HSBC Launches New Rural Bank In Another China Province – Guangdong

HSBC has launched its fifth rural bank in mainland China, Guangdong Enping HSBC Rural Bank Company Limited (Enping HSBC Rural Bank). Enping HSBC Rural Bank, a wholly owned subsidiary of The Hongkong and Shanghai Banking Corporation Limited, has registered capital

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HSBC has launched its fifth rural bank in mainland China, Guangdong Enping HSBC Rural Bank Company Limited (Enping HSBC Rural Bank).

Enping HSBC Rural Bank, a wholly owned subsidiary of The Hongkong and Shanghai Banking Corporation Limited, has registered capital of RMB40 million and 19 staff. It will provide a wide range of financial services to local rural enterprises and individuals.

“The establishment of Enping HSBC Rural Bank is part of our commitment to investing in China and expanding our rural finance business,” says Peter Wong, executive director of The Hongkong and Shanghai Banking Corporation Limited and chairman of the board of Enping HSBC Rural Bank. “HSBC seeks to bring its international experience to the rural market in China and support the development of a sustainable rural economy.”

Enping in Guangdong Province, where the new HSBC rural bank is located, is a countylevel city 150 km southwest of Guangzhou in southern China, covering 1,700 square kilometres with a population of around 500,000. Enping is focusing on developing agriculture, especially tea, lychee and longan berry farming and is one of the areas designated as a pilot location for rural banking reforms.

HSBC’s rural banks offer financial services tailored to meet the needs of China’s rural areas, providing lending services to rural enterprises and individuals based on cash-flow analysis and the evaluation of customers’ repayment ability. This helps resolve the problems often faced by rural enterprises and farmers, who sometimes lack assets that can be used as traditional collateral. HSBC’s rural banks also offer supply chain financing in co-operation with leading small and medium enterprises that have longstanding relationships with customers.

HSBC was the first international bank to enter China’s rural market when it opened Hubei Suizhou Cengdu HSBC Rural Bank Company Limited in 2007. HSBC still has the largest presence of any foreign bank in China’s rural areas with rural banks in Hubei Province’s Suizhou, Chongqing’s Dazu, Fujian’s Yongan, Beijing’s Miyun and Guangdong’s Enping.

D.C.

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