HSBC's stake in the Orient

BANKING company HSBC is on the brink of becoming the first foreign commercial operation to hold a stake in a Chinese bank.

HSBC - otherwise known as the Hong Kong and Shanghai Banking Corporation - is to acquire an eight per cent holding in the Bank of Shanghai for about £43m.

The move comes after China lowered barriers to foreign investment after securing entry to the World Trade Organisation earlier this month. The banking tie-up is due to be sealed at a signing ceremony today.

The Bank of Shanghai was established in mainland China in 1995 and now operates 196 branches and employs 4,500 staff.

HSBC is already established in China after being formed in Hong Kong and Shanghai in 1865. It is only able to provide retail banking services to foreign investors and expatriates.

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CUTTING COSTS: Telecom services group PNC is looking to save another £1m a year in the face of a continued downturn in the mobile market. PNC, which has 60 phone shops and also offers telephone and Internet services, made 20 staff redundant earlier this year as part of an attempt to save £1.25m a year. However, a PNC spokeswoman said it was too early to say whether the latest business review will result in more job cuts.

CEDAR BID: Software firm Cedar, which is in talks to solve its funding problems, has received interest from an unnamed party which could lead to a takeover offer. The group, which has debts of £38.3m, is in talks with "interested parties" to secure additional financing.

LAW SEMINAR: A breakfast seminar on employment law is being held on Tuesday, January 15. The event, hosted by Business Link Tyne and Wear and the Engineering Employers Federation, is at the Marriott MetroCentre Hotel, from 7.45am to 10am. For details contact Lucy Gardiner or Lisann Costello on 0191-261 4250.