HSBC Holdings PLC said on Monday its insurance unit had agreed to acquire its China life insurance venture partner’s 50% stake to own fully the company under the new rules on foreign ownership that came into effect in January, reported Reuters.
The move will allow London-headquartered HSBC, which gets the bulk of its revenue from Asia, to further expand its footprint in the world’s second-largest economy, where it has deployed billions of dollars as part its Asia “pivot” strategy.
Financial details of the transaction were not disclosed, but the transaction to buy the stake in HSBC Life Insurance (HSBC Life China) from joint venture partner the National Trust Ltd will be structured as a transfer of equity interest and is subject to regulatory approvals, the lender said.
“Despite the current difficult environment engendered by the COVID-19 pandemic, we continue to take steps to implement our growth strategy,” HSBC Chief Executive Officer Noel Quinn said in a statement.