HELEN Wong spends more than half of her time traveling around China as she steers HSBC's flagship franchise in a strategic market for Europe's biggest bank.

Wong, a Hong Kong native, wears several hats, including HSBC group general manager, president and chief executive officer of HSBC Bank (China) Co Ltd, and executive director of the board of HSBC China. Her mission is less complicated: lead the bank to growth in the world's fastest-growing major economy.

HSBC is really a child of Hong Kong and Shanghai, though it eliminated the geographic color of its origins when it reduced its corporate name to an acronym in 1991. But the tradition of the two cities in which the bank was founded almost 150 years ago has lived on to become the focus of its business future in the 21st century.

Wong took over as chief executive officer of HSBC China, the bank's mainland subsidiary, in 2010. It's a big, diverse market to handle, and she said getting out and about to visit regulators, staff and customers around the country is the best way to keep tabs of what's going on in the bank and to gauge the economic conditions in which it operates.

The bank moved its headquarters to London from Hong Kong in 1993, but its focus has remained squarely on China, where it now operates the biggest network of any overseas bank: 109 outlets in 29 cities, staffed by a team of over 5,000.

In addition, HSBC owns a network of 17 rural bank outlets and another 38 branches under its Hang Seng Bank affiliate.

Earlier this year, the bank joined a slew of western banks to announce job cuts globally. But in China, its ambition is clear and remains unchanged - continue to expand and build on its position as the leading international bank in China.

HSBC has invested more than US$5 billion on the Chinese mainland. Its operations there include a life insurance and a fund management joint venture. HSBC holds 19 percent of Bank of Communications, a 15.6 percent stake in Ping An Insurance (Group) Co and 8 percent in Bank of Shanghai.

The mainland market accounted for 15 percent of HSBC's global pre-tax profit in the first half and 26 percent of its Asia-Pacific earnings. HSBC's organic pre-tax profit soared 171 percent to US$279 million in the first half.

Wong started her banking career 27 years ago, with two decades of it spent at HSBC. She moved from Hong Kong to Shanghai in September 2009, when the global financial crisis was playing out, to be deputy CEO of HSBC China. She was promoted to the top job.

Wong, who has an extremely tight schedule, granted Shanghai Daily an exclusive interview recently in her Shanghai office overlooking Lujiazui, the city's Wall Street.

Her office is filled with sports trophies alongside a giant map of China. She said she first became interested in sports as a student at the University of Hong Kong and still finds physical activities a boon not only to her own well-being but also to the spirit of teamwork within the bank.



Q: HSBC has the broadest network among foreign banks on the mainland. What are your network expansion priorities?

A: The first is to build a network as fast as regulations allow. That's the first and foremost. Then we look at where we can do business according to our strategy. Our strategy is to be the leading international bank in China. We have four groups of customers. The first are the international companies that come to China, wherever they are. The second are state-owned enterprises that are naturally big in certain cities. They have international needs when they seek overseas expansion. The third group is medium- and small-sized companies, which often have a lot of international needs as well. So trade is an important part of our proposition. And, of course, the fourth group is individuals, who are just as important to us.

Q: Where are you going? How do you actually reach out to individuals? I assume you have different strategies for different cities.

A: In different cities, we have different strategies. If we look at expanding in China, we also follow the country's policy direction. So naturally, we want to help China develop as well. We won't just place ourselves in tier-one or coastal cities. We will also expand to the west. For example, we have branches in cities including Chengdu, Chongqing, Xi'an and Taiyuan. Generally speaking, everywhere we go, we manage to break even rather quickly.

Q: How quickly can you break even? I mean how many years do you need to make it?

A: The bigger we are, the better known we are, the quicker we make it. Sometimes even before a branch opens, we already know some of the clients in that city. Like the Kunming branch. Before we even opened the branch there in August, we had been talking with Kunming companies for as long as a year in advance. You need to get to know local needs and gain local knowledge that way. You can't wait until you open a branch to start marketing. Generally speaking, most of our new branches will manage to break even within a short period of time. That doesn't mean you will earn a lot of money, but at least you have made enough to pay for the operations of that branch. As you continue to expand, then you begin to make money for the bank.

Q: An earlier CBRC survey showed that many locally incorporated overseas banks have cut their revenue growth targets for 2011. How will you manage to keep growing against the tide of challenging economic conditions?

A: I think there are a couple of things that distinguish us from other foreign banks. The first thing is we have a head-start advantage. By head start, I mean that we began investing in China earlier than most other foreign banks. With 109 outlets now, we feel we are quite well positioned in the country. Our strategy has always been focused on investing in new products. Whenever something new comes up, you will always see us at the forefront. That gives us a broader range of business and allows us to tune our business to different environments.

Q: For example?

A: For example, when some other banks are struggling with their loan-to-deposit ratios, we still have very good liquidity to lend if we want to, because of our network size and because of our focus on getting deposits over the course of so many years. (Editor's note: Locally-incorporated overseas banks in Chinese mainland must reduce their loan-to-deposit ratios to below 75 percent by the end of 2011).

Q: HSBC has a plan to open 15 to 20 new outlets on Chinese mainland every year. But so far this year, you have opened less than your target. Is this a slowdown in your expansion plans?

A: We do change the numbers as circumstances may warrant. But the target stays the same in our business plan. Whether we can really open 15 to 20 outlets a year depends on lots of things, such as regulatory approval or finding the right location.

Following our recent opening of Kunming branch, we are preparing for setting up a branch in Wuxi within the year. We have also received regulatory approvals for establishing a branch in Harbin, in addition to sub-branches in several other cities. So, I think I am comfortable to say that we remain on track, though the final number would depend on many factors as we progress.

Q: HSBC's broad network and retail banking help the bank to secure deposits for lending. As you expand, how much do you plan to try to penetrate the mass market?

A: To enter the mass market, you need to have not only the network but the information technology investment, the channels as well. For now, we are quite comfortable that we can continue to provide good services based on our current network and focus on the mass affluent and emerging affluent segment. Our proposition is also very different from those of local banks. Actually, people bank with us for our international exposure.

Q: HSBC China isn't under liquidity pressure. Is that why you haven't issued yuan-backed bonds on the mainland?

A: We are not pressed for liquidity, but yuan-backed bonds are one option always on our table. As you know, we have already issued yuan-bonds in Hong Kong, so we definitely know how to do it. We have no pressure on that, but will continue to consider. The other thing is we are exploring the business for underwriting bonds in the interbank market.

Q: What's the biggest challenge you have faced since taking over the helm of HSBC China? And what do you consider your greatest achievement to date?

A: The biggest challenge is to have enough qualified talent to help the bank grow. There are so many opportunities outside and the competition for talented professionals is really fierce, even though we are the biggest foreign bank.

As to achievement, my team and I have done a lot of things to strengthen the core of the bank. I have introduced measures to improve internal communications. I encourage people to do more team building, to have a better work-life balance. It's people that drive a business, and sports can play an important role in helping them keep a balance in their lives.

Q: Your job must put you under a lot of pressure. How do you keep the work-life balance in your own life?

A: Sports is one way to train the body and relax the mind. I keep very positive thinking. Banking has been facing ups and downs in my 27 years in the industry. We know that we are here for long term and we stay committed to China. We know that opportunities are plenty. We know that even though competition is keen, we have the resolve to win. I know I have the people to do that. If I'm armed with so much, and armed with the support from the Group as well, why can't I face the pressure? I truly believe in working hard, and making sure I do the right things. You don't need to think too much about success, but just go and work on it.