State-owned Qianhai Financial Holding is auctioning a 39% stake in HSBC Qianhai Securities for $198 million. The auction will close on Jan. 21, 2022.

According to Reuters, HSBC Qianhai Securities is a joint venture between China’s state-owned Qianhai Financial Holding and HSBC, with Qianhai Financial Holding owning 49% and HSBC owning 51%.

HSBC launched the joint venture in November 2015, but it took 20 months for the Chinese regime to approve the license to operate.

This is China’s first financial joint venture in which foreign investors can own a majority of the stock. In exchange, HSBC has issued laws that benefit Hong Kong companies.

In 2021, the joint venture lost $21.20 million.

On Thursday, Dec. 30, 2020, HSBC said it had acquired the right to buy the remaining 50% in its HSBC Life China joint venture as HSBC continues to expand services beyond its core banking operations.

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