HSBC Holdings plc (NYSE: HBC, LSE: HSBA, Hong Kong Stock Exchange: 0005, Euronext: HSB, Bermuda Stock Exchange: 1077223879) is the holding company of HSBC Group , headquartered in London, England. The company was only officially established in 1991, but its subsidiaries already have a long history.

As of the end of June 2008, the HSBC Group had total assets of US$2.547 billion, and its first-tier capital ratio and total capital ratio were 8.8 and 11.9 respectively. , is the largest banking institution in the world in terms of assets and the third largest banking institution in the world. Its name comes from the founding member of The Hongkong and Shanghai Banking Corporation Limited, which was founded in Hong Kong in 1865. Originally providing financial services to British companies in the Far East, it has now developed into a multinational financial institution, with more than 70% of its turnover coming from outside the UK.

History

[edit] The establishment of the Hongkong and Shanghai Banking Corporation, a founding member of the HSBC Group

Main article: The Hongkong and Shanghai Banking Corporation

The HSBC Group was formed from the Hongkong and Shanghai Banking Corporation after years of expansion. The Hongkong and Shanghai Banking Corporation opened in Hong Kong in March 1865. In the same year, it opened branches in Shanghai and London, and established an agency bank in San Francisco. The trigger for its establishment came from the division of powers among Hong Kong banks.

In July 1864, a British businessman in Bombay planned to establish the Royal Bank of China based in Hong Kong, issuing 30,000 shares at 200 Indian rupees each, but only planned to allot 5,000 to businessmen in Hong Kong and China. stocks, causing dissatisfaction among Hong Kong foreign banks. On July 28 of the same year, Thomas Sutherland (or translated as Su Shilan, Thomas Sutherland), a supervisor of the Railway Steamship Company, and Poshun & Co. took the lead and announced in the press the establishment of a bank owned by Hong Kong.

When the Hongkong and Shanghai Banking Corporation was founded, its capital was HK$5 million, with 20,000 shares at HK$250 each. In 1866, each share was split 2-for-1, becoming 40,000 shares. 125 yuan per share. The temporary committee established in 1864 consisted of 15 people. The chairman was Chomley, the representative of Poshun & Co., Ltd., and the members were Sutherland of Tiehang Steamship Co., Ltd., Hurd of Qiong Kee Co., Ltd., MacLean of Jie Min Co., Ltd., Hong Kong's tycoon Douglas Laplake, Chandler of Zen Chen & Co., Lyman of Pacific Bank, Smith of Friedrich & Co., Arthur Sassoon of Sassoon & Co., Robert Brandt of Gongyi & Co., Barangay of Guangnan Company, William Adamson of Moving Bird Company, Hurant of Bi Yang Company, Rustonqi Tunqixiao of Shunzhang Company, and legal advisor Pollard. [1] These people include the British, Americans, Germans, Danish, Jewish and Indian Parsis. However, in the following years, the shareholders withdrew and HSBC was controlled by the British.

On March 2, 1865, the provisional committee was reorganized into a board of directors, which officially opened on March 3. The headquarters was located at the Victoria Building owned by Sassoon & Co., 1 Queen's Road Central, Central. In 1866, The Hongkong and Shanghai Banking Corporation Ordinance was approved by the Hong Kong government and the British Finance Ministry. HSBC was registered as a limited liability company and authorized to issue Hong Kong banknotes.

In the early days, the HSBC Group expanded its business around the world by opening branches of the Hongkong and Shanghai Banking Corporation. Until after the Second World War, HSBC's business was concentrated in Hong Kong, and its branches in mainland China were established in 1949. Since then, they have been closed down one after another, and their overseas business has not been as good as expected. With the development space greatly restricted, they began to establish or acquire subsidiaries in the 1950s.

[edit] The Hongkong and Shanghai Banking Corporation's group operation

The Hongkong and Shanghai Banking Corporation, under the leadership of Michael Turner, began to operate as a group in 1953. First, in 1955, the group's first subsidiary, the Hong Kong and Shanghai Banking Corporation of California, was established in California. In 1959, HSBC acquired Benefit Bank and the Middle East Bank of England, which was the first acquisition of the HSBC Group.

In 1965, HSBC acquired a controlling stake in Hang Seng Bank. In 1972, HSBC established Tollywood Limited (the predecessor of HSBC Investment Bank Holdings Limited). In 1980, HSBC took a stake in Marine Midland Bank and became a wholly-owned subsidiary of HSBC in 1987. In 1981, HSBC acquired a controlling stake in Equator Holdings Limited. In the same year, HSBC failed to acquire Royal Bank of Scotland, but its interest in acquiring large British banks has not diminished. In 1987, HSBC took a stake in the British Midland Bank. Through a cooperation agreement, HSBC and Midland Bank transferred business to each other.

[edit] The establishment of HSBC Holdings

On December 17, 1990, The Hongkong and Shanghai Banking Corporation announced a structural reorganization, including:

The establishment of a group The holding company, named HSBC Holdings plc, upgraded the London Branch of The Hongkong and Shanghai Banking Corporation Limited to the registered office of HSBC Holdings PLC.

HSBC Bank shares were transferred to HSBC Holdings, and HSBC Holdings issued new shares, exchanging 4 HSBC Bank shares for 1 HSBC Holdings share, and reduced the original issued shares to 3/4 for future use. Listed overseas.

After replacing the shares of HSBC Bank, HSBC Holdings shares were listed on the stock exchanges of Hong Kong and London respectively.

HSBC Holdings is registered in the UK, but uses Hong Kong as the group’s general management office.

The Hongkong and Shanghai Banking Corporation is a wholly-owned subsidiary of HSBC Holdings, and its registration in Hong Kong remains unchanged to facilitate the development of Hong Kong business.

When the HSBC Group moved to the UK and established HSBC Holdings, the original strategy of keeping the group's general management office in Hong Kong was based on the uncertain political factors surrounding the transfer of Hong Kong's sovereignty. Through this strategy, HSBC can not only avoid the risks that may arise from the transfer of Hong Kong's sovereignty, but also prevent all HSBC's transfers and capital gains from being affected by the British tax system and tax rates, which will help HSBC continue to earn huge profits. In this way, HSBC Group is in a position of "advancing and retreating freely".

In July 1992, HSBC Holdings acquired the remaining shares of Bank of Midland, officially acquiring its business and expanding into the European market. However, under the regulations of the British regulatory authorities, the general management office of HSBC Group was moved from Hong Kong to London in January 1993. HSBC Holdings plc's primary regulator is the Bank of England, but its subsidiaries continue to be regulated by the relevant authorities where they operate. The HSBC Group General Management Office in London will only provide key central functions, such as strategic planning, human resources management, legal and company secretarial services, financial planning and control. In 1998, HSBC announced the construction of a new headquarters building in London to accommodate the various departments of the HSBC Group's general management office that were originally scattered in different places in London's financial district. The building was opened in 2002 and officially opened in April 2003. It is also the Home of HSBC's head office in the UK.

[edit] Other companies fully acquired/acquired part of the shares by HSBC

[edit] Asia and Greater China

China Shanghai Bank (8, 2000)

PCIB Savings Bank, a savings bank affiliated to the Philippine Commercial International Bank (2000)

China Ping An Insurance (10, 2002; 19.9, 2005; 2007 Diluted to approximately 16.8 due to listing in 2007 and repurchased 27 shares of Ping An Bank held by HSBC)

China Fujian Industrial Bank (15.99, purchased by Hang Seng Bank in 2004; diluted to approximately 16.8 due to listing in 2007) 12.78)

India's UTI Bank (14.62, 2004; 4.99, 2006)

China Bank of Communications (19.9, 2004; 2007 was diluted to about 18.6 due to listing in Shanghai , announced on October 26 that it would increase its holdings of H shares in Hong Kong to 19)

Dynasty Group (62, Malaysia’s largest investment company)

Vietnam Technology and Commercial Joint Stock Bank (10, 2005 ; 15, 2007; 20, 2008)

Vietnam BaoViet Insurance (10, 2007)

Taiwan Dihe Company, wholly owned by Taiwan Chailease Dihe Group (2007 )

Hana Life Insurance, South Korea (50, 2007)

China Commercial Bank, Taiwan (2007)

Yantai Commercial Bank, China (20, 2008 , purchased by Hang Seng Bank)

IL & FS Investsmart, one of India's largest retail securities brokers (93.86, 2008)

PT Bank Ekonomi Raharja Tbk, one of Indonesia's largest industrial and commercial banks (88.89 Equity, 2008) US$607.5 million

[edit] Middle East

Turkey Demirbank TAS (2001)

Iraq Dar Es Salaam Investment Bank (70.1 , 2005)

[Editor] Europe and the United Kingdom

Malta Mid-Med Bank plc (70.03, 1999)

France Commerzbank (99.99, 2001 Year)

Poland Polski Kredyt Bank SA (2004)

Retail Financial Services under Marks & Spencer (2004)

[edit] Americas

Brazil’s Banco Bamarante (1997)

Argentina’s Lobos Group (1997)

American Liberty Bank Group (1999)

Mexico Mexican Grupo Financiero Bital (99.59 2002)

U.S. Household International, Inc. (2003)

Brazilian business of British bank Royce TSB (2003)

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Bank of Bermuda (2004)

Metris Companies Inc., U.S. (2005)

Grupo Banistmo S.A., Panama (99.98, 2006)

The Argentinian business of the Italian National Labor Bank (2006)

Costa Rica Banex (2007)

The Paraguay business of the British bank Royce TSB (2007)

[edit] Trends in recent years

In November 1998, HSBC

The Group announced a unified branding, with subsidiaries in almost all business regions adopting the HSBC brand and hexagonal logo, and individual HSBC offices outside the Asia-Pacific region are also included in a network of local subsidiaries that adopt the HSBC brand (such as The Hongkong and Shanghai Banking Corporation Some branches in the UK are included in the HSBC UK network). Unifying the Group's brand can deepen customers, shareholders and employees around the world's understanding of the Group and its beliefs. It can also help HSBC launch new products and services under the same Group image around the world. HSBC Holdings also listed on the New York Stock Exchange in 1999, split its shares into three shares, and changed the par value of its shares from British pounds to U.S. dollars. In 2000, the acquisition of Commerzbank replaced Commerzbank's listing status on the Paris Stock Exchange. Since 2002, HSBC has used "The world's local bank" as its group slogan, emphasizing that the group has rich experience in many markets and has a thorough understanding of cultural characteristics around the world. In 2004, the Bank of Bermuda's listing on the Bermuda Stock Exchange was replaced by the acquisition of Bank of Bermuda.

As usual, HSBC Holdings will review the location of the group’s general management office every three years. However, in October 2006, there were reports that the general management office of HSBC Group might move away from London. Some analysts said that since the uncertainties after the handover of Hong Kong's autonomy have been eliminated and the situation has stabilized, they cannot rule out returning to Hong Kong because the British The tax rate is much higher than that in Hong Kong, and the scope of taxation and tax types are also broader and more numerous than in Hong Kong. This requires HSBC Holdings to bear high taxes. Every year, HSBC Holdings pays up to 400 million pounds in taxes to the British government. In addition to Hong Kong, some British newspapers pointed out that the general management office of HSBC Group may be moved to Ireland, but an HSBC spokesperson immediately denied it. Ji Qin, CEO of HSBC Holdings, said that the UK has a geographical advantage and can quickly connect business networks with various places. He is quite satisfied with the current group general management office.

In February 2007, HSBC Holdings issued a profit warning for the first time. Chairman Ge Lin said that the reason was that its subsidiary HSBC Capital had made strategic mistakes. Ge Lin pointed out that HSBC Capital developed the mortgage business, which was not its core business. , but HSBC Holdings has no intention of selling HSBC Capital. This is the first profit warning issued by HSBC Group in its 140-year history.

On November 26, 2007, HSBC Holdings announced the reorganization of two of the group's structured investment vehicles (SIV), Cullinan Finance Limited and Asscher Finance Limited. It is expected to provide up to approximately US$35 billion in liquidity and term financing by August 2008 and add a total of US$45 billion in mortgage-backed securities and other assets held by the two SIVs to its own balance sheet.

On June 17, 2008, HSBC Holdings PLC agreed to sell 51% stake in its credit card acquiring business in the UK to Global Payments, one of the world's largest transaction processors, for which the latter had to pay US$439 million. To HSBC

HSBC and Global Payments will establish a joint venture called "HSBC Merchant Services Company", with its headquarters in Leicester, England, and HSBC holding 49 shares of the company.

On September 19, 2008, HSBC Holdings announced that it had abandoned its plan to acquire a 51.02 stake in Korea Exchange Bank for US$6.317 billion (approximately HK$49.3 billion) in view of the international credit crisis reducing asset values.

On October 21, 2008, HSBC Holdings announced that through its subsidiary HSBC Asia Pacific Holdings, it would acquire 88.89 shares of PT Bank Ekonomi Raharja Tbk ("Bank Ekonomi"), one of Indonesia's largest industrial and commercial banks, with internal cash, per share. The price is IDR 2,452, with a total price of US$607.5 million.

After the transaction is completed, HSBC will have 190 outlets in 24 cities in Indonesia, becoming the third largest foreign bank after Standard Chartered Bank and Citigroup.

Bank Ekonomi has assets worth US$1.8 billion, 2,200 employees and 86 branches.

Share status

HSBC Holdings’ shares are listed for trading on the London, Hong Kong, New York, Paris and Bermuda stock exchanges. There are approximately 250,000 shareholders from more than 100 regions around the world. HSBC Holdings shares are traded as American Depositary Receipts on the New York Stock Exchange. In addition, HSBC Holdings is one of the constituent stocks of Hong Kong’s Hang Seng Index and Britain’s FTSE 100 Index.

Group Business

Currently, multiple members of the HSBC Group have more than 10,000 branches and offices in 82 regions, with more than 125 million customers around the world, and electronic financial management. More than 35 million customers. Businesses include personal finance, industrial and commercial banking, corporate banking, investment banking, capital markets and private banking.

Personal Financial Management

HSBC provides comprehensive personal financial services to up to 120 million individual customers, including current and savings accounts, mortgages, insurance, credit cards, loans, pensions and Investment etc. Under the global development trend, consumer financing business has gradually been integrated into a part of personal financial management business. Direct sales channels are also becoming increasingly popular. In 2005, HSBC handled 183 million online transactions and had 1.3 million Premier customers.

Industrial and commercial business

HSBC provides financial services to small and medium-sized enterprises and the mid-level enterprise market. The number of industrial and commercial enterprise customers exceeds 2.5 million, including sole proprietorships and partnerships, legal entities, and listed companies. and organizations such as clubs and associations.

Corporate Banking, Investment Banking, Capital Markets

Provide specially designed financial services for corporate and financial institution customers. Its business scope includes global capital markets, global investment banking, corporate banking and finance. Institutional Business, and Global Transaction Banking.

[edit] Private Banking

HSBC Private Banking provides financial services to wealthy individuals and their families. It has 90 service locations. Its customer assets and loans have increased in recent years. Significant growth.

[edit] HSBC banks and major members of the HSBC Group around the world (first divided by continent, and then arranged by the year of establishment of the local HSBC bank)

[edit] Asia and Oceania

Hong Kong - HSBC/Hang Seng

China - HSBC/Hang Seng

Japan

Philippines

Singapore

Malaysia

Thailand

Sri Lanka

South Korea

Taiwan

Australia

Vietnam

New Zealand

[edit] HSBC in the following regions operates as subsidiaries of HSBC Hong Kong

Kazakhstan, Macau, Bangladesh, Indonesia, Brunei

[edit] Middle East and Africa

Bahrain

Lebanon

Jordan

Oman

Kuwait

Qatar

UAE

Saudi Arabia

Egypt

Armenia

Israel

Libya

Mauritius

Pakistan

Qatar

South Africa

Europe

HSBC Bank UK Limited - formerly known as Bank of Midland Limited, The Hongkong and Shanghai Banking Corporation acquired 14.9% of Bank of Midland in 1987, and HSBC Holdings acquired the remaining shares in 1992 to become HSBC One of the group's largest large-scale acquisitions. HSBC UK is currently the general management office of the HSBC Group in Europe. The bank and its subsidiaries mainly have branches and offices in Europe.

HSBC Trinkaus & Burkhardt AG - formerly known as Trinkaus & Burkhardt KGaA, is a German bank acquired by Midland Bank in 1980.

HSBC CCB - formerly known as CCB, was founded in Zurich, Switzerland. It was a subsidiary of Bank Mittelland before joining the HSBC Group.

HSBC Bank AS - Founded in Turkey in 1990, it was originally a subsidiary of Mitlan Bank. In 2001, HSBC Bank acquired Demirbank TAS and merged into HSBC Bank AS.

HSBC Private Bank (Switzerland) Ltd. - formerly known as Liberty Bank (Switzerland) Ltd., was founded in Geneva, Switzerland. It was originally a subsidiary of Liberty Bank Group before joining the HSBC Group.

HSBC Malta Limited - formerly known as Mid-Med Bank plc, was acquired by Mid-Med Bank in 1999 with a 70.03 stake.

HSBC France - formerly known as French Commerzbank, was founded in Paris and was acquired by HSBC Holdings in 2000. HSBC Holdings was also listed on the Paris Stock Exchange at the same time.

Americas

HSBC Bank of the United States - The Hong Kong and Shanghai Banking Corporation acquired 51% of the shares of SITC in 1980 and acquired the remaining shares in 1987; in 1999, HSBC acquired Liberty banking group and merged into HSBC Bank USA.

HSBC Canada - founded in 1981 by the Hongkong and Shanghai Banking Corporation in Vancouver, Canada.

HSBC Brazil - formerly known as Banco Bamarante, was established in 1997 and took over its assets, liabilities and subsidiaries.

HSBC Argentina - In 1987, Lobos Group purchased the equity from Banco Midland, and later transferred it to the HSBC Group, and became a wholly-owned subsidiary of HSBC in 1997; in 2006, HSBC The Argentine business of Banca Nazionale del Lavoro was acquired and merged into HSBC Argentina.

HSBC Mexico - formerly known as Grupo Financiero Bital, SA de CV, was founded in Mexico City and was acquired by HSBC Holdings in 2002.

HSBC Capital Corporation of the United States - In 2003, HSBC acquired Household International, Inc.; in 2005, HSBC acquired Metris Companies, Inc. and merged into HSBC Capital.

Bank of Bermuda Limited - acquired by HSBC Holdings in 2004. HSBC Holdings was also listed on the Bermuda Stock Exchange.

HSBC Bank of Panama - The Hongkong and Shanghai Banking Corporation opened an office in Panama City, Panama in 1973 and was upgraded to a local branch in 2007.

HSBC Paraguay - formerly the Paraguay business of Royce Bank TBS.

HSBC Bank of Costa Rica - formerly Banex, was formed when its main shareholder Grupo Banistmo was acquired by HSBC in 2007.

References

Overview of HSBC Group (PDF file)

A brief history of HSBC Group (PDF file)