One of the UK’s largest investors has criticised HSBC and Standard Chartered for backing China’s controversial new security law for Hong Kong that could stifle its freedom.
The London-listed banks were last week condemned by democracy campaigners for supporting the law, which criminalises anti-government movements in Hong Kong. Both Britain and the US have called it a violation of Beijing’s obligations to the territory.
Breaking the silence among the banks’ UK investors, Aviva’s investment chief David Cummings said the fund giant was “uneasy” that the banks had publicly backed the legislation “without knowing the details of the law or how it will operate in practice”.
“If companies make political statements, they must accept the corporate responsibilities that follow,” he argued.
“Consequently, we expect both companies to confirm that they will also speak out publicly if there are any future abuses of democratic freedoms connected to this law.”
The two lenders’ support for the security law came days after Leung Chun-ying, Hong Kong’s pro-Beijing former leader, demanded that HSBC state its position on the matter.
He said its privileges in Hong Kong “should not be taken for granted” and warned that the lender could “be replaced by banks from China or other countries overnight”.