HSBC Life Taps Beijing's Wealth Market With Launch

Vanessa Doctor

25 October 2011

HSBC Life Insurance Company, the joint venture between HSBC Insurance (Asia) and Beijing-based The National Trust Limited, has launched its insurance operations in Beijing.

The bank recently received approval to offer insurance products in the city, allowing it to expand its existing China-based insurance network and include its 14 Beijing-based outlets. HSBC Life has been operating in Shanghai since August 2009.

"Rapid wealth creation among Chinese households is stimulating demand for financial services, including insurance protection, long-term savings and wealth management," said Louisa Cheang, the group general manager and head of retail banking and wealth management for HSBC in Asia-Pacific.

HSBC Life's bancassurance business features around 20 products geared toward affluent and high net worth customers in Shanghai.

"In a recent survey by HSBC, affluent Chinese are most concerned about medical and life protection and saving for their children's education, while only a third a seriously planning for retirement. The new Beijing branch extends our presence where there is a significant and growing pool of affluent individuals," noted Terry Lo, the chief executive of HSBC Life.

According to the HSBC Asia-Pacific HNW individual survey, 96 per cent of high net worth individuals in Mainland China and 92 per cent in Hong Kong are involved in investment. The average age of individuals with liquid assets of at least RMB500,000 ($78,400) in China is 36.