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When Peter Wong announced his retirement this week after a decade as chief executive officer of Asia for HSBC, he told staff that turning the crisis into an opportunity was “embedded” in the bank’s DNA.
HSBC has gone through one crisis series in Europe, the United States and South America in the last ten years, while Wong has quietly paved the way for Europe’s largest lender to Hong Kong’s richest circles and Beijing’s power corridors.
Around the time he became CEO of Asia, $ 8 was generated for every $ 10 of bank profits in the region, but half of his loan book and more than two-thirds of his capital was deployed in Europe and the United States.
Now, growth in China and Hong Kong has become the core of their global strategy and more than $ 100 billion in capital has been reallocated to the region. HSBC’s U.S. business and part of its European operations have been liquidated or sold.
Wong’s ties to Hong Kong’s business elite and the Communist Party of China have been crucial. Allies say the veteran Hong Kong banker has become “indispensable” for HSBC: he will remain in a new role as chairman of the bank in Hong Kong, a position traditionally held by the global CEO.
Still, the 69-year-old was embroiled in a crisis of his own last year when he committed more than a century of careful political neutrality to HSBC signing a petition in favor of the harsh Beijing national security law in Hong Kong. This won applause in Beijing, but catapulted Wong’s name to the radars of irritated politicians in Westminster and Washington.
“It caused serious difficulties for Noel Quinn and Mark Tucker,” a former HSBC board member said, referring to the bank’s chief executive and chairman, respectively. “Emphasis has been placed on Peter’s political connections since he signed the NSL petition, but that makes his 40-year career as an extremely good banker hurt.”
HSBC’s fortunes have intertwined with China. Wong’s relationship with the Communist Party (which is part of its basic political advisory body) has been of great benefit to the bank. It eased tensions with Beijing after HSBC handed over documents to U.S. prosecutors investigating Chinese technology group Huawei for alleged sanctions violations.
“The Chinese government considers him a friend and a trusted person,” said Sir David Li, chief executive of the Bank of East Asia and Hong Kong’s top banker. Jeffrey Lam, a member of the Hong Kong Legislative Council, said: “HSBC is between two stoves: the mainland and the US. Peter has handled it tremendously: dealing with this conflict requires skill. “
Wong, who is also a trusted friend and banker of Hong Kong tycoons such as Sir Li Ka-shing, Henry Cheng and Thomas Kwok, was sneaked into Standard Chartered in 2005 when HSBC realized it had almost no top Hong Kong executives. Kong or China. He was already established in local and mainland Chinese political and business circles as president of the influential Association of Territorial Banks.
Powerful friends deeply involved in Hong Kong politics say he is “diplomatic” and “no nonsense.”
“He speaks very little, but when he does he means what he says,” Li of BEA said. Peter Ma, chairman of Ping An, the Chinese insurer that is HSBC’s largest shareholder, described Wong as the “senior statesman” of international banking in Asia.
As president of the original Hong Kong bank, Wong will maintain his status among those in Hong Kong taipans – the most revered businessmen in the city. Although he will be replaced as head of Asia by two more younger colleagues, will continue to live at Taipan House, HSBC’s $ 73 million residence for its top local executive at the city’s exclusive Peak.
More importantly, it will play a crucial role in shaping the future of the territory as an international financial center. Hong Kong has been forced to defend its reputation as a global financial center since the 2019 eruption of violent pro-democracy protests and the introduction last year of the national security law.
Wong spends hours discussing issues that are “of critical interest to our future as an international financial center,” said Joseph Yam, the first central banker in Hong Kong who is now on the legislative committee.
“It simply came to our notice then [Hong Kong] of being more and more similar to China, ”he added. “This is nonsense: Peter can see it. It doesn’t have the kind of problematic culture we see on Wall Street, where financial institutions have become autonomous instead of serving the economy. “
There is no retirement age at HSBC, so the timing of Wong’s departure has raised questions. A privileged person related her to the decision to move four global business leaders from London to Hong Kong later this year.
“Historically, Peter has had a lot of independence, now there will be a lot of people on the 34th floor of 1 Queen’s Road Central [HSBC’s historic local headquarters] colliding with him, trying to join Hong Kong’s very strong P&L, ”the person said.
“The state and tonnage count for Hong Kong,” a former HSBC executive said. “Therefore, receiving the title of chairman of the original Hong Kong bank is very sweet.”
Announcing Wong’s retirement, Quinn said his time working with Wong “helped shape my belief that HSBC has a bright future as a global bank that can bridge east and west.” .
As a mediator between HSBC, mainland China, Hong Kong and the rest of the world, including sometimes volatile emerging markets, Wong is accustomed to navigating conflicts. As mainland China grows in importance to HSBC, there are likely to be more geopolitical fires to put out.
“We have been invited to other people’s countries for the rest of the bank’s life,” a former HSBC chief said. “It’s no wonder crises happen often.”
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