HSBC to acquire remaining 50% stake in HSBC Life China
The transaction is in line with the removal of foreign ownership restrictions on foreign-funded life insurance companies in China.
HSBC Insurance (Asia) Limited, a subsidiary of HSBC Holdings plc (LON:HSBA), today announces that it has entered into an agreement to acquire the remaining 50% equity interest in HSBC Life Insurance Company Limited (“HSBC Life China”), its life insurance joint venture in China, from The National Trust Limited.
The transaction is in line with the removal of foreign ownership restrictions on foreign-funded life insurance companies in China, which became effective on January 1, 2020.
The transaction will be structured as a transfer of equity interest and is subject to regulatory approvals, including from the China Banking and Insurance Regulatory Commission.
Peter Wong, HSBC’s Asia Pacific Chief Executive, commented: “As the leading international bank in China, HSBC is privileged to participate in the opening up of the insurance sector, a positive development which underlines China’s commitment to financial reform. This transaction allows us to increase our investment and deepen our presence in China, an important country within our well-regarded Asian franchise and a strategic market supporting our customers’ activity across our global footprint.”
HSBC Life China was established in 2009 as a 50:50 joint venture between HSBC and NT, and as of December 2019 had a registered capital of RMB1.025 billion. Headquartered in Shanghai, HSBC Life China is present in nine key Mainland cities covering Shanghai, Beijing, Tianjin, Hangzhou, Guangzhou, Foshan, Dongguan, Zhuhai and Shenzhen. HSBC Life China offers a wide range of insurance solutions.
