HSBC-issued CD offers targeted support for epidemic control

HSBC Bank (China) Company Limited issued a 1-billion-yuan ($143 million) anti-epidemic-themed certificate of deposit in the interbank bond market on Tuesday, raising money to offer targeted credit support to companies engaged in epidemic control and guarantee of livelihoods.

The three-month certificate of deposit was sold at a rate of 2.45 percent to buyers, mainly city commercial banks and fund management companies. The money raised will be offered to manufacturers and sellers of medical supplies, equipment and daily necessities, as well as logistics companies.

"By issuing a certificate of deposit, we can give full play to advantages of the interbank bond market to provide low-cost funds in support of the production and operations of businesses actively participating in containing the novel coronavirus outbreak and securing livelihoods. At the same time, we can also ensure the real economy will run steadily," said David Liao, president and CEO of HSBC China.

HSBC's business in the Chinese mainland has donated 7 million yuan to purchase medical supplies and personal protective equipment for hospitals and welfare homes across Hubei province through the China Social Welfare Foundation. It also donated $600,000 from the HSBC Global Relief Fund to help reduce the shortage of medical supplies in Hubei and other provinces hard hit by the epidemic.

"For over 150 years, China has been a central part of HSBC's story. In that time, I think we've built a special relationship with the country and its people, and that's why this epidemic feels particularly personal to us," said Noel Quinn, interim group chief executive of HSBC Holdings, in a video message to the organizer of the China Development Forum.

"We expect the virus to produce a slowdown in economic activity but beyond that, prospects for growth are good. HSBC is moving more and more resources to China, and to Asia as a whole," he said.