As Brexit debate begins, Hong Kong financial firms seek to avoid being tripped up by UK divorce from EU
- HSBC, Standard Chartered among firms preparing for UK’s exit from the EU
- Break-up could make business harder for financial firms with British operations
The ongoing drama surrounding the acrimonious break-up between Britain and the European Union could affect thousands of businesses that use London as a base for their European operations.
Though the drama is playing out more than 9,000 kilometres away, some of Hong Kong’s biggest financial institutions are trying to avoid being caught in the middle.
HSBC and Standard Chartered – two of the three lenders that issue bank notes in Hong Kong and important drivers of the city’s economy – are among those that have been planning for Brexit since the referendum in Britain two and a half years ago.
Yet, uncertainty remains over what the ultimate relationship will be between the UK and its European neighbours just over two months before Britain is set to leave the 28-country bloc.
Debate begins in parliament on Wednesday over a contentious deal reached by British Prime Minister Theresa May setting out the country’s exit, but that agreement has been widely criticised by opposition leaders and members of her own Conservative Party.
If parliament fails to approve that measure, fears are rising that Britain could crash out of the EU with no deal, creating a tougher environment for banks and other businesses operating out of London.