HSBC has agreed to acquire 100% of Chailease Credit Services, one of Taiwan’s leading factoring companies. Taiwan is the world’s second largest factoring market, a testament to the island’s prominent position in Asian trade.

Chailease Credit Services, the sixth largest factor in Taiwan, is the factoring arm of Chailease Finance Company. It has a gross asset value of US$99.6mn (about NT$3.264bn) at the end of 2005 and focuses mainly on two-factor export trade, handling transactions in which both buyer and seller use factoring.

HSBC has a small factoring operation in Taiwan. This acquisition will increase considerably HSBC’s share of a large market and will add substantially to its increasingly popular cross-border services in the region.

Michael Smith, president and chief executive officer of HSBC, says: “The acquisition of the Chailease Credit Services factoring business is a good fit with our global commercial banking strategy. It will turn HSBC into the largest two-factor export business in Taiwan, the world’s second largest factoring market by turnover. It will also provide a solid base for us to expand our receivables finance business in the Greater China region through economies of scale, experienced staff and integrated systems.”

The acquisition, which is subject to regulatory approval and other conditions, is expected to be completed in the first quarter of 2007.