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Shareholder faction wants HSBC split in two

Some of HSBC's shareholders have proposed that the board of directors split the bank into two to eliminate political risks and enhance profitability, according to reports. The shareholders said the management has failed to execute the company's strategy, particularly in meeting revenue targets. The investors have suggested that management seek ways to spin off or divest the Asian business. They said the divestment would give investors the flexibility to determine and value their holdings in HSBC's Asia and non-Asia businesses independently, and would help free HSBC from the burden of its Asian businesses. They added that the move could also help attract and retain talent.

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