HSBC leads delegation to boost China-India business growth

The lender banks on network in both countries to spearhead clients tap the links between two of the world’s largest emerging markets.

HSBC Bank (China) Company Limited is leading a business delegation consisting of major Chinese companies to India on Wednesday for a 5-day visit as part of the Bank’s effort to boost business activities and interactions between two of the world’s most exciting emerging markets.

Montgomery Ho, Managing Director and Head of Commercial Banking at HSBC China, said: “As the leading international bank in both China and India, we have been able to leverage our strong on-the-ground presence in both markets to bring this delegation together. We are making use of the Group’s unrivalled emerging markets presence and local market knowledge to help our customers in raising their understanding of the marketplace in two of the world’s rising global economic powerhouses.”

As two of the world’s largest emerging markets, China and India have seen strengthened economic and trade ties over the past decade. China is now India’s largest trading partner and bilateral trade between the two economies is expected to reach US$60 billion this year, a 40 per cent leap from that in 2009 and 20 times that in 2000. Indian investment in China has exceeded US$300 million, and Chinese investment in India is approaching a similar level, according to an HSBC report.

Puneet Chaddha, Managing Director and Head of Commercial Banking at HSBC India, added: “Closer links bring a growing need for financial services, particularly those offering strong connectivity in the two countries. HSBC is well positioned to support these needs as our wide presence and profound insight in both markets enable us to provide timely support and seamless connectivity for businesses engaged in cross-border trade. HSBC’s unrivalled cross-border reach and global financial capabilities have enabled the Group to establish a strong foothold in India’s trade sectors - 5 per cent of India’s total exports and imports are processed through HSBC channels. Initiatives such as this trip enable HSBC to play a role in boosting business activities and interactions between two key strategic markets for both our customers and the HSBC Group.”

In addition to the delegation, HSBC is also proactively leveraging its expertise in RMB cross-border trade settlement, a programme launched by China in 2009 to facilitate trade in RMB, to help businesses in both countries with their RMB settlement needs.

Mr Ho added: “Wider use of RMB globally should boost trade flows between China and the rest of the world. As one of China’s top 10 trading partners, India is well positioned to capitalise on this predicted upsurge. HSBC has RMB trade settlement capabilities in 33 markets across six continents globally. We are able to looking to leverage these experiences to serve the RMB settlement needs in Sino-India cross-border trade.”

The delegation, consisting of senior executives from both the private sectors and state-owned enterprises in a variety of industries including renewable energy, automotive parts, steel, construction and manufacturing, will stay in Mumbai, India’s economic and commercial centre, for a five-day trip. Delegates will have the chance to gain first-hand insight into India’s economy and business environment, exchange information and views with local business leaders and pay visits to major corporates in Mumbai.

Deeply rooted in both China and India, HSBC has established strong service capabilities and a wide presence in both countries. HSBC China employs more than 5,000 people and has 105 outlets across 26 major cities - the largest network among foreign banks. In India, the Bank has over 6,700 employees and 50 branches, in addition to its 93.86 per cent in retail broking business HSBC InvestDirect and 26 per cent in Canara HSBC Oriental Bank of Commerce Life Insurance Company.