Shares in HSBC have ticked higher this morning after HSBC announced its decision to keep its headquarters in London. Here's the reaction in the City to HSBC's decision: David Buik, of Panmure Gordon: "Good sense has prevailed. If HSBC had ‘slung its hook’ for more fertile and receptive haven, it would have sent out a very bad message to the rest of the world that London was creaking as the No: 1 financial centre to conduct international trade as well as raising capital. IT IS! Brexit or no Brexit. The City of London is not for sale to anyone! "HSBC also realises that London is the best place to conduct complicated M&A and other business transactions and also accepts that London is the legal capital of the world." Ian Gordon, of Investec: "At 10pm last night, HSBC confirmed its (widely expected, but we believe regrettable) decision to remain domiciled in the UK, and thus ‘trapped’ in the European Union. In our view, the statement offers no quantified justification for the Board’s decision. Our existing forecasts remain unchanged as our base case made no allowance for the considerable financial benefits which may have accrued to HSBC’s shareholders had it decided to ‘escape’." Laith Khalaf, of Hargreaves Lansdown: "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."