The Hongkong & Shanghai Banking Corp. (HSBC) received approval from China Banking Regulatory Commission(CBRC) to launch a small-sized rural bank in Hubei Province , the first rural bank established by overseas lender. This is HSBC’s second wholly-owned branch in China’s mainland after HSBC China was established in Shanghai.
Vincent Cheng, Chairman of The Hongkong and Shanghai Banking Corporation Limited, said: ‘Our rural bank will serve the needs of China’s agricultural sector, which is undergoing rapid development, and will aim to provide tailored financial services to rural communities and enterprises.’ Before applying for the rights set up the village bank in Hubei province, the bank conducted extensive research across 36 regions and finally chose Cengdu district, Suizhou City, home to a population of about 2 million residents. This region’s economy relies mainly on the export of mushrooms. [Full Text]