HSBC in insurance JV buyout

HSBC (0005) subsidiary HSBC Insurance (Asia) is to acquire the remaining 50 percent stake in its life insurance joint venture in China from its partner The National Trust to own fully the company under the new rules on foreign ownership that came into effect in January.

HSBC Life Insurance will become its wholly-owned subsidiary in the mainland after the transaction, structured as a transfer of equity interest which is subject to regulatory approvals, including from the China Banking and Insurance Regulatory Commission.

The deal is in line with the removal of foreign ownership restrictions on foreign-funded life insurance firms in China, which became effective on January 1, 2020.

HSBC chief executive Noel Quinn said: "This transaction accelerates growth within our Asian franchise, particularly in the Greater Bay Area."

Meanwhile, The Hongkong and Shanghai Banking Corporation has maintained its prime rate at 5 percent.