Hang Seng expands income sources

Hang Seng China's housing loans fall by 3 percent in 2010.

Hang Seng Bank will boost its non-interest income business to counter a slowdown in housing loans, a senior banker said over the weekend.

The Hong Kong-based bank will beef up its fee-based services including wealth management, banc-assurance and the coming distribution of mutual funds, Mike Yeung, deputy chief executive of Hang Seng Bank (China) Ltd, said on Saturday.

The bank expects revenue will rise this year despite tighter monetary policy, he said.

"We are prepared to distribute mutual funds and have already been in talks with fund management companies about possible cooperation," Yeung said.

Overseas banks will be allowed to distribute mutual funds beginning October 1, according to new rules from China's securities regulator last week. They are banned from such business now.

"Overseas banks have waited for the go-ahead and we are excited and happy with the move," he said.

Hang Seng China's housing loans fell by 3 percent in 2010, reflecting the impact of government measures to cool the sector, according to the bank's annual report.