This Thursday, HSBC stocks soared when the bank publicly showed support for China's National Security Law on Hong Kong. The controversial legislation was frowned upon by the United States, while HSBC manifested its usual policy which is political neutrality.
The chief executive of HSBC Asia-Pacific Peter Wong signed a petition that backed China's National Security Law on Hong Kong. The statement said that the company respects and supports all laws that afford the stability of Hong Kong's social order. The comment was posted on social media in China.
Similarly, Standard Charter also manifested the same support. It showed its willingness to help maintain a long-term economic and socially stable economy in Hong Kong. HSBC and Standard Charter are both based in the UK but have similar interests in Asia.
After the statements, stocks of both banks skyrocketed as the market responded to the sentiments positively. The manifestations were said to prevent the banks from getting caught in the crossfire of any political disputes concerning their largest market.
On the other hand, China director for US-based Human Rights Watch Sophie Richardson noted that China's National Security Law would affect other laws in other jurisdictions. She questioned whether the banks weighed in on those effects. She also revealed that the Human Rights Watch have been hovering over China's actions in the past week.
Richardson claimed that China has been clearly asserting pressure on businesses and other market players to show their support for the law. She added that the pressure was to create an alleged illusion of support of the country's move on Hong Kong.
Last year, HSBC was adversely affected by Hong Kong's months-long anti-government protests against China. Its branches were vandalized. Their statues were also defaced during a protest march last January 1, 2020.
Some of the Hong Kong protestors accused HSBC of being compliant with actions imposed by Chinese authorities against activists. It was caused by raising money to support the latter. Nonetheless, the bank denied all accusations.
HSBC business partners also faced scrutiny from Beijing for these accusations. Last year, Cathay Pacific Airways was accused entity for supporting Hong Kong protestors. It was compelled to suspend their staff that were found to have supported the movement. The company's chief executive Rupert Hogg and his top deputy, after that, resigned after the allegations went public.
At present, HSBC is Europe's largest bank, although its origins reigned from Hong Kong that was a British colony until 1997. The company previously showcased their avoidance of political implications in recent months. At the same time, it faced inquiries from Chinese state media to clarify its position.
Wong is also a member of the Chinese People's Political Consultative Conference. Last Wednesday, an interview with Wong was published where he showed hope for the law in mediating and stabilizing Hong Kong's economy.
