HSBC will become the first international bank to open a Lingang branch as a way of promoting cross-border trade.
HSBC obtained regulatory approval in mainland China to open a new branch in Lingang – a special area within the Shanghai Free Trade Zone (FTZ) – a statement released Monday indicated.
When completed, HSBC will be the first international bank to open a branch in the area. It will focus on providing corporate clients with financial services ranging from cross-border financing, offshore trade, foreign exchange risk management services, and sustainable finance solutions.
Policy Pilot
Lingang was first established three years ago with the aim of piloting policy initiatives that promote cross-border trade and financial innovations.
According to official estimates, Lingang's financial sector is expected to provide 160 billion yuan ($23.5 billion) in credit facilities and direct finance 50 billion yuan by 2025. Cross-border cash pools could total 60 with cross-border settlements reaching 400 billion yuan in the same period.
«The new branch will enable HSBC to connect our overseas clients with the Chinese market, while providing financial support to local clients in growing their overseas business,» said Mark Wang, president, and chief executive of HSBC China.
Lingang is also home to HSBC’s fintech services unit established in January this year.
