GLOBAL banking giant HSBC Holdings has decided to keep its headquarters in Britain, rejecting the option of shifting its center of gravity back to its main profit-generating hub Hong Kong after a thorough 10-month review.

    The decision by HSBC’s board, which the bank said was unanimous, gives a boost to London’s status as a global financial center, under threat since the financial crisis of 2008-09 from tougher regulation and rising costs.

    For Hong Kong, the chance of luring Europe’s biggest bank back to its birthplace and to the heart of its Asian growth strategy has been lost for now.

    “London is one of the world’s leading international financial centers and home to a large pool of highly skilled, international talent,” HSBC said in a statement Sunday after a board meeting in London.

    “It remains therefore ideally positioned to be the home base for a global financial institution such as HSBC.”

    Analysts estimated the cost of moving out of London at US$1.5 billion to US$2.5 billion, a hefty bill to swallow unless HSBC was going to get clear tax and regulatory advantages.

    London, however, could face soon a potentially disruptive challenge if Britain were to vote to leave the European Union in a highly unpredictable referendum.

    Hong Kong, where HSBC was founded about 150 years ago and where it employs more than 20,000, was considered the strongest candidate for a possible move as it accounts for 46 percent of HSBC’s pre-tax profit.

    But gyrations in Chinese markets coupled with concerns about China’s growing influence over Hong Kong meant it was seen as increasingly likely in recent months that the bank would stick to London.(SD-Agencies)