Anshuman Daga

SINGAPORE, (Reuters) – HSBC Holdings Plc, (LON. ) met its target for hiring in China’s retail wealth management branch and has begun to explore re-entering India’s private banking sector, according to senior executives. It is part of its strategy of making Asia and wealth the key pillars and drivers of economic growth.

Noel Quinn is the Group CEO. HSBC has invested $3.5 billion in its wealth and personal bank business to achieve its goal of becoming Asia’s largest wealth manager.

“We’re the most important international bank in China,” Nuno Matos CEO, Wealth and Personal Banking, said. Nuno Matos is one of four high-ranking bank executives that will be moving from London to Hong Kong as part the bank’s regional pivot.

Matos said that “on the private banking side we are now clearly expanding mode” in one interview with Reuters after he moved to the region.

Asia is HSBC’s biggest market. Last year, the London-based HSBC reported that the wealth and personal banks unit contributed $44% (or $22 billion) to its adjusted global revenue.

Matos indicated that the bank intends to have 700 personal wealth advisors in China for its mobile wealth management service, HSBC Pinacle by year’s end, as opposed the 550 planned initially.

HSBC offers wealth management services, including insurance, investments and asset management products. Private banking is available for those who have investable assets greater than $5 million.

The bank was home to 20 private banks in China, according to Siew Meng Tan of HSBC Private banking for Asia Pacific.

She said, “By next year’s end, we’ll be at 64.”

HSBC will be exploring whether it can re-enter Indian onshore private banking. India is a country where super-rich are increasing fast, and record-high stock markets have led to a number of multi-billion-dollar start-ups.

As part of a group strategy, HSBC resigned from the Indian private bank business in 2015. Few foreign players are present in the highly competitive Indian market.

“We aim to serve high net-worth customers and mass affluent people. Matos stated that the main pillars in India at this time are asset management and insurance. We are still not at the right place on the private banking side. That’s why we need to make a strategic decision for this year.”

HSBC is currently focusing its attention on serving wealthy Indians through its international hubs in Singapore and London.

“COMPELLING OPORTUNITY”

Matos indicated that HSBC will also be looking to expand its Southeast Asia and Singapore presence. For $575 million, the bank acquired Singapore assets from French insurer AXA in August.

HSBC’s Asia-based retail banking is a major strength, especially in Hong Kong. But global leaders like UBS are and Credit Suisse For wealthier clients, (SIX: ) rules the market

In spite of unprecedented regulation crackdowns in China’s second largest economy, global wealth managers are still bullish on China’s growth prospects.

Boston Consulting Group released a report on global wealth in June. It stated that Asia’s wealth-management revenue pools would soar faster than any market anywhere else, and will nearly double over five years, to $52 billion.

“Asian wealth expands twice as quickly as other parts of the world,” said Matos. Matos who assumed responsibility for HSBC’s newly combined division was convinced that there is a huge opportunity.

He said, “I don’t intend to re-do our goals now but I can tell you that we will exceed our wealth goals in 2021.”

Matos announced that HSBC had plans to acquire its joint venture partner for life insurance in China last year. HSBC also wants to take full control over its asset management business in China.