HSBC has received approval from the China Banking Regulatory Commission (CBRC) to establish a bank in rural China. The initiative follows the announcement by the CBRC of new rules to further expand market access for financial institutions seeking to offer services in rural areas in order to expedite China’s rural development.

HSBC will operate in one of the designated rural areas in China’s pilot programme for rural banking through a new wholly-owned entity, HSBC Rural Bank Company Limited. It will be based in Central China in the Cengdu County of Suizhou City in Hubei Province. The area is about 6,900 square kilometres in size and has a population of 2 million people, with a significant agricultural sector and the Cengdu County of Suizhou City has a rapidly developing rural economy. HSBC Rural Bank will initially have up to 25 staff and will aim to be established by the end of the year.

The Hong Kong Monetary Authority, The HSBC’s primary regulator, has also granted in-principle approval for this overseas expansion of the bank’s operations.

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