Friday, February 20, 2004
HSBC wins approval to underwrite China's treasury bonds
PTI
HONG KONG: HSBC - the world's second-largest bank by market value, said it received approval to become the first foreign lender to win approval to underwrite China's treasury bonds.
HSBC will be able to participate in yuan bond auctions conducted by China's Finance Ministry, the bank's spokeswoman said in Hong Kong.
The UK-based lender will also be able to sell the bonds to more than 1,000 state-owned enterprises, pension funds, city commercial banks and domestic lenders.
Foreign lenders are looking to expand into China, the world's sixth-largest economy, which is removing curbs on overseas banks to fulfill a pledge made on entering the World Trade Organization three years ago.
Overseas banks can operate without restrictions starting in 2006 and are preparing to grab a slice of the 1.3 trillion US dollar in household savings.
China plans to sell nine batches of Treasury bonds this year, with two-year, five-year and seven-year maturities. It hasn't given the amounts.
The securities will be auctioned through the inter bank market and the Shanghai and Shenzhen stock exchanges, the ministry said.
HSBC's Shanghai branch is the most active overseas trader in the nation's inter bank market, settling 9.15 billion yuan ($1.1 billion) of bonds last year, a rise of nearly eightfold from 2002, the official Shanghai Securities said.
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