HSBC to invest $448m in Chinese business

Chief Executive Noel Quinn told the official news agency Xinhua that HSBC Holdings expects to invest more than 3 billion yuan ($448 million) in its Chinese operations, citing economic problems as well as investment potential.

The investment strategy comes barely a month after HSBC’s largest shareholder, Chinese insurance group Ping An, urged the bank to seek measures to improve returns, including a proposal to split its Asia operations, according to a source familiar with the situation.

In 2021, Asia provided slightly over half of HSBC’s income and approximately two-thirds of its reported pretax profit, making it Europe’s largest lender by total assets.

Quinn said the Chinese investment will be carried out over a five-year period until 2025 in a rare interview with Xinhua, although he did not identify which departments would get the funds. The interview with Xinhua was confirmed by an HSBC official.

HSBC is one of the largest foreign bank investors in mainland China, with over 7,000 employees. It operates a branch network of over 150 locations in 50 cities.