LONDON (dpa-AFX) - Asia-focused lender HSBC Holdings Plc (HSBC, HSBA.L) announced Monday that its indirect unit HSBC Insurance (Asia) Limited has entered into an agreement to acquire the remaining 50% equity interest in Chinese life insurance joint venture HSBC Life Insurance Co. Ltd. from The National Trust Limited .
The company said the deal is in line with the removal of foreign ownership restrictions on foreign-funded life insurance companies in China, which became effective on January 1, 2020.
The transaction will be structured as a transfer of equity interest and is subject to regulatory approvals, including from the China Banking and Insurance Regulatory Commission.
Noel Quinn, HSBC's Group Chief Executive, said, 'Despite the current difficult environment engendered by the Covid-19 pandemic, we continue to take steps to implement our growth strategy. This transaction supports our ambition to accelerate growth within our Asian franchise, particularly in the dynamic and fast-growing Greater Bay Area, where we fully intend to expand in all lines of businesses.'
HSBC Life China was formed in 2009 as a 50:50 joint venture between HSBC and NT, and as of December 2019 had a registered capital of 1.025 billion Chinese yuan.
Copyright RTT News/dpa-AFX
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