HSBC Becomes First Foreign Bank To Launch Chinese Communist Party Committee

One of the world's biggest banks, and Europe's second-largest lender, is showing that it's playing by China's rules. From a report: London-headquartered HSBC has become the first international bank to establish a Chinese Communist Party (CCP) committee, according to a new Financial Times report. China's companies law requires firms to set up CCP committees, but this rule has been loosely enforced among global financial institutions -- until now. HSBC's move could pave the path for other global lenders to follow suit, and underscores the delicate line that China-based foreign banks are now toeing between Beijing and the West. HSBC's China investment bank, known as HSBC Qianhai Securities, recently formed the CCP committee, as per the FT report that cited two people familiar with the decision. In China, company employees can initiate CCP committees, which are typically made up of three or more staff. The committees have two functions: to act as a workers' union, and to facilitate installing a party representative to a company's top ranks.

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