CORRECTED - CORRECTED-HSBC's size seen less important in China expansion
Mon August 11, 2003 06:08 AM ET
In the HONG KONG item headlined "HSBC's size seen less important in China expansion," please read in the ninth paragraph "London-based Standard Chartered said on Monday it had been seeking acquisitions in Hong Kong to aid its growth in mainland China, but no talks were underway,"... and not... "London-based Standard Chartered said on Monday it was in talks to buy a stake in a mainland China bank." (Corrects to show Standard Chartered not in talks)
A corrected version follows:
By Brian Kelleher, Asia financial services correspondent
HONG KONG, Aug 11 (Reuters) - Boasting a global network and nearly $1 trillion in assets, HSBC Holdings Plc has many advantages over smaller rivals such as Standard Chartered in Asia, but analysts say its size may be less useful for its planned Chinese expansion.
HSBC HSBA.L 0005.HK is based in London, but was founded in Hong Kong in 1865 and generates over a third of its profits from Asia. Like nearly all big banks, it is eyeing China's $1.2 trillion in savings for future opportunities.
"We view NAFTA and Greater China as being the two significant economic growth areas of the next 10 years-plus," Chief Executive Stephen Green told a news conference on Monday, referring to the North American Free Trade Agreement between the U.S., Canada and Mexico.
"China is going to become more and more important on a global scale. I think you will see us constantly growing our business there."
Strict government regulations, mean that HSBC, or any bank, is limited to how much of their balance sheet they can actually use in China. The country is just beginning to open up to foreign banks, which includes the scheduled relaxation of lending rules in 2003, part of reforms promised in return for China's entry into the World Trade Organisation (WTO).
reuters.com |
