HSBC yesterday opened its third rural bank on the Chinese mainland in Fujian Province.

The Fujian Yong'an HSBC Rural Bank Co Ltd, a wholly owned subsidiary of the Hong Kong and Shanghai Banking Corporation Ltd, also marked the first entry by an international bank into the rural market in southern China.

"The establishment of Fujian Yong'an HSBC Rural Bank is an important part of growing our rural finance business in China's mainland," said Vincent Cheng, chairman of the Hong Kong and Shanghai Banking Corp, or the Asian-Pacific arm of HSBC Holdings. "We hope to bring our global expertise into China's rural sector and run a sustainable rural financial mode to thrust China's rural economy."

With registered capital of 40 million yuan (US$5.86 million) and a staff of 18, the rural bank will provide financial services including deposits and loans through supply chain financing to local rural enterprises and individuals.

As business grows, the bank also plans to roll out more products and services to meet the growing needs of the local rural economy.

(Shanghai Daily October 16, 2008)