Carrie Lam, leader in Hong Kong, has a stronger presence for HSBC Holdings Plc, while hitting the UK for disrespecting the bank and not curbing the coronavirus as Prime Minister Boris Johnson opens the door for millions of residents of the area to move.
In an interview with Bloomberg Television on Thursday, Lam said she would ‘like’ to see HSBC expand in Hong Kong, where it has come under criticism over the freezing of activists’ accounts and support for comprehensive national financial security legislation. centre. Lam also said China is unlikely to take action against borrowers who comply with U.S. sanctions, which the law prohibits.
“I do not see why the Central People’s Government would take such an action,” Lam said. The Hong Kong CEO added that her government ‘will continue to work with the banking industry in Hong Kong, not only to grow their business in Hong Kong, but also the Greater Bay Area, because that’s where Hong’s strengths lie. Kong lies. ‘
Lam has sought to persuade multinational corporations to stay in the area, even as the US, UK and other Western countries lash out at China for wanting to silence democratic advocates following historic protests in 2019. Britain will begin visa applications on Sunday for as much as 2.9 million Residents of the Hong Kong passport are eligible for British National (overseas) as well as their dependents, who together make up almost 70% of the city’s population.
Lam said she did not see how many people wanted to move to the UK, noting that the national health service was under ‘tremendous pressure’ while praising the hospitals in Hong Kong. Yet she said she would respect the decisions of anyone who wanted to relocate and said the government should work to improve their lives.
‘Fried’
The Hong Kong government has adopted integration with China since the unrest hit the city, promoting the Greater Bay Area concept that seeks to create a Silicon Valley-style regional economic zone with nearby mainland cities of Guangzhou and Shenzhen. In a meeting with Lam on Wednesday, President Xi Jinping praised her while saying Hong Kong should be run by ‘patriot. ”
Lam’s comments on HSBC come after she said CEO Noel Quinn was ‘grilled’ because he complied with Hong Kong law. On Tuesday, he defended the bank’s attempt to freeze a former lawmaker in Hong Kong when questioned by British MPs.
Quinn said the decision was driven purely by the need to comply with local laws, and that he was incapable of making a “moral or political judgment” on such matters. He also said that he ‘tries to stay out of the politics of one country towards another country and do the right thing by our customers’.
The bank in London, which considers Hong Kong to be its largest market, has been caught amid growing tensions as China tightens control over the former British colony. The bank was criticized in China for collaborating in the investigation into Huawei Technologies Co., and drew reprimands in Washington and London after its general manager in Asia publicly endorsed a controversial security law imposed on the city last year. .
China is key to the bank’s turnaround plans, which include shifting billions of capital to expand in Asia and cut back in Europe and the US
Record contraction
Lam calls the Hong Kong government regime “rules-based” as opposed to what he calls “politically driven” US sanctions. She said she understands why people and companies are considering alternatives to the area, but said the money has not moved yet.
Photographer: Takaaki Iwabu / Bloomberg
“Hong Kong will continue to strengthen our competitiveness to attract more capital,” she said.
According to official data polled by Bloomberg, official data on Friday will show that Hong Kong’s economy shrank to a record 6% in 2020. The city will announce its budget in February.
Lam said the economy in Hong Kong has a very good chance of achieving positive growth this year, subject to the course of the pandemic. She pointed out that growth and import growth figures had improved in the latter half of last year, saying spending on retailers and restaurants would rise once virus restrictions were lifted. Lam said the economy is needed to create jobs.
Lam went on to defend the security law, saying it would allow political opposition in Hong Kong as long as no one crossed a ‘red line’. Asked if she wants to go to a second term in 2022, she said: “I do not answer the question.”
– With the help of Alfred Liu, Ambereen Choudhury and Eric Lam
(Updates with more context in sixth paragraph)