HSBC buys out China fund partner in exclusive deal.

HSBC to Buy Out China Fund Management Joint Venture Partner

HSBC is set to expand its presence in China by buying out its China fund management joint venture partner, according to sources familiar with the matter. The bank, which currently owns a 49% stake in HSBC Jintrust Fund Management, has signed an agreement with Shanxi Trust to purchase its 51% holding in the joint venture. The transfer is subject to a public auction of the shares and regulatory review and approval. If approved, HSBC will expand its presence in the $3.8 trillion fund management market in China. This move is the latest in the bank’s efforts to expand its presence in China, where it generated around 44% of its profit in 2022.

HSBC’s Expansion in China

• Converted its China insurance joint venture to a wholly-owned subsidiary in 2021
• Boosted ownership of its China securities joint venture to 90% last year
• Deployed billions of dollars in China in the last few years as part of an Asia pivot

HSBC’s expansion in China comes as the bank makes the bulk of its revenue and profit in Asia. The London-headquartered bank has been increasing its market share across banking, insurance, and securities businesses in the region.