Capturing growth opportunities in Asia is the Strategic action for the next two and a half years. And the Pearl River Delta (PRD) is one area where we are investing. Group Chief Executive told investors in June that we expect the region to generate USD1 billion of pre-tax profit for the Group in the medium term
What is Pearl River Delta (PRD?)
The PRD is an economic cluster in Guangdong – the most southerly Chinese province on the border of Hong Kong – where the Pearl River flows into the South China Sea. The PRD is made up of Guangdong's nine largest cities including the capital Guangzhou and the special economic zone of Shenzhen
What is so special about it?
According to the World Bank, the PRD has overtaken Tokyo to become the world's largest…show more content… “When we launched what we now refer to as Project Guangdong I, people said, “This is impossible, how can we build so many outlets so quickly?”. But we were successful with Guangdong I and I believe we can be successful with Guangdong II. If we don’t try, we’ll never know. And if we don’t try, we will miss an opportunity to make this a better bank.”
Growing at the pace required while upholding HSBC’s culture, controls and Global Standards will require a different mentality, argued Noel Quinn, Head of Commercial Banking for Asia-Pacific. “We’re all bankers and now we’re being asked to be entrepreneurs as well,” he said. “This is the most exciting project in my 28 years at HSBC but it will require us to think a different way.
The HSBC leaders agreed that the PRD would offer HSBC an opportunity to change the way that it works, striving for greater agility, efficiency and speed of decision making. One of the top executive, Head of Commercial Banking for Asia-Pacific said this would be critical to the success of such an ambitious project: “we’re not going to succeed if we approach this like HSBC bankers with a business-as-usual…show more content… According to top executive, Head of Retail Banking and Wealth Management for Asia-Pacific, the investment being made in the PRD means that the region will play a key role in HSBC’s global digital strategy. “We will have a digital competency in China that will be best in class, which will include HSBC’s innovation Centre, right here in Guangdong.”
Guangdong is home to a technologically sophisticated and wealthy retail client base. The PRD’s Gross Domestic Product is already roughly 2.2 times the national average for China2, and is forecast to more than double by 2030 to USD36,000 – in line with Hong Kong’s per capita GDP of USD38,0003 today. At the same time, HSBC’s share of the retail banking market in the PRD remains well below our market share in Hong Kong. “There is no limit to how much we can grow our business here in this big country,” argues Helen