1.0 The history of HSBC
HSBC, the Hongkong and Shanghai Banking Corporation limited, which was founded in 1865 to provide the financing service for the trade between china, Europe and India. Its name comes from its service scope. After its incorporation, it started to establish the branches overseas, the focus if the south-east Asia, especially in the city of Hong Kong and Shanghai. Leaded by the excellent CEO Thomas Jackson, the bank had become the most influential financial institution in the Asia region.
In the 20th century, HSBC faced great changes and challenges. At the early years, it broadened its scope of business in the Asia, which is to issue loans to national governments for their infrastructure projects and modernization, especially in China. Owing to the First World, its business had been disrupted for a long time. However with the prosperity of economy, it rebuilds its head office and some major branches to demonstrate its confidence of growing up again.
The 1930s have witnessed the great recession of economy and the turmoil in the politic. The followed by the Second World War, the staff of HKBC become the prisoners. Thanks to the great leadership and abundant reserves accumulated in peaceful time. Meanwhile, through its financial power, HSBC plays a great role in reconstructing the economy of Hong Kong, which have nowadays become the financial center in the world. But the most offices in mainland had been closed for its over concern its business in shanghai and Hong Kong.
At the end of the 20th, HSBC have adopted the strategy of incorporation acquisition and alliances with some merchant bank. These acquisition steps make the HSBC change from a regional financial bank into an international leading bank, which operate business on Asia、UK and USA. In the 1980s, it purchased Marine midland bank, which is a USA bank. Failing to acquire the Royal Bank of Scotland, it embarked on incorporation with Midland Bank in 1987. All these provide HSBC a lot of holding companies, which lay a solid foundation for the list of HSBC in London Stock exchange in 1991. With the foundation of new holding company, London have become the headquarter of HSBC.
In the 21th, HSBC reinforced its business in its birthplace of China, through a series of strategic cooperation. All in all, it keeps its leading status in financial bank for its ability to deal with an uncertain future.