The turmoil that existed in China during the period between the 1830s and 1860s centered around the question of foreign trade, which the reigning Qing Dynasty resisted. This turmoil erupted into armed conflict in two separate instances (commonly referred to as the Opium Wars), resulting in the cession of the Hong Kong territory to the British Empire and the opening of global trade with China. Local British merchants established the Hong Kong and Shanghai Banking Company (HSBC) in 1865, which was officially incorporated by the British Treasury the following year. These events resulted in the first foreign banking presence to ever be established in Asia.
First Years of HSBC Bank
The establishment of a strong trading and financing presence in this region presented the HSBC Bank an opportunity to expand business throughout Asia. The first public loan in China based on a local denomination backed by foreign currency was managed by the HSBC Bank in 1874, thereby instituting such practices as part of a global economic system that now included all of Asia. Soon thereafter, HSBC became the first bank ever to be established in Thailand, leading the way for further expansion throughout the late 19th and early 20th centuries, with branches being opened in Shanghai, Manila, and Bangkok.
Years after World War II
The conflict with Japan during the Second World War necessitated a temporary transfer of HSBC Bank headquarters from Hong Kong to London until cessation of hostilities, with the bank returning to the home office in 1946. Bank operations continued to diversify in the years following World War II, including international expansion with the founding of the HSBC Bank of California (USA) in 1955 and the acquisition of the Mercantile Bank in India and the British Bank of the Middle East in 1959. The institution of an executive chair to oversee operations in 1964 placed then chief manager John Saunders at the head of the executive board of operations.
Further Expansion of HSBC Bank
HSBC Bank continued domestic and international expansion throughout the 1960s and 1970s under the chairmanship of Sir John Saunders. This included the first appointment of a Chinese national as chief manager of the Hong Kong branch, as well as the attainment of controlling interest in at least one local bank and the formation of a local merchant bank, Wardley Limited. HSBC expanded international banking operations in the 1980s by the acquisition of a majority share of the Marine Midland Bank (USA) and the establishing of bank branches in Canada and Australia.
Current Presence of HSBC Bank
The founding of HSBC Holdings PLC in 1991 as a parent company for all of the HSBC Bank holdings established the current face of HSBC as a publicly-traded stock share with a presence in the New York, London, Paris, Hong Kong, and Bermuda stock exchanges. Today, HSBC Bank continues its domestic and international banking operations, which include 220 local branches within the Hong Kong region, where HSBC Bank is one of only three commercial banking entities authorized to issue its own currency. HSBC Holdings PLC continues to maintain a strong presence in the global financial world, being rated as the single largest banking group in the world and the sixth largest company in the world overall by Forbes Magazine in 2009.
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