HSBC Holdings PLC (HBC) is committed to participating in Bank of Communications Co.'s (3328.HK) CNY42 billion rights issue, Chief Executive Michael Geoghegan said Wednesday.

"Bank of Communications is HSBC's NO.1 banking association in China," Geoghegan told reporters at a media briefing in Shanghai. HSBC owns an 18.6% stake in the state-run Chinese lender.

He also said the bank expects to use the proceeds from a future listing in Shanghai to help finance its expansion in China.

In February, Geoghegan moved to Hong Kong from London, a symbolic gesture that highlights the rising importance of the U.K. bank's business in Asia for its growth--particularly in China.

-Rose Yu contributed to this article, Dow Jones Newswires; 8621 6120-1200; rose.yu@dowjones.com
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