HSBC says 'no decision' to move HQ from London to HK

HSBC, Europe's biggest bank, has denied reports it is planning to move its head office from London to Hong Kong.

A spokesman told the BBC it had not made any preparations to rebase after 19 years of being London-based.

The Sunday Telegraph quoted a major, unnamed investor as saying "we were told that a move [to Hong Kong] is now more than likely".

HSBC said shareholders had begun to ask about the cost of its London base and the new bank levy in the UK.

The bank has said the new banking levy is unfair to its business, which has substantial overseas operations.

An HSBC spokesman said: "No decision whatsoever has been made. London is ideally positioned as an international financial centre and we have been clear that it is our preference to remain headquartered here.

"However, we are routinely asked by institutional investors about the costs of being headquartered in the UK and it's clear that the City's competitive position needs protection."

Last Monday, HSBC reported pre-tax profits of $19bn (£11.8bn) for 2010, more than double the $7.1bn figure for 2009.

At the time, the bank's chairman, Douglas Flint, expressed concerns over new regulations that will mean banks have to hold sufficient capital to stop them requiring government bail-outs in any future financial crisis.

HSBC sees Asia as an increasingly important market.