History of Hang Seng Bank in Hong Kong

1933 During the establishment of Hang Seng Bank, among the four founders, He Shanheng contributed the least, only 1 1,000 Hong Kong dollars, but he had the closest relationship with the development of Hang Seng Bank.

Hang Seng Bank was originally located in an old building at 70 Yongle Street, Sheung Wan, where there were many banks and the area was only 800 square feet. At that time, the chairman of the bank was Bing Yim Lam, and the manager and deputy manager were He Shanheng and Liang Zhiwei respectively. The staff of the bank is only 1 1, which is relatively small. At first, I mainly did gold trading, remittance and change. The profit in the first year of opening was HK$ 65,438+00,389. Headquartered in Hong Kong, Hang Seng Bank later expanded its business to big cities such as Guangzhou and Shanghai. 1937, Japan launched a war of aggression against China, and wealthy mainland households went south in succession, eager to exchange silver dollars for Hong Kong dollars. As Hang Seng Bank has established business networks all over Chinese mainland, its business is booming. China National Government badly needs foreign exchange to pay for its military expenditure, and Hang Seng Bank even acts as an exclusive agent for the government's foreign exchange business, from which it earns a lot of profits.

194 1 Hong Kong fell and Hang Seng was forced to close. Bing Yim Lam, He Shanheng and others took funds and 65,438+08 employees to Macau for temporary shelter. At that time, Hang Seng Bank of the same name had been established in Macau by Huang Rong, Australia, so they changed their name to Yonghua Bank to continue their business.

1945, after the recovery of Hong Kong, they returned to Hong Kong, moved Hang Seng Bank to the new address of Queen's Road Central 18 1 and reopened their own property. The scale of the new store is bigger than before. 1946, inviting Sir Guo Weili to take charge of overseas gold trading. 1949 10 People's Republic of China (PRC) was established, and Chinese mainland implemented a series of strict foreign exchange controls. During the Korean War, the United Nations imposed an economic blockade on Chinese mainland, which not only undermined overseas investment confidence in Chinese mainland, but also adversely affected the banking business that originally had a mainland network. In addition, after the war, Hong Kong's economy took off, manufacturing and real estate industries rose, and the demand for loans increased. Under these two factors, banks in Hong Kong began to transform.

Due to the loss of contact with Chinese mainland, Hang Seng also began to transform its business. 1952, 1952, Hang Seng was registered as a private limited company in Hong Kong on February 5, with a registered capital of100,000 Hong Kong dollars and paid-in capital of 5 million Hong Kong dollars, and a new board of directors was established. At that time, Bing Yim Lam had passed away. The chairman was He Shanheng, the vice chairman was Liang Zhiwei, and the general manager was He Tian. 1953, Hang Seng moved into the five-storey self-owned property located atNo. 163 to 165, Queen's Road Central, and started commercial banking business in an all-round way.

At that time, Hang Seng's main customers were the general public and small and medium-sized enterprises. He Shanheng has formulated a series of service rules for employees, stipulating that employees must treat customers sincerely, which is well received by the public. As for the customers of small and medium-sized enterprises, they are mainly manufacturers of clothing, toys, electronics, plastics and hardware in Guangdong. They want to get credit, but they don't have the company balance sheet and sufficient conditions to support them to get credit. Since Hang Seng already knows their background, it doesn't mind giving credit. These small companies later developed into large companies and groups and became long-term customers of Hang Seng.

1959, 10 In June, Hang Seng increased its registered capital to HK$ 30 million and paid-in capital to HK$150,000. 1On February 7th, 960, Hang Seng was reorganized into Hong Kong Gong * * * Co., Ltd. and officially renamed as "Hang Seng Bank". In the same year, two branches were established in Yau Ma Tei and Mong Kok, Kowloon, actively expanding the branch network in Hong Kong and Kowloon. 1962 Christmas, the new head office building, Hang Seng Building, was completed and put into use, with a height of 22 stories, which was the tallest building in Hong Kong at that time, while Hang Seng Head Office moved to the former site of the Central Fire Station on 199 1.

From 1954 to 1964, Hang Seng's capital account increased from HK$ 6.3 million to HK$ 52.5 million, and its deposits increased from HK$ 2/kloc-0.0 million to HK$ 720 million. Total assets increased from HK$ 32 million to HK$ 76,654,380+million. Before the 1965 Hong Kong stock crash, Hang Seng was the largest Chinese bank in Hong Kong in terms of deposits and assets, and gradually became the main competitor of HSBC in the banking retail business.

1965 banking crisis: Hang Seng's controlling stake changed hands.

1965 1 month, the first large-scale banking crisis broke out in Hong Kong.

The reason is that on October 23rd, 65438 10, a US dollar check with a value of about HK$ 7 million issued by Mingde Bank was dishonored. After the news came out, many depositors flocked to withdraw cash. Because the bank could not pay the huge withdrawal for a while, the Hong Kong government finally took over Mingde Bank on June 27th, 65438. Later, the run spread to other Chinese banks, such as Guangdong Trust Bank, Hang Seng Bank, Guang 'an Bank, Dao Heng Bank and Wing Lung Bank. With the statements of HSBC and Standard Chartered Bank providing unlimited support to Chinese banks in Hong Kong and various measures taken by the Hong Kong government, the storm temporarily subsided on February 10. But the incident did not end there. Until March, some newspapers still published some unfounded rumors that denigrated local banks, and Hang Seng was one of them. During this period, big customers quietly closed their accounts; At the beginning of April, the run broke out again, with Hang Seng Bank bearing the brunt.

The first thing that happened was Aberdeen Branch. At that time, a large number of customers flocked to ask for deposits. As the general manager, He Tian advised not to withdraw money in a hurry. Some big customers with HK$ 200,000 to HK$ 300,000, such as Director Han Sen, asked He Tian to sign a letter of guarantee before stopping the withdrawal. At the head office, the people who withdraw money even extended to the Hong Kong Club in the Statue Square. HSBC once again expressed its support for Hang Seng Bank, and sent staff to the lobby of Hang Seng Head Office to prove that there was enough cash supply, and stacks of banknotes were distributed in every corner of the lobby. However, the situation shows no signs of improvement. Hang Seng Bank lost HK$ 80 million a day, accounting for one sixth of the total bank deposits. By the beginning of April, it lost HK$ 200 million.

Faced with this dilemma, He Shanheng convened a board meeting to discuss countermeasures. At that time, three solutions were obtained:

Accept the assistance of Chase American Bank Company; Closed and taken over by the government; Ask HSBC for help. After many days of discussion, the board of directors decided to sell the controlling stake in the bank to HSBC and give it to Sir William Kwok, who is proficient in English. Negotiate with HSBC immediately after obtaining the approval of Hong Kong Financial Secretary Guo. During the negotiation, the total value of the two parties in Hang Seng and the number of shares sold were quite different. HSBC believes that the total value of Hang Seng is HK$ 67 million, and requests to acquire 76% equity of Hang Seng. However, Hang Seng believes that its total value is HK$ 6,543.8 billion, and it is only willing to sell 5 1% equity. HSBC agreed to acquire 565,438+0% equity of Hang Seng for RMB 5,654,380+0 (later increased to 6,265,438+04%) because it was worried that it would be difficult for HSBC to be immune. After the news came out, the agitation also subsided.

It is reported that He Shanheng cried for two nights because the controlling stake in Hang Seng was ruined. However, on the day of the sale, he personally held a meeting to explain to employees and stabilize people's hearts. HSBC has undoubtedly become a big winner. HSBC not only bought the most valuable assets at a low price, but also eliminated the most threatening competitors in Hong Kong's banking industry, thus establishing its monopoly advantage in Hong Kong's banking retail industry. After the acquisition, HSBC only sent four representatives to join the board of directors, and continued to maintain the original Chinese management, and He Shanheng and others were able to stay. This is a vision for HSBC. At that time, Sandoz, general manager of Hongkong and Shanghai Banking Corporation, believed that the success of Hang Seng Bank lay in its management in China, so HSBC did not need to intervene. With the support of HSBC, Hang Seng's business has greatly expanded.

1, major SME affairs

The management still adheres to the principle of burying its head in small and medium-sized enterprises. At that time, from 65438 to 0960 to 1970, Hong Kong's industries took off, and SMEs generally lacked funds to expand. However, Hang Seng gave financial support and provided letters of credit and import and export financing services. For example, before Zheng Yutong, a big investor in China, made a fortune, Chow Tai Fook Jewelry he was in charge of benefited from the support of Hang Seng, and then entered the real estate industry from the jewelry industry. Changshi and Hang Seng also have a long history. Li Ka-shing tried to get to know He Shanheng when he was running a plastic flower factory. After the meeting, He Shanheng was deeply impressed by him and thought he was a capable and potential customer.

After the small company evolved into a large enterprise, it became a long-term customer of Hang Seng. For example, Hang Seng provides many mortgages for long-term properties; In the new world ruled by Zheng Yutong, Hang Seng Bank is still its main bank.

2. Residential mortgage service

Since the1960s, the real estate industry in Hong Kong has gradually prospered. In order to win the mortgage market for small and medium-sized dwelling houses, 1967, Hang Seng offered the middle class (also known as the "sandwich class") residential housing mortgage service for seven years, which changed the practice of three years at that time and allowed the middle class to buy their own homes and live in peace.

3. Initial public offering

1972, Hang Seng Bank was listed in Hong Kong. It reduced the par value of shares from 65,438+0 to 65,438+00, and issued new shares, which increased the paid-in capital from HK$ 45 million to HK$ 6,543.80 billion. In May of the same year, Hang Seng offered one tenth of its issued shares, with a face value of 65,438+00 yuan * * 654,380+000 shares at a price of 65,438+000 yuan each. As a result, it was oversubscribed by 29 times, and the frozen funds amounted to HK$ 2.8 billion, equivalent to half of the fiscal revenue of the Hong Kong government in 197 1 year. 13 In June, Hang Seng was listed on the Hong Kong Stock Exchange, which was the first bank listed in Hong Kong after the war. On that day, Hang Seng opened higher at 175 yuan, rose to 186 yuan all day, and finally closed at 165 yuan, that is, the market value of Hang Seng has reached 1.65 billion.

In addition, the name of Hang Seng is deeply rooted in people's hearts because of its "Hang Seng Index" 1969.

4. Expand the branch network

In addition, Hang Seng Bank has expanded its branches in Hongkong and Chinese mainland to build a wider network. By the time 1972 was listed, Hang Seng had 20 branches in Hong Kong with more than 2,000 employees, making it a commercial bank second only to HSBC. By 198 1, the number of branches has increased to 45. In the same year, we obtained the franchise right to open branches along the subway. Since the mid-1960s, Hang Seng Bank has set up a branch in Chinese mainland.

5. Acquisition of Wing On Bank

1in the middle of 980, the banking crisis broke out. 1984, a scandal broke out in yongan bank, and Guo Zhiguang, the general manager, misappropriated100000 dollars for his own use. During the period of 1985, the capital of Yongan Bank was negative, because the loans of directors and administrative leaders could not be recovered. 1In May 1986, Hang Seng Bank reached an agreement with Wing On Bank, in which Hang Seng injected HK$ 65,438+76 million into Wing On to acquire 50.29% equity of the bank. At this point, Hang Seng Bank became the largest shareholder of Yongan Bank. Under the management of Hang Seng, Yongan turned losses into profits. 1993 June 5438+ 10, Hang Seng sold Wing On Bank to Daxin Financial Group, with a profit of HK$ 478 million.

6. Explore the Chinese mainland market.

Hang Seng Bank (China), a wholly-owned subsidiary of Hang Seng Bank, was established on May 28th, 2007. Chinese mainland * * has 32 branches, including 65,438+00 branches (located in Beijing, Shanghai, Hangzhou, Guangzhou, Dongguan, Shenzhen, Fuzhou, Nanjing, Ningbo and Tianjin) and 22 branches (9 in Shanghai, 4 in Guangzhou and 4 in Tianjin).