Commentary: Eastward trend rattling City nerves

On his office wall in London, Mike Geoghegan has a giant screen. It's updated constantly with information about HSBC's current performance.

Geoghegan can use his remote control to click and visit any outpost of HSBC. He can look at how well it's doing compared with the previous years.

It's a remarkable piece of IT and it means Geoghegan can run the giant bank from anywhere in the world. That, plus video conferencing and phone technology, means he can be based in Hong Kong and still be CEO, of that there is no question.

But it's not the how of what he's doing that matters, it's the why. Geoghegan and his colleagues have decided the bank needs to be seen to be closer to China and the other emerging Asian markets. And, for HSBC, of all banks, there is added significance in that the chief executive will be going home.

Indeed, ever since it moved its headquarters to London from Hong Kong in 1993, ahead of the colony's transfer to China, noises have emanated from the bank that one day it may return and it's impossible to imagine that in time Geoghegan will not be joined by other members of HSBC's hierarchy.

A large part of the bank's business has remained in the east. The Chinese government in particular puts great store by status and the presence of Geoghegan will reassure them of the bank's seriousness about doing business with its country. But his move isn't just about shoring up existing work, it's also about winning new business.

As has been spelt out at the current G20 meeting, a shift in economic power is taking place. Suddenly, all eyes are looking eastwards.

How this affects London remains to be seen. Part of the City's recent success has been built upon the back of being the "centre for the rest of the world" for the American banks. New York looks after the Americas, London is the head of the EMEA (Europe Middle East Asia) operations.

London has to hope that continues to be the case, that HSBC's news doesn't signal the beginning of a trend, and that the A in EMEA isn't about to become a bigger draw.