By Hsu Chuang Khoo
KUALA LUMPUR (Reuters) - HSBC Holdings Chairman John Bond said the world's No. 2 bank is awaiting Beijing's approval for a stockbroking license as it seeks to grow what is already the largest branch network among foreign lenders in China.
HSBC (0005.HK) wants to increase its presence in a country with $1.65 trillion in savings, while China is set to open the sector wider to foreigners by the end of next year, in line with commitments Beijing gave when it joined the World Trade Organization in 2001.
"We would like to have a securities business in China. We are examining all possible routes to doing that," Bond told reporters while visiting the Malaysian capital.
"Certainly, we are in a review with the Chinese authorities for the prospect of getting a securities license. It's a very natural thing for us to want to expand in China," he added, declining to provide further details.
HSBC is among a group of foreign bidders vying for a stake in mid-sized Xiangcai Securities, sources close to the situation have told Reuters.
HSBC has made no direct investment in China's brokerage sector so far, but it signed a business cooperation agreement with Shanxi Securities this month, helping some state-owned companies based in central China to list in Hong Kong.
HSBC already has become a top foreign investor in China through its nearly 20-percent stake in China's fifth-largest lender, Bank of Communications (3328.HK), a nearly 8-percent stake in the Bank of Shanghai, and a nearly 20-percent stake in No. 2 life underwriter Ping An Insurance (2318.HK).
Its Hang Seng Bank (0011.HK) unit in Hong Kong also holds nearly 16 percent of Fujian-based Industrial Bank.
