HSBC says unlikely to move its head office to the U.S.

HSBC Holdings PLC probably will not be moving its headquarters to the U.S.

Ahead of an update next month, when the bank may clarify its plans on a potential new home, officials have all but ruled out moving to the U.S. The bank will likely decide this year between staying in London or relocating to either Hong Kong or Paris, people familiar with the matter said.

HSBC’s board is reviewing whether it should quit the U.K. and shift its headquarters to a country where it can make better returns for shareholders in the long term. The decision was due to have been made by the end of last year, but slipped into 2016 because the board needed more time.

The U.S. was touted as a potential home for HSBC due its large economy and strong regulatory regime. The possibility of relocating there has been sidelined in part because of the relatively small size of HSBC’s American business, and because a U.S. tax on stock dividends would hit many foreign HSBC shareholders, the people said.

HSBC has around 213,000 shareholders across 131 countries and territories, many of which aren’t covered by U.S. tax treaties.

Source: MarketWatch