HSBC said on Monday that it has agreed with Shenzhen Qianhai Financial Holdings to establish a majority-owned joint venture securities company based in Qianhai, Shenzhen, in China’s Guangdong province.

The British bank is far behind other foreign banks such as UBS and Goldman Sachs when it comes to setting up securities joint ventures in China.

However, many foreign banks have struggled to make money in China or have fallen out with their partners when their interests have diverged, particularly those without operational control of the partnership.

Citi has a joint venture with Orient Securities Morgan Stanley has teamed up with...