Enraged retail investors of HSBC in Hong Kong have invoked the Securities and Futures Commission in the latest development of the HSBC dividend cancellation fiasco. A 500-strong group that claimed to be HSBC shareholders assembled at the offices of the Securities and Futures Commission (SFC), urging the local regulator to intervene and help reverse a decision by the British lender to scrap dividends on Bank of England orders. Leading the group was local politician Christine Fong Kwok-shan.
The [Prudential Regulation Authority] orders have hit many retirees hard in Hong Kong, including my father who invested in HSBC shares for decades,» Fong said, according to a report that claimed SFC staff accepted the letter without commenting.
We understand that HSBC canceled dividend payments at the order of the British regulator. As usual, it needs a regulator to talk to another regulator.
The new group joins the growing coalition of pro-dividend shareholders that include the Hong Kong Federation of Trade Unions, which boasts 420,000 members, and a self-dubbed HSBC Shareholder Alliance of allegedly 600 owners of HSBC stock.
Despite the fact that dissatisfied investors have no legitimate case to push for a reversal, they continue nonetheless to mobilize in order to meet the 5 percent shareholder threshold to trigger an extraordinary general meeting and have their demands directly heard. As of Thursday, 3 percent of shareholders have pledged their support.
We profoundly regret the impact this will have on you, your families and your businesses, said HSBC chief executive Noel Quinn in a rare letter earlier this week directly addressing Hong Kong shareholders earlier this week. We are acutely aware of how important the dividend is to our shareholders in Hong Kong. We deeply value your support as a shareholder and we never take that for granted.
