Chinese Communist Party branch formed in HSBC onshore venture

Name: HSBC’s break-up dilemma: why bank’s largest shareholder is pushing for change
Uploaded: 2022-07-21T22:30:20.000Z
Duration: 5 min 25 s
Description: HSBC’s break-up dilemma: why bank’s largest shareholder is pushing for change

Party branch at HSBC Qianhai Securities is believed to be first among foreign-owned finance operations

Such branches are not uncommon at businesses in China and have been a requirement for private companies to list on domestic bourses since 2018

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A pedestrian walks underneath the atrium at HSBC’s main building in Central. Photo: Nora Tam

Chad Brayin London

Published: 6:30am, 22 Jul 2022

Employees at HSBC’s mainland China securities joint venture have formed a Chinese Communist Party (CCP) branch, in what is believed to be one of the first such branches formed in a foreign-owned finance operation.

Having such a branch is not uncommon among local and foreign companies in the mainland and has been a requirement for privately owned companies to list on domestic bourses there since 2018. Their role is often similar to labour unions or employee advocacy groups within a company.

The move comes just over three months after HSBC raised its ownership stake in its joint venture, HSBC Qianhai Securities, to 90 per cent from 51 per cent.

“These branches are common and can be set up by as few as three employees,” a HSBC spokeswoman said. “It is important to note that management has no role in establishing such groups, they do not influence the direction of the business, and have no formal role in the day to day activities of the business. HSBC does not track the political affiliation of its employees.”

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HSBC’s break-up dilemma: why bank’s largest shareholder is pushing for change

HSBC, Hong Kong’s biggest currency-issuing lender, established HSBC Qianhai Securities in 2017. Headquartered in Shenzhen, the business offers securities underwriting, brokerage and investment advisory services.