HSBC to open 2nd rural bank in China

HSBC to open 2nd rural bank in China

06/02/2008, 07:14  
[China Knowledge Press]     

Jun. 2, 2008 (China Knowledge) - HSBC, the first overseas bank to tap into China's rural financial market, is seeking regulatory approval on the plan to launch its second rural bank in Chongqing in the third quarter of the year, sources cited Peter Wong, executive director of HSBC as saying. Wong said the rural banking is a profitable business, and the risk is limited. The new branch will provide the deposit and loan services to local farmers as well as suppliers and exporters of agricultural products. It may also provide insurance services and financial products in the long-term, according to sources. The lender, which opened its first rural bank in Hubei province last December, is aiming to set up six to 10 sub-branches in the mainland's rural areas, and expand the figure to 30 in three years, in a bid to benefit from China's rural development. At present, HSBC's another two applications of opening rural banks are being processed.