Hong Kong's largest retirement scheme provider HSBC Group will use its extensive 366-branch banking network to sell Mandatory Provident Fund (MPF) products and hopes to secure 40 per cent of the market.
The group yesterday launched HSBC Provident Fund Services - a division of HSBC Insurance - to be headed by Gregory Willis.
The new company will offer retirement fund services in Hong Kong with a particular focus on the MPF scheme, due to be implemented next year.
The proposed MPF scheme requires all the 300,000 Hong Kong companies - with 2.4 million employees - which have yet to implement a pension plan for their staff to set up a fund.
HSBC Insurance chairman Vincent Cheng Hoi-chuen said the group would rely on its extensive branch network, rather than a large number of agents, to sell MPF products.
'All Hongkong Bank's 220 branches and Hang Seng Bank's 146 branches will sell MPF products,' he said.