Sherard Cowper-Coles, HSBC's head of public affairs, is expected to depart amid heightened scrutiny of the bank's relationship with China and the West. Cowper-Coles has been vocal in his criticism of the UK's management of relations with Beijing, a stance that has intensified the spotlight on HSBC's Chinese engagements.
The bank's recent acquisition of Citigroup Inc (NYSE:C).'s retail wealth business in China, which added $3.6 billion in assets and deposits, marks a significant increase in HSBC's engagement in the country. Despite China's economic challenges and geopolitical tensions, HSBC continues to rely heavily on this key economy due to its long-established connections.
HSBC has played a significant role in easing international tensions and has supported controversial policies such as Hong Kong's 2020 security law. This pro-China stance risks alienating lawmakers in London and Washington. The bank's prominence in the banking industry, as noted by InvestingPro Tips, could potentially amplify the impact of its decisions on international relations.
Further highlighting its influence on UK-China policy, HSBC has been a major sponsor of the Great Britain-China Centre's Future Leaders Programme and has backed the Belt and Road Summit. Critics including Iain Duncan Smith have reproached HSBC for prioritizing business interests over principles.
HSBC Chairman Mark Tucker has expressed sympathy towards Cowper-Coles' views on improving relations with China. The bank has been making efforts to mend its relationship with Beijing following its cooperation in a US-led investigation of Huawei Technologies Co. This is in line with the InvestingPro Tips observation that the bank has consistently increased its earnings per share and has raised its dividend for three consecutive years, indicating strong earnings and the potential for continued dividend payments.
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