HSBC Expands Green Finance and Bond Teams in China Amid Geopolitical Uncertainties

Despite geopolitical uncertainties, HSBC Holdings, Plc HSBC is building its green finance and bond teams in China after acquiring Hong Kong-based specialist asset manager Green Transition Partners in January.

HSBC chairman Mark Tucker met with Chinese regulatory officials in Beijing last week to help accelerate growth in China, including in the country's fast-growing $3.9 trillion fund market, Reuters reports.

Tucker discussed the bank's planned asset and wealth management growth in the meetings with Beijing officials betting on an "ice-breaking" spirit to overcome challenges and geopolitical tensions.

After pressure from its biggest Chinese investor Ping An Insurance, HSBC has committed to bolstering its money-spinning Asia business and clearing underperforming units elsewhere.

HSBC will invest in its asset management arm in China in 2023, including launching new teams dedicated to green assets and fixed income.

The lender is exploring offering carbon-offsetting products to customers after a surge in client queries over the past year, particularly from Western multinational companies under pressure to meet strict emissions targets.

HSBC CEO Noel Quinn visited Beijing in March for the first time since the pandemic outbreak when a top official expressed China's openness towards expanding HSBC's investment.

HSBC said it was "open to opportunities" to expand its businesses in China after its local partner put a 31% stake in its HSBC Jintrust Fund Management joint venture on the block last week.

HSBC's new fixed-income team in China will initially comprise five staff in response to growing client demand for bonds.

Price Action: HSBC shares traded higher by 0.76% at $40.40 on the last check Thursday.

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