00:00After what has been nearly two decades at Citi, just first of all, just line up what your vision is
00:04going to be at the helm now.
00:07What are the goals that you've lined up?
00:08Absolutely. So first of all, I couldn't be more excited to be at HSBC.
00:12We're here at the Global Investment Summit with 5,000 investors and clients from around the world in 50 different
00:18markets.
00:18So what a way to kick it off. And it's been a wonderful first three months here at HSBC.
00:23I've traveled to 100 different regions, visiting a whole bunch of different clients and customers around the world and really
00:31having such an energizing and exciting conversations with our clients and spending time with our teams.
00:36It's been really energizing and invigorating. And I'm super excited about what we're going to do on behalf of our
00:42clients.
00:43Yeah. So three months in, pretty much you've kicked the tires and you've kind of settled in. What are the
00:50specific goals this year for you?
00:51So, David, there's so much that we can do on behalf of our clients.
00:55And one of the strengths of our business is our globality.
00:59We have one of the most global platforms and institutional-like offerings for our clients.
01:03So not only can we help our biggest and largest families around the world with their wealth management strategies for
01:09them and their family members,
01:10but we can also help their companies on the investment banking, commercial banking and market side of the business as
01:17well.
01:17So this ability for us to deliver the power of HSBC to our clients is really profound.
01:23And it's incredibly unique, our ability to serve our clients around the world.
01:27Can you tell us more about the sentiment around your clients now, given the Iran situation is a day-to
01:33-day moving situation?
01:36What are they doing? I mean, what are they, in any way, redirecting wealth flows?
01:40I know we talked to George yesterday, and he said, look, it's quite benign what we're seeing right now.
01:45And they're still open for business in the Middle East.
01:47But have you seen any sort of redirection of flows?
01:50So first and foremost, we've been absolutely focused on the safety and the well-being of our clients and our
01:55teams in the Middle East.
01:56One of the things that we continue to do with our clients in the Middle East is to serve as
02:01sound advisors for them,
02:02especially in times of unrest.
02:04And the benefit of having a global platform for our clients is that we're able to diversify for our clients
02:10as well.
02:10So when they do have needs for diversification, when they do want to go to other geographies, we're there for
02:16them.
02:17And we've been continuing to lean in to do that.
02:19Are they coming to Hong Kong? Are they coming to Singapore?
02:19They are. We have seen some flows, although it's been very resilient, very mild.
02:23But again, in leaning into the diversification strategies of clients more broadly, they are absolutely looking at different regions, and
02:30Asia is absolutely one of them.
02:32Yeah. And are we ready to accept those flows?
02:35Yes, of course we are.
02:35What are the conversations you have with your Asia team specifically in as far as that specific conversation?
02:41So, look, we're always trying to help our clients access different geographies and diversify.
02:46And, you know, at the end of the day, our jobs as wealth managers is to ensure that we are
02:51building portfolios that are resilient, that endure the test of time, and that are aligned with our clients' objectives in
02:57the long term.
02:58So as long as we do that, it doesn't matter so much the noise in between.
03:03Of course, we'll make tactical adjustments for clients, but we've got to make sure that we're really aligning to the
03:09purpose and the values of what they want to do with their money.
03:11And are they sitting in the sidelines of their money now? Are they looking at risk? I mean, what sort
03:16of, you know, what's the risk profile of some of the ultra-high net worth now in the face of
03:21all this volatility?
03:22So the ultra-high net worth clients are very sophisticated. They're very institutional-like. They're very globally-minded investors.
03:28So they view these opportunities as opportunities to tactically make some adjustments in the portfolios.
03:35But we're not looking. They're less concerned about some of the immediate-term impacts on the portfolio, more concerned about
03:42the alignment of long-term portfolio management and the ability to achieve their goals and objectives through the long-term
03:48investment philosophies.
03:49I mean, there had been some challenging years in as far as exposure to the Chinese equity complex. I wonder
03:59how that's changed.
04:00Well, it's interesting that you say that, David, because over the last few years, obviously, the U.S. market has
04:05been incredibly strong with high double-digit returns in the last three years up until now.
04:10But that's exactly the point. So now we're seeing the Asian markets really picking up steam, right?
04:15And you almost see, like, a change in direction of the momentum. So we're seeing very, very strong momentum in
04:21this region, continue to see strong momentum in the region.
04:24I mean, Hong Kong delivered 20-plus percent, 25 percent, you know, last year and up high single digits already
04:30this year.
04:30And it is a global wealth hub of the world. So we're very excited about being here in this region.
04:36And we've minted a lot of billionaires, new entrepreneurs as well.
04:40Well, tell us a little bit more about this kind of tech 2.0 that we're seeing in China right
04:44now.
04:44And how are you kind of, what's the pitch to them to get them to maybe kind of invest through
04:50you and the like?
04:51I mean, what's their profile and what's sort of the trends that you're seeing in China right now?
04:54So first of all, many of our clients rely on HSBC because we've been in the region for 160-plus
05:01years.
05:02So the deep roots with the families that we have here and serving multiple generations of families, by the way,
05:07and their companies and helping them navigate around the world has been very powerful.
05:12So a lot of clients in this region are relying on us to help them, right, build their businesses, scale
05:17their businesses, help their family members, help them with their legacy and planning and so on.
05:21So just as an example, yesterday at the conference, I met a multi-generational family member that has family members
05:28living around the world.
05:29And we're helping them in the U.S. and the U.K. and then on the personal and the business
05:34side, on the banking side, we're helping them with commercial banking for their company, you know, as well as helping
05:39them think about advisory for how they want to grow their business as well.
05:43So this comprehensive nature of what we're able to do for our clients, that is the power of HSBC.
05:49Tell us who the family is. I'm kidding.
05:52So I was on stage yesterday with George.
05:54I'm not sure if you were in the audience.
05:56There was a question from the audience that came in.
05:58What is HSBC's plan in mainland China outside of wealth?
06:02And the way the question was phrased was almost that wealth is a given presence of HSBC.
06:08So let me just ask you, what specifically is the plan to grow in mainland China?
06:13Well, the plan to grow in Asia is pretty fulsome for us here at HSBC.
06:18As I said, it is part of our heritage and our deep roots.
06:21In 160 plus years in this region, multiple family members and relationships across the region.
06:27And of course, as the wealth continues to compound and grow in Asia, we're serving as a key partner to
06:33them, not only to preserve and grow their wealth, but also to help them with the company strategies as well.
06:39Some of the headwinds that we're seeing across this market beyond just the geopolitics has been what we're seeing in
06:43private credit, which I know is a big product when it comes to wealth clients.
06:48What sort of outflows have you been seeing from HSBC and what are clients saying to you now?
06:54So certainly there's a lot of market headlines about private credit, but there is still a place for alternative investments
07:01in private credit in clients' portfolios.
07:03Now, the key there is to make sure that we're working with the right managers, that we're making the right
07:08private credit decisions on behalf of our clients.
07:10So the diligence around it, making sure that they're invested in the right companies with clear liquidity exit plans and
07:16so on, that's going to be the differentiator.
07:18But that doesn't mean that we don't, you know, include the asset class.
07:22It's an incredibly important one.
07:23And as you can imagine, our largest families around the world have a significant amount exposed to alternative investments, private
07:31equity, co-invest, direct investments and the like.
07:34Would you say the outflows have peaked or do you think you're still hearing from clients that are looking for
07:39redemption still?
07:39There are definitely some clients that are monitoring closely the situation, as are we, but we're quite confident in the
07:47private credit offerings that we've provided to, you know, to clients and what they have in their portfolios.
07:51Again, it's a differentiator of the diligence that we do and the right manager selection, the right strategies, the right
07:57investments and the right companies.
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