HSBC senior executive claims that China should alleviate regulations so foreign financial institutions can be able to achieve licenses and registrations, raising deposits more easily into the country. Peter Wong, deputy chairman and chief executive of HSBC’s Asia-Pacific operations, also stated a fiscal meeting in Shanghai that China must advance commercial authority and investor protection to diminish systemic hazards. “We really don’t want to have another situation similar to the Lehman crisis in China,” Mr Wong stated, referring to the disintegration of the US financial entities that assisted in triggering the worldwide financial predicament in 2008.
The Main Issue of China and HSBC
China has extended in expanding its massive fiscal industry amid a tumultuous trade war with the United States. Earlier this month, supervisors proclaimed a firm agenda to fully release its futures, brokerage and mutual fund segments to foreign shareholders in 2020.
Mr. Wong said hassle-free foreign ownership policies are very significant for HSBC, in addition to its banking industry, also owns assurance, asset supervision and brokerage enterprises in China. But other policies also need to be undisturbed, he said, as an example to permit HSBC to increase its insurance industry more effortlessly into new cities and districts in China.
Another impediment, Mr. Wong said, is that “it’s very difficult for foreign banks to get deposits in China” due to very rigorous and strict requirements, so China should “figure out a way” to lend a hand to them. “We’ve been trying for a number of years. Now we’re developing, we’re increasing our share, but the journey is not easy,” he said.
China has been suffering from the trade war with the United States, taking the brunt of the consequences on their financial industry. They have been trying to recuperate and get back on their feet by expanding their financial territory, to gain more profit from all the losses they suffered through the trade war. China has been trying to find a way to aid foreign banks, but it hasn’t been easy.
HSBC executive has been openly speaking about the China issue since they are a financial institution that seems to be suffering from the consequences of the trade war. The senior staff has been openly worried that there might be another Lechman issue, the trigger that caused the global financial crisis in 2008.
The Chinese financial authorities have yet to make a concrete plan on the issue at hand.