Ever since HSBC Holdings plc moved its headquarters from Hong Kong to London
in 1992, the full-service bank has focused its business plan on the West. HSBC
expanded in the U.S. and Europe while just maintaining its businesses in Asia.
Now, there's a
movement
at HSBC led by investor activist fund manager Knight Vinke, who holds less
than 1% of the company's shares, to push for more resources and focus to its
roots in Asia and emerging markets. The executives at HSBC are listening. One
move that exemplifies the new strategy is HSBC's acquisition of a 10% stake in
Vietnam Insurance Corp., also known as Bao Viet, for around $255 million on
Thursday. The deal gives HSBC exposure to one of Asia's fastest-growing
economies. As part of the the deal, HSBC will offer technical assistance and
training to help enhance Bao Viet's insurance capabilities. Along the same
lines, HSBC also
announced
on Sept. 3 a $6.2 billion purchase of a 51.02% stake in Korea Exchange
Bank, which is South Korea's sixth-largest bank. If the deal proceeds, HSBC
would invest a further $774 million if Export-Import Bank of Korea exercises
an option to sell the London-based bank a further 6.3% stake. As for HSBC's
future, look for the bank to make more deals in Asia, where it started its
business nearly 140 years ago. — Gerald Magpily
See
MarketWatch article
See
TheDeal.com Sept. 7 article
See
m&a,
HSBC,
Bao
Viet
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