First majority-owned joint venture securities company by a foreign bank
Offers broad spectrum of securities and investment banking services nationally
The Hongkong and Shanghai Banking Corporation Limited today announced it has received
approval from the China Securities Regulatory Commission (CSRC) to establish its
majority-owned joint venture securities company with Qianhai Financial Holdings Co., Ltd.
(formerly known as Shenzhen Qianhai Financial Holdings Co., Ltd.).
The joint venture securities company – HSBC Qianhai Securities Limited – will be based in
the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen
in mainland China’s Guangdong province. HSBC Qianhai Securities Limited will engage in
equity research and brokerage of locally listed securities; equity and debt underwriting and
sponsoring; and advising on domestic and cross-border corporate mergers and acquisitions.
The joint venture is expected to begin operating by the end of the year.
Stuart Gulliver, Group Chief Executive, HSBC Holdings plc, said: “The establishment of this
joint venture is an important step for HSBC to deliver on our strategic commitment to invest
in and grow our business and operations in mainland China. Under the joint venture, we will
be able to offer clients a broad spectrum of investment banking and financial markets
solutions in mainland China, as we do in Hong Kong, the UK or HSBC’s other major
The joint venture has been made possible under Supplement X of The Mainland and Hong
Kong Closer Economic Partnership Arrangement (CEPA), which states Hong Kong-funded
financial institutions that satisfy the requirements for establishing foreign-invested securities
companies are allowed to set up one fully licensed joint venture securities company each in
Shanghai, Guangdong Province and Shenzhen in accordance with relevant Mainland
requirements. HSBC’s 51 per cent ownership is the maximum percentage of aggregate
shareholding for a Hong Kong-funded institution in a joint venture securities company. The
joint venture will apply for the various licences in stages.
Peter Wong, Deputy Chairman and Chief Executive, The Hongkong and Shanghai Banking
Corporation Limited, said: “HSBC is proud to be the first Hong Kong-funded financial
institution to set up a majority-owned joint venture securities company in mainland China.
We are delighted to receive this approval on the occasion of the 20th anniversary of the
establishment of the Hong Kong SAR. Once operational, this securities company will
expand HSBC’s product offerings in China. Both our Mainland and foreign clients will be
able to enjoy more comprehensive financial services from HSBC and in the future benefit
from the further growth and liberalisation of mainland China’s capital markets.”
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Notes to editors:
Qianhai Financial Holdings Co., Ltd.
Qianhai Financial Holdings Co., Ltd. (QFH) is a wholly state-owned financial holding company founded by the
Authority of Qianhai Shenzhen–Hong Kong Modern Service Industry Cooperation Zone (Authority) with
registered capital of around RMB9bn. QFH was established as the strategic investment platform of the
Authority to promote financial innovation in Qianhai.
HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers
worldwide from approximately 4,000 offices in 70 countries and territories in our geographical regions: Europe,
Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,416bn at 31
March 2017, HSBC is one of the world’s largest banking and financial services organisations.
The Hongkong and Shanghai Banking Corporation Limited
Established in Hong Kong and Shanghai in 1865, The Hongkong and Shanghai Banking Corporation Limited
is the founding member of the HSBC Group – one of the world’s largest banking and financial services
organisations. It is the largest bank incorporated in Hong Kong and one of Hong Kong’s three note-issuing
banks. It is a wholly-owned subsidiary of HSBC Holdings plc, the holding company of the HSBC Group, which
has an international network organised into five geographical regions: Europe, Asia, Middle East and North
Africa, North America and Latin America.