HSBC is Europe’s largest bank, headquartered in London, but the Hong Kong and Shanghai Banking Corporation makes half of its money in Asia.
And it’s been caught in the midst of increasingly tempestuous relations between China and the West, with the bank expressing support for China’s controversial security laws in Hong Kong in June, breaking a tradition of neutrality.
Chief executive Noel Quinn attempted to reinstate that neutrality today, saying: “We will face any political challenges that arise with a focus on the long-term needs of our customers and the best interests of our investors.”
But who are those customers? Mr Quinn also signalled the resumption of restructuring plans which will pivot the business further towards Asia, with job cuts expected in the UK investment bank and the American branch network.
Its branding is familiar around the globe, but HSBC is a bank that likes to stay out of the headlines.
However, as it chases its ambitions, more pressure and scrutiny will be hard to dodge.
‘More collaboration’
HSBC, along with rival banking group Standard Chartered, have come under fire for their support of China’s controversial national security law for Hong Kong.
US Secretary of State Mike Pompeo and UK politicians criticised HSBC for supporting China’s new legislation, which means people face prosecution for speaking out against Beijing.
Mr Pompeo said the Chinese Communist Party’s (CCP) “browbeating” of HSBC “should serve as a cautionary tale”.
Last week, Standard Chartered restated its commitment to Hong Kong when it released its first-half results. Standard Chartered’s group chairman José Viñals said: “We are convinced that more collaboration – not less – is the best way to find a sustainable equilibrium in these complex situations, but we do not expect an easy or quick resolution.
“We do believe, however, that Hong Kong will continue to play a key role as an international financial hub and we are fully committed to contributing to its continued success,” he added.
Source: bbc.com
