The Hong Kong and Shanghai Bank (HSBC) has agreed to take a 10 percent stake in Ping An Insurance, China’s second largest insurer for $600 million.
U.S. investment banks Goldman Sachs and Morgan Stanley already have a combined 14 percent stake in Ping An. HSBC with its close ties to China has an 8 percent stake in the Bank of Shanghai, as well as its own operations in China and Hong Kong.
The company is very optimistic about the prospects for growth in China. Chairman Sir John Bond indicated that HSBC was particularly attracted to the long-term prospects in the insurance and asset management sectors.
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