HSBC Holdings PLC denies rumours it will pull out of China, says it

HSBC Holdings PLC (LON:HSBA) has denied rumours circulated among internet users in China that it is planning to pull out of the country, saying that it will continue to invest in the Asian market.

On Friday, the banking giant posted on its official WeChat account saying the Chinese population should “reasonably” consider its positive role as an international bank.

READ: HSBC and Standard Chartered back imposition of Chinese security laws on Hong Kong

The rumours appear to have been sparked by news earlier this week that HSBC will be reviving plans to cut 35,000 jobs worldwide as part of a restructuring drive as its profits were hit hard by the coronavirus pandemic.

The bank is apparently looking to shift more of its business to Asia, where it already makes the bulk of its profits.

HSBC’s latest move to protect its interests in China follows a capitulation to China’s communist authorities earlier this month when it joined its competitor Standard Chartered PLC (LON:STAN) in backing the imposition of a controversial national security law on the semi-autonomous territory of Hong Kong following a year of pro-democracy protests in the city.

The new laws have attracted criticism from international human rights groups as well as opposition politicians in Hong Kong, who fear they will be used to silence opposition to the Chinese Communist Party. Fears were elevated earlier this week when it was revealed that the legislation may also allow the extradition of suspects to mainland China from Hong Kong, an issue that initially sparked the protests last year.

Shares in HSBC were 2.8% higher at 392p in mid-afternoon trading on Friday.