Another move to reduce costs sustainably? HSBC HOLDINGS will seek to sell its South Africa business to focus on Asia

According to sources familiar with the matter, HSBC Holdings (HSBC.US) is considering selling its South African business as it focuses on the Asian market. The commercial and securities departments of the bank's South African branch have attracted interest from bidders in the region, including China and the United Arab Emirates. The potential details of the transaction have not been finalized, and it cannot be guaranteed that any deal will proceed. HSBC declined to comment. Since 1995, HSBC has been operating in Africa's largest and most developed economy. According to its website, HSBC's main businesses in Africa are commercial banking, global banking, and global markets. The company recently sold its retail and commercial banking operations in Mauritius to Absa Group, which means that selling the South African business will essentially see HSBC exit the sub-Saharan Africa region. HSBC has been strengthening its foothold in Asia, a strategic focus that has deepened over the past few years. The bank has sold off major operations in the West, including businesses in France and Canada, and redeployed capital to Southeast Asia and China. In addition, CEO Jane Fraser stated that under the leadership of newly appointed CEO Georges Elhedery, HSBC, which operates in over 50 markets, has been seeking further ways to reduce costs and complexity, similar to Citigroup's plan. Recently, HSBC announced a reform to streamline its global banking business, consolidating several industry business units into five larger groups to make it more comparable to other major banks. This is seen as the latest sign that the bank is preparing for potential interest rate cuts. The continuous rate cuts by central banks around the world will end the previous period of high interest rates. In recent years, high interest rates have boosted the profits of large global banks like HSBC, but now HSBC has to tighten its belt in advance. Last month, the bank was also working on cutting expenses, taking measures to slow down recruitment, control travel, and entertainment costs. According to sources, some departments have been informed to suspend recruitment entirely, although this does not mean it will affect client-facing positions. It is reported that investment bankers at the bank are encouraged to schedule at least three client meetings per day to make the most of business trips. Additionally, as the investment banking business is facing a downturn in industry trading and capital market activities, HSBC has been taking more extreme measures to control costs. In April of this year, the bank's investment banking department in Asia laid off approximately 12 bankers