More overseas bank branches in China

[img_assist|nid=7848|title=|desc=|link=none|align=left|width=100|height=85]Hongkong and Shanghai Banking Corp. (HSBC) is going to open its second rural bank in Chongqing in the third quarter soon after approval said Peter Wong, executive director of HSBC.

The financial institution submitted two more applications to continue its expansion towards rural areas of the China mainland. These locations are undisclosed so far.

First rural bank was opened by HSBC in central China's Hubei Province in mid-December. Thus HSBC became the first overseas bank to penetrate into the country market.

"We see rural banking a profitable business, not only as a means to support China's economy," said Wong. "We eyes it a long-term business and the risk is limited."

The subsidiary has a registered capital of 10 million yuan (US$1.43 million).
In addition to this HSBC has rural banking business in India and the South American markets.