The Hong Kong Monetary Authority has clarified that the Financial Institutions (Resolution) Ordinance establishes the legal basis for the resolution regime in Hong Kong and sets out a clear order of creditor hierarchy. Holders of capital instruments, such as core equity capital, Additional Tier 1 (AT1) capital, and Tier 2 capital, should expect to be treated in resolution according to the priority they would have in a winding up scenario. Shareholders have the highest priority and would absorb losses first, followed by holders of AT1 and Tier 2 capital instruments. This response was given in response to media enquiries.
resource: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/03/20230322-3/