HSBC is turning even more to Asia

Europe's largest bank HSBC is looking for salvation in Asia after a profit slump. The British institute wants to expand business with wealthy customers in China, as bank chief Noel Quinn announced. "The world around us changed massively in 2020. We are adapting our strategy to the new circumstances." Last year, the corona crisis left deep marks on the balance sheet of the financial institution, which has its roots in Hong Kong and is already generating the majority of its profits in Asia. "We want to focus on the areas where we are strongest," said Quinn. Asset management in China and neighboring regions is to be expanded. Investment banking jobs are being relocated there from Europe and North America. Around six billion dollars in investments will flow there over the next five years. On the other hand, the money house wants to withdraw from the USA and France. With the new strategy, Quinn is responding to the continuing pressure on earnings from low interest rates in Europe and the USA. In order to combat the economic consequences of the corona pandemic, the central banks had again significantly lowered key interest rates. A quick change in monetary policy is not in sight. In Asia, the corona pandemic is largely over, while European countries are preparing for a third wave and the national economies are suffering. Deutsche Bank also wants to do more business in Asia in the future and hopes for more income.