HSBC (Hong Kong)

The Hongkong and Shanghai Banking Corporation Limited
	File:HSBC logo (2018).svg HSBC logo
Company type	Subsidiary
Industry	Banking, Financial services
Founded	January 1, 1866; 160 years ago in British Hong Kong
Headquarters	Central, Hong Kong Island, Hong Kong
Area served	Asia-Pacific, International
Products	Retail banking, Commercial banking, Corporate banking, Investment banking, Private banking, Global banking
Parent	HSBC Holdings plc

The Hongkong and Shanghai Banking Corporation Limited (), widely recognized as HSBC and previously known as HongkongBank (; also styled as Wayfoong), functions as the Asia-Pacific subsidiary of the HSBC banking group, which it led until 1991. As Hong Kong's largest banking institution, HSBC maintains a presence throughout the Indo-Pacific region and internationally. It is among the trio of commercial banks authorized by the Hong Kong Monetary Authority to issue Hong Kong dollar banknotes.

Established in British Hong Kong in 1865 and officially incorporated a year later, The Hongkong and Shanghai Bank has continuously been headquartered in Hong Kong, serving as a vital subsidiary of London-based HSBC Holdings since 1990. Its service portfolio includes retail, commercial, corporate, investment, private, and global banking operations.

Hong Kong banking

Under the HSBC brand, the bank operates roughly 220 branches within Hong Kong, providing an extensive array of financial products and services. During the late 1980s and early 1990s, it was locally identified as HongkongBank, with its automated teller machines uniquely termed Electronic Teller Card (ETC) machines.

Headquarters

Situated at No 1 Queen's Road Central in the Central district on Hong Kong Island, the HSBC Hong Kong headquarters building served as the global headquarters for HSBC Holdings until the company shifted its main base to London after acquiring Midland Bank in 1992 to meet UK regulatory standards. Designed by British architect Norman, Lord Foster, this building held the distinction of being the most costly worldwide per usable floor area upon completion.

Hong Kong dollar bank notes

HSBC is one of three licensed commercial banks permitted to issue banknotes in Hong Kong, alongside Bank of China (Hong Kong) and Standard Chartered Bank (Hong Kong). HSBC’s issued notes represent 67.7% of the total value circulating, positioning it as the dominant note issuer. Hong Kong remains one of the few regions where commercial banks continue to hold note-issuing privileges.

Closure of bank accounts

In June 2023, HSBC terminated the bank accounts belonging to the pro-democracy group League of Social Democrats (LSD), without disclosing any explanation for this action.

Hang Seng Bank

During a financial crisis in 1965, HSBC acquired a controlling stake of 62.14% in Hang Seng Bank. The Hang Seng Index, a principal stock market benchmark in Hong Kong, derives its name from this institution.

PayMe

HSBC introduced PayMe in 2017, a social payment application accessible to all users in Hong Kong, including those without HSBC accounts.

HSBC Insurance

HSBC Insurance provides its offerings through brokers, agents, and direct channels across Hong Kong, mainland China, Macau, Singapore, India, and Malaysia.

Asia Pacific operations

With about 600 offices spread over 20 countries in the Asia Pacific region, HSBC oversees regional entities such as HSBC Bank Australia Limited, Hang Seng Bank Limited, HSBC Bank (China) Company Limited, and HSBC Bank Malaysia Berhad. It holds substantial equity interests in Bank of Communications (19.9%), Barrowgate Limited (24.64%), and Industrial Bank. This subsidiary acts as the regional headquarters but excludes most Private Banking activities within Asia Pacific.

Bangladesh

HSBC commenced its operations in Bangladesh in 1996, concentrating on major urban areas such as Dhaka and Chittagong, where it established several branches and ATMs, including facilities within five-star hotels. The bank in Bangladesh enjoys the highest credit ratings available domestically, holding an 'AAA' Long-term and ST-1 Short-term rating. It provides round-the-clock banking services and actively contributes to educational programs for individuals with disabilities by collaborating with the Blind Education and Rehabilitation Development Organisation to offer scholarships for the visually impaired.

Brunei

On 6 April 2016, HSBC Brunei initiated the process of closing its operations as part of a worldwide strategic review. From that date, the bank ceased onboarding new customers and halted new business activities across its retail, commercial, and global banking divisions. Employees were given equitable redundancy compensation. By 9–10 November 2017, all HSBC branches and ATMs in Brunei were fully closed, with existing customer accounts transitioned to the local Baiduri Bank.

China

HSBC opened its branch in Shanghai on 3 March 1865 and has sustained a presence there except during the period of Japanese Occupation. Initially, the bank’s services centered on inward remittances and handling export bills but expanded considerably following China's economic liberalization.

On 6 August 2004, HSBC purchased a 19.9% equity stake in Shanghai-based Bank of Communications for US$1.75 billion—marking an investment eight times greater than any previous foreign capital injection into a Chinese bank—establishing HSBC as a dominant foreign participant in China’s banking industry. Prior to this, HSBC had invested US$62.6 million for an 8% shareholding in Bank of Shanghai and US$733 million to acquire a 10% stake in Ping An Insurance.

Effective from 1 April 2007, HSBC’s mainland China operations were transferred to its subsidiary HSBC Bank (China), which commenced business on 2 April.

In July 2022, HSBC became the inaugural foreign financial institution to form a Chinese Communist Party committee within its Chinese investment banking affiliate, HSBC Qianhai Securities, a joint venture with 90% ownership held by HSBC.

India

In 1959, HSBC acquired The Mercantile Bank of India, London and China, originally founded in Bombay in 1853. Today, HSBC ranks among the fastest expanding foreign banks in India, growing both its domestic banking footprint and support functions for global services (refer to Group Service Centres).

Indonesia

HSBC established its inaugural office in Jakarta, Indonesia, in 1884. Following disruptions during and after World War II, it regained its banking license in 1968. Since then, HSBC has expanded significantly to become one of the largest foreign banking institutions operating within Indonesia.

Japan

HSBC commenced operations in Japan with a branch in Yokohama in 1866 and subsequently expanded into Osaka, Kobe, and Nagasaki. The bank played an instrumental role in shaping Japan’s monetary framework and provided guidance to the government on fiscal policies and currency issues.

Currently, HSBC concentrates on investment banking activities based in Tokyo and Osaka rather than retail banking services. Since 2007, it has broadened its HSBC Premier private banking offerings aimed at affluent individuals and high-net-worth clients, operating seven Premier branches located across Tokyo (Hiroo, Akasaka, Marunouchi flagship, Ginza, Ikebukuro), Yokohama, and Kobe.

In December 2011, HSBC divested its Japan private banking operations to Swiss-based Credit Suisse for an undisclosed amount; the gross assets involved were approximately $2.7 billion. This sale was part of HSBC’s global restructuring plan intended to reduce annual costs by $3.5 billion through withdrawal from markets where it lacks sufficient scale. Credit Suisse’s stronger presence in Japan made this transaction strategically beneficial as HSBC sought to improve efficiency and reduce its workforce by around 30,000 jobs worldwide.

New Zealand

In New Zealand, HSBC functions as a branch of The Hongkong and Shanghai Banking Corporation, having obtained its license from the Reserve Bank of New Zealand on 22 July 1987. The bank provides a variety of financial services through a network comprising nine branches.

Philippines

HSBC's operations in the Philippines trace back more than 150 years, with its inaugural branch established in Binondo, Manila in 1875. Initially, the bank supported the sugar industry and financed railway projects, while also playing an advisory role in currency reforms during the American colonial period. Today, HSBC's headquarters are situated in Bonifacio Global City, with additional offices in major urban centers including Cebu and Davao. HSBC disrupted the international banking market previously dominated by Citibank and Standard Chartered and remains the sole major foreign bank maintaining retail services after Citibank's withdrawal in 2023.

Singapore

The Hongkong and Shanghai Banking Corporation Limited operates as a comprehensive banking institution in Singapore, headquartered at Collyer Quay. Founded in December 1877, HSBC completed local incorporation in 2016, transferring its retail and wealth management divisions to this entity. Its principal office is currently located at Mapletree Business City, Pasir Panjang, near HarbourFront.

HSBC Singapore holds Qualifying Full Bank status, delivering commercial banking, investment and private banking, insurance, forfaiting, trustee services, and capital markets offerings. The locally incorporated retail and wealth segment maintains 12 branches, including 10 HSBC Premier Centres, supported by a network of 33 ATMs.

During the 1960s, shortly after Singapore gained independence, an attack by Indonesian forces targeted the HSBC building with a bombing that caused casualties and led to subsequent legal proceedings against those responsible.

South Korea

HSBC maintains a presence in the competitive market of South Korea through eleven branches. The bank inaugurated its first branch in Jemulpo in 1897.

Sri Lanka

With over 120 years of operation in Sri Lanka, HSBC opened its initial branch in Colombo on 1 July 1892. It ranks among the largest and most profitable banks in the country, holding leadership positions in Corporate Banking, Capital Markets, and Credit Card issuance.

Taiwan

HSBC established its presence in Taiwan starting with an agent office in Tamsui in 1885. A full-service branch was launched in Taipei in 1984. Presently, HSBC operates eight branches across Taiwan, including locations such as Taipei, Jianguo, Banqiao, Tianmu, Taoyuan, Taichung, Tainan, and Kaohsiung. The acquisition of The Chinese Bank in 2007 expanded HSBC’s branch network to a total of 47 throughout Taiwan.

Thailand

HSBC began operations in Thailand in 1888 as the nation’s inaugural commercial bank and significantly contributed to the development of its financial industry. The bank issued Thailand’s first banknotes in 1889 and provided the earliest foreign loan for railway construction. Its principal branch is situated on Rama IV Road in Bangkok. Following changes introduced by the 2011 Financial Sector Master Plan that permitted foreign banks to operate two retail branches, HSBC opened a second branch on Thonglor (Sukhumvit 55).

In January 2012, HSBC divested its retail banking business in Thailand to the Krungsri Group (Bank of Ayudhya) and shifted focus exclusively to corporate banking activities. Both retail branches were closed by mid-2012.

Vietnam

HSBC originally opened a branch in Saigon (present-day Ho Chi Minh City) in 1870 but ceased operations there in 1975. The bank resumed its presence in Vietnam in 1992 by establishing representative offices in both Ho Chi Minh City and Hanoi. By August 1995, HSBC launched a full-service branch in Ho Chi Minh City and later expanded with an additional branch in Hanoi and a representative office in Can Tho by 2005.

On 29 December 2005, HSBC purchased a 10% equity interest in Vietnam Technological and Commercial Joint Stock Bank (Techcombank), recognized as one of the largest joint stock banks in Vietnam by capital. HSBC raised its ownership stake to 15% in July 2007 and further increased it to 20% by September 2008, marking the first instance of a foreign bank holding such a substantial share in a domestic Vietnamese bank.

In September 2007, HSBC acquired a 10% shareholding in Bao Viet Holdings, Vietnam’s foremost insurance firm, becoming its exclusive foreign strategic partner. This stake was raised to 18% in October 2009, involving an investment of around US$105.3 million.

On 1 January 2009, HSBC became the pioneer foreign bank to locally incorporate within Vietnam after obtaining approval from the State Bank of Vietnam in September 2008 to establish a Wholly Foreign-Owned Bank (WFOB).

Financials in Hong Kong dollars
Year	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017
Operating income, bln	81.01	94.51	114.8	154.0	139.0	155.1	171.4	187.6	217.3	259.2	233.6	235.9	232.7	255.2
Net profit, bln	36.55	37.20	42.61	65.31	54.98	50.21	63.28	73.90	90.72	129.1	92.18	99.98	84.80	96.02
Total assets, trln	2.487	2.673	3.151	3.952	4.260	4.361	5.040	5.607	6.065	6.439	6.877	6.954	7.549	7.943
Total equity, bln	100.1	114.4	165.4	245.9	216.5	260.2	320.1	371.3	473.1	522.2	608.3	635.9	679.1	753.0

Leadership

Chairman: Peter Wong (appointed June 2021); serves as non-executive chairman
Chief Executives: David Liao and Surendra Rosha (since June 2021); acting as co-chief executives

Former chairmen

Since the establishment of the group chairman role at HSBC in 1991, the chairmanship of the Hongkong and Shanghai Banking Corporation has been held either independently, simultaneously with the chief executive position, or ex-officio by the HSBC group chief executive.

William Purves (1991–1994), who also served as HSBC group chairman until 1998
John Gray (1994–1996), held concurrently with chief executive duties
John Strickland (1997–1999)
David Eldon (1999–2005)
Vincent Cheng (2005–2010); notable as the first local Hong Kong Chinese chairman
Michael Geoghegan (2010–2011); group chief executive from 2006 to 2011
Stuart Gulliver (2011–2017); concurrently group chief executive
John Flint (2017–2019); concurrently group chief executive
Laura Cha (2019–2021); non-executive chairman

Previous Chief Executives

Following the establishment of HSBC's group chief executive position in 1991, the role of Chief Executive at the Hongkong Shanghai Banking Corporation transitioned to overseeing the Asia-Pacific region.

John Gray (1993–1996)
David Eldon (1997–1999)
Aman Mehta (1999–2004)
Michael Smith (2004–2007)
Sandy Flockhart (2007–2009)
Peter Wong (2010–2021)

Cultural Significance

In Hong Kong, HSBC is commonly referred to as 獅子銀行, or "the Lion Bank," a nickname inspired by the famous lion statues positioned at its headquarters, which also feature on certain banknotes. This moniker is widely used in local media, particularly within comedic contexts.

Although the official spelling changed from "Hongkong" to "Hong Kong" in 1926, HSBC continues to use the original single-word form in its name, maintaining a connection to its historical foundation.

The English writer P. G. Wodehouse, who was employed at HSBC’s London branch between 1900 and 1902, found material for his early literary works from his experiences there, most notably reflected in his 1910 novel Psmith in the City.

External links