Select a page

Banking News

HSBC get China approval after 2 year wait

HSBC get China approval after 2 year wait

(7 June 2017 – China) HSBC has received approval from the China Securities Regulatory Commission (CSRC) to set up majority-owned joint venture (JV) in China.

The bank had announced its plan to establish a JV in China in late 2015, with an aim to improve profits in the fast growing southern Chinese region.

HSBC’s partner in the JV is a local government-backed firm, Qianhai Financial Holdings. The company will hold 51 percent interest in the JV, HSBC Qianhai Securities Limited. Based in the Qianhai special economic zone in the city of Shenzhen, the JV is expected to be launched by the end of this year.

HSBC will be investing 918 million yuan (A$178 million) for its majority stake in HSBC Qianhai. The JV will be providing equity and debt underwriting as well as M&A advisory services. Also, it will be conducting equity research and brokerage activities on the local firms.

The JV received regulatory approval under the agreement between Hong Kong and mainland China that permits ‘Hong Kong-funded’ financial firms to establish one such business in several big Chinese cities.

HSBC Chief Executive Stuart Gulliver said, “The establishment of this joint venture is an important step for HSBC to deliver on our strategic commitment to invest in and grow our business and operations in mainland China.”

Having announced the plan to expand its operations in the southern Pearl River Delta region of China  in 2015, it stalled due to the country’s economic slowdown.

East & Partners's avatar

Comment on this article

 

Your comments will not be published. Required fields are marked *

 

Please enter the word you see in the image below:


Subscribe

Subscribe to our mailing list

Sign up now to keep up-to-date with the latest
market news and insights in B2B banking.

* indicates required

For more information please read our Terms and Conditions and Privacy Statements.