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Rebel HSBC shareholders urge SFC to bargain with Bank of England over lost dividends

  • HSBC shareholders call on SFC to ask Bank of England to reverse dividend decision
  • Latest move in HSBC shareholder rebellion fighting dividend cancellation

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HSBC is facing a shareholder rebellion over its decision to axe dividends. Photo: Sam Tsang
Enoch Yiu

A band of rebel HSBC shareholders converged on the doorstep of Hong Kong’s securities regulator on Thursday, urging the local watchdog to intercede on their behalf with the Bank of England over their loss of dividends.

Christine Fong Kwok-shan, a district councillor in Hong Kong, took a letter representing over 500 HSBC investors to the Securities and Futures Commission’s headquarters demanding that the regulator fight to safeguard the interests of local investors.

“We understand that HSBC cancelled dividend payments at the order of the British regulator. As usual, it needs a regulator to talk to another regulator,” Fong said. An SFC employee accepted the letter but declined to comment on the brewing conflict.

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The event was the latest in a series of protests by HSBC shareholders over the past two weeks against the London-headquartered bank's decision to suspended dividends and share buy-backs on April 1 at the request of the Prudential Regulation Authority (PRA), an arm of the Bank of England.
HSBC shareholders protest outside SFC’s offices. Photo: May Tse
HSBC shareholders protest outside SFC’s offices. Photo: May Tse
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The British regulator was aiming to bolster banks’ capital buffers when it made the request to protect them against the economic crisis triggered by the coronavirus pandemic, which has infected more than 2 million people worldwide.

“The PRA’s orders have hit many retirees hard in Hong Kong, including my father who invested in HSBC shares for decades,” Fong said.

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