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HSBC to help China’s poor
2 September 2004
HSBC is supporting a microcredit project that aims to reduce poverty in a remote, rural part of China by giving small loans to people who are too poor to qualify for traditional bank loans.
Mercy Corps Scotland - part of the international Mercy Corps network, a non-profit organisation headquartered in the US - approached HSBC to provide €100,000 (US$123,690) in funding to support the project over the next four years. Mercy Corps' aim is to alleviate suffering, poverty and oppression by helping people build secure, productive and just communities around the world.
The microcredit project will enable the people of Liuzhi - one of the poorest areas of China - to gain access to small loans at manageable rates without having to provide collateral, allowing them to become self-employed and support themselves and their families. The project also offers twice-monthly training sessions in basic agricultural methods, microbusiness development, day-to-day living issues and community health.
Alongside HSBC’s support of the project, the European Commission will provide a further €500,000 (US$618,450) to fund technical assistance and local training. In addition, loan funding of €600,000 (US$742,140) will be provided by the Chinese government.
About HSBC in mainland China
Established in Hong Kong and Shanghai in 1865, HSBC has had a continuous presence in China for 140 years. Reflecting its long-term commitment to the country, HSBC moved its China head office from Hong Kong to Shanghai in May 2000.
HSBC has the largest branch network among foreign banks in mainland China, comprising nine branches in Beijing, Dalian, Guangzhou, Qingdao, Shanghai, Shenzhen, Tianjin, Wuhan and Xiamen, two sub-branches in Puxi, Shanghai, and representative offices in Chengdu and Chongqing.
In August 2004, HSBC acquired a 19.9 per cent stake in Bank of Communications Limited, representing the largest single equity investment in a mainland China bank by a foreign bank.
Bank of Communications is China’s fifth largest bank with total assets of US$111.9 billion at 31 December 2003. It is one of only 15 commercial banks with a national banking licence, giving it the ability to operate without geographical restrictions. Headquartered in Shanghai, the bank has around 2,700 branches and outlets across 137 of the wealthiest cities in mainland China.
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