Economy

Markets

Industries

Insights

Reports

Events

HSBC hires advisors

(China Daily/Agencies)
Updated: 2009-08-05 07:51

HSBC Holdings Plc, vying to be the first foreign company to sell shares in Shanghai, hired China International Capital Corp and CITIC Securities Co to advise on an offering, two people with knowledge of the matter said.

Europe's biggest bank by value may raise $5 billion in the second half of 2010, one of the people said, declining to be identified because talks are private. HSBC's Hong Kong-based spokesman David Hall said advisors have been chosen, without elaborating.

A share sale may help HSBC increase yuan loans and expand what is already the biggest network of any foreign bank in the mainland.

"Raising yuan in China will help HSBC fund expansion in the loans and credit card markets faster," said Tat Anyeung at Apex Capital Management. "The bank can also take advantage of the higher multiples in China to raise cheap capital."

Special Coverage: Restart of IPO Related readings:  HSBC Jinan branch launched  HSBC Insurance gets ready to expand beyond Hong Kong  HSBC starts process for A-share listing: report  ICBC Asia won't follow HSBC lead in cutting savings rates

"Allowing quality overseas companies to list in the mainland will help absorb capital and dilute the excessive liquidity problem in local markets," he said.

HSBC has said it wants to list on the mainland as soon as regulations permit, adding to listings in Hong Kong and London.

"The listing of a global company such as HSBC in the mainland will give investors more choices to quality stocks and serve as a benchmark in terms of corporate governance and disclosure," said Wang Yihuan, analyst at China Asset Management Co.