HSBC eyes wealthy Chinese clients

HSBC Holdings Plc<5>, Europe's largest lender, on Monday launched private banking services in China as foreign banks including Citigroup are looking to the nation's fast growing demand for high-quality banking services from wealthy clients.

HSBC has won regulatory approval to offer private banking services in three major Chinese cities, namely Shanghai, Beijing and the southern city of Guangzhou.

Its target clients are those with a minimum net worth of US$10 million, it said, while the minimum initial deposit for an account will be US$1 million.

Foreign banks are eyeing the rapidly growing wealthy class in China where more than 345,000 millionaires are being created every year, spurred by the annual economy growth of more than 10%.

Foreign lenders like Citibank and Standard Chartered have already offered private banking services in China. And Bank of East Asia<23> said it would start such business in the second quarter.

Currently, qualified foreign banks are allowed to conduct local-currency business with Chinese individuals.