HSBC is reportedly planning to expand its prime brokerage business to provide financing services for hedge funds and family offices seeking to invest in Asia.
HSBC will expand its prime brokerage business with a focus on catering to western clients that are increasingly seeking investment opportunities in the emerging markets – especially Asia – according to a «Bloomberg» report citing unnamed sources.
The London-headquartered bank will hire more prime brokerage staff and invest in technology to enable competition with established rivals.
An arranged financing service will be launched in New York in the coming months.
Going Against the Tide
HSBC’s decision to increase exposure to the prime financing business occurs in the midst of a retreat by some of its global banking competitors – most notably Credit Suisse and Nomura – following the collapse of family office Archegos.
Last year, HSBC disclosed revenues for its securities financing unit for the first time, registering $660 million in the first nine months to the end of September – a 19 percent drop due to «exceptionally strong» performance in the same period in 2020.
