HSBC keeps HQ in London

Europe’s biggest bank HSBC announced on Monday that it has decided to keep its headquarters in London.

According to Press TV, the bank through a unanimous vote by its board has also rejected the option of shifting its center of gravity back to main profit-generating hub Hong Kong after a 10-month review.

This has now given a boost to London's status as a global financial center.

Nevertheless, HSBC CEO Stuart Gulliver has warned that the bank could not stick with the status quo were Britain to vote in favor of leaving the European Union in a promised referendum.

Gulliver said around 1,000 employees will be moved from London to Paris if Britain votes to leave the EU.

The decision to stay in London comes after a tumultuous period for European banks, whose shares have tumbled on fears of a global economic slowdown and the impact on earnings from a prolonged period of low or negative interest rates.

HSBC shares are down more than 30 percent from last April when the group began its headquarters review, hit by China's flagging economic growth and market turmoil.

ME