HSBC on the march in China
(7 March 2007 – China) HSBC is set to open another 20 branches and add about 1000 new staff in mainland China this year.
HSBC more than doubled its pre-tax profit for 2006 in mainland China to US$708 million.
HSBC currently has 51 branches in mainland China but also has access to Hang Seng Bank’s distribution network due to its 61 percent stake.
The move will come once HSBC is incorporated into China’s banking system. The bank, which is the largest foreign banking player in China, applied for incorporation at the end of February.
China must provide foreign banks access to the country’s banking market as part of its World Trade Organisation obligations.
HSBC and other international banks such as Standard Chartered and Citibank are minnows in China when compared to local banks such as Industrial & Commercial Bank of China which has some 18,000 branches.
HSBC currently has 51 branches in mainland China but also has access to Hang Seng Bank’s distribution network due to its 61 percent stake.
The move will come once HSBC is incorporated into China’s banking system. The bank, which is the largest foreign banking player in China, applied for incorporation at the end of February.
China must provide foreign banks access to the country’s banking market as part of its World Trade Organisation obligations.
HSBC and other international banks such as Standard Chartered and Citibank are minnows in China when compared to local banks such as Industrial & Commercial Bank of China which has some 18,000 branches.
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