HSBC rejects demerger of Asian business, cites huge costs and risks

HSBC rejects demerger of Asian business, cites huge costs and risks

A logo of HSBC is displayed outside a branch at the financial Central district in Hong Kong, China June 2, 2015. REUTERS/Bobby Yip

HSBC said on Monday a demerger or spinoff of its Asian business risks huge one-off execution costs, higher taxes and ongoing running costs for the bank, in its most detailed rebuttal yet to calls from its largest shareholder to break up the bank.

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