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HSBC announced the winding down of its M&A and equities operations in Europe, Britain, and the Americas, marking a significant retreat from investment banking and a focus on Asia. In a memo, Michael Roberts, CEO of HSBC Bank, stated their shift towards a more competitive financing model. The bank plans to maintain concentrated M&A and Equity Capital Markets (ECM) services in Asia and the Middle East.

Georges Elhedery, the CEO, is leading a substantial cost-cutting initiative at Europe's largest bank. The restructuring aims to streamline expenses, enhance performance accountability, and emphasize the Asian market, HSBC's primary profit center. The bank will retain its debt capital markets and leveraged acquisition finance globally, focusing on sustainable competition with U.S. counterparts.

The scale of workforce reductions, potential savings, and job reassignments remain unclear. Analysts question the feasibility of these changes, considering the bank's historical restructuring efforts and global banking aspirations. Market reactions were moderate following the news, with HSBC shares down by 0.7% at 819 pence post-announcement.

Commentators noted the surprising timing of HSBC's decision, contrasting the current growth projections in capital markets. Nonetheless, the strategic move aligns with a broader shift towards higher growth and profitability in the East. The decision to close M&A and equities businesses was earlier reported by Bloomberg.