HSBC has become the first foreign bank with investment business in mainland China to set up a Chinese Communist Party (CCP) committee as part of its operations, according to a July 21 Financial Times report.
HSBC Qianhai is a securities joint venture between HSBC and Qianhai Financial Holdings. After HSBC’s stake in the joint venture increased from 51 to 90 percent it established a CCP committee, the Financial Times reported, citing two people familiar with the matter.
The article noted that the British multinational has not yet commented on the matter, but people with close ties to the bank stressed that HSBC would not have any Party committee members in a management role like other Chinese state-owned enterprises….