HSBC Holdings (00005) is rumored to cut employees in the Mainland's online wealth management business

The Zhitong Finance App learned that, according to reports, HSBC Holdings (00005) is evaluating the operating costs and management structure of mainland wealth management business Pinnacle (Pinnacle), which may involve reducing manpower due to a sharp increase in operating costs. According to the report, in view of the sharp increase in operating costs of Ling Feng, the group began studying Ling Feng's employee remuneration structure and investigating whether suppliers inflated fees a few months ago, causing costs to soar sharply and exceed revenue. HSBC Holdings expects to complete the assessment by the end of the year.

According to reports, HSBC Holdings established Ling Feng in 2020 to expand online wealth management, insurance and fund sales business in the mainland. Ma Litao, global CEO of HSBC's wealth management and personal banking business, said in April that since 2021, Ling Feng has employed about 1,700 wealth managers, and is expected to increase to 1,900 by the end of this year, reaching the target of 3,000 by 2025.