HSBC has sounded out investors about a flotation of its UK arm, in a move that would realise value from its high street banking business and address regulatory pressures.
The bank has in recent weeks asked investors whether they would support the sale of a sizeable stake in the UK business. It has also discussed the issue informally at board level, according to three people familiar with the project.
I don't buy the reasoning. I read this as the first step to HSBC taking most of its operations entirely offshore from a Hong Kong base. The article denies this, but I think that's a smokescreen. Global capital is, I think, trying to take its money and run, leaving regulation to deal with a residual rump.
Which is precisely why there is a need for strong cooperation with a willingness to embrace extra-territoriality to tackle tax haven abuse in both bank regulation and tax.
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Previously the Chairman of HSBC was based in Hong Kong.
However I am not so sure that it is fleeing due to its name. Hong kong and Shanghai Banking Corporation, is its full name and that would lead it to be expected to be based somewhere else?
Every so often HSBC does like to spread rumours that it should live at home. I suspect that this time it may well say good bye. You seem to call it a smokescreen, I would be more worried about jobs. Okay some will leave, but others will be left here possibly unemployed, or underemployed.
Yes, it’s outrageous that the Hong Kong & Shanghai Banking Corporation might want its HQ in Hong Kong.
And Hong Kong is hardly a quiet island with brass plate ‘shell’ offices. The banking sector employs around 80,000 people. They have a thriving successful economy which is attractive to a lot of businesses and people and they do it with low tax rates. I guess it’s that last factor that offends you so much.
Still, the UK is doing its best. Hong Kong has a top corporate tax rate of 16.5% to the UK’s soon to be 20%.
And why shouldn’t Hong Kong set their tax rate at 16.5%? Their per capita GDP ranks with the UKs so they’re obviously as successful as we here in the UK and they are doing it without taxing the bejesus out of everyone as you seem to advocate. And what difference would your ideas of extra-territoriality make to that anyway?
Hong Kong is and always has been a captive tax haven
Shall we get real here?
Any other suggestion is just a game of charades
It’s worth noting that thanks to Chinese lobbying, the OECD does not consider Hong Kong offshore…