HSBC Holdings, the largest bank in Europe, will increase its investment in China and strengthen cooperation with Chinese partners.

HSBC's investment in China has been built on a sound foundation and will continue to enhance cooperation with Chinese banks and insurance companies, including the Bank of Communications (BOCOM), in 2007.

HSBC had acquired a 19.9 percent-stake in BOCOM, one of the "engines" of China's economic growth, by investing nearly 2.2 billion U.S. dollars, adding that the London-based global banking giant will strengthen cooperation with the China Construction Bank (CCB) this year.

HSBC realized a pre-tax profit of 22 billion dollars in 2006, with its profits in Asia rising to 4.5 billion dollars. Besides its investment in BOCOM, the banking group has large shares in the Ping An Insurance Company, the Fujian Industrial Bank and the Bank of Shanghai.