HSBC To Start Retail Banking In Japan

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The first HSBC branch will be on Chuo Dori in the Ginza 888 building. It will be open on the 9th July.

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Reuters: HSBC continues to bet on wealthy Japanese

Global market turmoil is unlikely to derail HSBC's push into Japan as Europe's biggest bank bets on the millions of wealthy in the world's second-largest economy, HSBC's top executive in Japan said on Wednesday. HSBC Holdings is on track to meet its goals for "HSBC Premier," the retail business it rolled out earlier this year to target Japanese with at least 10 million yen in liquid assets, Stuart Milne, country manager for Japan, told Reuters. The sharp downturn in global markets may be eroding investor appetite for risk, but Milne reckons that over the long term Japanese investors will continue to seek higher returns than those commonly available in their home market. "HSBC is typically seen as a safe haven in tough times," he said in an interview. "In Japan we continue to see satisfactory growth in customer numbers and assets under management. And while our brand isn't as well known in Japan as it is in some other markets, we're very happy with the progress made." Milne said the bank was "well on the way" to meeting its internal targets for HSBC Premier, although he declined to give numbers. The bank has said globally it is looking for about 6 million customers, up from about 2.2 million now.

London-based HSBC is one of several large financial groups lining up to do business with Japan's millions of wealthy individuals. The bank estimates there are about 6.3 million people in the Tokyo and Osaka areas with liquid financial assets of 10 million yen or more. U.S. bank Citigroup as well as big Japanese banks such as Mitsubishi UFJ Financial Group and Mizuho Financial Group are also scrambling for a piece of Japan's estimated $13 trillion (7.4 trillion pounds) in household assets. So far HSBC has opened six branches in Japan and will open a seventh by the end of the month. Milne said that while the bank has no immediate plans for further openings, the market could support as many as 30 outlets.

Although its history in Japan stretches back more than 140 years, HSBC has so far been in a niche player in the country. While it has businesses in Japan include wholesale banking, securities and private banking for ultra-wealthy clients, HSBC may be best known as the country's largest manager of funds related to emerging markets. Given the market turmoil, affluent retail customers are looking for lower-risk investments such as fixed-income products, Milne said. Still, he said the trend of Japanese investors looking overseas would not be coming to an end any time soon. "The long-term trend of Japanese investors diversifying their portfolios is well established and will continue," he said.