HSBC plans £5bn Shanghai listing

by Gill Montia

Story link: HSBC plans £5bn Shanghai listing

HSBC is moving closer to a listing on the Shanghai stock exchange.

The bank first hinted that it hoped for a listing in China a year ago, when chairman, Stephen Green, described such a move as “of the highest strategic importance”.

According to a report in the Observer, the group is now planning a £5 billion share offer to Chinese investors, possibly as early as March.

Some of the restrictions on foreign company listing on the Shanghai stock exchange still need to be lifted but changes are expected in the New Year.

HSBC is already the biggest foreign bank operating in China and according to the newspaper, looks set to expand its presence by acquiring some of Royal Bank of Scotland’s Asian assets.

In September, the bank announced that its group chief executive, Michael Geoghegan, will be based in Hong Kong from February 2010.

According to the group, the relocation will enhance its position “for the shift in the world’s centre of economic gravity from West to East”.