HSBC Holdings plc, one of the world's largest banking and financial services organizations, said its first-half earnings surged by nearly 70 percent on the mainland after the bank gained almost unlimited access to renminbi retail business earlier this year.

 

The lender, among the first batch of banks to kick off their local incorporation business in April, reported a jump of 69 percent in pre-tax profit to $473 million on the mainland, compared with an average 13 percent climb around the globe between January and June.

 

Hong Kong-based Hang Seng Bank, which started as a local entity in late May, also reported an 86 percent surge in operating income on the mainland in the first half, along with a 21.3 percent increase in loans and 42.7 percent rise in deposits.

 

Local-entity status is expected to help other overseas banks to generate satisfactory growth on the mainland.

 

"We have reinforced HSBC's position as the leading international bank on the mainland," Stephen Green, group chairman, said yesterday in a statement.

 

"Our operations on the mainland following local incorporation grew strongly, with deposit and asset growth of over 50 percent and 26 percent respectively over the same period last year," he said.

 

The bank, largest in Europe by asset value, added seven outlets on the mainland in the first half and recruited more than 800 new staff members.

 

"As a result of its leading position in wealth management, our business there was well positioned to benefit from the buoyant stock market and the steady flow of mainland companies listing on the Hong Kong stock exchange," Green said.

 

Increased overseas investment through Hong Kong into the mainland boosted the city's services and property sectors and provided further opportunities for HSBC to generate revenue growth, he added.

 

(China Daily July 31, 2007)