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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Banks

HSBC increases stake in Chinese JV as eastern expansion continues

HSBC is betting on rising incomes in the Greater Bay Area and other parts of China.

HSBC Holdings PLC (LSE:HSBA) (HSBC Holdings PLC (LSE:HSBA)) has increased its stake in its China securities brokerage to 90% as its shift eastwards continues.

The London-based bank previously owned 51% of HSBC Qianhai Securities.

Qianhai Financial, HSBC’s joint venture partner, will retain 10% of the venture after the transaction though no other financial details were released.

HSBC has made no secret of the fact that its future lies in the eastern hemisphere rather than its traditional markets of the UK and US.

The bank announced last year it would invest US$6bn over a five-year period in Asia, including a substantial investment in its wealth management operations in the region, as it looks to expand in China and other regions of Asia to tap into the growing wealth of the region’s middle-class.

As part of its Asia push, HSBC is moving four senior executives to Hong Kong and hiring more employees for HSBC Pinnacle, its digital wealth planning venture on the mainland.

Shares in HSBC dropped 1.3% to 520.6p.

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