HSBC (the Hong Kong Shanghai Banking Corporation) Holding PLC, finance and banking giant based in London is threatening to move its headquarter out of UK. The possibility of the United Kingdom leaving the European Union has resulted in this situation. The economic troubles for the bank will increase if this ever happens. Britain’s biggest bank went public with its plans to review the prospects of relocating the headquarter outside UK. Meanwhile politicians in United Kingdom are campaigning for the general elections and this move will definitely come as a shock to them.
The ‘in out’ referendum on European Union membership is promised the UK’s Conservative party and HSBC considers leaving EU will result in economic uncertainty for its operations. Stock market gave positive response to the announcement with 4 percent jump in the share value. The bank’s annual shareholder meeting in London was the occasion for this surprising announcement. The bank is already one of the top companies registered on the London Stock market and this share rise further added £4 billion to its value. The bank was based in Hong Kong till 1992, where it was founded during the British occupation of the island.
The board was criticized by the shareholders due to the leaks of sensitive data from its Switzerland branch. The details of tax avoidance strategies caused stir in political and financial sector worldwide. The shareholders also questioned the viability of London being good headquarter for the bank. The moving of HSBC headquarters also makes its 70,000 employees in the UK vulnerable.