HSBC becomes first foreign lender set up a committee of the Chinese Communist Party in its investment banking subsidiary in the country, which will force Western competitors based in China to follow suit.
The lender’s Chinese investment bank, HSBC Qianhai Securities, recently set up a CCP committee, two people familiar with the decision said. The move comes after HSBC increased its stake in the joint venture, which launched in 2015, to 90% from 51% in April.
The CPC Committee, which may consist of several branches, is required by Chinese company law but has not yet been widely adopted among foreign financial groups. It usually consists of three or more employees who are also members of the Chinese Communist Party.
HSBC’s actions will force other foreign banks to do the same. Some of them have been considering whether they are required to do so after taking full ownership of their securities on the mainland and brokering over the past two years, according to several senior figures at these institutions.
Seven global banks control investment banking operations in mainland China – HSBC, Goldman Sachs, JPMorgan, Credit Suisse, Morgan Stanley, UBS and Deutsche Bank – however, only HSBC has created a CCP committee, according to several people familiar with the matter. . Other banks declined to comment.
US bank executives are particularly concerned that strategic decisions and customer data could be exposed by the CCP, several of them have reported to the Financial Times.
Thank you for reading FirstFT Asia. Enjoy your weekend. — Emily
Five more stories in the news
1. Biden says the Pentagon does not support Pelosi’s visit to Taiwan President Joe Biden said the Pentagon did not support Nancy Pelosi’s planned visit to Taiwan following reports that the speaker of the House of Representatives was to become the highest-ranking US politician to visit the country in 25 years.
Other US policy news: Joe Biden contracted Covid-19 The White House has announced that it has started taking Pfizer antiviral pills to fight the disease.
2. India elects the first member of the tribal group as president. India has elected a woman from the tribe became its president, making Draupadi Murma the first of this historically marginalized population and the second woman to serve as head of state. The office of President of India is largely ceremonial, but has some key powers, including the power to appoint the Prime Minister in the event of a dissolution of Parliament.
3. ECB raises rates amid unrest in Italy The European Central Bank has higher interest rates by half a percentage point, promising to prevent rising borrowing costs from triggering a debt crisis in the eurozone amid political unrest in Italy and the resignation of Mario Draghi. The prime minister’s decision to step down triggered the dissolution of parliament and pushed the country early elections in September.
4. Big Tech signs up to Indonesia’s strict content law Social media companies including Meta, TikTok and Twitter, registered for a license with the Indonesian Ministry of Communications, under which they may have to censor content and hand over user data. Some signed up just hours before the Wednesday midnight deadline.
5. Millions of tons of grain will be released from Ukraine Russian and Ukrainian negotiators agree on a deal export millions or tons of discarded grainTurkey announced and it will meet in Istanbul on Friday to set the stage for ending Russia’s months-long blockade of Black Sea ports on the Black Sea.
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The next day
hearing on January 6 The committee investigating last year’s attacks on the US Capitol has been suspended. latest in a series of public hearings. The prime-time session is expected to cover 187 minutes of the rioters entering the Capitol and before former President Donald Trump issued a statement.
Magistrate’s Court decide on the Myanmar case The International Court of Justice will rule on does it have jurisdiction hear Gambia’s complaint against Myanmar for the alleged genocide of the Rohingya Muslim minority. (Diplomat)
Bolsonaro launches election campaign Brazilian President Jair Bolsonaro is set to announce his Liberal Party presidential candidacy on Sunday, ahead of October elections. However, the former president Luis Inacio Lula da Silva conducive to victory.
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How is the jet stream related to heat waves around the world? Scientists are seeking to understand whether the band of fast-moving air that controls mid-latitude weather is changing, causing heatwaves. more frequent and persistent.
Go deeper: For more information on climate change, see register to our Climate Charts Explained newsletter, delivered every Saturday.
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