HSBC Backs China's New National Security Law For Hong Kong As It Seeks Stability In Key Market

HSBC Holdings plc HSBC has publicly backed China's controversial national security law for semi-autonomous city Hong Kong, Reuters reported Wednesday.

What Happened

The Asia Chief Executive at Europe's largest bank, Peter Wong, signed a petition backing the law aimed at further reducing Hong Kong's autonomy, according to Reuters.

Wong told Chinese state-run Xinhua News Agency that the law would help bring stability to Hong Kong, which has seen frequent clashes between the Beijing-backed local administration and anti-government protestors, as reported by Reuters.

HSBC said in a social media post in China that the bank "respects and supports all laws that stabilize Hong Kong's social order," Reuters noted.

Why It Matters

Hong Kong is the biggest market for HSBC, and the British bank has struggled with operations in the country in the eye of widespread protests since last year.

HSBC became a target of the protests earlier around New Year's eve as the bank closed a fund-raising account of activists opposing a proposed extradition bill.

China's latest move to bring in a national security law in Hong Kong, aimed at curbing any dissent against the country's communist government, has received strong opposition from the United States and the European Union.

HSBC Price Action

HSBC shares traded at $24.99, 1.07% down, in New York on Thursday at press time.