HSBC, Standard Chartered, publicly supports Chinese national security law for Hong Kong

HSBC (HSBC) and Standard Chartered (SCBFF) on Wednesday, he backed a bill drafted by beijing that will be imposed on the city in the coming months. Lenders have joined other large companies in Hong Kong expressing support for the law.

HSBC posted a photo on Chinese social media showing the Asia-Pacific CEO Peter Wong signing a petition supporting law enforcement. HSBC’s London press office confirmed the authenticity of the post.

“We respect and support the laws and regulations that will enable Hong Kong to recover and rebuild its economy, while maintaining the principle.”One state, two systems”, the post said, referring to the principle of rule that gives the city political and legal freedoms inaccessible in mainland China.

HSBC is headquartered in London, but was established in Hong Kong and has a large business presence in China. The bank’s statement comes nearly a week after former Hong Kong CEO Leung Chun-ying blew up HSBC for silence.

Leung took the lead Facebook (full board) on Friday, calling HSBC to publicly express his support for the law. He said the bank needs to know “which side the bread is greased on”.

Hong Kong and China are by far the largest producers of HSBC money. Last year, the divisions withdrew enough money to eliminate losses in the UK and leave the company profitable.

Shares listed on HSBC in Hong Kong rose 1.6% on Thursday, outpacing the city more broadly Hang Seng index (HSI), which fell 0.1%.

His UK counterpart, standard chartered lender, also measured the decision on Wednesday, saying in a statement that Chinese national security law for Hong Kong “can help maintain the city’s long-term economic and social stability”.

Proposed law on national security would ban sedification, secession and subversion against Beijing in Hong Kong, as it did last year stiffened by anti-government protests calling for greater democracy and greater autonomy than mainland China. Last week the Chinese parliament with tires approved the proposal to impose the law on behalf of the city, bypassing Hong Kong legislation through rarely used constitutional nooks and crannies.

The law will also allow Chinese national security authorities to operate in the city “to fulfill relevant national security protection duties in accordance with the law.”

The leaders of the United States and Britain have criticized the introduction of the law as undermining Hong Kong’s autonomy. This proposal also rocked markets sharply last month, sending city value Hang Seng index (HSI) on their own the worst day since 2015, And American firms they expressed concern about what the law could mean for the city’s future as a global business hub, especially after Washington responded with a signal of intent to end special economic and trade relationship with Hong Kong.

Nevertheless, HSBC and Standard Chartered are among the growing list of the best companies in Hong Kong that have emerged in support of the controversial legislation.

Jardine Matheson, one of Britain’s oldest trading houses in Hong Kong, published a full-page ad on Wednesday in the pro-Beijing newspapers Ta Kung Pao and Wen Wei Po, who have strong ties to the Chinese government.

“Establishing a legal framework that supports national security is very important. It ensures that Hong Kong continues to attract investment, increase employment opportunities and protect people’s lives,” the company says.

Swire Pacific (SWRAY), one of Hong Kong’s richest family business empires, and billionaire Li Ka-shing, founder of telecommunications and retail conglomerate CK Hutchison, also voiced support for China’s move.

Swire said “the enactment of a national security law will be beneficial for Hong Kong’s long-term future as the world’s leading business and financial center.”

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“It simply came to our notice then [sovereign] the right to address their national security issues, “Li of CK Hutchison said in a statement issued last week.

“In the meantime, [Hong Kong] it has a key task to strengthen the faith of its citizens and maintain international confidence in the constitutional principle of ‘one country, two systems’, ”he added.

– Alexandra Lin contributed to this report.

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