It's to finance startups in Guangdong.
HSBC today launched a scheme to support innovative companies in Guangdong Province, home to the dynamic Pearl River Delta region. The Bank’s investment in supporting local businesses demonstrates its strategic commitment to the Pearl River Delta and its support for China’s economic transition through the upgrading of Guangdong’s industrial base.
Under the scheme, HSBC will allocate RMB 2 billion of lending to Commercial Banking clients in Guangdong to finance the innovation initiatives of high-tech startups as well as traditional manufacturing companies. As well as offering preferential interest rates and service fee waivers, participation in HSBC’s ‘Innovation Fund’ will also connect these companies with industry leaders through forums and other events at which knowledge and experience can be shared.
Montgomery Ho, HSBC’s Chief Executive for Guangdong, said: "After years of effort to move up the economic ladder, the PRD is turning into the 'Silicon Delta' for China, boasting a concentration of innovative enterprises in sectors like communications equipment, information technology and biotechnology. With an advanced manufacturing ecosystem, the region is also an important production base for high-tech companies globally. Leveraging its global network and capabilities, HSBC has become the banking partner for many leading high-tech companies in the region. The launch of this scheme will help us forge partnerships with the innovators who are driving the transformation of Guangdong’s economy."
By the end of 2017, the Guangdong government has pledged to build four smart manufacturing industry clusters with an output value of over RMB 10 billion as well as a number of enterprises with world-leading innovation capabilities, business scale and brand recognition.
While giving priority to the development of advanced manufacturing, emerging industries and the high-tech sector, the government is also encouraging traditional manufacturers and small-to-medium sized enterprises to enhance their competitiveness by upgrading their use of technology and ability to innovate.
With the largest distribution network in the province among foreign banks, HSBC's ambition is to build businesses at scale in the Pearl River Delta, delivering the benefits of its global, universal banking model to individual, business, corporate and institutional clients in the region.
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