(July 3): HSBC Holdings Plc pledged to boost investments in China to capture more wealth and retail clients even as political tension escalates after Beijing launched sweeping new security legislation to crack down on Hong Kong.
The bank, which has come under fire over its support for the legislation, on Friday announced it was starting a new service to provide customers in mainland China with digital wealth and insurance planning services. It will initially cover new customers in Guangzhou and Shanghai, according to a statement. The bank is also establishing a fintech company to support its business.
At a time of increasing political turmoil, China’s rapidly growing middle and upper class is still the grand prize for banking giants across the world, with households sitting on about 90 trillion yuan ($12.7 trillion) in investable assets. Firms from UBS Group AG to Nomura Holdings Inc. and Credit Suisse Group AG have identified wealth management as a prime focus for their onshore businesses amid a market opening.