HONG KONG, (Reuters) – HSBC Holdings, (NYSE:) PLC’s China Securities Broker Joint Venture Partner is Selling Most of Its Equity Ownership, according to an exchange filing. A source familiar with the matter stated that the bank would likely bid for the stake.

Qianhai Financial Holding is a state-owned company that owns 49% HSBC Qianhai Securities. It will auction 39% of this unit at an asking price 1.26 billion yuan ($198 million), according to a Shenzhen United Property and Equity Exchange filing.

The source said that HSBC Asia, which was awarded Chinese regulatory approval for the joint venture, will bid for 39% of the stake. This is in a bid for expansion in China’s second largest economy.

HSBC has a 51% share in the joint venture. HSBC declined to comment.

According to the filing with the exchange, auction ends on Jan. 21. It showed that the joint venture had posted a loss of 135 million Yuan (21.20 millions) in 2021.

Due to Hong Kong business rules, the joint venture was made possible by HSBC. It is China’s first foreign-majority-owned brokerage.

This auction is almost a week following the Chinese regulatory approval that allowed the bank to fully own its joint venture in life insurance.

Since the Chinese government allowed foreign ownership of some financial companies in 2019, global banks and asset managers are increasing their stakes in Chinese joint ventures.

Morgan Stanley The stock exchange (NYSE:) plans to raise its stake in China’s brokerage joint venture by 4.06%-94%. This, according to a December filing. It is on the verge of taking full control.

($1 = 6.3638 renminbi)