HSBC is reportedly expanding its green finance and bond teams in China to meet surging demand.

Sources told Reuters that HSBC will make key investments in its asset management arm in China this year and establish two new teams with a sole focus on green assets and fixed income.

Separate sources told the news agency that the lender’s plans also encapsulate the potential for offering carbon offsetting products to customers due to an uptick in client queries over the past year, with the requests mostly coming from Western multinational companies under pressure to meet strict emissions targets, the source added.

Reports recently emerged that HSBC would fend off demand from its biggest shareholder for an Asian spinoff of its operations in the region.

The demands called on HSBC to consider separating its Asia business into a standalone entity that would be listed in Hong Kong, along with boosting dividend payouts and to regularly review strategy.

However, according to Reuters, Ping An, a major Chinese insurer and the largest shareholder in Europe’s biggest bank, would struggle to secure the 75 per cent of votes cast needed to pass the special resolutions.

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