The Hongkong and Shanghai Banking Corporation was founded in Hong Kong on March 3, 1865, and in Shanghai one month later. In 1980, HSBC acquired 51 per cent of Marine Midland Bank, buying the rest in 1987. HSBC Holdings was established in Britain in 1991 as the parent of The Hongkong and Shanghai Banking Corporation ahead of its purchase of the UK-based Midland Bank and the impending 1997 transfer of sovereignty of Hong Kong from Britain to China.
HSBC stake talk takes Bocom to record
Bank of Communications shares surged 12.58 per cent yesterday to close at a record high of HK$11.28. The stock's biggest advance since December last year followed speculation its biggest shareholder, HSBC, may raise its stake through the H-share market.
An HSBC spokeswoman declined to comment, reiterating the lender was in talks with mainland regulators over a proposal to raise its stake.
Bocom has been lagging rivals ICBC and China Construction Bank, whose share prices have risen 24.3 per cent and 44 per cent this year.
'They probably won't make such an emotive announcement before the 17th Party Congress.' said Lewis Wan at Pride Investment Group.
HSBC's stake was diluted to 18.6 per cent from 19.9 per cent when Bocom listed its A shares in May.
Goldman Sachs said HSBC could top up its stake to 19.9 per cent by next year.