HSBC Qianhai Securities starts operating

HSBC Qianhai Securities Limited, the first joint venture securities company majority-owned by a foreign bank, formally opened for business on Thursday.

Headquartered in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, the joint venture is 51 percent owned by The Hong Kong and Shanghai Banking Corporation Limited and 49 percent by Qianhai Financial Holdings Co Ltd. HSBC's stake gives it a key role in determining strategy and direction.

The joint venture has obtained licenses to offer services including equity and debt sponsoring and underwriting, equity research and brokerage of locally listed securities, advising on domestic and cross-border corporate mergers and acquisitions as well as investment advisory.

Peter Wong Tung-shun, deputy chairman and chief executive of HSBC, said: "China is at the core of HSBC's strategy and pivot to Asia... We look forward to offering our clients a wide range of investment banking and financial markets solutions, which will complement HSBC's existing banking services in China.

"HSBC is committed to playing its part in the development of China's capital markets and helping its clients capture opportunities as they become increasingly open to global investors and issuers."

Hong Kong-funded and Macao-funded financial institutions that satisfy the requirements for establishing foreign-invested securities companies are allowed to set up one fully licensed joint venture securities company each in Shanghai, Guangdong province and Shenzhen in accordance with relevant Chinese mainland requirements.

Also on Thursday, East Asia Qianhai Securities Co Ltd opened for business. Jointly established by the Hong Kong-based Bank of East Asia Ltd, Qianhai Financial Holdings and two other mainland companies, EA Qianhai Securities has been granted a securities and futures business license by the China Securities Regulatory Commission on Monday.

BEA owns a 49 percent stake in EA Qianhai Securities with an investment of 735 million yuan ($111 million), the CSRC said.