HSBC Holdings PLC apologized to customers in Hong Kong after an update to its online and mobile banking terms stoked fears over overseas access to its services in the territory.
The quick mea culpa by Hong Kong’s biggest bank — triggered by a Twitter post — underscores growing concerns in the territory over not only civil society, but also pressures on businesses as China tightens its grip.
Banks are trying to navigate an increasingly fraught political environment.
Photo: Reuters
The Hong Kong government last week used them as a hammer to shutter the territory’s premier pro-democracy newspaper, the Apple Daily, ordering seven lenders against dealing with the company.
The banks involved have not been identified.
Access to funds in Hong Kong is becoming a sensitive topic, with thousands of Hong Kongers leaving for the UK and other places as freedoms are restricted.
Against that backdrop, Hong Kongers were spooked after a Twitter post on Tuesday shared a link to updated online and mobile banking terms on HSBC’s Web site.
The bank announced changes to its terms from July 26, saying that customers might not be able to use online or mobile banking outside of Hong Kong.
The incident was widely reported by major local newspapers, including the Chinese-language Ming Pao, Sing Tao Daily and the Hong Kong Economic Times.
On LIHKG, one of Hong Kong’s largest online forums, a post on HSBC has more than 800 comments since late on Tuesday, with some people saying that they would transfer funds to other banks.
HSBC was quick to reassure customers that there were no changes and that it only had combined terms for its Internet banking, mobile app and mobile security key into one document.
“HSBC Hong Kong customers can continue to access banking services through Online Banking and Mobile Banking outside of Hong Kong SAR [Special Administrative Region],” a spokeswoman said. “There is no plan for any amendment of the services. There are similar cross border disclosures in other markets.”
The bank also placed a “Special Announcement” pop-up on its mobile app, saying that there was no plan to change services.
It is not the first time that HSBC has found itself in a hot spot. Late last year, it was forced to freeze the account of an exiled former lawmaker, Ted Hui (許智峯), after which chief executive officer Noel Quinn was called in for questioning by UK lawmakers.
Quinn, who also reached out to Hui personally to explain, said that the bank had no other options than to comply with local regulations.
The lender has also been criticized for publicly endorsing the Beijing-imposed National Security Law, and had its branches and main office vandalized during the protests in 2019.
Standard Chartered PLC, another bank operating in the territory, also backed the legislation.
“HSBC hasn’t clearly explained why those terms are there, but I believe if Hong Kong customers immigrate overseas, they usually have set up offshore accounts already,” Territory University of Hong Kong economics professor Law Ka-chung (羅家聰) said. “But if someone has to leave Hong Kong urgently and doesn’t have an offshore account yet, that’ll cause uncertainties and worries.”
Analysts at Bank of America Corp have said that emigration-related outflow of money to just the UK could reach HK$280 billion (US$36 billion) this year, and HK$588 billion over the next five years.
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