Jun. 22, 2007 (China Knowledge) – HSBC Holdings<5>, a worldwide leading financial institution, plans to conduct pension business in mainland China through establishing a joint venture pension fund company.

According to China Securities Journal, the HSBC's Asian banking head, Michael Smith said that he has a very high expectation for HSBC's development in China's domestic market. He also disclosed that the proposed pension fund firm would be jointly set up between HSBC and Bank of Communications <601328> <3328>, China's fifth largest state-owned commercial bank,

The foreign banks envisage rapid expansion in China through establishing more branches in addition to developing new financial products after the Chinese government's removal of the ban to allow the foreign banks to conduct RMB business at the end of last year.

Being the foreign bank with most branches and offices in China, HSBC opened a "full-service branch" in Shanghai recently.

Nevertheless, it could be the last trip to China for Mr. Smith as he is departing HSBC to become the new CEO of Australian and New Zealand Banking Group Corp. Ltd. (ANZ), the largest financial institution in Australia.