HSBC has raised its stake in its Chinese securities joint venture, HSBC Qianhai Securities, to 90% from 51%, the UK bank announced on Wednesday.
The Asia-focused lender acquired the additional stake from its joint venture partner Qianhai Financial Holdings, which retains a 10% stake.
“Our increasing stake in HSBC Qianhai Securities reflects our commitment in developing China’s rapidly growing capital markets,” David Liao, co-chief executive of HSBC Asia-Pacific, said.
“It 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.”
In January, state-owned Qianhai Financial Holding said it would auction the 39% stake in ownership with an asking price of 1.26 billion yuan ($198 million), a filing from Shenzhen United Property and Equity Exchange showed.
HSBC, which won Chinese regulatory approval for the joint venture in 2017, was expected to bid for the stake as part of its expansion in the world’s second-largest economy.
HSBC Qianhai Securities is HSBC’s investment banking and securities flagship in China.
It is headquartered in Shenzhen, at the heart of the Greater Bay Area, with offices in Beijing and Shanghai.
- George Russell, with Reuters