Hong Kong-based Hang Seng Bank plans to invest over HK$1 billion (US$129 million) between 2005 and 2008 to expand its service on the mainland and grow its network to more than 30 outlets, the lender said yesterday.

 

The bank also said it would hold a board of directors meeting in Shanghai on September 15 the first time it will hold a board meeting on the mainland.

 

"This landmark board meeting highlights our strong commitment to mainland China, which is a central element of our long-term growth strategy," Vice-Chairman and Chief Executive of Hang Seng Raymond Or said yesterday.

 

"We remain focused on developing our service capabilities in strategic cities in the Pearl River and Yangtze River Deltas," he added.

 

A principal member of the HSBC Group, the bank is one of a cluster of foreign players pushing to expand their reach in China in anticipation of the retail banking sector opening up.

 

The bank aims to increase its business on the mainland to contribute 10 percent of its total pre-tax profit by 2010, it said.

 

Hang Seng has invested over 3.6 billion yuan (US$450 million) in its mainland business, including its 1.73 billion yuan (US$216 million) acquisition of a 15.98 percent stake in the Industrial Bank.

 

To further develop its wealth management business, the bank will continue to extend its service and product offerings on the mainland. It recently applied for a licence under the qualified domestic institutional investors (QDII) scheme.

 

It operates more than 145 branches and automated banking centers and 13 business banking centers in Hong Kong, a branch in Macao, and a network of 14 mainland outlets, including six branches, six sub-branches and two representative offices.

 

The latest outlet, a sub-branch, was opened in Guangzhou, capital of South China's Guangdong Province, on August 8.

 

According to Johnson Fu, head of Hang Seng's China business, the bank plans to open another new outlet in Guangzhou by the end of this year.

 

(China Daily August 29, 2006)