HSBC is under fire from Hong Kong shareholders after suspending dividend payments. The Bank of England had requested that major banks halt payouts to conserve capital during the COVID-19 crisis.

The dividend cancellation has particularly affected small shareholders in Hong Kong, many of whom rely on the payouts for income. Some investors are reportedly considering legal action.

HSBC’s management has acknowledged the concerns and is attempting to address the situation. However, the Bank of England’s directive leaves them with limited options in the short term.

The situation highlights the difficult balancing act facing financial institutions as they attempt to navigate the economic fallout from the pandemic while also meeting the needs of their investors.