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HSBC may have to choose between East and West because China has tightened its grip on Hong Kong

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HSBC may have to choose between East and West because China has tightened its grip on Hong Kong

The Chinese ambassador to the UK, Liu Xiaoming, responded this week by accusing the country of “dirty interference” in Hong Kong and saying China’s treatment as an enemy is “entirely wrong.”

HSBC’s relations with the two countries made it a clear target because relations deteriorated, according to Willy Lam, an additional professor for the Center for Chinese Studies at the Chinese University of Hong Kong.

Although the bank has been based in the UK since 1992, Hong Kong is the largest market and accounts for more than half of group profits. Asia more broadly generated more than 80% of HSBC’s profit last year. The bank plans to move more resources to the region in the near future due to a restructuring plan.
HSBC (HSBC) declined to comment further about his support for the law. But corporate leaders have reason to worry about a potential fall.
HSBC Chairman Mark Tucker in person be warned the British government that the bank could face retaliation from Beijing if Huawei, China’s technology giant, is prevented from doing business in Britain, The Telegraph reported last month, citing anonymous sources.

Split between two worlds

HSBC was founded in 1865 by Scottish businessman Thomas Sutherland, who took inspiration from the flag of his native country to create the iconic red and white hexagonal logo of the bank.

Until the 1990s, it was generally referred to as “the Hong Kong bank,” according to historians David Kynaston and Richard Roberts, who tracked the company’s rise in the book, “The Lion Wakes: A Modern History of HSBC.”

It even acted as Hong Kong’s unofficial monetary authority in some capacity when the city’s economy opened to the world, printed currencies and set the stage for foreign exchange, Kynaston and Roberts write.

“It can be said that we are a pseudo central bank,” HSBC’s former chairman, Michael Sandberg, was quoted in the book as saying in 1976. “Hong Kong’s interests and prosperity are very much in harmony with us.”

The HSBC office was described in Hong Kong, around 1903. This facility was built in 1886 with a portico and an octagonal dome.

In 1992, HSBC moved its headquarters to London to comply with the takeover regulations after it acquired Midland Bank, a large British retail bank that helped new owners nearly double its number of employees.

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Since then, the company has regularly considered the idea of ​​moving its headquarters from London.

In 2015, the same year the bank announced “the pivot to Asia,” the council consider that step, conducts a 10-month review of its operations throughout the world. Hong Kong is seen as a natural choice, given its deep roots there and lower corporate tax appeal. But the company director in the end decided to stay.
HSBC continues to plan to cut 35,000 jobs
Former CEO Stuart Gulliver said then that having headquarters in the UK and “a significant business section in the Asia Pacific” provides the best of both worlds to our stakeholders. “

Even as the company’s business grows elsewhere, HSBC might want to remain in London so as not to lose its status as a global-focused bank, according to Dragon Tang, a finance professor at Hong Kong University. He added that moving from the UK could be seen as a sign of surrender in the European market.

A company spokesman referred CNN Business to an earlier statement saying “there is no discussion to review HSBC’s global headquarters, and there are no plans to reopen the issue.”

Forced to choose

HSBC has a lot of experience in Hong Kong – and politicians know that.

In May, former Hong Kong leader Leung Chun-ying chose the bank because he was silent on the law, demanding that HSBC express its support.
“HSBC’s profits mainly come from China,” Leung wrote in Facebook (FB) post. “Neither China nor Hong Kong owes HSBC anything. Its business in China can be replaced overnight by banks from China or other countries.”
Leung also told me Financial time that month that “HSBC has enjoyed unique privileges in Hong Kong, which should not be underestimated.”
A few days later, HSBC posted a photo on Chinese social media showing its Asia Pacific CEO signing a petition supporting national security laws in Hong Kong. (The photo was published before the law was passed and before the full legal text was published.)
It didn’t take long for Britain to respond. UK political leaders piled up at the bank last month, questioning why the company would allow one of its executives to make such a political statement.

“I just thought, ‘Wow,'” said Alistair Carmichael, a British MP who joined several MPs in writing to HSBC to express concern about the move. He argued that by succumbing to Beijing’s demands, the company had basically “offered itself” as political football.

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“They did nothing at all,” Carmichael told CNN Business, adding that he and his colleagues had not heard from the bank. “Once you choose one side, it’s very difficult to get away from that side.”

HSBC declined to comment on criticism received by banks from British politicians.

The bank has also long been floated as a potential target for retaliation by Beijing in its battle with the West over trade, technology and national security.

Huawei, for example, has been trying to persuade the British government for months that it can be trusted to help build the country’s 5G network – a partnership that seems increasingly messy.

Liu, the Chinese ambassador, warned this week that Britain “must bear the consequences” if China was treated as a “hostile country.”

And although he did not mention HSBC’s name, Chinese state media had previously suggested that the bank could appear on a long list of rumors foreign companies “unreliable” that China can be blacklisted.

Retaliation from China should not be a concern for HSBC. US Secretary of State Mike Pompeo condemned the company for its actions, saying that “corporate kowtows” would not get the respect of banks in Beijing.

On Tuesday, Bloomberg reported that Washington is also looking for “ways to punish banks based in Hong Kong, specifically HSBC.” One proposal under consideration, according to the report, is to damage the peg between the Hong Kong dollar and the US dollar.

HSBC declined to comment on the news report. Shares of companies listed in Hong Kong fell 4.3% on Wednesday after the report, while shares listed in London fell 2.9%. Stocks continued to slide Thursday in Hong Kong.

A large banner hung at the HSBC entrance on 30 June 1997, the day before the handover from Britain to China in Hong Kong.

There is also anxiety within HSBC staff. An HSBC employee who has been with the bank for several years told CNN Business that workers in Hong Kong were angry when they learned of the company’s support for the law.

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“I am very disappointed,” said the employee, who asked for anonymity because he was afraid of being targeted by his comments. “Clearly, banks can imagine there are some concerns.”

HSBC declined to comment on the reaction from staff.

The employee said that he wrote to management last year expressing concern about Hong Kong’s increasingly politicized business environment, and that the company had assured him that he would stay out of the political upheaval.

“I was very proud of the bank,” he said. But “if you ask me whether I feel proud or not to be a member of this bank, surely the answer right now is ‘no.'”

As diplomatic Tensions are boiling, some observers warn that companies can be forced out of the political fence again.

“They are between the devil and the deep blue sea. They want to see how the situation in China and Hong Kong subside. They want to see how much political heat in Britain remains,” Philip Augar, a British banking expert, told BBC Radio 4 on Tuesday.

“But in the end,” he added, “I think they will definitely listen more to the Chinese.”

– Sharon Braithwaite and Charles Riley from CNN contributed to this report.

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Luana Piovani goes to Portugal’s Golden Globes with her boyfriend

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Luana Piovani goes to Portugal's Golden Globes with her boyfriend



Luana Piovani

Photo: Instagram/@luanapiovani/Famous and Celebrities

This Sunday, the 2nd, actress Luana Piovani went to the Portuguese Golden Globes along with her boyfriend Lucas Bittencourt. In her Instagram, the actress praised the outfits they were wearing.

Ready for the Golden Globes. Great guy. We are very, very luxurious, my love,” said Luana. While Lucas was wearing a black suit, she was wearing a short white lace dress with green accents at the waist.



Luana Piovani at the Golden Globes.  -

Luana Piovani at the Golden Globes. –

Photo: Instagram/@luanapiovani/Famous and Celebrities

“Long live the Golden Globes and long live you, my love, who accompanied me and constantly gave me a hand, because I have very high heels and I have a problem knee,” the actress shared.

Luana Piovani revealed the reason for the breakup with Pedro Scooby

Actress Luana Piovani finally revealed the real reason behind his breakup with surfer and former BBB Pedro Scooby. In the documentary “A Vida é Irada, Vamos Curtir”, the actress recalled the tense moment they went through due to the inattention of the athlete, which eventually became the trigger for the divorce.

While they are traveling with their family, Pedro forgot to extend their stay, leaving Luana with nowhere to go with her children and several problems to deal with. “I had to leave before 13:00 the next day because the property was already rented out. With three children and twelve suitcases, Luna remembered. “When I hung up, I took the ring off my finger, put it on the table and said, ‘My marriage just ended.’ indicated.

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Portugal loses to meet Slovenia in the 1/8 finals of the Table Tennis World Cup – Observer

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Portugal loses to meet Slovenia in the 1/8 finals of the Table Tennis World Cup - Observer

The Portugal men’s table tennis team lost 3-1 to Denmark on Tuesday, but have already secured their place in the 1/8 finals of the World Team Championship, in which they will play with Slovenia.

Portugal, ranked ninth in the world rankings, proved itself in the previous two rounds against Slovakia with a score of 3:1 and against Brazil with a score of 3:2, thus guaranteeing not only access to the playoffs of the World Cup, which occupies a place in Chengdu, China, but also a victory in Group 6.

Without Marcos Freitas, the Portuguese player best positioned in the world hierarchy in which he is ranked 33rd, the national team won one game, Joao Heraldo, world number 49, over Anders Lind, 156th in the rankings, at 3- 1, with ends 11-9, 11-9, 8-11 and 11-5.

Diogo Chen (692nd), who replaced Marcos Freitas, lost the first two games he played in the tournament to Thor Christensen (891st) 3-0 (6-11, 9-11 and 8-11) and Anders Lind . , with a score of 3-1 (8-11, 11-6, 5-11 and 14-16), while João Monteiro (83rd) was surprised by Tobias Rasmussen (363rd) with a score of 3-0, with ends 12-14, 9-11 and 8-11.

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The Portuguese team could not get even with an exception introduced by Denmark in the round of 16 of the 2021 European Championship.which suffered its first setback in the competition and did not even shake the first place in the group, as it had the advantage of head-to-head with Brazil and Slovakia, who faced each other on Tuesday, with the South Americans winning 3-0.

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Portugal finished level with Brazil, while Slovakia was third and Denmark fourth, and will face Slovenia, the 14th team in the world, with Darko Jocic standing out as eighth in the individual pecking order and second in Europe.

The Slovenian national team, which beat Thailand (3:0), Puerto Rico (3:1) and the USA (3:0) in Chengdu and lost only to the hosts and the very favorite China (3:0), beat Portugal in the final of the Mediterranean Games 2022 year in Oran (Algeria).

Women’s representation, which reached the 1/8 finals of the World Cup for the first timewill play against Luxembourg, the 25th team in the world rankings.

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It costs less than 12 euros, is Portuguese and one of the best sparkling wines in the world.

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It costs less than 12 euros, is Portuguese and one of the best sparkling wines in the world.

HOURPortuguese sparkling wine is considered one of the best in the world. The Quinta de Santa Cristina proposal at Leça do Balio was the only national proposal to win a silver medal at the 2022 Champagne and Sparkling Wine World Championships.

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This was the eighth edition of these awards. Dedicated reference – Quinta de Santa Cristina Sparkling White Reserva 2017. website brand is sold at a price of 11.50 euros per bottle.

It contains 12% alcohol, and the winemaker was Jorge Souza Pinto. This is the only caste from Arinto. It is a good option to accompany seafood, fish, white meat dishes and some appetizers. It should be drunk at temperatures between 5ºC and 7ºC.

Two more medals were awarded to this manufacturer. Quinta de Santa Cristina Espumante Reserva Rosé 2016 and Quinta de Santa Cristina Super Reserva White 2014 won bronze medals at the same competition.

Not website races can have access to different winners.

It costs 11.50 euros.© DR

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