HSBC has reached an agreement with Shenzhen Qianhai Financial Holdings Co. Ltd. to set up a majority-held securities joint venture in the Qianhai free trade zone in Shenzhen, the firm announced on Monday.
The agreement means that HSBC will enjoy more preferential policies than its rivals. Currently overseas investors are allowed to hold a maximum 49 percent stake in securities joint ventures in China.
The joint venture is subject to regulatory approval.
After getting the green light, it will conduct a full range of investment banking and securities businesses in China.
The joint venture will take advantage of HSBC's expertise and customer base as well as preferential policies in Qianhai, a pilot free trade zone that focuses on the development of a modern services industry.
