Hong Kong’s police credit union will shift over $1 billion in assets to mainland banks over concerns about U.S. measures against the city’s administration.
The 45,000-strong credit union will move an estimated HK$11 billion ($1.4 billion) from foreign banks to mainland China-based banks, according to an «SCMP» report citing a statement sent to members that underlined concerns about U.S. measures.
«Since late May, the union has arranged preparation work for the above-mentioned situation,» Hong Kong police's credit union said. «We have been gradually withdrawing or relocating most of our assets and investments from foreign banks to multiple Chinese-based banks. Such work is still ongoing.»
Established in 1982, the credit union’s activities include the promotion of financial management amongst it 45,000 members with financial offerings such as dividend-paying savings vehicles and various low-rate loan schemes.
Not All Chinese Banks Are Equal
Washington’s sanction list rattled the banking industry and drove not only foreign players to review operations for compliance but even mainland Chinese ones. Bank of China, China Construction Bank (CCB) and China Merchants Bank were amongst the Chinese lenders reportedly tightening restrictions on activities linked to the sanctioned individuals.
This week, Washington issued sanctions against 11 officials including Hong Kong’s police commissioner Chris Tang Ping-keung and retired predecessor Stephen Lo Wai-chung.
