HSBC says communist party committee has 'no influence' in running of biz

HSBC has clarified that employees who form branches of the Chinese Communist Party (CCP) within private companies in China have “no influence” on the running of the business, after global media reported that such a unit had been set up at its China securities unit. HSBC was reported to have set up a Chinese Communist Party committee in an in-country investment banking venture, according to a report by Financial Times last Thursday.

In a conversation with MARKETING-INTERACTIVE, a spokesperson of HSBC said: "Employees of private firms in China are able to form a party branch. These branches are common and can be set up by as few as three employees. 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."

HSBC Qianhai Securities was reported to have installed a CCP committee after HSBC’s stake in the joint venture increased from 51 to 90 percent, where Chinese law requires every company to set up its own CCP committee but the rule is “not yet widely enforced” among foreign banks, said the report. Such committees can place party representatives at a company’s managerial level, but sources told FT that the committee in question would not have any management role.

Following the report, HSBC issued a statement stating that CCP committees are “common” in mainland China-based companies. “Management has no role in establishing such groups” and these committees exert zero influence on the direction of the business, nor hold any formal role in the business’s day-to-day operations. However, the bank did not confirm whether its China investment bank had set up the committee. MARKETING-INTERACTIVE has reached out to HSBC for a statement. Meanwhile, British politicians have also spoken out against the bank after the reports emerged. According to Bloomberg, Chris Bryant, a former labour government minister and member of the UK parliament’s foreign affairs committee, called the development worrying.

Meanwhile, in Hong Kong, HSBC recently launched a brand-new campaign “Hong Kong inspired by the world” to highlight the diverse culture and prosperity of the city, by featuring concepts including food and beverage, movies, art and pop music. Although being a small city, Hong Kong is able to bring together a variety of innovative ideas, and there have been many success stories with local and international characteristics over the years, said the press release by HSBC.

As such, the campaign features a variety of unique elements that represent Hong Kong, including local snacks and authentic cuisine namely egg waffles, Swiss chicken wings and Shanghai noodles, as well as martial arts movies. 

The static ad will be promoted on print media such as a number of local newspapers, out-of-home (OOH) advertising will also be used on tram shelters and MTR stations. The digital version of the ad will also be shown on the massive billboard at HSBC main building.

Related articles:

HSBC and K11 Group partner to leverage on each others huge membership base
HSBC HK turns 18 branches into photo-worthy spots