Hua Er Jie Jian Wen·2025-12-03 05:52Core Viewpoint - HSBC's new CEO Georges Elhedery is committed to a significant restructuring of the bank to ensure its core business areas rank among the top five globally [1][3]. Group 1: Restructuring Plans - Elhedery defended the difficult decision to close key investment banking operations in the UK, Europe, and the Americas, emphasizing the necessity of these actions [1][4]. - The CEO plans to "double down" on mergers and acquisitions consulting and equity capital markets in the Middle East and Asia, aiming for HSBC to become the leading institution in these markets [3][4]. - Since taking office in September, Elhedery has restructured the operational framework, eliminated high-salary banker positions, and shifted the strategic focus towards Asia and the Middle East [3][5]. Group 2: Business Focus - Elhedery stated that HSBC must adopt a "ruthless" attitude towards its business portfolio, acknowledging areas where the bank has not performed well enough to be in the top 20 [4][5]. - The restructuring includes dividing HSBC's operations into "Eastern" and "Western" units, later renamed to "Asia and Middle East" and "Europe and Americas," and closing key investment banking segments [5]. Group 3: Leadership Changes - HSBC's board is under pressure to appoint a permanent chairman to replace Sir Mark Tucker, who stepped down earlier this year [6][7]. - Former UK Chancellor George Osborne and Goldman Sachs executive Kevin Sneader are reported as leading candidates for the chairman position [7]. - Elhedery noted that the primary role of the non-executive chairman is to challenge him, and the interim chairman Brendan Nelson will continue until a suitable replacement is found [7].