HSBC China 1st foreign bank in underwriting Chinese bonds
- Source: Global Times
- [14:11 November 18 2009]
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HSBC Holdings Plc announced Tuesday that the company will join an underwriting group of bonds issued by the Bank of Shanghai, becoming the first foreign bank in China to participate the underwriting of yuan-denominated bonds issued by Chinese financial institutions.
The Bank of Shanghai plans to issue financial bonds worth of 5 billion yuan.
Richard Yorke, president and chief executive of HSBC China said the bank was very pleased to be the first foreign one to participate in the underwriting of yuan-denominated bonds. "This deal is a milestone for the development of China's financial market and HSBC will strives to play an active role," he added.
"There's tremendous growth potential in China's debt capital market," David Liao, head of global markets at HSBC China, was quoted as saying.
As one of the foreign banks that has invested most in China, HSBC hold an 8 percent stake in the Bank of Shanghai.
According to a Reuters report, HSBC and its rivals like Standard Chartered Plc and Citigroup are competing to get more business in China's 17 trillion yuan bond market as the country gradually deregulates its financial sector, aiming to build Shanghai into an international financial center in the next decade.
