Asset manager Federated Hermes raises concerns over HSBC’s public support of national security law for Hong Kong
- Federated Hermes concerned law could have ‘adverse impact’ on human rights in the city
- Asset manager ‘engaging’ with HSBC to ‘fully understand’ its reason for supporting legislation
HSBC is facing more questions over its public support of a controversial national security law for Hong Kong.
The asset manager, which has a long history of focusing on environmental, social and governance (ESG) issues, said it was “engaging” with HSBC to “fully understand” the bank’s position as part of its EOS stewardship service, which acts on behalf of institutional investors. Federated Hermes has £859 billion (US$1.06 trillion) in assets under advice globally.
“We have questions on the bank’s statement amid concerns that the new law may have an adverse impact on human rights in Hong Kong,” Roland Bosch, the lead engager for financial services EOS at Federated Hermes, said in a statement. “We expect companies to support improvements in protections for citizens and not back their removal.”
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Bosch’s comments were first published in the British tabloid The Mail on Sunday and shared with the Post on Monday.
A HSBC spokeswoman declined to comment on Monday.
Mainland media and Hong Kong’s former leader, Leung Chun-ying, blasted HSBC after it did not immediately come out in support of the law when it was revealed in late May. HSBC is based in London, but generates most of its profit in Hong Kong and Asia.
On June 3, the bank posted a photo to one of its social media accounts in the mainland of Peter Wong Tung-shun, its Asia-Pacific chief executive and a member of the Hong Kong delegation of the Chinese People’s Political Consultative Conference, signing a petition organised by a Beijing-loyalist group supporting the law.
“As a member of Hong Kong Association of Banks (HKAB), consistent with the statement issued on 26 May by HKAB, we reiterate that we respect and support laws and regulations that will enable Hong Kong to recover and rebuild the economy and, at the same time, maintain the principle of ‘one country two systems,’” the bank said in the social media post. “We are fully committed to playing our part in supporting Hong Kong now and in the future.”
HSBC is not alone among business titans supporting the law. The city’s biggest companies and most of its tycoons have spoken out in favour of the legislation, including Jardine Matheson Group, the operator of the Mandarin Oriental hotel; Swire Pacific, the parent of airline Cathay Pacific; and Li Ka-shing, one of Asia’s richest men.
US and UK politicians have criticised the bank’s decision, but most investors have remained silent on the issue.
Aviva Investors, the asset management arm of UK insurer Aviva, and Federated Hermes, on behalf of the institutional investors it represents, are among the few that have expressed their concerns publicly.