Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Please see other threads. First hint of easing of lockdown, Quinn ends the public nicety of redundancies on hold by announcing will probably be more added to total already shared, Additional cost cutting suggests only one thing, income falling and probably like a stone, with HK cash cow feeling heat from every angle. Falling behind others with several good reasons.
Anyone have any insight how broad the Asia business is please ? If they are over reliant upon the overwhelming agency business written for mainland Chinese, then a lot more bad news to follow and no immediate signs of recovery with border still effectively closed. Political situation very much in the news in HK, but how well is Prudential progressing it’s business elsewhere in Asia, despite many years of a foothold and advantage over rivals, especially on mainland China ? Is it a healthy story or one HK has carried and now under threat with ongoing issues that may spiral yet ?
People in glass houses ?? , I didn’t realise there was a probationary period around posting. I’ve been a reader for some time but resisted sharing what my username implies. Not sure if timing of my posts confirms that I am resident where HSBC makes 80%+ of its profits ? Hence the honest opinions shared, may I add, without financial motive. If coming to HK, come look at the security added to their HQ, they are very much out of favour locally and would be even more so if wider truth known. At least locals have had some genuine service in past 12 months as ignored in favour of cash carrying mainlanders until then, ex pats remain 3rd class citizens though !! No agenda, no profiteering, just insight without calling the bank HSBCCP as locals have renamed.
Melodramatic ? Tear gas on streets and Beijing publicly stated will not tolerate further dissidence ? Global ? Selling French business, one branch in NZ, North America spoken of being sold but won’t be despite lack of profitability. UK business going nowhere and investment being redirected to Asia, at very time backdrop is worst in years. Take a look at the results, not much left globally. Trump, it’s a coin toss in a divided nation and as far for isolation of China, well I know which population is more likely to stand together as the past few weeks have clearly illustrated.
Trump’s response is more critical to HSBC than many. The reliance upon HK for the group is disproportionate and could spell imminent disaster. Their effectiveness on mainland China can be seriously questioned, having needed to appease Beijing over Huawei sharing with US investigators. Rumours surrounded how achieved that at time of John Flint departure, alongside China chief and Asia Pacific risk head, McKeown within a week or so of each other. Years behind competitors in region, their management seeking progress are from the very limited local talent pool and are desperately under performing versus potential. Compared to rest of group the Asia business shines but its fools gold, that’s why it’s cheap and will get a lot cheaper
Never catch a falling knife !! This is a knife that has fallen foul of authorities in US with resultant DPA continued and Huawei explained to `Beijing as having no choice but to cooperate. One master controls the critical USD trading licence, the other the keys to their remaining are of profit, Asia. London head office distances self from true realities, clever accountancy can’t hide the realities in HK and the uncertainty of future. The world’s global bank never became reality and international presence is disappearing fast and only serves the Chinese overseas in reality, as Western expats are deemed a nuisance factor. If you see value in SP when future of major profit centre ie HK, awaits Trump tonight, then maybe wait until next week as the stock may be significantly cheaper
Do you believe there is value in a bank that is increasingly and virtually totally reliant upon the one market of Asia ? With such a concentration of that continent’s profit coming from their HK business, are you aware of the range of potential disaster scenarios for them ? Having upset US regulators they cooperated around Huawei, then feared Beijing backlash of suggestion of being added to The “bad list”. Trying to serve 2 masters in a world that looks increasingly like it will split economically into 2 spheres, which do they choose ? What is future for HK, tonight Trump will stir the pot with whatever proclaimed, but how about last year in this crucial market ? The local people have turned their hatred to the bank that bears their name, the virus followed months of absent mainland visitors due to protests, what cost this to HSBC ? The headlines speak of damage to loan book, the real cost is the lost value of investments written for mainland money that seeks an ‘overseas’ home, this is equally as damaging but less reported due to sensitivity. To understand the bank, you need understand it’s environment and it’s reputation, balance sheet analysis will worsen and hide the truth until too late
Good to see further SP falls today and wait until the Trump has his say later !! The brood of liars are about to put all their chips on Asia and just as world economy splits in 2 ?? . A London head office for an organisation that relies so heavily on a market on other side of world, one that they may become isolated from. Huawei the measure of them, apologised to Beijing as had no choice to cooperate with US, why ? Because their questionable dealings saw their DPA close to removal of USD licence and why they will retain some form of US presence only, but don’t expect them ever to make a go of their US business. The wheel is spinning and they are all in on China red, it’s casino time at the bank that deserves to be a loser