HSBC has secured the go-ahead from the China Securities Regulatory Commission to set up a majority-owned securities joint venture (JV) in China, becoming the first foreign bank to receive the approval.

The new entity, expected to be operational by the end of 2017, will be named HSBC Qianhai Securities.

The British lender will own a 51% stake in the JV, which will be based in Shenzhen in Guangdong province. Qianhai Financial Holdings will be HSBC’s partner in the JV.

The JV company will carry out equity research and brokerage of locally listed securities, equity and debt underwriting, as well as offer advice on domestic and outbound corporate mergers and acquisitions.

HSBC Holdings group CEO Stuart Gulliver said: “The establishment of this joint venture is an important step for HSBC to deliver on our strategic commitment to invest in and grow our business and operations in mainland China.

“Under the joint venture, we will be able to offer clients a broad spectrum of investment banking and financial markets solutions in mainland China, as we do in Hong Kong, the UK or HSBC’s other major markets.”

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