Life of Guangzhou - HSBC Plans More Staff and Growth in China

People walk in front of a HSBC Bank in Shanghai.[File photo: cnsphoto]

HSBC Bank does not see its business on the Chinese mainland being affected by the United States subprime credit crisis as it will increase staff numbers by up to 50 percent and has eyes set on expansion.

"There won't be any lessening of commitment to grow our business here in China," said Richard Yorke, president and chief executive officer of HSBC Bank (China) Co, yesterday in Shanghai. "We have been here for 143 years, and I expect that we will be here for another 143 years but significantly longer beyond that."

The bank targets to hire 2,000 to 2,500 new employees this year to add to its current 4,900, he said.

HSBC Group Chairman Stephen Green was on a five-day trip to China last week, and he encouraged Yorke's team to continue to grow the business quickly, Yorke said.

He also said the bank "will continue to grow very, very strongly in this business," declining to be more specific.

The bank yesterday announced the launch of its private banking business in Shanghai, Beijing and Guangzhou to woo the growing number of millionaires on the mainland.

The bank targets high net worth clients with assets of more than US$10 million and with investable assets of US$3 million. To open accounts, a minimum deposit of US$1 million is required.

The bank got the go-ahead from the regulator to open the business in Guangzhou on February 4 and for the Beijing and Shanghai operations on March 18.

The bank is "comfortable" with the lending growth amid the current tight monetary policy in China, Yorke said.

HSBC China posted strong growth in 2007 on the country's booming economy and the opening up of the banking market to overseas players. The bank's operating income grew 44.2 percent to US$451 million. Its pre-tax profit grew 28.7 percent to US$165 million.

HSBC, Citigroup, Standard Chartered Bank and Bank of East Asia, locally incorporated in April 2007 so as to be able to offer unlimited yuan services to mainland residents.

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