Global Capital Markets

HSBC Holdings is interested in a mainland listing in the medium term, Michael Smith, president and chief executive of Hongkong and Shanghai Banking Corp, HSBC's Asia-Pacific unit, said. Peter Wong Tung-shun, an executive director of HSBC, expects a listing on the Shanghai stock exchange in 5-10 years. Commenting on a newspaper report that HSBC is in talks to buy a majority stake in Taiwan-based En Tie Commercial Bank, Smith said now is not the right time to invest in Taiwan as there are too many uncertainties arising from the island's potential bankruptcy legislation. Smith also said recent purchases of HSBC shares by investors from the Middle East are driven by growing trade flows between the Middle East and Asia as well as liquidity generated by high oil prices. Dubai International Capital (DIC), a private equity firm owned by United Arab Emirates' Sheikh Mohammed bin Rashid al-Maktoum, said earlier this week its units have made substantial investments in HSBC. Separately, Raymond Or, vice chairman of Hang Seng Bank, a unit of HSBC, said the bank may acquire a Chinese or Hong Kong insurance company to meet the assets requirement for setting up a unit in the mainland this year.