HSBC Increases Ownership Stake in its Chinese Securities from 51pc to 90pc

HSBC has increased its ownership stake in its Chinese securities venture, HSBC Qianhai Securities, from 51 to 90 percent, making it the latest foreign bank to seek greater control of its onshore business. HSBC's JV partner, Qianhai Financial Holdings, will retain a 10 percent stake in the venture. The value of the stake sale was not disclosed.

HSBC Qianhai Securities was set up in 2017 under the Closer Economic Partnership Arrangement between Hong Kong and the mainland. Headquartered in Shenzhen and with offices in Beijing and Shanghai, it primarily engages in securities underwriting, brokerage and investment advisory services.

"China has one of the most significant capital markets in the world, supporting economic growth and investment opportunities," said David Liao, co-CEO of HSBC Asia-Pacific.

"Our increasing stake in HSBC Qianhai Securities reflects our commitment in developing China's rapidly growing capital markets, and bolsters our presence in a key market for the HSBC Group, where we will continue to provide both clients in China and those overseas with professional financial services."

HSBC generates a majority of its revenue from Asia. Last year, the bank said it would invest USD 6 billion in the region over a five-year period, including to amplify its wealth management business as it looks to capitalise on China's future growth and opportunities from the GBA (Greater Bay Area).

The bank also won regulatory approval last year to take full control of its life insurance venture in China after waiting more than one and a half years. Established since 2009, HSBC Life China is headquartered in Shanghai and is present in nine other mainland cities.

HSBC is also looking to capitalise in other APAC countries. In February, it acquired 100 percent of the issued share capital of AXA Insurance in Singapore for USD 529 million​. Last last year, it also agreed to acquire L&T Investment Management in India for USD 425 million.

Source: Regulation Asia