Chinese banking investor HSBC Holdings Plc said it was in talks with partners to launch a new local securities firm in China.

``If we’re going to be a full-service provider within China, it’s something we need to look at seriously. There’s not a lot else we can do -- maybe a securities company would be something we’d be interested in looking at,’’ said David Eldon, the chairman of Hongkong & Shanghai Banking Corp., owned by HSBC.

Chinese economy expanded 9.5% in the first quarter of 2005 and is considered to be the fastest-growing economy over the globe.

HSBC is considering Category A brokerages, both classified as having the strongest finances and those that need restructuring. ``We would like to participate in the equity market domestically in China,’’ said Stuart Gulliver, co-head of investment banking at HSBC.