HSBC

Hongkong and Shanghai Banking Corporation (HSBC) is considering downsizing its staff scale of compliance departments and to move half of the compliance department functions to Guangzhou of South China's Guangdong Province from Hong Kong to save cost, Sing Tao Daily reported on Tuesday citing sources. 

The firm's External Investigative Reporting Department in charge of anti-money laundering will be cut off about 50 to 60 percent of its employees and the layoff is estimated to impact nearly 100 people, said the report.

Report said HSBC held an online video meeting on Monday with the attendance of about 600 employees from compliance departments across the corporation.

Management mentioned on the meeting that the layoff will be conducted as a means of reducing the operation cost and expenditure of maintaining sustainable compliance. However, an exact figure was not provided. 

"One of the functions of HSBC's compliance departments is to hand in regular reports to financial regulators in Hong Kong and Singapore," Liang Haiming, chairman of the China Silk Road iValley Research Institute told Global Times on Tuesday. Liang noted that this work is not connected to sensitive issues or data and can be handled out of Hong Kong, therefore HSBC decided to conduct reorganization to these departments to save expenditure.

According to reports, the layoff list, layoff standards and more detailed information have not been revealed and the management only said they will offer compensation based on the firm's final decision on the matter. What's more, management also noted that the functions of half of compliance departments will be moved to Guangzhou to reduce cost.

Liang believed that HSBC is looking forward to the development of Chinese mainland's financial market. "HSBC's stepping in Guangdong means that the corporation may enhance the investment in the Guangdong-Hong Kong-Macao Greater Bay Area to share more dividends from China's thriving market," said Liang.