HSBC’s new Chinese securities joint venture will be based in Shenzhen in the Pearl River Delta
HSBC Qianhai Securities Limited, the first joint venture securities company in mainland China to be majority-owned by a foreign bank, has formally opened for business.
Based in the Pearl River Delta, the joint venture, which is 51 per cent owned by HSBC, will initially cater to corporate and institutional clients. As well as helping Chinese companies to grow, it will help international businesses access Chinese capital markets.
The joint venture has obtained licences to offer services including equity and debt sponsoring and underwriting, equity research and brokerage of locally listed securities, advising on domestic and cross-border corporate mergers and acquisitions as well as investment advisory.
China is at the core of HSBC’s strategy and pivot to Asia
Peter Wong, Deputy Chairman and Chief Executive, The Hongkong and Shanghai Banking Corporation Limited, said: “China is at the core of HSBC’s strategy and pivot to Asia. The launch of the first majority-owned securities joint venture demonstrates our leadership among foreign banks in China and is a distinctive advantage for our clients here and around the world.
“We look forward to offering our clients a wide range of investment banking and financial markets solutions, which will complement HSBC’s existing banking services in China. HSBC is committed to playing its part in the development of China’s capital markets and helping its clients capture opportunities as they become increasingly open to global investors and issuers.”
While other financial institutions have established joint ventures on the Chinese mainland in the past, HSBC Qianhai Securities Limited is the first to be majority-owned by a foreign bank. HSBC’s stake gives it a key role in determining the company's strategy and direction.
Writing in July 2017, shortly after Chinese authorities gave regulatory approval for the joint venture, HSBC Group Chief Executive Stuart Gulliver said: “This is a landmark achievement that will increase access to China’s markets for our domestic and international clients.”