HSBC is investing in an ambitious expansion plan to open 12 new mainland outlets next year in an effort to target wealthy customers
HSBC HAS ITS EYES on wealthy Chinese customers who may be lured from their existing local banks, it believes, by a lender with an international reach and a superior range of products and services.
From today, when the last of the restrictions on foreign banks operating in China are lifted - clearing the way for them to enter the domestic retail market - HSBC will immediately target such 'premier' customers and their substantial deposits, according to HSBC's local chairman Vincent Cheng Hoi-chuen in an exclusive interview with Net Worth.
'China's commitment to open its banking market completely will be a defining moment for foreign banks - a major breakthrough,' says Mr Cheng. 'So we are looking forward to and are prepared for that.'
In its bid to reach out to the rich, HSBC will make significant new investments over the next 12 months, Mr Cheng adds. On the cards, subject to approval, are plans to open up to 12 new outlets - 'two to three new city branches and 10 sub-branches' - and add a further 1,000 front-office staff to its mainland workforce.
As a frontrunner among foreign banks operating on the mainland - with 26 outlets in 13 cities and strategic stakes in two local institutions - the ambitious expansion targets set by HSBC for the next year signal how intense the competition between local and foreign banks is set to become.
But as Net Worth goes to press, questions remain over the freedom that foreign lenders will enjoy to immediately begin growing their loan portfolios from today.
