HSBC has decided to keep its headquarters in Britain, the bank said on Sunday, following a review into a potential move that could have shifted the group's base to Hong Kong.
The unanimous decision by HSBC's board gives a boost to London's status as a global financial centre, which has faced challenges from tougher regulation since the financial crisis as well as rising costs.
"London is one of the world's leading international financial centers and home to a large pool of highly skilled, international talent," Europe's biggest bank said in a statement following a meeting in the British capital. "It remains therefore ideally positioned to be the home base for a global financial institution such as HSBC".
Gyrations in Chinese markets coupled with concerns about China's increasing influence over Hong Kong and its independent status meant it was seen as increasingly likely in recent months that the bank would stick in London.
"No surprise," said Hugh Young, managing director of Aberdeen Asset Management Asia, one of the bank's biggest shareholders.