Center

Hang Seng expands mainland presence

By Qiu Quanlin (China Daily)
Updated: 2006-08-09 14:19

GUANGZHOU: Hong Kong-based Hang Seng Bank, a principal member of the HSBC Group, opened its first sub-branch in Guangzhou yesterday.

The move, taken in order to further tap southern China's enormous business potential, takes its mainland network to 14 outlets.

With its six branches, six sub-branches and two representative offices, the bank currently has a presence in eight cities on the mainland.

"Business on the mainland is one of our key focuses for growth," said Raymond Or, Hang Seng vice-chairman and chief executive.

Hang Seng opened its first branch in Guangzhou, the capital of South China's Guangdong Province, in 1995.

"In line with rapid economic growth in the Pearl River Delta and Yangtze River Delta regions, the addition of a new outlet in Guangzhou will help us capitalize on the mainland's strong economic growth," he said.

The branch and sub-branch in Guangzhou both offer a comprehensive range of foreign currency banking services, including deposit accounts, loans, remittance and foreign exchange services.

They also offer renminbi services to foreign passport holders, Hong Kong, Macao and Taiwan compatriots, foreign-invested enterprises and domestic companies, said Or.

"Helping domestic private enterprises improve the circulation of their capital is also one of our services," Or said.

The bank will continue to expand its deposit base to support loan growth, said Or.

Guangdong Province currently has 22 Hong Kong-based banks, which have become an important platform for most private enterprises to raise funds.

According to Or, Hang Seng has now invested more than 3.6 billion yuan (US$450 million) on the mainland, including a 15.98 per cent stake it acquired in the Industrial Bank in May 2004.

But the bank currently has no plans to invest in other mainland lenders, said Or.

"We have realized that the bank's profits rely mainly on the scale of our presence on the mainland, therefore opening new outlets is our current focus in expanding business on the mainland," he said.

According to Johnson Fu, head of Hang Seng's China Business, the bank is also planning to open another new outlet in Guangzhou by the end of this year.

"Two to three more outlets are expected to open later next year in Guangzhou and Shenzhen, and we are also considering more openings in other cities in the Pearl River Delta region," Fu said.

According to Fu, the bank plans to invest HK$1 billion (US$127.5 million) in the coming three years to bring its mainland network to 30 outlets.

Founded in 1933, Hang Seng now has more than 145 branches and automated banking centres.

With consolidated assets of HK$628.3 billion (US$80 billion) by June, the bank reported a profit of HK$6.2 billion (US$790.5 million) for the first half of this year.