HSBC taps China, Taiwan insurance market
HSBC Holdings, Europe's biggest bank, is entering insurance markets
in China and Taiwan as part of its broader strategy to tap the
fast-growing Asian region.
David Fried, regional head of insurance for Asia Pacific, told
Reuters in an interview on Thursday that the bank had obtained
government approval to set up a joint venture in China.
The bank also said it would open an insurance business in Taiwan,
Asia's fourth-biggest insurance market. Earlier this year it announced
it was taking stakes or forming joint ventures in India and Vietnam.
"This will support the bank's overall Greater China strategy," Fried
said. Foreign financial institutions have been eager to tap China's
market, where insurance premiums rose more than 20 percent to 371.8
billion yuan (US$49.5 billion) in the first half of this year. Fried
declined to reveal who the partner in China was, saying only that HSBC
could make an announcement at any time.
A Hong Kong newspaper said on Thursday that HSBC, which has more than
40 branches and sub-branches in mainland China, planned to form a 50-50
venture with National Trust, a Beijing-registered trust and investment
firm, to set up an insurance business.
The joint venture will be headquartered in Shanghai and could begin
operations as early as the second half of next year, the South China
Morning Post said.
In Taiwan, the bank faces tough competition in the big but highly
competitive market, which is filled with local players such as Cathay
and Shin Kong, as well as multinationals including ING, Aviva Plc,
Prudential Plc and Metlife (US$ = 7.514 yuan) (Additional reporting by
Meg Shen).
Reuters |