HSBC’s fund joint venture partner in China is auctioning part of its ownership and the British lender has has the preemptive right to acquire.
Chinese state-owned Shanxi Trust is auctioning a 31 percent stake in joint venture HSBC Jintrust Fund Management, according to China’s National Public Resource Trading Platform website. Shanxi Trust and HSBC currently own 51 percent and 49 percent, respectively, of the venture.
The stake is being auctioned at an asking price of 1 billion yuan ($140 million), valuing HSBC Jintrust Fund Management at 3.2 billon yuan.
Preemptive Right
Under the existing arrangements, HSBC has the preemptive right to purchase the stake, according to the auction page.
«We are keen to grow our businesses in China, including our fund management JV HSBC JinTrust, which is a strong, profitable business,» a spokesperson for the bank said in response to an inquiry about a potential purchase.
The auction started to receive bids last week on June 29.
