Published By : 22 Sep 2015 | Published By : QYRESEARCH
The Hong Kong and Shanghai Banking Corporation (HSBC) has plans to recruit an additional workforce of 4,000 employees in China. The addition is aimed at boosting HSBC operations in the nation. However, the bank is cutting down its workforce elsewhere across the world.
Mr. Peter Wong, the chief of HSBC’s Asia Pacific wing, has stated that these employees would be posted in the Pearl River Delta. The unit in the Pearl Rivera Delta is expected to generate a revenue of US$1bn (£643 mn) per annum by 2020.
As HSBC is chopping off workforce elsewhere, resulting in cost cut, the move is targeted to balance it by increasing employees in its Chinese operation. The company is cutting 25,000 jobs across the world and is shutting its operations in Brazil and Turkey, chopping off another 25,000 workers.
In the previous week, the chairman of HSBC, Mr. Douglas Flint, attended a lecture in London on the future of banking industry in China, in which he has welcomed the opportunities presented by China for future growth.
As of now, HSBC is reviewing its operations in the U.K. and planning to move its headquarters to China. Considering the size of its revenue from its operations in Hong Kong, the country is thought to be the most appropriate alternative to the U.K.
Mr. Flint stated in the lecture that the regulatory system of the U.K. is more suitable than China to host a global bank. London has the largest concentration of international banks and is one of the two biggest financial centers across the globe, whereas the regulatory expertise in Hong Kong reflects that requirement.