For a couple of month now HSBC has dominated the headlines. With the Swiss Leaks scandal, pursuits for tax evasion bleaching and all the related facts, the Chinese bank has been on everyone’s lips

 

Once again, HSBC has sparked debate. The company which had announced it might quit Britain and resettle its headquarters in Hong Kong, changed its mind.

  1. Why did HSBC want to leave London?

Mainly because of the taxes and charges they have to pay. By leaving London’s financial centre, HSBC is supposed to save billions of dollars. Another reason is the speculated Brexit: if the country leaves Europe, the bank indicated some concerns over London’s continuing financial attractiveness.

  1. Why did they stay?

After some lengthy reflection, HSBC gave up the idea of leaving London. Recently, George Osborne has changed the banks’ levy which means that HSBC should now save money by staying. However, one of the main issues concerns China itself. The Chinese regulatory system and actual economic situation placed a  brake on relocation. However, the current decision to stay might be reviewed if ‘material changes in circumstances’ occur.

  1. Good news for London.

Despite the possibility of a Brexit the company has decided to stay in London, which is in fact really good news. It means that London’s financial status has surpassed the risks of a Brexit in the company’s rationale. This decision also arguably confirms the importance of London as one of the world’s leading financial centres.

 

Sources:

http://qz.com/616791/hong-kong-has-probably-lost-hsbcs-headquarters-for-good-and-beijing-is-to-blame/

http://www.bbc.co.uk/news/business-35574967