for HSBC, as weak conditions in the West and downsizing its US operations have made it increasingly reliant on Hong Kong’s rich profits. At the group level, HSBC is at fair value for its return profile.

HSBC has long been the undisputed market leader in Hong Kong. It still is, but the liberalisation of banking regulation (eg, interest-rate deregulation and easing of bank licensing) from 1998 has contributed to an increasingly competitive system in Hong Kong.

The most notable competitive shift in the past decade has been the sustained incursion og mainland banks an, in particular, the continued success of BOCHK

Also Read

CIMB Philippines says fund transfer issue ‘resolved’

Bangkok Bank, The Mall Group launch campaign to expand co-branded card customer base

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit