UK-based banks HSBC and Standard Chartered express support for China's Hong Kong Security Law

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] British financial institutions HSBC and Standard Chartered (SC) have expressed support for China's Hong Kong National Security Law (Hong Kong Security Law). Having maintained a neutral stance on Hong Kong's political situation for several months, they ultimately bowed to China's repeated pressure to clarify their position.

According to Bloomberg on the 3rd (local time), HSBC Asia CEO Peter Wong publicly shared on the Chinese social networking service WeChat that he signed a petition supporting the Hong Kong Security Law. HSBC stated, "We once again affirm our respect for and support of the laws and regulations that enable Hong Kong's recovery and economic rebuilding."

In an interview with China's Xinhua News Agency on the same day, CEO Wong also expressed hope that the Hong Kong Security Law would bring long-term stability and prosperity to Hong Kong. He said, "With the support of the rapidly developing mainland market, Hong Kong's economy will surely walk out of the clouds and return to a recovery path."

Standard Chartered also released a statement that day expressing the view that "the Hong Kong Security Law will help maintain Hong Kong's long-term economic and social stability."

Both banks had refrained from engaging in Hong Kong's political situation over recent months. However, as Chinese state media repeatedly demanded they clarify their stance, they appeared to express support for the Hong Kong Security Law. Both banks likely could not ignore China's pressure due to the large scale of revenue they generate in the Greater China region.

In HSBC's case, it earned $12.1 billion in revenue from Chinese cities last year. Bloomberg reported that revenue from the Greater China region accounts for 40% of HSBC's total sales. Standard Chartered's pre-tax revenue from Greater China and North Asia last year was $2.4 billion, of which 60% came from Hong Kong and 14% from China.

Britain has repeatedly emphasized that it will accept Hong Kong residents by revising immigration laws if China enforces the Hong Kong Security Law. British Prime Minister Boris Johnson wrote in an article for The Times on the same day that "if the Hong Kong Security Law is imposed, Hong Kong's freedoms and autonomy of its system will be severely undermined," indicating his intention to amend immigration laws.

Prime Minister Johnson said, "By revising immigration laws, opportunities to work in the UK will expand and it will become possible to acquire British citizenship," adding, "About 350,000 people in Hong Kong hold British National (Overseas) (BNO) passports, and an additional 2.5 million can apply for them." He is pursuing measures to extend rights, including granting British citizenship to all Hong Kong residents who previously held BNO passports.