After waiting for more than a year and a half, HSBC Holdings gained regulatory approval to gain full control of life insurance ventures in China and was the first to succeed in repairing a frayed relationship with Beijing.
According to a regulatory statement on Thursday, HSBC will purchase the remaining 50% stake in HSBC Life China from National Trust Co., Ltd. after approval by the Bank of China Insurance Regulatory Commission.
Europe’s largest lenders are allocating billions of dollars of capital to Asia to increase profitability while shrinking or withdrawing businesses in other parts of the world. The key to growth strategies in Greater China is to take advantage of the growing wealth in the world’s second-largest economy.
However, lenders have been attacked in China since 2019 over cooperating with Huawei Technologies Co in a US investigation. Public support for security laws imposed on Hong Kong, the largest market, is also a city and western politician.
The latest approval will come three months after Huawei Chief Financial Officer Meng Wanzhou has signed a contract to release her from a US deportation request that had been under house arrest in Canada for two years. Still, the Biden administration has shown no signs of easing the sanctions imposed on Huawei.
Meanwhile, China has opened its vast $ 54 trillion financial industry to enable foreign companies to take full ownership of businesses that span insurance, investment banking and cash management. HSBC’s China insurance venture was founded in 2009 and is located in 10 major mainland cities, including Shanghai, Beijing, Guangzhou and Shenzhen.
This push fits well with the vision of HSBC Chairman Mark Tucker, who previously ran AIA Group Ltd and Prudential Plc. HSBC was appointed as Greg Hingston Global CEO of HSBC Life and Insurance Partnerships from January 1, 2022 last month.
“Growth in the insurance business is key to achieving our strategic priority of becoming Asia’s leading wealth manager,” said David Liao, HSBC’s Co-Chief Executive Officer for the Asia-Pacific region. I am saying. “The full ownership of HSBC Life China demonstrates our commitment to bring us closer to this goal and expand our wealth offerings in mainland China.”
HSBC has also invested in China’s insurance and wealth business through Pinnacle, a personal financial planning business launched last year.
With nearly 700 digitally-enabled wellsplanners already in Beijing, Guangzhou, Shanghai, Hangzhou and Shenzhen, banks aim to hire up to 3,000 wellsplanners in total by 2025.
http://www.gulf-times.com/story/707188/HSBC-gets-insurance-deal-nod-in-sign-of-easing-Chi HSBC nods insurance policy as a sign to ease relations with China