Search
  • Inna Ri

Hong Kong national security law may spook socially conscious investors, sparking outflows



By Huileng Tan

KEY POINTS


  • Critics say the new law grants the central government in Beijing sweeping powers to clamp down on dissent in the Chinese territory, which saw more than a year of protests that sometimes turned violent.

  • “It’s one thing for congress and Trump to make political statements. It’s another thing for the funds themselves in Europe and in the United States to take a position based upon the optics of supporting an increasingly oppressive political climate,” Collier told CNBC’s “Street Signs.”

  • On Tuesday, HSBC investor Federated Hermes said in a statement it was concerned about the bank’s support for the new law.

Investors who take a sustainable approach to allocating capital may be reevaluating putting their money into Hong Kong after the city implemented a national security law, an analyst said on Friday.

“That’s the one area of international capital flows that could be quite significant,” said Andrew Collier, managing director of Orient Capital Research, a research firm.


Sustainable or “ESG” investing factors in a company’s environmental, social and governance ratings. These strategies vary and are subjective, but generally aim to make socially conscious investing decisions.

Hong Kong has seen more than a year of protests that sometimes turned violent as residents pushed back against eroding freedoms in the city. Critics say the recently implemented national security law grants the central government in Beijing sweeping powers to clamp down on dissent in Hong Kong.

U.S. Secretary of State Mike Pompeo called the law “draconian” and said it “ends free Hong Kong.” Before China’s law was implemented, the U.S. Senate passed a bill that would impose sanctions on people or companies that “materially contribute to China’s failure to preserve Hong Kong’s autonomy.”

“It’s one thing for Congress and Trump to make political statements. It’s another thing for the funds themselves in Europe and in the United States to take a position based upon the optics of supporting an increasingly oppressive political climate,” Collier told CNBC’s “Street Signs Asia.”

On Tuesday, HSBC investor Federated Hermes said in a statement it was concerned about the bank’s support for the new law.


“We expect companies to support improvements in protections for citizens and not back their removal,” said Roland Bosch, Federated Hermes’ sector lead for financial services. Bosch is responsible for corporate engagements in Europe and the U.S.

HSBC did not immediately reply to a CNBC request for comment.

This could just be the tip of the iceberg, said Collier. He suggested other funds may be pushed by labor unions. For example, retired teachers’ funds are likely “not going to be very happy with what’s going on in Hong Kong,” he added.

Large funds may start to readjust investment protocols and operations in Hong Kong, affecting the city’s position as a international financial center, said Collier.

Earlier in June, Aviva Investors had expressed similar concerns about both HSBC and Standard Chartered before the law was implemented.

The firm, a top shareholder of both banks, said it was “uneasy” with the public support for the law. It said it expects “both companies to confirm that they will also speak out publicly if there are any future abuses of democratic freedoms connected to this law.”


CNBC

World Forex Award

PDF guide: https://bit.ly/wfaguide20

WFA materials and security issues: http://bit.ly/wfaguide

FAQ: https://www.worldforexaward.com/

About WFA: https://www.worldforexaward.com/

#forexbrokerawards

#forexaward

#forexawards2019


0 views
Forex Award | World Forex Award |  The Best Forex Broker

World's Prestigious

Forex Award !

Contact Us
Our Address:

World Expo Solutions LLC

Greater London,

207 Regent Street

Company Number 12065454

Phone:

+448000418941

  • Forex Award | World Forex Award | Best Forex Broker
  • Forex Award | Forex Brokers Award
  • Forex Award | Forex Brokers Award
  • Forex Award | Forex Brokers Award
  • Forex Award | Forex Brokers Award
  • Forex Award | Forex Brokers Award
  • Forex Award | Forex Brokers Award
  • Forex Award | Forex Brokers Award
  • Forex Award | Forex Brokers Award
  • Forex Award | Forex Brokers Award
  • Forex Award | Forex Brokers Award
  • Forex Award | Forex Brokers Award
  • Forex Award | Forex Brokers Award

Cookies 

Cookies are small text files that a web site transfers to a site visitor’s hard disk or browser for added functionality, or for tracking web site usage. We do not use cookies to gather personal information such as a person’s name or e-mail address. In order to measure the effectiveness of our on-line presence, The European Business Award website may use cookies to identify repeat visitors to our site and to determine the path visitors take on our site. Any information gathered by the use of cookies is compiled on an aggregate, anonymous basis.

Use of cookies is an industry standard and many web sites use them. If you do not wish to receive cookies, or want to be notified of when they are placed, you can set your web browser to do so, if your browser so permits.

* Partner companies are those Sponsors and organisations who support the World Forex Award  and also follow in the aims and principles of the Awards - towards creating a more successful European economy.

© 2015-2020 World Forex Award NPO