HSBC Calls for Peaceful Ways to Resolve Hong Kong Issues
HSBC Calls for Peaceful Ways to Resolve Differences in Hong Kong
(Bloomberg) -- HSBC Holdings Plc broke its silence on the protests roiling Hong Kong, calling for a peaceful resolution to differences in the city.
While local businesses and tycoons have spoken out about the unrest, HSBC, which derives more than half of its pretax profit from the city, is among the first global banks to publicly address the crisis.
“As a company rooted in Hong Kong, we are very concerned about the recent social events and strongly condemn any violence and actions that disrupt social orders,” the London-based bank said in an advertisement in the Chinese-language Hong Kong Economic Times. Hong Kong’s rule of law is indispensable for the city, HSBC said.
Standard Chartered Plc, another London-based lender, and Hong Kong’s Bank of East Asia Ltd. also posted newspaper ads on Thursday to address the issue.
Weighing in on the crisis is a fraught prospect for many companies. Few firms have directly commented on the protests, and Beijing’s response in some instances, notably its clampdown on Cathay Pacific Airways Ltd., suggests China expects compliance with the Communist Party’s worldview.
“We are determined to protect the ‘one country, two systems’ and support the SAR government to efficiently maintain social order and safety,” Standard Chartered said in a full-page ad in pro-Beijing Chinese newspaper Wen Wei Po.
The protests, which morphed from opposing an extradition bill into a mass repudiation of China’s hold over Hong Kong, have led to politicians and local leaders voicing concerns about the city’s growth prospects, already under pressure from global trade tensions. A major slowdown in the former British colony could have an outsized effect on HSBC’s earnings.
Founded in Hong Kong in 1865, the firm generates almost half its revenue in Asia and had in recent years has poured tens of billions of dollars of investment into mainland China.
“The bank has always respected our employees have their own personal views on political and social matters,” HSBC said in an email before the ad was published.
A cornerstone of HSBC’s recent strategy has been to leverage its foothold in Hong Kong to deepen its push into mainland China, where it is the biggest international lender with corporate and retail banking services.
However, Chairman Mark Tucker was increasingly at odds with former Chief Executive Officer John Flint the ex-CEO’s focus on expanding in China, people familiar with the matter said earlier this month. Flint abruptly stepped down on Aug. 5.
“Hong Kong and HSBC’s development have been closely related in the past, so as the future,” the bank said in the ad.
To contact the reporter on this story: Alfred Liu in Hong Kong at aliu226@bloomberg.net
To contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Jun Luo
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