HSBC has reached an agreement to acquire the remaining 50% equity stake in its life insurance joint venture in China from partner The National Trust (NT).
Financial details of the agreement were not revealed.
Formed in 2009, HSBC Life China had registered capital of CNY1.025bn ($145m) as of December last year.
The British banking giant said that the deal will be structured as a transfer of equity interest and is subject to receipt of regulatory approvals.
The transaction follows the recent decision of the Chinese government to allow overseas firms to fully own their local life insurance ventures from January this year.
HSBC group chief executive Noel Quinn said: “Despite the current difficult environment engendered by the Covid-19 pandemic, we continue to take steps to implement our growth strategy.
“This transaction supports our ambition to accelerate growth within our Asian franchise, particularly in the dynamic and fast-growing Greater Bay Area, where we fully intend to expand in all lines of businesses. It also allows us to further extend our capabilities in wealth, another area of strategic focus for the Group.”
HSBC Life China has presence in nine key Chinese cities including Shanghai, Beijing, Tianjin, Hangzhou, Guangzhou, Foshan, Dongguan, Zhuhai and Shenzhen.
It offers a wide array of insurance solutions covering annuity, whole life, critical illness and unit-linked insurance products.