HSBC Holdings PLC plans to enter China's fledgling insurance industry by selling a domestic partner's products this year, an executive says.
HSBC's Asian unit has regulatory permission to provide insurance services in Shanghai and Guangzhou and plans to sell the products there of Ping An Insurance Co., in which it holds a 19.9% ownership stake, a Chinese mainland-based executive told Shenzhen Daily on Thursday. The London banking company's Beijing and Shenzhen branches are awaiting regulatory approval, which HSBC expects soon, the executive added.
At first, HSBC will sell only Ping An's accident, health, and life-related insurance to its Chinese customers, the executive said. It has been limited to selling only foreign currency-dominated, third-party insurance products through its China network.
Foreign companies such as American International Group Inc., the world's largest life insurer, are gaining broader access under commitments China made upon joining the World Trade Organization.
