HSBC has denied reports that it is considering a bid for a majority stake in one of China’s big three listed banks, Reuters reported. Michael Geoghegan, CEO of HSBC, said the bank is happy with its stake in Bank of Communications (BoCom), China’s fifth largest lender, as its primary investment vehicle in the country. HSBC owns just under 20% of BoCom. Geoghegan said that, even if HSBC wanted to buy a controlling stake, it would have to wait for Beijing to relax the rule limiting foreign banks to 20% ownership in domestic lenders. No discussions have been held with the Chinese regulators on this issue, he added. A report in the Sunday Telegraph claimed that HSBC wanted to take a 51% stake in Industrial and Commercial Bank of China, Bank of China or China Construction Bank. The report said the relocation of several senior executives, including HSBC’s global head of strategy, from London to Hong Kong was part of the preparation for the bid.
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