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Japanese equity arm shuttered by HSBC
Source: Agencies |
April 25, 2009, Saturday
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Print Edition
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HSBC Holdings PLC has shuttered its equity business in Tokyo and shifted operations to Hong Kong, as the struggling banking giant reworks global strategy.
With the surprise announcement yesterday to eliminate Tokyo-based stock trading and research, HSBC becomes the latest foreign financial firm to whittle its presence in the world's second-largest economy, now mired in its steepest recession since World War II.
Company spokeswoman Chikako Nagao declined to say how many people were employed in the Japan equities division or whether the decision would result in layoffs.
"We will first do our best to find (them) suitable positions within the company," Nagao said.
The move does not affect HSBC's fixed-income division or its other businesses in Japan, including its premier banking services for high-net-worth individuals and HSBC Global Asset Management Japan, she said.
The London-based bank raised nearly US$18 billion earlier this month under a new share issue aimed at shoring up the company's balance sheet.
HSBC announced the issue in March after reporting a 70 percent drop in 2008 profit. It said then that 6,100 jobs would be cut as it shut down consumer loan businesses in the United States. HSBC also said it would cut its dividend and not pay bonuses to top executives.
Net profit in 2008 tumbled to US$5.7 billion from US$19.1 billion a year earlier as the firm wrote down the value of assets.
With the surprise announcement yesterday to eliminate Tokyo-based stock trading and research, HSBC becomes the latest foreign financial firm to whittle its presence in the world's second-largest economy, now mired in its steepest recession since World War II.
Company spokeswoman Chikako Nagao declined to say how many people were employed in the Japan equities division or whether the decision would result in layoffs.
"We will first do our best to find (them) suitable positions within the company," Nagao said.
The move does not affect HSBC's fixed-income division or its other businesses in Japan, including its premier banking services for high-net-worth individuals and HSBC Global Asset Management Japan, she said.
The London-based bank raised nearly US$18 billion earlier this month under a new share issue aimed at shoring up the company's balance sheet.
HSBC announced the issue in March after reporting a 70 percent drop in 2008 profit. It said then that 6,100 jobs would be cut as it shut down consumer loan businesses in the United States. HSBC also said it would cut its dividend and not pay bonuses to top executives.
Net profit in 2008 tumbled to US$5.7 billion from US$19.1 billion a year earlier as the firm wrote down the value of assets.
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