For Hong Kong regulator, HSBC presents major challenges

A move by British banking giant HSBC to relocate its headquarters back to Hong Kong would present major challenges to the city's banking watchdog, regulatory experts said. The Hong Kong Monetary Authority (HKMA) is regarded as one of Asia's leading regulators and has experience with subsidiaries and branches of large banks. HSBC's $2.6 trillion balance sheet is nearly eight times the size of Hong Kong's economic output. So the HKMA would have to scale up its regulatory operat