The bank is one of the largest in Hong Kong. It works not only in China, but throughout the world. Banknotes for the Hong Kong government. Has a license to conduct banking activities. The date of foundation is 1865.
Initially, Hong Kong was a colony of Britain. It was founded immediately after the end of the opium war. When it became clear to merchants from different parts of the empire that it would be impossible to do without a private bank – HSBC was founded. Initially, its main purpose was to finance trade through Hong Kong. Goods were shipped through China: food, opium and others.
An office for Hong Kong was opened in March 1865. In Shanghai – in April of the same year. The founder is Thomas Sutherland. He was an authorized representative of Peninsular and Oriental Steam Navigation. Initially, the cost of renting the room where the bank was located was only $ 500. Share capital was only 5 million Hong Kong dollars.
The first operations were carried out on March 3, 1854. A branch opened in Shanghai was used to issue local money. HSBC was registered in Hong Kong. One of the branches was opened in Yokohama in 1866 already. Bank securities were traded on the stock exchange in the amount of 13 units. Sale lasted until 1941. After the start of the war on the territory of the USSR, the Japanese closed the auction. The first consumer loan was issued in 1874.
In the future, the bank more than once issued various government loans.
Ownership of the HSBC
Over time, the influence of the bank expanded. One of the most important events in its history occurred in the 1980s. The manager at the time was Michael Sandberg. He acquired a 51% stake in Marine Midland Bank. This financial institution was one of the largest in the United States of America. A little later, the expansion was continued. Purchased by Bank Canada.
The merger process with the latter was completed already in 1981. An equally important milestone in the history of development was the purchase of Hongkong Bank of Australia Limited. Today it is designated as HSBC Bank Australia Limited. Joining the HSBC group occurred in 1987. At the same time, the number of shares of the company Marine Midland Bank, owned by HSBC, increased to 100%.
The purchase of shares in the amount of 14.9% of Midland Bank credit company was carried out. Today the head office of the bank is located in a building in Hong Kong. It is designed to meet all international requirements for the security of credit institutions. The architect and designer is Sir Norman Foster, Baron Foster of Thames Bank. The construction of the bank building was completed in 1986. At the time of completion of the project, the complex was one of the most modern buildings in the world, equipped with the latest technology. The project cost amounted to 5,300,000,000 Hong Kong dollars.
A little later, the central office was moved to London. The main reason is the need to comply with the requirements of supervisory authorities. The date of the event is 1992. For 2018, HSBC is the largest issuer – in the total amount of money supply, the share of monetary units issued by it is 67.7%.
A feature of this bank and the country in general is that private commercial enterprises are allowed to issue their own monetary units. This is no longer in any country in the world. In addition to major acquisitions, there are other, less notable HSBC purchases. For example, in 1965, the acquisition of shares of Hang Seng was carried out – more than 62.14%. For all its existence, the bank has made many acquisitions. Investment amounts are measured in several trillions of Hong Kong dollars.
Main branches and ATMs of the HSBC
The Hongkong and Shanghai Banking Corporation in the Philippines has more than 600 branches in twenty countries in the Asia-Pacific region. In addition, there are offices in other countries. The following divisions are under control:
- Bank Australia Limited;
- Hang Seng Bank Limited;
- Bank (China) Company Limited;
- Bank Malaysia Berhad (since 2009);
- Bank (Vietnam) Limited;
- Bank (Taiwan) Limited and HSBC Insurance (Asia-Pacific) Holdings Limited;
- Barrowgate Limited (24.64%) and Industrial Bank.
HSBC has been operating in Bangladesh – more than 20 years ago, since 1996. On the territory of the country there are several dozen branches. In some strange, on the contrary, HSBC activity ceases. Mostly for economic reasons. For example, from April 6, 2016, the activities within the global project HSBC Group cease. November 10, 2017 all branches in Brunei stopped their activities.
HSBC conducts its activities in India. In 1959, Mercantile Bank of India, London and China was acquired. There are branches, representative offices in other countries: Indonesia, Japan, New Zealand, South Korea. HSBC – one of the largest banc in the world.