Michael Geoghegan, Chief Executive Officer of HSBC Holdings in Hong Kong
HSBC says no plan to buy major stake in Chinese bank
HSBC on Monday dismissed a report that it planned a major investment in one of China's top three lenders, saying it was comfortable with its 19 percent stake in Bank of Communications.
Chief executive Michael Geoghegan said in a statement that the banking giant would focus on investing in Chinese businesses but could only do so "at the pace of the Chinese government".
"We've got a major investment in Bank of Communications in China and we are comfortable with that," he said.
"We are up to virtually as much as the government will allow us to. I think everybody needs to remember, you can only invest in China up to parameters set by the Chinese government," he added.
"Sure we can do more -- but we'll do it at the pace of the Chinese government. We have no other plans whatsoever at the present time."
Geoghegan issued the statement after a report by the Sunday Telegraph cited unidentified sources as saying HSBC wanted to buy 51 percent of one of China's three biggest banks -- Industrial & Commercial Bank of China, Bank of China, or China Construction Bank.
The report said the acquisition could possibly be achieved through a deal including an asset swap of HSBC's Hong Kong division, Hang Seng Bank, or a sale of its stake in Bank of Communications.
Bank of Communications is China's fifth-largest bank by assets.
HSBC has almost 100 branches in mainland China and owns a 16.78 percent stake in Chinese insurance giant Ping An.
AFP
