HSBC launches private banking in China
(31 March 2008 – China) HSBC has gained regulatory approval to offer private banking services to China’s high wealth individuals.
The regulator has given HSBC approval to offer services to individuals in Shanghai, Beijing and the southern city of Guangzhou.
Along with these geographical restrictions, HSBC will target those individuals that have a minimum net worth of $US10 million. Initial deposits for an account are planned to be $US1 million.
The potential market share could be quite large, with a recent Merrill Lynch report indicating that there are more than 345,000 millionaires in China.
Monica Wong, HSBC private bank chief executive for Asia said that the creation of wealth in China is a unique phenomenon in that greater wealth is being generated by a relatively younger age group as compared to the rest of the world.
HSBC has set up a wholly owned China unit and has taken advantage of recent changes to Chinese regulation which means that foreign banks can deal directly with Chinese individuals in local currency.
Along with these geographical restrictions, HSBC will target those individuals that have a minimum net worth of $US10 million. Initial deposits for an account are planned to be $US1 million.
The potential market share could be quite large, with a recent Merrill Lynch report indicating that there are more than 345,000 millionaires in China.
Monica Wong, HSBC private bank chief executive for Asia said that the creation of wealth in China is a unique phenomenon in that greater wealth is being generated by a relatively younger age group as compared to the rest of the world.
HSBC has set up a wholly owned China unit and has taken advantage of recent changes to Chinese regulation which means that foreign banks can deal directly with Chinese individuals in local currency.
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