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. 

Mortgage rate hikes add note of caution to markets

Mortgage rate hikes add note of caution to markets

The decision by HSBC and Standard Chartered to raise mortgage lending rates by 0.25 percentage points should not come as a surprise. Other lenders are likely to follow their lead, as Hang Seng Bank did yesterday.

Friday, 15 March, 2013, 3:31am 1 comment

Small banks may gain from rate wait

The latest increase in mortgage rates may cool the property sector. Photos: K.Y. Cheng, Sam Tsang

The latest increase in mortgage rates in more than a year may offer some small banks a rare opportunity to grab a greater market share if they continue to hold their rates for some time.

15 Mar 2013 - 5:31am

Sellers cut asking prices on homes as banks raise mortgage rates

Victor Lui says the rate rise will have little impact. Photo: Dickson Lee

From today, HSBC's best lending rate for new home loans will rise to 2.85 to 3.15 per cent, from 2.6 to 2.9 per cent. Standard Chartered has also raised rates from today.

14 Mar 2013 - 7:47am

Hong Kong's new homebuyers hit by rise in interest rates

Advertisements outside a property agency in Quarry Bay. People are less confident about buying than earlier in the year, a survey shows. Photo: Dickson Lee

Centaline Property Agency said last night that some owners had immediately slashed their asking prices. A 922 sq ft flat in Taikoo Shing was on offer for HK$13 million, a reduction of 7 per cent. Other owners dropped their prices by up to 10 per cent.

14 Mar 2013 - 2:13pm

Stone's throw away but only for the very few

Any connections?

Paul Y Engineering, only weeks away from upgrading its name to the exalted "Louis XIII Holdings", is readying itself for this higher plane. A missive from its public relations firm arrives headed, "Behold the world's most fabulous jewels at Louis XIII".

13 Mar 2013 - 5:55am

HSBC's Gulliver becomes poster boy for Brobdingnagian bonuses

Stuart Gulliver. Photo: Bloomberg

HSBC just announced disappointing results for 2012, a year full of bad news for the global bank founded in Hong Kong and Shanghai. Despite bad results, chief executive Stuart Gulliver still secured a bonus of £1.95 million (HK$22.7 million) for last year. His total compensation came to HK$109 million, including the release of deferred bonuses from previous years. For comparison, Gulliver's total compensation in 2011 was HK$82 million.

14 Mar 2013 - 2:34pm 1 comment

Don't blame the fat cats. Trail of cream leads back to you

HSBC chief Stuart Gulliver. Photo: Bloomberg

Let's put some perspective on this howl of outrage. HSBC chief executive Stuart Gulliver, for instance, got total compensation last year of US$14.1 million or 0.068 per cent of the bank's pre-tax earnings of US$20.6 billion.

10 Mar 2013 - 2:52am 12 comments

HSBC executives cash in shares worth HK$46m

HSBC Group finance boss Iain Mackay, chair Douglas Flint and chief executive Stuart Gulliver.

HSBC plans to raise its dividends in the first three quarters this year, but its three top executives are not waiting to reap the full benefit of this move. Chief executive Stuart Gulliver, chairman Douglas Flint and finance director Iain Mackay sold shares worth a total of £4 million (HK$46.6 million) on Monday.

9 Mar 2013 - 5:43am

HSBC to put audit contract out to bid after 20 years

HSBC will put its external audit contract up for tender. Photo: AP

HSBC, Europe's largest bank by assets, said it would accept bids for its external audit contract, held by KPMG since 1991.

8 Mar 2013 - 7:17am

HSBC set to sell US$3.4b of mortgage assets at a loss of US$200m

HSBC set to sell US$3.4b of mortgage assets at a loss of US$200m

HSBC is in talks to sell some of its subprime mortgage portfolio for US$200 million less than the book value.

The sale to a subprime lender in the United States, SpringCastle Acquisition, and a mortgage investor managed by private-equity firm NewCastle Partners of Connecticut in the US was slated to be completed in the second quarter, HSBC said yesterday.

7 Mar 2013 - 6:12am

Rolling Stone gathers no real proof

David Bagley (left), head of group compliance for HSBC Holdings, and Paul Thurston, chief executive officer of retail banking and wealth management for HSBC, at a hearing on the money laundering allegations. Photo: Bloomberg

How some people can manufacture outrage and get away with it. That's my take on Rolling Stone's treatment of how the US Justice Department mounted another scalp in its trophy case by extorting US$1.9 billion from HSBC.

7 Mar 2013 - 6:12am 2 comments

Business Digest, March 6, 2013

Net loss at i-Cable widens by 54pc

Deutsche Bank opts for Formosa bonds

6 Mar 2013 - 5:05am

HSBC profits take 6pc dip, but chief executive pockets HK$22m bonus

HSBC profits take 6pc dip, but chief executive pockets HK$22m bonus.

Chief executive Stuart Gulliver will take home a 33 per cent larger pay packet. And shareholders of the global banking group will get 11 per cent higher dividends for the three upcoming quarters.

5 Mar 2013 - 5:54am

Emerging markets power HSBC's income

HSBC's fourth-quarter profit before tax of US$4.4 billion was more than 25 per cent higher than the previous quarter. Photo: Reuters

Emerging markets contributed 85 per cent of the income of global banking group HSBC, chief executive Stuart Gulliver said yesterday.

Gulliver said half of the group's loan growth came from Hong Kong, mainland China, and the rest of Asia, driven by trade demand. Hong Kong and Latin America had the best performances in retail banking and wealth management.

5 Mar 2013 - 5:21am

HSBC pays big bonuses while admitting to money laundering

Cosco: failing to make headway

So HSBC paid 204 of its staff more than £1 million (HK$11.7 million) each in bonuses for the financial year just gone, we learned from its results yesterday.

5 Mar 2013 - 5:07am 1 comment