HSBC hopes to leapfrog rivals with new China partnership
- 8 years ago
HSBC is seeking to overtake Western rivals in the race for a slice of China's $4 trillion onshore bond market thanks to an investment banking partnership with a state-owned investor it announced last week.
Europe's biggest bank is late among foreign banks to the party in China's onshore investment banking market, where rivals like Credit Suisse , Deutsche Bank and Goldman Sachs established joint ventures with local players years ago.
The move is not without risk in a slowing economy with a heavily indebted corporate sector, but HSBC, which is exploiting new rules that favor Hong Kong-funded lenders, will have an extensive license and will not be bound by the 49-percent ownership cap normally imposed on foreigners.
Europe's biggest bank is late among foreign banks to the party in China's onshore investment banking market, where rivals like Credit Suisse , Deutsche Bank and Goldman Sachs established joint ventures with local players years ago.
The move is not without risk in a slowing economy with a heavily indebted corporate sector, but HSBC, which is exploiting new rules that favor Hong Kong-funded lenders, will have an extensive license and will not be bound by the 49-percent ownership cap normally imposed on foreigners.