HSBC Cuts Nearly Half of Staff at China Digital Wealth Business Pinnacle Amid Restructuring

HSBC is reducing its staff at Pinnacle, its China digital wealth business, by nearly half, impacting approximately 900 employees. This move marks a significant shift from the bank's initial expansion plans in China. Pinnacle, launched in 2020, operates through a digital platform offering insurance and fund products. The staff reduction includes layoffs, natural attrition, and transfers within HSBC's China operations. This restructuring follows a review of staff compensation and supplier expenses, which contributed to increased costs. More than 500 insurance agents have already left Pinnacle in recent months. While HSBC affirms its commitment to mainland China, this decision underscores the challenges foreign financial institutions face in the Chinese market. The bank will continue to invest in premier and global private banking, insurance and asset management in the mainland China market.