HSBC responded to reports about the formation of a Chinese Communist Party committee within its investment banking arm, noting that the bank does not track employees’ political affiliations nor do such groups have no business influence.
«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,» said HSBC in an emailed statement. «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.»
This follows a «Financial Times» report that said that HSBC could be the first amongst global lenders with such a committee formed within its investment banking arm in mainland China.
First Foreigner
According to the report, there is a longstanding understanding that most foreign securities or brokerage firms do not require a party committee, despite it being a legal requirement, with little pressure exerted thus far by authorities to comply.
It also said that the HSBC committee was formed earlier this month and that some rival banks are examining whether or not to follow suit after taking full ownership of their own mainland operations in the last two years.
