EconomyMarkets

HSBC China brokerage joint venture partner selling 39% stake By Reuters

© Reuters. FILE PHOTO: A Chinese national flag flies in front of HSBC headquarters in Hong Kong, China, July 28, 2020. REUTERS/Tyrone Siu

HONG KONG (Reuters) – HSBC Holdings (NYSE:) PLC’s China securities brokerage joint venture partner is selling most of its equity ownership, an exchange filing showed, and a source with knowledge of the matter said the bank was expected to bid for the stake.

State-owned Qianhai Financial Holding, which owns 49% of HSBC Qianhai Securities, is auctioning 39% ownership of the unit with an asking price of 1.26 billion yuan ($198 million), a filing from Shenzhen United Property and Equity Exchange showed.

Asia-focused HSBC, which won Chinese regulatory for the joint venture in 2017, will bid for the entire 39% stake, said the source, in a bid to expand in the world’s second-largest economy.

HSBC, which owns 51% stake in the joint venture, declined to comment.

The auction expires on Jan. 21, according to the exchange filing. The joint venture posted 135 million yuan ($21.20 million) loss in 2021, it showed.

The joint venture is the first foreign majority-owned brokerage in China, gained by HSBC due to rules favouring Hong Kong businesses.

The auction comes only nearly a week after the bank received regulatory in China to take full ownership of its life insurance joint venture.

Global banks and asset managers have been boosting their stakes in their Chinese joint ventures since the country first permitted foreign-majority ownership in some financial businesses in 2019.

Morgan Stanley (NYSE:) is also set to increase its stake in its brokerage joint venture in China by 4.06% to 94%, an exchange filing showed in December, putting it on track to take full ownership of the business.

($1 = 6.3638 renminbi)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button