HSBC Holdings intends to recruit as many as 1000 employess and launch more than 10 branches in the most populous nation – China, as it slowly comes out of the grips of the global economic downturn – reported Bloomberg.
In fact, the bank is planning to expand its network to more than 100 branches in China by the end of this year, to offset the loan losses in its American unit. It is also coming up with an initial public offering (IPO) in Shanghai after pumping more than $5 billion over the last eight years in China. According to media reports, HSBC has hired China International Capital and Citic Securities to advise it on the IPO.
In an interview in Shanghai, Richard Yorke, chief executive officer of HSBC (China), said: We certainly expect to continue with our existing rate of expansion. In terms of long-term strategic importance, China is probably at the very top. We are looking to list here in China as quickly as any change in regulation will allow. This is something we are actively working towards, but we don’t know the timeframe yet.”
However, James Liu, an analyst at Shanghai-based Sinopac Financial Holdings, opines: To be honest, it’s still hard for any foreign banks, including HSBC, to pose a real threat to Chinese counterparts as they just don’t have the customer base to compete. HSBC’s lead in China attributes to a large extent to leveraging the partnership with local players, reported the newspaper.
