HSBC defiant after call for radical rethink

HSBC yesterday shrugged off news that Calpers, the US pension fund, had demanded that the bank's management announce radical strategic change within six months.

It followed a weekend report that Christy Wood, Calpers's head of global equities, wanted HSBC to unveil detailed plans to refocus the group, address share price under-performance and set challenging financial targets by 1 July 2008.

An HSBC spokesman said: "HSBC has a clearly understood and widely supported strategy to rebalance the company towards emerging markets, and we are focused on executing it.

"The bank's financial strength and strategy has seen its share price outperform almost all UK banks and most international peers in 2007."

Calpers's broadside follows continued demands by HSBC activist shareholder Knight Vinke for substantial strategic change at the bank.

It is believed that HSBC remains privately relaxed about the ratcheting up of pressure because it feels it has addressed some of the issues raised already, particularly the call for a greater focus on emerging markets, where the bank has put greater stress in recent years.

• Sandy Flockhart, the Scot who became chief executive of the Hong Kong & Shanghai Banking Corporation in Asia in June this year, has been named in the New Year Honours list for services to British business and charitable interests in Mexico. He is to be made an overseas CBE.