Hsbc Cutting Staff Numbers at China Pinnacle Unit by Nearly Half
HSBC is reducing staff numbers at its China digital wealth business Pinnacle by nearly half, or about 900 people, two sources said, a sharp reversal of the bank's ambition for the unit as part of its expansion plans in that country. The staff reduction involves layoffs, natural attrition and transfers to other units within the banking group in China. HSBC is restructuring globally to reduce long-term costs and boost profits at the bank.
- The sudden turnaround highlights the challenges foreign financial institutions face in navigating the complex Chinese regulatory environment, where market volatility and changing government policies can quickly upend business plans.
- Will this reversal mark a broader trend of retreat by international banks from China's digital wealth market, potentially paving the way for local players to take the lead?