London-based bank HSBC has increased its holdings in its Chinese securities venture to 90%, giving the bank better purchase in the the Chinese economy, reports Bloomberg. Europe’s largest bank increased its stake in HSBC Qinghai Securities from 51% through the partial buyout of its partner Qinghai Financial Holdings, which will keep a 10% stake. The transaction amount was not disclosed.
Along with other major banks, HSBC is pushing into China in the hunt for billions of potential profits in everything from brokering deals, to wealth management and insurance as the nation opens its financial markets.
While HSBC has had tense relationship with Beijing over its cooperation in a US probe into Huawei Technologies since 2019, the situation has since improved. The bank last year won regulatory approval to take full control of its life insurance venture in China after a wait of more than 1 1/2 years.