HSBC plans Chinese listing

by Gill Montia

Story link: HSBC plans Chinese listing

HSBC, the UK’s largest bank, is planning a listing in China, once the country’s authorities lift the current restrictions on foreign companies floating on the Shanghai stock exchange.

The bank’s chairman, Stephen Green, made the announcement yesterday as a business delegation, led by Prime Minister Gordon Brown, departed for China.

Mr Green described the proposed listing as of the highest strategic importance, saying: “We’d love to be [listed] there and the day they allow it, we will be queuing up at the door.”

He went on to say: “I think there’s a real investor interest and it’s also a way of demonstrating that we’re really committed to this place.”

Moves to ease the rules that block non-Chinese firms from the Shanghai exchange are currently being considered by authorities in Beijing.

HSBC is already the largest foreign bank in China and will be expanding into two or three new cities during 2008, taking its network in the country to 61 branches in 17 cities.

The bank also holds stakes in four Chinese financial services companies and while it has no plans to acquire any further interest in this sector, it is launching a small number of rural outlets.

The expansion follows the opening of the bank’s first branch aimed at provincial businesses, last November.

HSBC currently has five listings, including dual primary listings in London and Hong Kong.