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Finance

HSBC installs Communist Party committee in Chinese investment bank

Lender is highly exposed to escalating geopolitical rivalry between China and West

HSBC's move will pressure other foreign banks to follow suit.    © Reuters

HONG KONG (Financial Times) -- HSBC has become the first foreign lender to install a Chinese Communist Party committee in its investment banking subsidiary in the country, a move that underlines the tension facing the bank as it tries to navigate between Beijing and the West.

The lender's China investment bank, HSBC Qianhai Securities, recently established a CCP committee, according to two people familiar with the decision. The move came after HSBC lifted its stake in the joint venture, which it launched in 2015, to 90% from 51% in April.

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