HSBC rolls out another branch in Shanghai
By Wang Zhenghua (China Daily)
Updated: 2006-05-31 09:10
HSBC, Europe's biggest bank, rolled out a new sub-branch yesterday in the
city in a move to quicken its expansion in China.
The bank's fifth outlet
in Shanghai, the Kirin Plaza sub-branch, is designed to meet the needs of both
retail and commercial banking customers.
The lender has expanded its
network presence in China to 23 outlets, including 12 branches and 11
sub-branches.
Meanwhile, the Hong Kong-based Hang Seng Bank 62 per
cent owned by HSBC, opens a fourth sub-branch in Shanghai today.
"We are
delighted to be able to extend our services to one of Shanghai's most dynamic
districts," Richard Yorke, chief executive officer of HSBC China, said
yesterday.
"The four Chinese cities that we are focused on (Beijing,
Shanghai, Shenzhen and Guangzhou) correspond in terms of the number of
inhabitants to a reasonably large European country," he said.
"It
therefore makes sense to capture this attractive retail market by opening up
sub-branches," he said. "It's important for a bank to be close to its customers,
especially in a country as large as China."
China is regarded at the
heart of HSBC's strategy, and its importance is reflected in the scale of the
bank's investment.
As of 2005, the lender's total equity investment had
exceeded US$4 billion the largest of any foreign investor.
It
includes an 8 per cent stake in Bank of Shanghai, a 19.9 per cent stake in Ping
An Insurance and a 19.9 per cent in Bank of Communications, the country's fifth
largest lender.
It has filed applications for representative offices in
Hangzhou and Ningbo in East China's Zhejiang Province, and Dongguan in South
China's Guangdong Province.
The lender has obtained the approval to set
up a branch in Hangzhou, which is expected to open later this
year.
Foreign lenders have begun to look beyond providing only retail and
commercial banking services.
At yesterday's press conference prior to the
opening ceremony in Kirin Plaza, HSBC's President and Chief Executive Officer
Michael Smith said: "It's sensible for HSBC to co-operate with new
ventures."
He said the bank would not rule out the possibility of linking
up with the Bank of Communications in fund management, as long as government
policy allows the deal.
Fund management has become a focus for foreign
banks since the launch of the qualified domestic institutional investors (QDII)
scheme last month.
Under the scheme, qualified financial institutions,
such as commercial banks, insurers and fund companies, are allowed to invest
overseas.
Many Hong Kong banks believe they have the capability to help
maximize returns.
Also, the Interim Provisions on the Administration of
Overseas Investment by the National Social Security Fund took effect earlier
this month, indicating China has finally cleared all the hurdles necessary to
allow the fund to invest overseas.
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