(3 February 2010 – Hong Kong) HSBC has dismissed reports claiming the bank is planning an investment into one of China’s top three lenders.The bank, which has a 19 percent stake in the Bank of Communications issued a statement after a report, published by the Sunday Telegraph, claimed that HSBC was looking to acquire a 51 percent share in one of China’s major banks.
The banks, according to the paper’s unidentified source, were the Industrial and Commercial Bank of China, Bank of China, and China Construction Bank; the source also claimed that HSBC was considering an asset swap of HSBC’s Hong Kong division, Hang Seng Bank, or the sale of its share in Bank of Communications.
HSBC’s CEO, Michael Geoghegan said in a statement that the banking giant would focus on investing in Chinese businesses, but could only do so at the pace of the Chinese government.
HSBC has a major investment in Bank of Communications in China and we are comfortable with that, Mr Geoghegan added.