HSBC to expand China network, target rich Chinese

SHANGHAI (Reuters) - HSBC Holdings Plc. (HSBA.L) (0005.HK) said on Monday it had set out an aggressive plan to increase its banking network in China next year, in a move especially aimed at boosting its wealth management services. Richard Yorke, chief executive of HSBC China, told Reuters in an interview that the London-based bank aims to have 85 outlets in 19 or 20 Chinese cities in 2008, up from 53 outlets in 16 cities now.

HSBC, Europe's top bank, also plans to increase the number of its China wealth management centers to around 70 in 2008 from 38 now, Yorke said. The centers target HSBC's "premier customers" whose average daily balance is no less than 500,000 yuan ($67,620).

To support the bank's fast network expansion, HSBC plans to increase its China headcount to 6,600 in 2008 from 4,600 now, Yorke said, adding that more than 50 percent of its China staff will work for or give support to HSBC's retail banking services.

HSBC, launched its wholly owned China subsidiary in April in a business expansion, especially in wealth management and retail banking services, in the world's fastest growing major economy.

HSBC now holds a roughly 19 percent stake in Bank of Communications (3328.HK) (601328.SS), China's fifth-largest lender, and it is also a major investor of China's second-largest insurer, Ping An Insurance (601318.SS) (2318.HK).

HSBC already runs a fund management joint venture based in Shanghai, and it is preparing to launch an insurance venture based in Beijing.

($1=7.394 Yuan)

(Reporting by George Chen, Editing by Ken Wills)