HSBC Holdings is going to raise its holding in China’s Bank of Communications (BoComm).
According to Vincent Cheng, HSBC Executive Director and Chairman for Asia-Pacific, company will increase its stake in BoComm to 19.9% from the current 19.01% at proper time, without cutting holding in the Chinese bank by European lender.
HSBC’s shrinking businesses in the U.S. caused company to search new opportunities in the Asia-Pacific region. According to the current banking regulations, a foreign bank is not allowed to hold more than a 20% stake in Chinese bank.
L.D.