HSBC in talks to set up investment banking JV in China

Aug. 5, 2009 (China Knowledge) - HSBC Holdings PLC<0005><HBC>, the biggest foreign bank in mainland China, is in talks with potential partners to establish an investment banking joint venture in mainland China, said Vincent Cheng, HSBC executive director and chairman for Asia-Pacific, on Tuesday.

Cheng said that the establishment of the JV would provide HSBC, the world's largest lender outside China by market value, a platform to further tap China's domestic securities and debt markets.

He said that HSBC has a strong network in Asia, so there is no push for the bank to acquire expensive assets in the region.

Cheng added that the lender, which has capital for acquisitions, looked into buying some of Royal Bank of Scotland's Asian assets but found that they were too expensive.

Media reported yesterday that HSBC has hired China International Capital Corp and CITIC Securities Co Ltd<600030>, the largest listed brokerage in China, to advise on its planned initial public offering in Shanghai.

The bank is likely to launch the mainland listing in the second half of 2010 to raise RMB 50 billion as it strives to be one of the first foreign companies to go public in China, according to an earlier report from China Knowledge.