There may have been unflattering economic and financial stories about China recently, but the UK/Hong Kong-listed bank is confident that there are continued significant wealth management opportunities in the Asian country.

HSBC has said that its wholly owned insurance subsidiary in China has won a regulatory green flag, opening the doors for HSBC Insurance Brokerage to tap opportunities in China’s financial markets.

The China Securities Regulatory Commission gave HSBC Insurance Brokerage a blessing for its securities investment fund sales' qualifications. This business was set up in September 2022 mainly to serve the HSBC Pinnacle Venture business to provide mobile insurance and personal wealth planning services to customers. 

The business has created seven branches in China: Beijing, Shanghai, Guangdong, Shenzhen, Jiangsu, Sichuan, and Foshan. 

“The newly-acquired licence will significantly enhance HSBC Pinnacle’s capabilities by expanding its range of financial planning solutions to include both insurance and investment products for personal and corporate clients,” HSBC said.

The UK/Hong Kong-listed banking group said that China’s wealth management is a “significant long-term growth opportunity for banks." The lender said that across the entire wealth management industry, including brokers and mutual fund managers, total assets under management are over RMB100 trillion ($10.89 trillion). 

“China’s wealth market remained resilient, recording an average annual growth rate of 9.8 per cent over 2018 to 2022,” Trista Sun, deputy chairman of HSBC Insurance (Asia-Pacific) and Pinnacle Venture CEO, said.

Sun alluded to recent market falls in China, amidst concerns about its financial and real estate sectors and the amount of debt in the country. 

“The short-term market volatility and industry adjustment have triggered many Chinese wealth owners and investors to rethink their future portfolio management strategy, recognising the importance of risk management and benefits of asset diversification,” Sun added.