HSBC’s Chinese partner Shanxi Trust puts stake in HSBC Jintrust venture up for sale, leaves door open for UK bank to take control
- Shanxi Trust is selling a 31 per cent stake in HSBC Jintrust Fund Management, its joint venture with HSBC Holdings
- The stake has been up for sale for 1 billion yuan since June 29
Should the bank exercise its priority right, it will become the controlling shareholder of the fund management firm with an 80 per cent stake. Shanxi Trust, a trust and investment firm backed by the government of China’s Shanxi province, currently controls 51 per cent of HSBC Jintrust.
“HSBC is one of the largest foreign investors operating in China,” the bank said in an email response to the Post. “The group is open to opportunities to expand its businesses at the right moment and that are aligned to its strategic growth plans.”
Wall Street firms and other global financial giants have been strengthening their footing in China after regulators scrapped an ownership limit in the asset-management industry in 2020. JPMorgan Asset Management bought out its local venture with Shanghai Trust this year, and Morgan Stanley took full control of a fund unit that was jointly owned by Huaxin Securities.