The race to become the next chairman of London-based HSBC could turn on whether the board is willing to post the assignment to Hong Kong, as both of the leading contenders - chief executive Michael Geoghegan and board member John Thornton - have strong ties to Asia and are likely to want the job based there.

With the HSBC board slated to pick a successor to outgoing chairman Stephen Green as early next week, the decision could be a preview of the bank's future plans. The bank has been focusing on growth in Asia, and has been weighing whether to return its headquarters to Hong Kong, its home until 1993, as regulation in the UK has grown tougher. It could, however, take a more traditional route, and appoint an established Londoner to guide the bank through current regulatory change.