HSBC to take full control of its Chinese life insurance joint venture
- HSBC latest foreign bank to take advantage of new rules to further open up China’s financial services sector
- The acquisition is the latest big bet by HSBC on future growth in the mainland
HSBC said on Monday it had agreed to buy out its life insurance joint venture partner in China, the latest foreign firm to take advantage of new rules designed to further open up the financial services sector in the mainland.
The bank, which is based in London, but generates most of its revenue in Asia, said it would acquire the remaining 50 per cent it does not own in HSBC Life Insurance Company, also known as HSBC Life China, from its Beijing-based partner National Trust. Details of the transaction were not disclosed.
The acquisition is HSBC’s latest bet on growth in the mainland.
“Despite the current difficult environment engendered by the Covid-19 pandemic, we continue to take steps to implement our growth strategy,” Noel Quinn, the HSBC chief executive, said in a statement. “This transaction supports our ambition to accelerate growth within our Asian franchise, particularly in the dynamic and fast-growing Greater Bay Area, where we fully intend to expand in all lines of businesses.”