(Bloomberg) -- HSBC Holdings Plc raised its stake in its Chinese securities venture to 90%, giving Europe's largest bank a firmer foothold as it pushes to expand in the world's second largest economy.
The London-based bank raised its ownership in HSBC Qianhai Securities from 51% by partially buying out its partner, Qianhai Financial Holdings Co., which will retain a 10% stake, according to a statement. The transaction amount wasn't disclosed.
Along with other major banks, HSBC is pushing into China in the hunt for billions of potential profits in everything from brokering deals, to wealth management and insurance as the nation opens its financial markets.
While HSBC has had tense relationship with Beijing over its cooperation in a U.S. probe into Huawei Technologies Co. since 2019, the situation has since improved. The bank last year won regulatory approval to take full control of its life insurance venture in China after a wait of more than 1 1/2 years.
“China has one of the most significant capital markets in the world, supporting economic growth and investment opportunities,” said David Liao, co-chief executive 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.”
HSBC Qianhai Securities, which has investment banking and securities businesses, has its headquarters in Shenzhen, with offices in Beijing and Shanghai.
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