The pro-democracy League of Social Democrats (LSD) has written to HSBC, urging the bank to reverse a decision to close their accounts.
The opposition party – one of the city’s last – had been using the accounts to receive donations. According to external vice chairperson Dickson Chau, the bank first said the account would be closed in late February, though no reason was given.
In a letter to the UK-headquartered bank dated Monday, LSD leader Chan Po-ying demanded a “proper explanation.”
“Despite the chilling hardship in the civil society, we are trying to stay afloat and continue to voice for the voiceless. However, by terminating our bank accounts, HSBC shuts down our only means to receive public donations, which in effect, will directly drive the League of Social Democrats, one of the few remaining pro-democracy political parties in the city, into closure,” Chan wrote.
“As such, your bank’s decision will reduce the freedom of expression and freedom of choice of ordinary Hongkongers and is in violation of your bank’s commitments to up hold The UN Guiding Principles on Business and Human Rights,” she added.
The letter, seen by HKFP, stated that, in 2020, then-CEO of HSBC Asia Pacific Peter Wong signed a petition in support of the looming national security law in Hong Kong.
In an earlier response, dated May 17, HSBC reportedly told the LSD: “[W]e kindly request your understanding as we have carefully taken into account multiple factors and conducted a comprehensive assessment prior to reaching this decision.”
The three bank accounts in question were the only ones held by the LSD in Hong Kong. It later emerged that the personal accounts of members had also been shuttered by HSBC, Hang Seng Bank and the Bank of China.
Fundraising woes
The leader of LSD, Chan, was convicted in March of collecting money in a public place without permit. Speaking to reporters outside court, Chan said the verdict could have a severe impact on the way small parties raise funds and “the room for us to exist has again shrunk.”
Following news of the closures on June 2, vice-chair Dickson Chau told HKFP: “This incident showed how difficult it is for civil organisations that did not opt to dissolve to survive now. It’s obvious that this is a political decision.”
In a reply to HKFP at the time, HSBC said all banks, including HSBC, regularly reviewed customers’ account activities and relationships. “We may decide that we will no longer be able to maintain the banking relationships with certain customers,” the bank added.
Last October, PayPal Hong Kong halted services for LSD due to unspecified “excessive risks.” The payment platform never explained what the “excessive risks” were, according to the LSD.
National security police also searched the homes of six members of the LSD ahead of last year’s anniversary of the city’s return to Chinese rule.
In June 2020, Beijing inserted national security legislation directly into Hong Kong’s mini-constitution – bypassing the local legislature – following a year of pro-democracy protests and unrest. It criminalised subversion, secession, collusion with foreign forces and terrorist acts, which were broadly defined to include disruption to transport and other infrastructure. The move gave police sweeping new powers, alarming democrats, civil society groups and trade partners, as such laws have been used broadly to silence and punish dissidents in China. However, the authorities say it has restored stability and peace to the city.
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