About HSBC China – History

HSBC Bank (China) Company Limited started operations in Shanghai in April 2007 as a wholly foreign owned unit of The Hongkong and Shanghai Banking Corporation Limited. HSBC China incorporated the previous mainland China offices of its parent. Please find below a list of the milestones of HSBC’s history in China.

1865
The Hongkong and Shanghai Banking Corporation Limited (HSBC) is established in Hong Kong and Shanghai.

1980
HSBC opens a representative office in Beijing, the first foreign bank to do so following the launch of the People's Republic of China's 'open door' policy in the late 1970s.

1997/1998
HSBC becomes the first foreign bank to obtain approval to conduct renminbi (RMB) business in Shanghai, launching RMB services in its Shanghai and Shenzhen branches in 1997 and 1998 respectively.

2000
HSBC moves its mainland China head office in May from Hong Kong to Shanghai's new financial district of Lujiazui in Pudong, demonstrating the Bank's long-term commitment to mainland China.

2001
HSBC becomes the first foreign commercial bank to buy a minority stake in a local bank, acquiring eight per cent of the Bank of Shanghai in December 2001.

2002
In October, HSBC purchases a 9.99 per cent stake in Ping An Insurance (Group) Company of China Limited, the second largest insurance company in mainland China.

2003
HSBC receives full regulatory approval in March to offer custodian services in mainland China to qualified foreign institutional investors (QFII) in mainland China's A-share market.

HSBC establishes a joint venture insurance broking company, Beijing HSBC Insurance Brokers Limited, with its domestic partners. HSBC takes up 24.9 per cent of the equity in the joint venture – the first foreign joint venture in mainland China to obtain an insurance broking license allowing the company to offer services to domestic customers.

HSBC obtains approval in November to launch RMB business in its Qingdao, Tianjin and Guangzhou branches.

2004
HSBC and the Bank of Shanghai jointly launch the co-branded Shanghai International Credit Card in January.

HSBC becomes the first and only foreign bank eligible for underwriting PRC government bonds.

In February, HSBC becomes the first foreign bank to offer RMB banking services to domestic corporations in mainland China.

Ping An Bank was established on 19 February, through a joint venture agreement between HSBC and China Ping An Trust & Investment Co. Limited (subsidiary of Ping An Insurance) to acquire Fujian Asia Bank Ltd. HSBC holds a 27 per cent stake in Ping An Bank.

In August 2004, the Bank acquires a 19.9 per cent stake in the Bank of Communications, mainland China's fifth largest bank. The transaction represented the largest single equity investment in a mainland China bank by a foreign bank at the time.

In October 2004, the Bank opens its 10th branch in Suzhou, capitalising on the city's rapid economic growth.

2005
HSBC celebrates its 140th anniversary in mainland China: the longest continuous presence of any foreign bank.

HSBC is named 'Best Foreign Commercial Bank in China' by FinanceAsia for the fifth consecutive year (2001-2005).

In May, HSBC acquires an additional 9.91 per cent of Ping An Insurance, raising its total stake in the company to 19.9 per cent - just below the 20 per cent limit for single foreign investors in mainland Chinese institutions.

Under the Credit Card Cooperation Agreement between HSBC and Bank of Communications (August 2004), the first co-branded dual currency Pacific Credit Card was launched in China in May.

In August, the Bank upgrades its representative offices in Chengdu and Chongqing to full branch status, extending its network to western mainland China for the first time. HSBC's branch network now spans 12 major cities across the country, more than any other foreign bank.

In November, HSBC establishes a joint venture fund management company in mainland China with Shanxi Trust and Investment Corporation Limited (Jintrust). The new company, HSBC Jintrust Fund Management Company Limited is headquartered in Shanghai. HSBC has a 49 per cent stake in the joint venture company. 

In December, HSBC becomes one of the first market makers for RMB trading against foreign currencies on mainland China's interbank foreign exchange market.

2006
HSBC is named 'Best Foreign Bank in China' by FinanceAsia for the sixth consecutive year (2001-2006).

In February, HSBC becomes the first foreign bank to offer documentary credit advising services in partnership with a local Chinese bank. The Bank’s enhanced ChinaExpress service gives trade customers access to over 2,700 offices in 137 cities across mainland China through the tie up with Bank of Communications.

In June, HSBC becomes one of the first banks to receive approval to provide Overseas Wealth Management Services and the related Custodian Service under the Qualified Domestic Institutional Investor (QDII) scheme.

In August, HSBC further expands its service network in mainland China to 25 outlets – the largest of any foreign bank – following the opening of its new Hangzhou Branch.

In December, HSBC announces that it has formally submitted its application for incorporating in mainland China and the China Banking Regulatory Commission has acknowledged receipt which is the first step in the approval process.

HSBC becomes the first foreign bank to offer time deposit service to local citizens for amounts no less than RMB1 million in nine cities of Beijing, Dalian, Guangzhou, Qingdao, Shanghai, Shenzhen, Tianjin, Wuhan and Xiamen.

On 22 December, HSBC opened a new branch in Xi’an, becoming the first foreign bank to expand its presence in Western China following the full opening of China’s financial market on 11 December.

2007

In January, HSBC obtained approval from the China Banking Regulatory Commission (CBRC) to set up a branch in Shenyang in North-east China.

In March, HSBC received final approval for local incorporation from the China Banking Regulatory Commission, becoming one of the first foreign banks to have been approved to set up a wholly foreign owned bank in the fast-growing China market.

On 2 April, HSBC Bank (China) Company Limited starts operations as a wholly-foreign-owned bank solely owned by The Hongkong and Shanghai Banking Corporation Limited. HSBC is among the first batch of foreign banks to locally incorporate in mainland China.

In April, HSBC China begins providing a wide range of RMB services to Chinese citizens, becoming one of the first foreign banks to launch the retail services in mainland China.

In June, HSBC and Sun Hung Kai Properties Group announce that the future Shanghai IFC, an ambitious landmark commercial complex by SHKP, will house HSBC China’s headquarters.

In October, HSBC China receives approval from State Administration of Foreign Exchange to obtain additional QDII quota of US$500 million, becoming the only foreign bank having been approved additional QDII quota, amounting to US$1 billion in total.

In December, Hubei Suizhou Cengdu HSBC Rural Bank Company Limited (HSBC Rural Bank), a wholly owned subsidiary of The Hongkong and Shanghai Banking Corporation Limited, opens for business, marking the first entry by an international bank into China’s rural market.

2008

In March, HSBC China marks the first anniversary of its local incorporation in China with the official launch of HSBC Private Banking business, which offers personalised wealth management services to high net worth individuals and their families in mainland China.