HSBC and Standard Chartered are facing investor pressure over their backing of China’s new national security law in Hong Kong.
The proposed law is controversial as it is seen as a threat to the “one country, two systems” framework that underpins Hong Kong’s unique freedoms.
In a statement, Standard Chartered said it believes that “the national security law can help maintain the long term economic and social stability of Hong Kong”. Meanwhile, Peter Wong, chief executive for HSBC’s Asia operations signed a petition in support of the proposed legislation. HSBC was approached for further comment.
The support has prompted a strong reaction from Aviva Investors, a top 20 investor in both banks with a 0.46% holding in HSBC and 1.35% stake in Standard Chartered.
“We are uneasy at the decisions of HSBC and Standard Chartered to publicly support the proposed new national security law in Hong Kong without knowing the details of the law or how it will operate in practice,” said David Cumming, chief investment officer for equities at Aviva Investors.
“If companies make political statements, they must accept the corporate responsibilities that follow. Consequently, we expect both companies to confirm that they will also speak out publicly if there are any future abuses of democratic freedoms connected to this law,” added Cumming.
© 2020 funds global asia 
At times like these, HSBC Asset Management easily pivots towards emerging markets.
The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.
A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.
The world is transitioning from an era of commodity abundance to one of undersupply. Ben Ross and Tyler Rosenlicht of Cohen & Steers believe this shift may result in significant returns for commodities and resource producers over the next decade.
Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.
Shareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.
Robert St Clair, head of investment strategy at Fullerton Fund Management, explores the reasons investors should be paying attention to the rising demand for healthcare in China.
