Reasons cited included the UK being an "important and globally connected economy" with an internationally respected regulatory framework and legal system, and immense experience in handling complex international affairs.
The review was narrowed down to the Group's home markets, the UK and Hong Kong. HSBC holds dual-primary listings on both the London and Hong Kong stock exchanges.
In a statement, HSBC said that Asia "remains at the heart of the Group's strategy". In its investor update in June 2015, the Group announced a 'Pivot to Asia' as a core part of its strategy. It added that it will continue to put particular emphasis on investing further in the Pearl River Delta and ASEAN region, reflecting increasing shifts in global trade and capital flows to and from Asia, in respect of which Hong Kong will play a pivotal role.
HSBC cited the importance of the UK growing its trade and investment flows with China, building co-operation in key areas of infrastructure financing, 'green' bond financing and mutual access to traded markets.
The Board has now decided that it is not necessary to continue to review the location of the Group's headquarters every three years, and will only revisit the matter if there is a material change in circumstances.
HSBC Group Chairman, Douglas Flint, said:
"As we evaluated jurisdictions against the specified criteria, it became clear that the combination of our strategic focus on Asia and maintaining our hub in one of the world's leading international financial centres, London, was not only compatible, but offered the best outcome for our customers and shareholders. We are very grateful for the hard work and insight of so many who helped in this complex exercise."
HSBC Group Chief Executive, Stuart Gulliver, added:
"Having our headquarters in the UK and our significant business in Asia Pacific delivers the best of both worlds to our stakeholders.
"The completion of this review closes out one of the 10 strategic actions we set out at our Investor Update last June. My colleagues and I remain totally focused on completing the other nine actions."
Laith Khalaf, Senior Analyst at Hargreaves Lansdown, commented:
"HSBC’s decision is a vote of confidence in London as a financial centre. The bank has responded to a big carrot dangled by the Chancellor in the form of changes to the bank levy, which will in time make the tax less onerous for HSBC. Hong Kong has probably also waned somewhat in its appeal as an alternative home, following the Chinese government’s panicky interventions in the stock market over the last year.
"Moving home is a huge step for a bank; thousands of contracts have to be amended if there is a change in domicile, and the counterparty’s agreement has to be obtained for each and every one. Setting up camp outside the UK was therefore never going to be a decision taken lightly.
"The Treasury will be doubly pleased that HSBC has not only decided to stay, but has also ditched the regular review of its headquarters conducted every three years.
"HSBC will still retain a focus on growing its business in Asia, but the bank will do so from what it considers to be a more solid base in the UK."
