Money

Hang Seng eyes banking services for business growth

By Gao Changxin (China Daily)
Updated: 2011-05-11 13:16

SHANGHAI - Hang Seng Bank Ltd expects that wealth management and yuan-denominated trade settlement services in will continue to drive its business in China, after reporting strong earnings for 2010.

"We will continue to enhance our comprehensive cross-border trade services and leverage our diverse range of service delivery channels in both Hong Kong and the Chinese mainland for long-term growth," Margaret Leung, chairman of Hang Seng (China) Bank Ltd, said during an event to unveil its new headquarters in Shanghai.

The Hong Kong-based lender plans to introduce yuan-denominated trade settlement services at 38 of its branches in China in the near future.

At present, 13 of its Chinese branches provide yuan-denominated trade settlement services from 58,000 accounts. Settlement volume since August last year has reached 45 billion yuan.

Related readings:  Hang Seng Bank profits down 6.2% in 2009  Hang Seng Bank to open first cross-city sub-branch

On wealth management, the lender said it will continue to strengthen product development and that it plans to roll out more tailor-made products to increase its customer base in China this year. In 2010, Hang Seng launched 330 wealth-management products to the Chinese.

"As a professional wealth management bank, Hang Seng (China) will continue to ride on the competitive advantages of Hang Seng Bank to extend its range of wealth management products and services on the Chinese mainland this year," Leung said.

Dorothy Sit, Hang Seng's chief executive officer for China, was quoted by Bloomberg in December 2010 as saying that the lender is seeking a partner in China to offer wealth management services.

The lender aims to enter into strategic partnerships with companies in the insurance, asset management and securities industries, according to Bloomberg.

This year alone, Hang Seng intends to add an additional 200 staff members to boost its business in China, after adding 150 people in 2010. It has more than 1,800 employees in China.

The new headquarters, in Shanghai's Lujiazui financial district, is 70 percent bigger than the previous one, which came into operation in 1997.

"We are delighted to unveil our new headquarters. This is an important milestone for Hang Seng, signifying our long-term commitment to development on the Chinese mainland," said Leung.

The launch of the new headquarters came after the lender, majority-owned by HSBC Holdings Plc, posted one of the strongest performances in 2010 among foreign banks in China.