HSBC to join Bank of Communications' rights issue

HSBC sees BoCom's fundraising move as opportunity to add its 20% stake and increase China investments.

HSBC will take part in Bank of Communications' (BoCom) upcoming rights issue and is keen to increase its shareholding in the Chinese lender when regulations allow, said Michael Geoghegan, group chief executive of HSBC.

"When the opportunity arises, when the chance comes, we will invest in China," Geoghegan said. "I cannot raise the stake in China other than what the regulations say, and regulations say you can't go above 20%."

"We want to grow our business in Asia, it's our biggest market ... it is a tough market at the present time, but I do believe China is growing," he explained.

BoCom, in which HSBC currently owns about a 20% stake, plans to raise as much as 42 billion yuan ($6.1 billion) via a rights issue in Shanghai and Hong Kong to bolster capital and support expansion.

China's fifth-largest lender announced that it will sell up to 1.5 shares for every 10 held by existing shareholders.

View the full story in CNBC.

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