HSBC Overhaul 'Makes Sense,' Stock Remains a Sell: Citi's Ghose

The transcript discusses HSBC's restructuring plans focusing on Asia, particularly retail and wealth management. It highlights the challenges of deploying $100 billion in risk-weighted assets and the suspension of capital returns for 2020 and 2021. The market's concerns about the long-term profitability and the economic disruptions in Hong Kong and Greater China are addressed. The potential for future growth through organic investments and acquisitions in Asia, especially in the Pearl River Delta, is explored.

What is the primary focus of HSBC's restructuring strategy?

• Reducing workforce

• Expanding in Europe

• Focusing on Asia and emerging markets

• Investing in technology

Why is there uncertainty about HSBC's $100 billion investment?

• Regulatory challenges

• Competition from other banks

• Insufficient capital

• Lack of clarity on specific investment areas

What is the expected timeline for HSBC's profitability improvement?

• 2024

• 2021

• 2023

• 2022

What has been the trend in HSBC's stock since early 2019?

• Consistent selling

• Consistent buying

• Fluctuating

• No change

What area is crucial for HSBC's future growth in China?

• Greater Bay Area

• Tianjin

• Beijing

• Shanghai