HSBC's loss | Zhou Haoding questioned the government's violation of regulations

Political situation

Written by: Wu Zhuoan

2020-05-13 12:23

On February 18 of this year, HSBC announced the distribution of the fourth dividend for 2019 on April 14 of this year, with February 27 as the ex-dividend date, but on March 31, HSBC announced that it had responded to the Demand to decide to cancel the distribution of the declared dividend and decide to suspend the payment of quarterly or interim dividends before the end of this year.

The Secretary for Financial Affairs and the Treasury, Xu Zhengyu, said in response to a written question from Members that whether the abolition of dividends violates relevant regulations depends on individual circumstances and is difficult to generalize. He also pointed out that if violations of regulatory requirements are found, the SFC will take appropriate measures Act or make appropriate comments or announcements.

Secretary for Financial Affairs and the Treasury Xu Zhengyu (Photo / Photo by Zhang Haowei)

Government: In the past, companies have cancelled dividends

Zhou Haoding, a member of the Democratic Alliance for the Betterment of Hong Kong (DAB), asked whether there have been any incidents in which listed companies cancelled dividends after the announcement of dividends, and whether the practice violated relevant regulations. Xu Zhengyu pointed out that the dividend policy and arrangement of listed companies is a business decision made by the company's board of directors after considering a series of factors. In the past, listed companies have made decisions to cancel dividends, such as Zhongtao Environmental Group Co., Ltd. in 2019. Withdrawal of the 2018 interim dividend, but the individual circumstances of each company are different and should not be compared.

Xu Xu pointed out that the dividend payment arrangement of listed companies should comply with the company law of their registered place and the provisions of their articles of association. The Securities and Futures Ordinance and the Listing Rules require listed companies to publish their dividend information and dividends in a timely manner. Arrange relevant changes to ensure the transparency of market information. Whether the cancellation of dividends violates the relevant regulations depends on individual circumstances and is difficult to generalize.

HSBC lost interest | The Federation of Trade Unions and the minority shareholder general manager protested against the epidemic and hit the purse to urge the Hong Kong government to investigate

Loss of HSBC │ Liang Zhenying advocates the government-people joint construction of "Hong Kong Bank" Cup GE HSBC: Don't buy if you have money

【New Year's Day Parade】 HSBC was smashed into a conflict detonation point, police detained 5 people petrol bombs VS tear gas

The government stated that it understands and understands that HSBC ’s decision will have a certain impact on shareholders. Some shareholders are therefore disappointed and dissatisfied. Banks incorporated in the UK (including HSBC) are subject to the supervision of the Prudential Regulation Authority of the Bank of England and follow the relevant regulations. The requirement also refers to the HKMA ’s sub-branch of HSBC in Hong Kong to reflect the concerns of Hong Kong shareholders to its group, and the HKMA has also informed the Prudential Regulatory Authority ’s views on Hong Kong shareholders in daily regulatory communications, emphasizing that the SFC also It will perform its statutory regulatory functions in accordance with the Securities and Futures Ordinance. If any violation of regulatory requirements is found, the SFC will take appropriate action or make appropriate comments or announcements.

The government also pointed out that since the shareholders of listed companies such as HSBC are generally from different jurisdictions, the choice of dividends (such as the choice to receive cash dividends or dividends) is different, so it is difficult to evaluate the company ’s cancellation of dividends for Hong Kong ’s economy. The situation and the impact of investor confidence. On the whole, they believe that the dividend policy and arrangements of individual listed companies will not affect the overall competitiveness of the Hong Kong securities market.

HSBC HSBC Zhou Haoding DAB Legislative Council Financial Affairs and Treasury Bureau