HSBC and Standard Chartered back China's national security law for Hong Kong

HSBC's top executive in Asia has been condemned by democracy campaigners after backing a new Hong Kong security law that hands sweeping powers to the Communist regime in Beijing.

Asisa-Pacific boss Peter Wong broke years of political neutrality at the London-listed bank by signing a petition in favour of the change - despite warnings from protesters and human rights groups that it will spell the end of the city's independence and trigger a brutal crackdown on dissent.

Meanwhile HSBC said in a social media post that it "respects and supports all laws that stabilise Hong Kong's social order".

Fellow London-based bank Standard Chartered also said that it believes the new law - which would criminalise anti-government movements - can help maintain the long-term stability of the former British colony.

It leaves the lenders vulnerable to accusations that they have bowed to pressure from the authoritarian leadership in Beijing and sets them at odds with the UK Government, which has been strongly critical of the plans.

Campaigners in both Britain and Hong Kong were quick to criticise the banks.

Conservative MP Tom Tugendhat, chairman of the Foreign Affairs Select Committee, said:  "Mr Wong's decision to speak out in favour of Beijing's powers in Hong Kong contrasts with Cathay Pacific's chief executive Rupert Hogg, who defended the rights of Hong Kongers and was fired in August.

"Businesses championing authoritarian rules should remember that other customers views on human rights may not align with those they feel they must hold to satisfy the Chinese Communist Party."

Joshua Wong, the leader of Hong Kong's pro-democracy protests, called on the UK Government to step up its support for freedom in the territory.

He said: "HSBC's case provides a vivid example demonstrating how China will use the national security law as new leverage for more political influence over the foreign business community in this international financial city.

"Business circles, banks, lawyers and scholars fear the law will introduce censorship to Hong Kong."

HSBC has not commented on the political situation in the former British colony in recent months, but has faced increasing calls in Chinese state media to make its position clear.

Last Friday Leung Chun-ying, Hong Kong’s pro-Beijing former leader, demanded that HSBC state its position after enjoying privileges in the territory that “should not be taken for granted”.

He also warned that it could “be replaced by banks from China or other countries overnight”.

In a Facebook post he wrote: “We need to let … British companies such as HSBC know which side of the bread is buttered.”

London-listed HSBC was founded in Hong Kong in 1865 to support international trade between China and Europe and makes almost all its profits in Asia, with a significant portion from China.

The bank is known in the UK for its "We are not an island" advertising campaign which champions British values. Earlier this year, chief marketing officer Chris Pitt said: "The people, communities and businesses of the UK thrive most when they remain connected and open."

HSBC's possible backing of the law comes as the chief executive of Japanese rival Nomura told the Financial Times the bank was "seriously" rethinking its China strategy and the scale of its presence in Hong Kong as a result of the turmoil.

Tensions have risen this week after a vigil marking the Tiananmen Square massacre in 1989 was cancelled due to coronavirus, leading Amnesty International to accuse the police of exacerbating tensions ahead of the "disastrous" security law.

Donald Trump said the law meant the territory was no longer sufficiently autonomous from China to warrant special treatment, while Boris Johnson said he was ready to offer British citizenship to nearly 3m Hong Kong citizens if China imposes the rule.

Mr Johnson said: "Many people in Hong Kong fear their way of life, which China pledged to uphold, is under threat.

"If China proceeds to justify their fears, then Britain could not in good conscience shrug our shoulders and walk away."

A spokesman for Standard Chartered said the bank believes the national security law "can help maintain the long term economic and social stability of Hong Kong" adding that the "'one country, two systems’ principle is core to the future success of Hong Kong and has always been the bedrock of the business community’s confidence.

"We hope greater clarity on the final legislative provisions will enable Hong Kong to maintain economic and social stability."

HSBC said "we respect and support laws and regulations that will enable HK to recover and rebuild the economy and, at the same time, maintain the principle of ‘one country two systems’".