Bank of Canton
| Company type | Private |
|---|---|
| Industry | Banking and finance |
| Founded | 1912 in Canton |
| Founder | P.T. Huo and other Chinese expatriates |
| Fate | Acquired by China Construction Bank in 2006 |
| Headquarters | Hong Kong , British Hong Kong |
Area served | Hong Kong, China, Southeast Asia, United States |
Key people | Russell Fok (chairman during SPNB ownership) |
| Products | Banking services, local currency notes issuance (historical) |
| Parent | China Construction Bank (since 2006) |
Bank of Canton (), founded in 1912 in Canton and incorporated as a British entity in Hong Kong, holds the distinction of being the first bank in Hong Kong owned entirely by Chinese interests. During this period, all other financial institutions operating in Hong Kong were foreign-owned, predominantly British, including the British-managed Hongkong and Shanghai Banking Corporation. In 1971, a majority shareholding in Bank of Canton was acquired by Security Pacific National Bank (SPNB), which took full ownership in 1988 and subsequently renamed it Security Pacific Asia Bank. Following Bank of America's acquisition of Security Pacific Corporation in 1993, the institution was rebranded as Bank of America (Asia). Later, in 2006, China Construction Bank purchased Bank of America (Asia).
History
Established by Chinese expatriates from the United States, notably P.T. Huo of the Fok family, Bank of Canton became the first bank entirely owned by Chinese nationals in China. The bank experienced swift growth, launching branches in Shanghai (1917), Bangkok (1921), New York (1922; closed 1931), Hankou, and Shantou. It also issued local currency notes, including a prominent 500-dollar note produced by its Shanghai branch.
After China's abandonment of the silver standard in 1935, Bank of Canton collapsed but was restructured under T.V. Soong's leadership in 1936; however, it lost its authority to issue banknotes. That same year, it formed a subsidiary in Macau, becoming one of the earliest banking institutions there.
In 1939, due to rising anti-Chinese sentiment in Siam (Thailand), authorities shut down BoC’s branch along with several others on allegations related to illegal remittance activities.
Significant developments include:
- 1953: Branch inaugurated in Singapore.
- 1968: Opened branches in Malaysia and resumed operations in Thailand.
- 1971: SPNB acquired a 69% equity stake.
- 1978: SPNB's effort to purchase remaining shares was unsuccessful.
- 1979: Maintained nine licensed branches within Hong Kong and operated branches in Bangkok, Kuala Lumpur, Singapore; owned a subsidiary in Macau.
- 1984: SPNB declared intention to acquire outstanding shares at $59.31 per share (approximately $42 million), maintaining current management with Russell Fok as chairman; a company linked to Fok was granted a limited equity interest.
- 1988: SPNB finalized full acquisition; renamed institution Security Pacific Asia Bank.
- 1992-1993: After Bank of America acquired Security Pacific Corporation, the bank was renamed Bank of America (Asia).
- 1994: Disposed of Malaysian operations to Arab-Malaysian Bank.
- 2006: Acquired by China Construction Bank.