HONG KONG – HSBC has agreed to buy out its China fund management joint venture partner, two people familiar with the matter said, as the Asia-focused bank pushes ahead with expansion in the world’s second-largest economy.
HSBC, which currently owns a 49-percent stake in HSBC Jintrust Fund Management, has signed an agreement with Shanxi Trust under which the Chinese state-owned company will sell its 51-percent holding in the joint venture to the bank, said the sources.
The transfer is, however, subject to a public auction of the shares and regulatory review and approval, said the sources, who declined to be identified as they were not authorized to speak to media.
If approved, Europe’s biggest bank by assets will expand its presence in the $3.8 trillion fund management market in China, its main banking market.
A spokesperson for HSBC in Hong Kong declined to comment. Representatives for HSBC Jintrust and Shanxi Trust did not immediately respond to a request for comment.