A partner in HSBC China’s securities brokerage joint venture is set to sell the majority of its equity ownership, according to an exchange filing, and a source with knowledge of the matter said that HSBC was likely to make a bid for the stake, reports Reuters.
State-owned Qianhai Financial Holding, which owns 49% of HSBC Qianhai Securities, is auctioning 39% ownership of the unit with an asking price of RMB 1.26 billion ($198 million), a filing from Shenzhen United Property and Equity Exchange showed.
Asia-focused HSBC, which won Chinese regulatory approval 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 currently owns 51% stake in the joint venture.