HSBC confirms staff in China unit set up branch of China’s Communist Party

A Chinese national flag flies in front of HSBC headquarters in Hong Kong

LONDON (Reuters) – HSBC Holdings Plc said employees had formed a branch of China’s Communist Party (CCP) within its securities brokerage unit in the country, following media reports on Thursday.

HSBC said such branches “are common and can be set up by as few as three employees,” and that they had no influence on the business nor formal role in its day-to-day activities.

The statement followed a report in the Financial Times citing two people familiar with the mattter as saying that HSBC had installed a Chinese Communist party committee (CCP) within the business.(

(Reporting By Lawrence White and Anshuman Daga, editing by Sinead Cruise)