A member of the influential Business and Trade Committee has called for HSBC executives to be hauled in front of MPs to explain why it is blocking pension savings from British nationals who have fled Hong Kong. Joshua Reynolds MP told The Mail on Sunday he would 'welcome' the London-based bank appearing before the committee to answer questions on the issue.
The bank is sitting on £978 million of savings owed to tens of thousands living in the UK after they escaped a crackdown on pro-democracy activists by China. HSBC has refused to hand over the cash, which is held through a compulsory pension scheme called the Mandatory Provident Fund (MPF), saying a legal barrier prevents it from paying out the money. This is disputed by campaigners and MPs.
'It's quite shameful to see HSBC hide behind the lines given to it by the Chinese authorities. It is one of the world's largest and most trusted financial institutions and crucially a British one,' Reynolds said. 'I would welcome a Business and Trade hearing on their continued insistence that it has to take part in this injustice.'.
The call came after HSBC boss Georges Elhedery played down concerns over the blocking of the pension savings last week. When questioned at the bank's annual results on Wednesday, he said it was 'a matter of law' and HSBC had 'no discretion' in the matter.
Growing concern: HSBC is sitting on £978 million of savings owed to tens of thousands living in the UK after they escaped a crackdown on pro-democracy activists by China. Most Hong Kongers and their employers pay into the MPF during their working lives. HSBC and fellow London bank Standard Chartered are trustees for savings held through the scheme.
Hong Kongers can withdraw their pension early if they have permanently resettled overseas. To do so, they need to provide documentary proof that they are permitted to reside abroad. In 2021 Beijing and Hong Kong's pension regulator said they would no longer accept British National (Overseas) – BNO – passports as travel documents or forms of ID.
This was seen as retaliation after the UK Government said Hong Kongers with BNO passports could apply for a new visa to settle in the UK. The blocking of the pension pots has left thousands of emigres in dire straits as they adjust to a new life in Britain.
Chung Kim Wah, a former professor and opinion pollster who fled to the UK in 2022, told The Mail on Sunday he was being denied access to more than £400,000 in pension savings as a result of his accounts being frozen. He said his MPF savings are held through US investment firm Fidelity with HSBC as trustee.
Unlike most other exiles, who are seeking to withdraw savings early, Chung became eligible when he turned 65 last month. He said: 'I have sent an official claim form, but have yet to receive any formal reply from the trustee.'. Chung was one of the exiles who in December were put on a wanted list for national security crimes. Last month, his wife and son were quizzed by police in Hong Kong.
HSBC did not comment on Chung's case, but said: 'Hong Kong law sets the conditions under which a member may take pension benefits. Trustees have no discretion in this.'. Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
