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Bloomberg
HSBC Holdings Plc agreed to buy the remaining 50% stake in its Chinese life insurance venture as the Communist Party-ruled nation opens its financial markets.
The lender will take full ownership of HSBC Life Insurance Company Ltd. after buying out its partner, The National Trust Ltd., according to an emailed statement.
“This transaction supports our ambition to accelerate growth within our Asian franchise, particularly in the dynamic and fast-growing Greater Bay Area, where we fully intend to expand in all lines of businesses,†said Noel Quinn, HSBC’s chief executive. “It also allows us to further extend our capabilities in wealth, another area of strategic focus for the group.â€
Quinn, while struggling with the fallout from coronavirus, is seeking to boost the performance of HSBC by shifting investments and capital to Asia and restructuring the business. China is this year further opening its vast $45 trillion financial markets to allow foreign companies to take full ownership in businesses spanning insurance, investment banking, securities firms and fund management.
The Chinese insurance venture was formed in 2009 and is present in nine key mainland cities, including Shanghai, Beijing, Guangzhou, and Shenzhen.
The transaction will be subject to regulatory approvals, including from the China Banking and Insurance Regulatory Commission.