(Redirected from Hongkong and Shanghai Banking Corporation)
'The Hongkong and Shanghai Banking Corporation Limited' (), based in
Hong Kong, is a wholly owned
subsidiary and the founding member of the
HSBC Group, which is traded on several
stock exchanges as
HSBC Holdings plc. The business ranges from the traditional High Street roles of personal finance and commercial banking, to corporate and
investment banking, and private
banking.
Known locally by the affectionate term 'Honkers and Shankers' or equally its old
trademark 'HongkongBank', the bank was founded by the
Scot Thomas Sutherland to finance trade in the
Far East in
1865. It is the largest bank in Hong Kong and has offices in
Asia Pacific region.
History
Foundation
The
bank first leased Wardley House in
Hong Kong at
HKD $500 a month in
1864. After raising a capital of HKD $5 million, the bank opened its door in
1865. The original location of the bank was considered crucial since the construction was based on some of the best
fung shui in
Colonial Hong Kong[1]. In March
1865 the enterprise ''"The Hongkong and Shanghai Banking Company Limited"'' was established to finance the growing trade between
China and
Europe, with an office opened in
Shanghai during April of that year. The bank was incorporated in Hong Kong by special dispensation from the
British Treasury in
1866, and under the Hongkong and Shanghai Bank Ordinance
1866[2], a new branch in
Japan was also established. The bank handled the first public loan in China in 1874, thereafter issuing most public loans.
Business development
Sir Thomas Jackson Bart became chief manager in
1876. During his twenty-six year tenure, the Bank became a leader in
Asia. Notable events included being the first bank established in
Thailand, in
1888, where it printed the country's first banknotes; acting as banker for the Hong Kong government from the
1880s; and participating in the management of British colonial government accounts in China, Japan,
Penang and
Singapore. A period of expansion followed, with new branch offices opening in
Bangkok (
1921),
Manila (
1922) and
Shanghai (
1923), and a new head office building in Hong Kong in
1935. Jackson is also credited with a statue in
Statue Square.
Second World War
In anticipation of the Japanese invasion of Hong Kong in
1941, the Bank's head office moved to London. During the period 1941-1943 the chief manager
Vandeleur Grayburn, and his successor
David C Edmondston, both died while interned by the Japanese.
Arthur Morse was appointed Chief Manager in
1943 and led the bank after the war. The head office moved back to Hong Kong in
1946. During the Japanese occupation the Bank's head office building was occupied as the headquarters of the Hong Kong Japanese military government.
International expansion
Michael Turner became Chief Manager in
1953 and set about diversifying the business. His tenure came to an end in
1962 having established The Hong Kong and Shanghai Banking Corporation of California
1955 and having acquired
The British Bank of the Middle East and the
Mercantile Bank (based in India) in
1959. Under the tenure of
Jake Saunders from 1962 the bank continued to expand.
1965 saw the bank purchase a controlling interest in
Hang Seng Bank of Hong Kong, and
1972 the formation of a merchant banking arm,
Wardley Limited. In 1964 the Chief Managership was superseded as the top executive role in the bank by an Executive Chairmanship (Saunders taking this role until retirement in 1972).
In 1980, the Bank launched a hostile takeover bid for the
Royal Bank of Scotland, although the bid was blocked by the British government.
The creation of the HSBC Group
In
1980, the Bank, now under the chairmanship of
Michael Sandberg acquired a 51% stake in
Marine Midland Bank, of the
United States of America, and continued its expansion with the establishment of
Hongkong Bank of Canada in
1981 and
Hongkong Bank of Australia Limited in
1986.
1987, under the Chairmanship of
William Purves, saw the bank's ownership of Marine Midland Bank increased to 100% and the acquisition of a 14.9% share in
Midland Bank in the
United Kingdom.
The present building in Hong Kong was designed by
Sir Norman Foster and was held as one of the most expensive and technologically advanced building in the world in
1986 costing HKD $5.3 billion
[1].
In
1991 HSBC Holdings plc was established to act as a parent company to the group; shares are currently traded on the London, Hong Kong, Paris, New York and Bermuda stock exchanges.
Hong Kong banking
HSBC's Hong Kong head office
Under the HSBC brand, the bank maintains a network of around 220 branches throughout the Hong Kong SAR, from which it offers a wide range of financial products and services. For some time in the late 1980s and early 1990s, the bank was known by the name ''HongkongBank'' in its native city, although it now trades as HSBC. During that period, it also adopted the idiosyncratic practice of calling its
ATMs ''Electronic Teller Card (ETC)'' machines.
Hong Kong dollar bank notes
HSBC is one of the three commercial banks which issue
banknotes for
Hong Kong (see
Hong Kong dollar) - the other two being the
Bank of China (Hong Kong) and
Standard Chartered Bank. Of the total notes in circulation measured by value, HSBC is the most prolific issuer, its notes representing 62.9% of those in issue.
Headquarters
HSBC's Hong Kong headquarters are at 1
Queen's Road Central in the
Central area on
Hong Kong Island. The
HSBC Hong Kong headquarters building was also home to
HSBC Holdings plc's headquarters until the latter firm's move to
8 Canada Square,
London to meet the requirements of the UK regulatory authorities after the acquisition of the Midland Bank in 1992. It was designed by British architect
Lord Norman Foster, and was the most expensive building in the world based on usable floor area at the time it was built.
Other Hong Kong operations
Hang Seng Bank
Main articles: Hang Seng Bank
HSBC acquired a 62.14%, controlling interest in the local
Hang Seng Bank in
1965 during a crisis of the latter. The
Hang Seng Index for stock prices in
Hong Kong is named after the Hang Seng Bank.
Asia Pacific operations
The Hongkong and Shanghai Banking Corporation maintains a network of around 600 offices in 20 countries in Asia Pacific, as well as owning of a number of HSBC banks operating in various countries and holding the group's stakes in further lenders, particularly in
mainland China.
Operations of the group in the
Asia Pacific are under this subsidiary, and it forms the regional headquarters for
Asia Pacific. This means that it is responsible for entities such as
HSBC Bank Australia Limited,
Hang Seng Bank,
HSBC Bank (China) Company Limited and
HSBC Insurance (Asia-Pacific) Holdings Limited, and the management of stakes in
Bank of Communications (19.9%),
Barrowgate Limited (24.64%) and
Industrial Bank.
China
HSBC logo
HSBC established its
Shanghai branch office on 3 March 1865 and has had a continuous presence in the city since then, except during the Japanese Occupation. Until the economic reforms of the late 1970s, its activities were mainly in inward remittances and export bills, however its activities now span a wider range.
On 6 August 2004, HSBC announced that it would pay USD 1.75 billion for a 19.9% stake in Shanghai-based Bank of Communications. At the time of the announcement,
Bank of Communications was China's fifth-largest bank and the investment by HSBC was eight times bigger than any previous foreign investment in a Chinese bank. The industry considered this move, giving HSBC a lead in the race to grab pieces of mainland China's banking market. A year earlier, HSBC had joined with Hong Kong's
Shanghai Commercial Bank to purchase an 11% stake in
Bank of Shanghai (HSBC paid USD 62.6 million for an 8% stake) and USD 733 million for a 10% stake in
Ping An Insurance.
Indonesia
The Hongkong and Shanghai Banking Corporation opened its first Indonesian office in
Jakarta in 1884. Having been able to restart its operations after the
Second World War, it was again forced to close in mid-1960s, however the Bank was granted a new banking licence in
1968 its operations have grown to make it one of the largest foreign banks operating in Indonesia.
New Zealand
HSBC's operations in
New Zealand are as a branch of The Hongkong and Shanghai Banking Corporation, which first gained a licence from the
Reserve Bank of New Zealand on
22 July 1987.
[4] Today HSBC offers a range of financial products from a network of 9 offices.
[5]
Pakistan
HSBC's operations further extend to
Pakistan with operations having begun in 1982. Since then it has expanded to three major cities of Pakistan and operates as a full service bank. It currently has 5 offices, three of which are located in
Karachi. Further offices were opened in
Lahore (inaugurated on
20 May 2006) and
Islamabad (inaugurated on
23 June 2006).
Philippines
HSBC's history in the
Philippines dates back more than 130 years with the establishment of their first branch in Binondo,
Manila in 1876. In its early years of operation, HSBC serviced the booming Philippine sugar industry. At the turn of the century, it financed railways that connected provincial towns across Luzon to
Manila. During the American regime, HSBC was called to advise on Philippine currency reform. Its current headquarters are in
Makati, and a new building is being constructed in the
Bonifacio Global City. Today, HSBC Philippines operates in key Philippine cities such as
Cebu and
Davao. It has ended
Citibank and
Standard Chartered's monopoly on international banking in the
Philippines.
Singapore
In
Singapore, The Hongkong and Shanghai Banking Corporation Limited operates as a full service bank with its headquarters in
Collyer Quay. It opened its doors in December 1877. Today, HSBC's flagship office remains at the original Collyer Quay site where its first branch was opened.
HSBC Singapore is a Qualifying Full Bank with 11 branches incorporating 5 HSBC Premier Centres and 33 Automated Teller Machines in Singapore and offers a comprehensive range of financial services including commercial banking, investment and private banking, insurance,
forfaiting and trustee services, and securities and capital markets services.
Cultural References
In Hong Kong, the local population sometimes refers to the bank as 獅子銀行, "the Lion Bank", because of the pair of lion statues outside the HSBC headquarters, which also appear in some banknotes. Local films and television series set in Hong Kong, especially comedies, uses this nickname when referring to the bank.
Although the name of Hongkong was changed to Hong Kong by
Hong Kong Government on
September 3,
1926, HSBC uses the older ''Hongkong'', as the bank's name was conceived before the official declaration of the modern two-word name, and it was decided to retain the single word spelling in the Bank's name: ''Hongkong''.
See also
★
HSBC Holdings plc
★
HSBC Bank (China)
★
HSBC Bank Australia
★
HSBC Bank Malaysia
★
Hang Seng Bank
★
Bank of Communications
★
HSBC Hong Kong headquarters building
External links
★
The Hongkong and Shanghai Banking Corporation Limited
★
HSBC Bank (China) Company Limited
★
HSBC Group History
References
1. Lim, Patricia. [2002] (2002). Discovering Hong Hong's Cultural Heritage. Central, Hong Kong: Oxford University Press. ISBN Volume One 0-19-592723-0
2. Hoare, Jim. Pares, Susan. [](2005)A Political And Economic Dictionary Of East Asia. London, UK Routledge Publishing. ISBN 978-1857432589
3. Lim, Patricia. [2002] (2002). Discovering Hong Hong's Cultural Heritage. Central, Hong Kong: Oxford University Press. ISBN Volume One 0-19-592723-0
4. List of registered banks in New Zealand, Reserve Bank of New Zealand, http://www.rbnz.govt.nz/nzbanks/0091622.html
5. HSBC International Networks, http://www.hsbc.com/hsbc/about_hsbc/international-networks/asia-pacific
العربية
中国
Français
Deutsch
Ελληνική
हिन्दी
Italiano
日本語
Português
Русский
Español
