Knight Vinke, the high-profile shareholder activist group, has told HSBC that it “has an issue with its strategy” and has held talks with the global banking group’s finance director about a complete review of the bank’s direction.

The activist shareholder, which has secured the support of Calpers, the Californian state pension fund, is demanding that HSBC “undertake a fundamental review of the group’s strategy in consultation with shareholders”.

Eric Knight, the chief executive of Knight Vinke, has sent a letter to all members of the HSBC board requesting further meetings.

Negotiations have been going on between the bank and the fund since Mr Knight sent a letter to Stephen Green, HSBC’s executive chairman, on May 25. The fund manager met Douglas Flint, group finance director, on June 12.

While a spokesman for Knight Vinke last night said that the bank had been “very responsive”, the new letter sent to the whole board suggests that the fund manager remains frustrated with HSBC. The spokesman said: “We have an issue with their [HSBC’s] current strategy.”

Knight Vinke is also in talks with other institutional shareholders, the spokesman added.

Knight Vinke, which has a stake of less than 1 per cent in HSBC, last night refused to comment on which area of the bank’s strategy it disapproved of.

Last night, Michael Geoghegan, HSBC chief executive, said: “The key investors we speak to understand and support the strategy we have set for HSBC. And it’s working. We need to join up, not break up. The break-up debate neglects the unique opportunity available to HSBC through its global franchise.”

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive