HSBC Holdings had set its sights on privately owned enterprises in the mainland to boost its business across the border, said Margaret Leung Ko May-yee, the bank's global co-head of commercial banking.
Mrs Leung, citing a bank survey, said the mainland's small and medium-sized enterprises (SMEs) accounted for 68 per cent of the nation's exports, while private businesses made up 85 per cent of SMEs.
"Only 1 per cent of private enterprises are using foreign banks' services," she said.
The survey showed that 31 per cent of private enterprises wanted to use foreign banks' services for greater efficiency and convenience, Mrs Leung said.
The bank could leverage on its advantage as a local incorporated entity to tap these potential customers.
"We will pay more emphasis" on SMEs and the private enterprise sector in the second half and next year, Mrs Leung said.
First-half pre-tax profit at HSBC's global commercial banking business grew 20 per cent to US$3.42 billion, of which the pre-tax profit of mainland commercial banking surged 61 per cent to US$171 million, including exceptional gains.
Mrs Leung expected the mainland economy would continue to grow at a 10 to 11 per cent pace this half-year, allowing HSBC to benefit by leveraging on its advantage as the largest foreign bank in the country.
She said the bank had 364 employees for its commercial banking business in the mainland and would continue to hire more to cope with expansion. Growth would also focus on other Asian markets including India, the Middle East and Taiwan.
Meanwhile, Mrs Leung said there could be some consolidation among Hong Kong-owned processing factories in the mainland when the central government begins charging all exporters a deposit of 50 per cent of the amount they spend sourcing 1,853 raw materials such as metals, plastics and textiles for production into semi-finished goods.
Some factories could be moved to rural areas and some producers might sell their plants, she said.
Asked whether the United States subprime mortgage problems could lead to a credit crunch in Hong Kong, she said HSBC had not tightened its credit despite the volatility in the financial markets.