(Yicai) Feb. 28 -- Regarding reports that HSBC Holdings will let go of 900 employees at its digital wealth management business in China, the UK banking giant said the Pinnacle project has been successfully completed, according to a new report.

HSBC now offers mobile, integrated insurance and investment services through the wealth planning team under HSBC Insurance Brokers, The Paper reported today, citing a Pinnacle spokesperson as saying yesterday.

HSBC is reducing staff numbers at its China digital wealth business Pinnacle by nearly half, Reuters reported yesterday, citing two sources. The move is a sharp reversal of its ambition for the unit as part of its expansion in that country, it added.

HSBC is committed to becoming the preferred international wealth management institution for mass affluent and high-net-worth clients in the Chinese mainland, the spokesperson noted, adding that the bank holds a long-term strategic commitment to China and considers it a priority development market.

"We will continue to invest in expanding our client acquisition and service channels through relationship managers at our service points, mobile wealth planners, and digital tools while broadening the wealth management solutions we offer to our clients," the spokesperson said.

Pinnacle was launched in 2020 to develop mobile wealth planning services aimed at helping HSBC acquire clients beyond its bank branches. It previously said that it employs 1,700 wealth management managers.

HSBC's wealth management investment assets in the Chinese mainland surged 61 percent last year from the year before.

HSBC has sought to control costs better since Georges Eihedery stepped in as chief executive officer last September. Reports emerged a month later that the company is evaluating Pinnacle's operating costs and management structure, which may involve staff cuts.

Pinnacle reported a net loss of USD46 million in the first half of last year.

Editor: Martin Kadiev