HSBC reaches deal to buy out China fund partner Jintrust Fund Management: sources
- HSBC strikes deal with Shanxi Trust under which the Chinese state-owned company will sell its entire 51 per cent holding in the joint venture to the bank
- HSBC, which currently owns a 49 per cent stake in HSBC Jintrust Fund Management, has eyes on China’s US$3.8 trillion fund management market
HSBC has agreed to buy out its China fund management joint venture partner, two people familiar with the matter said, as the Asia-focused bank pushes ahead with expansion in the world’s second-largest economy.
HSBC, which currently owns a 49 per cent stake in HSBC Jintrust Fund Management, has signed an agreement with Shanxi Trust under which the Chinese state-owned company will sell its 51 per cent holding in the joint venture to the bank, said the sources.
The transfer is, however, subject to a public auction of the shares and regulatory review and approval, said the sources, who declined to be identified as they were not authorised to speak to media.
If approved, Europe’s biggest bank by assets, which makes the bulk of its revenue and profit in Asia, will expand its presence in the US$3.8 trillion fund management market in China.
A spokesperson for HSBC in Hong Kong declined to comment. Representatives for Shanghai-headquartered HSBC Jintrust and Shanxi Trust did not immediately respond to a request for comment.