Bank of Shanghai is taking direct ownership of its Hong Kong investment banking arm, BOSC International, to enhance oversight following years of significant losses. The move comes after regulatory approval to consolidate management of the unit, which has accumulated substantial deficits.
This move signifies Bank of Shanghai's effort to regain control and address financial underperformance within its international operations, particularly in light of the ongoing challenges in China's property sector.
Bank of Shanghai Co. is assuming direct ownership of its Hong Kong investment banking subsidiary, BOSC International Co. Ltd., as part of a strategy to improve oversight following prolonged financial losses. The decision follows approval from the Shanghai bureau of the National Financial Regulatory Administration, which also mandated the bank to enhance its consolidated management of the offshore unit.
BOSC International has experienced a difficult financial period, recording net losses for five consecutive years up to 2025. This sustained underperformance has resulted in an accumulated deficit of HK$2.55 billion. The property debt crisis in China has been cited as a significant factor contributing to these losses.