HSBC buys China, the fund partner. According to two sources, HSBC (HSBA.L) has agreed to buy out its China fund management joint venture partner as it expands in the world’s second-largest economy.
According to reports, HSBC, which holds 49% of HSBC Jintrust Fund Management, has negotiated with Shanxi Trust to buy the Chinese state-owned company’s 51% part in the joint venture.
The individuals, who declined to be identified because they were not authorized to speak to the media, said the transfer is subject to a public auction of the shares and regulatory approval.
If allowed, Europe’s biggest bank by assets, which earns most of its income and profit in Asia, will enter China’s $3.8 trillion fund management sector.
HSBC’s Hong Kong spokesman denied comment. Shanghai-based HSBC Jintrust and Shanxi Trust did not immediately reply to requests for comment.
According to the joint venture’s website, HSBC Jintrust had $7.7 billion in funds under administration as of end-March. However, HSBC’s purchase price from Shanxi Trust was unclear.
HSBC’s recent China expansion is their increase in fund venture ownership.
In 2021, the London-based bank made its China securities joint venture 90% owned and turned its China insurance joint venture into a wholly owned subsidiary.
As part of its Asia pivot, HSBC has invested billions in China, growing its banking, insurance, and securities market share.
In 2022, China (Hong Kong and mainland) made 44% of HSBC’s profit.
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