According to sources familiar with the matter, HSBC (HSBA.L) has decided to acquire its joint venture partner in China's fund management. The bank focuses on Asia and continues to expand its presence in the world's second-largest economy. According to insiders, HSBC, which presently possesses a 49% share in HSBC Jintrust Fund Management, has inked a deal with Shanxi Trust, a state-owned company in China, to procure its 51% stake in the joint venture.
Sources, who chose to remain anonymous as they were not authorized to speak to the media, have disclosed that the transfer depends on the approval of regulatory authorities and a public auction of the shares. If given the go-ahead, HSBC, Europe's largest bank in terms of assets, will further expand its footprint in the Chinese fund management market worth $3.8 trillion, given that it generates the bulk of its revenue and profits in Asia. When contacted for a statement, a representative for HSBC in Hong Kong chose not to provide one. Representatives for HSBC Jintrust and Shanxi Trust, who were also contacted, did not respond immediately.
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