HSBC's China unit leads foreign banks in capital base

MANILA, Philippines - HSBC Bank (China) Co. Ltd. is now the foreign bank with the largest capital base in mainland China.

Last week, parent company Hongkong and Shanghai Banking Corp. Ltd. (HSBC Asia Pacific) infused RMB2.8 billion to boost HSBC China’s registered capital to RMB10.8 billion.

Furthermore, HSBC continues to be at the vanguard of China’s renminbi (RMB) internationalization process, becoming the first foreign bank permitted to inject new capital using the Chinese currency under a pilot program announced by the government in August.

Last May, HSBC set out its strategy execution plan, with emphasis on investing in markets with strategic relevance and with high returns or high potential returns.

HSBC Asia Pacific chief executive Peter Wong said that the internationalization of the RMB demonstrates the currency’s readiness to be a medium for cross-border investment as well as trade.

“This is an important milestone for us because China is one of our first home markets,” Wong added.

Helen Wong, president and chief executive officer of HSBC China, said: “It is encouraging to receive fresh capital from our parent company to fund our future business growth in China.

HSBC China president and chief executive officer Helen Wong said that the bank has tripled its network since local incorporation in April 2007.

“China’s fast wealth creation and strengthened global trade and capital links are opening huge market potential; therefore, the new capital will position us strongly for further growth through these opportunities,” she said.

As the largest international bank in China with over 100 outlets across 29 major cities, HSBC leverages its global connectivity to serve the financial needs and global aspirations of its customers.

It was among the first foreign banks to join China’s pilot program launched in 2009 for RMB cross-border trade settlement and has been instrumental in promoting the currency’s onshore and offshore use.

HSBC, with its RMB leadership, offers RMB-based trade products in over 50 countries and territories, and provides RMB services to individual retail and wealth customers in over a dozen markets worldwide.– The Asian Banker