HSBC China securities joint venture to quadruple China research coverage
- HSBC Qianhai Securities targets 400 companies in two years
- HSBC was first international bank to have majority ownership
Shenzhen-based HSBC Qianhai Securities, run in conjunction with a local government investment vehicle holding 49 per cent, began operating a year ago offering equity and debt underwriting, research and broking as well as merger and acquisition advice and investment advisory work.
In addition to the 280 Chinese companies covered already by the bank, HSBC Qianhai has added more than 80 mainland-listed stocks since it opened, and plans to have expanded that to 400, according to Irene Ho, chief executive of HSBC Qianhai, in an interview with Reuters.
“We expect to get to 400 in two years – there or there abouts,” Ho said.
HSBC is working to take advantage of what executives believe is a three-year head start on international rivals because of its majority control, which it gained by virtue of rules favouring Hong Kong businesses.
Last Friday UBS became only the second bank to gain approval for 51 per cent control under a broader relaxation of financial-sector ownership by Beijing.
The opening up of China’s financial sector promises huge opportunities for international players, until now mostly operating on the margins of mainland markets.