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HSBC, Hang Seng Bank seek 40 pc of HK MPF market

HONG KONG: HSBC Holdings' 0005.HK Hongkong and Shanghai Banking Corp Ltd and Hang Seng Bank 0011.HK said on Monday they aim to dominate Hong Kong's Mandatory Provident Fund (MPF) pension market with a 40 percent market share.

"We are confident that together the two banks will take 40 percent market share," Vincent Cheng, Hang Seng Bank vice chairman and chief executive, said in a statement. The two banks are among about 21 companies expected to be licensed on Tuesday to begin marketing products for the MPF, Hong Kong's new compulsory pension scheme.

Raymond Aw, general manager (designate) at Hongkong and Shanghai Banking Corp, said the companies would devote "considerable resources" to achieve their goals.

"Our strategy is quite clear: to be number one," Aw said. "We have always played a key role in the pension fund industry and we intend to maintain our leadership position with the introduction of MPF."-Reuters