Citigroup released a research report saying that according to reports, HSBC Holdings (00005) plans to cut costs by 3 billion US dollars during the restructuring, which is equivalent to about 10% of its cost base, involving large-scale layoffs, including about 40% of 175 senior managers.
The bank believes that the relevant news will be positive for foreign exchange prices, as it will help narrow the efficiency gap between foreign exchange control and domestic peers other than Hong Kong and the United Kingdom, but there are implementation risks. Meanwhile, foreign exchange control is one of the bank's most promising stocks in European and Hong Kong bank stocks.
