HSBC Main Building 香港滙豐總行大廈

The HSBC Main Building (traditional Chinese: 香港滙豐總行大廈) is the headquarters building of The Hongkong and Shanghai Banking Corporation Limited in Central, Hong Kong. It is located along the southern side of Statue Square at the location of the old City Hall, Hong Kong (built in 1869, demolished in 1933). The previous HSBC building was built in 1935 and pulled down to make way for the current building. The address remains as 1 Queen's Road Central, Central. The building can be reached by a 5-minute walk from Exit K of Central MTR Station and facing Statue Square.

History

The first HSBC (then known as the Hong Kong and Shanghai Banking Company Limited) building was Wardley House, used as HSBC office between 1865 to 1882 on the present site. In 1864 the lease cost HKD $500 a month. After raising a capital of HKD $5 million, the bank opened its door in 1865. It was demolished in 1886 and rebuilt in the same year.

The main feature of the second building design was the division of the structure into two almost separate buildings. The building on Queen's Road Central was in Victorian style with a verandah, colonnades and an octagonal dome, whereas the arcade which harmonized with the adjacent buildings was constructed on Des Voeux Road.

In 1935, the second building was demolished and a third design was erected. The third design used part of the land of the old City Hall, and was built with the Chicago school style. This third building had, for a period of time after completion, been the tallest building between San Francisco and Cairo. During the Japanese occupation of Hong Kong, the building served as the government headquarters. Locally, it was the first building in Hong Kong to be fully air-conditioned.

By the 1970s the bank had outgrown its headquarters; departments were scattered into offices all over Central Hong Kong, and it was obvious that such a 'solution' to the space limitations could not continue indefinitely. In 1978 the bank decided to tear down its headquarters and rebuild it again. The building was finished on November 18, 1985. At the time, it was the most expensive building in the world (c.a.HK$5.2 billion, roughly US$668 million).

The first major addition to the building, designed by Hong Kong's One Space Ltd, was completed on November 23, 2006, in the form of a ground floor lobby that improves security access to the upper floors and creates a prestigious reception area. Its design and construction included the installation of the 'Asian Story Wall', a multimedia installation comprised of twin banks of 30 seamless plasma screens (the largest installation of its kind in Hong Kong) displaying archived bank heritage and artworks.

Design

The new building was designed by the British architect Lord Norman Foster and engineers Arup and was constructed by Wimpey Construction. From the concept to completion, it took 6 years (1979–1985). The building is 180-metres high with 47 storeys and four basement levels. The building has a module design consisting of five steel modules prefabricated in the UK by Scott-Lithgow Shipbuilders near Glasgow, and shipped to Hong Kong. 30,000 tonnes of steel and 4,500 tonnes of Aluminium were used. It is rumoured that the building's modular design enables it to be dismantled and moved, if there was any possibility of a disrupted handover to the People's Republic of China.

The new Lobby and its 2-part Asian Story Wall were designed by Greg Pearce, of One Space Limited. Pearce was also the Principal Architect of the Hong Kong Airport Express (MTR) station. Conceived as a minimalist glass envelope, the new lobby is designed to be deferential to Foster's structure and appears almost to be part of the original.

The building is also one of the few to not have elevators as the primary carrier of building traffic. Instead, elevators only stop every few floors, and floors are interconnected by escalators.

Characteristics

The main characteristic of HSBC Hong Kong headquarters is its absence of internal supporting structure.

Another notable feature is that natural sunlight is the major source of lighting inside the building. There is a bank of giant mirrors at the top of the atrium, which can reflect natural sunlight into the atrium and hence down into the plaza. Through the use of natural sunlight, this design helps to conserve energy. Additionally, sun shades are provided on the external facades to block direct sunlight going into the building and to reduce heat gain. Instead of fresh water, sea water is used as coolant for the air-conditioning system.

All flooring is made from lightweight movable panels, under which lies a comprehensive network of power, telecommunication, and air-conditioning systems. This design allows equipment such as computer terminals to be installed quickly and easily.

Because of the urgency to finish the project, the construction of the building relied heavily on off-site prefabrication; components were manufactured all over the world. For example, the structural steel came from Britain; the glass, aluminium cladding and flooring came from the United States while the service modules came from Japan.

The inverted ‘va’ segments of the suspension trusses spanning the construction at double-height levels is the most obvious characteristic of the building. It consists of eight groups of four aluminium-clad steel columns which ascend from the foundations up through the core structure, and five levels of triangular suspension trusses which are locked into these masts.

Feng Shui

The early British settlers in Hong Kong had an interest in Feng Shui; thus, most of the earliest buildings in Hong Kong, and many buildings constructed thereafter, were built with the philosophies of Feng Shui in mind. The Chinese and even the British believe that those who have a direct view of a body of water--whether it is a river, a sea, or an ocean--are more likely to prosper than those who do not (water is strongly associated with wealth in Feng Shui). The HSBC building has a wide open area (the Statue Square) in front of it, with no other buildings blocking its view of Victoria Harbour; thus, it is considered to have 'good feng shui.'

Even though the Hong Kong Government is proposing extending the existing coastline further out into the harbour in its latest land reclamation project, it will still set aside space so that no new developments will block the HSBC Building's view of the harbour. (It has been said that the HSBC is guaranteed its view of the harbour by the government)

Lion statues

Two bronze lion statues are located in front of the building. The statues were cast in Shanghai in 1935 and brought to Hong Kong. Like the other statues of Statue Square, the two lion statues were displaced to Japan for melting by the then Japanese administration during World War II. They were rediscovered at the end of the war there, and brought back to their original location. Bullet impacts from the Battle of Hong Kong in WWII are still visible on the statues. One of the lion statues had a small explosive embedded in it; it remained undiscovered until the early 1990s, when it was removed by police's explosive unit.

From a 'Feng Shui' point of view, the two bronze lion statues in front of the HSBC headquarter are believed to contribute to the steady revenue of the bank. Although even in Asia, not every architect believes in Feng Shui, many of their customers do.

The original pair of lions are kept at a museum in Shanghai. The lions at HSBC Hong Kong Headquarters are the second pair. A third pair is kept in HSBC Group Headquarters in London, and a fourth pair is located at its former branch in Shanghai.

The left lion (the one with the mouth open) is named Stephen, after the general manager of Hong Kong branch A. G. Stephen; and the right is named Stitt, after the general manager of Shanghai branch at the time.

Rumour has it that Stitt used to have its mouth open as well, but this would allow it to 'breathe in' the eastern wind, giving it life at night and became a menace to the public. Thus Stitt was recast with its mouth closed.

See also: Imperial guardian lions

Lighting scheme

In 2003, the Hong Kong Tourism Board developed a harbour lighting plan called 'A Symphony of Lights', a large-scale multimedia show featuring lighting, laser, music, and occasionally special pyrotechnics effects during festivals, in order to promote tourism in Hong Kong. The show is based on the illumination of key buildings on the Hong Kong Island side, and is best viewed from the Kowloon side across the Victoria Harbour. The HSBC Hong Kong headquarters building is one of the participating buildings in the show. The building has been installed with 716 intelligent lighting units, including 450 Martin Professional Cyclo 03 colour changing fluorescent fixtures in the glass stairwells, Martin Professional Exterior 600's and Exterior 200 fixtures on five levels, 8 search lights, and over one kilometre of LED lighting around the top. Completed by mid-December 2003, the cost of installation is estimated to be HK$5.5 million.

Intelligent lighting is distributed across six sections of the building:

   1. Vertical Ladder Trusses
2. Exoskeleton: Inner + Outer
3. Refuge Floors
4. Northwest Stairwell
5. Eastern Stairwells
6. Roof Building Maintenance Units

HSBC has always aimed to adopt a new lighting scheme because Foster did not pay much attention to the illumination of the building at nighttime.

The Hongkong and Shanghai Banking Corporation Limited (traditional Chinese: 香港上海滙豐銀行有限公司), based in Hong Kong, is a wholly owned subsidiary and the founding member of the HSBC group, which is traded on several stock exchanges as HSBC Holdings plc. The business ranges from the traditional High Street roles of personal finance and commercial banking, to corporate and investment banking, and private banking. It is the largest bank in Hong Kong and has offices in Asia Pacific region.

HSBC is one of the oldest banking groups in the modern world. The bank is known locally in the expatriate community simply as The Bank or as 'Hongkong Bank'.

History

Foundation

After the British established Hong Kong as a colony in the aftermath of the Opium Wars, local merchants felt the need for a bank to finance the growing trade between China and Europe (with traded products including opium). They established the Hongkong and Shanghai Banking Corporation (traditional Chinese: 香港上海滙豐銀行有限公司) in Hong Kong and Shanghai in 1865.

The founder, a Scotsman named Thomas Sutherland, wanted a bank operating on 'sound Scottish banking principles.' Still, the original location of the bank was considered crucial and the founders chose Wardley House in Hong Kong since the construction was based on some of the best feng shui in Colonial Hong Kong. The bank initially leased its premises for HKD $500 a month in 1864.

After raising a capital stock of HKD $5 million, the 'Hongkong and Shanghai Banking Company Limited' opened its doors on 3 March 1865. It opened a branch in Shanghai during April of that year. The bank was incorporated in Hong Kong by special dispensation from the British Treasury in 1866, and under the Hongkong and Shanghai Bank Ordinance 1866, a new branch in Japan was also established. The bank handled the first public loan in China in 1874, thereafter issuing most public loans.

Business development

Sir Thomas Jackson Bart became chief manager in 1876. During his twenty-six year tenure, the Bank became a leader in Asia. Notable events included being the first bank established in Thailand, in 1888, where it printed the country's first banknotes; acting as banker for the Hong Kong government from the 1880s; and participating in the management of British colonial government accounts in China, Japan, Penang and Singapore. A period of expansion followed, with new branch offices opening in Bangkok (1921), Manila (1922) and Shanghai (1923), and a new head office building in Hong Kong in 1935.

Second World War

In anticipation of the Japanese invasion of Hong Kong in 1941, the Bank's head office moved to London. During the period 1941-1943 the chief manager Vandeleur Grayburn, and his successor David C Edmondston, both died while interned by the Japanese. Arthur Morse was appointed Chief Manager in 1943 and led the bank after the war. The head office moved back to Hong Kong in 1946. During the Japanese occupation the Bank's head office building was occupied as the headquarters of the Hong Kong Japanese military government.

International expansion

Michael Turner became Chief Manager in 1953 and set about diversifying the business. His tenure came to an end in 1962 having established The Hong Kong and Shanghai Banking Corporation of California 1955 and having acquired The British Bank of the Middle East and the Mercantile Bank (based in India) in 1959. In 1962, H.J. Shen., the managing director of Maysun Trading Co. and the former head of the Central Trust of China, became the first ethnic Chinese official appointed to the position of Chief Manager of the bank. Under the tenure of both H.J. Shen and Jake Saunders the bank continued to expand. 1965 saw the bank purchase a controlling interest in Hang Seng Bank of Hong Kong, and 1972 the formation of a merchant banking arm, Wardley Limited.

In 1964 the Chief Managership was superseded as the top executive role in the bank by an Executive Chairmanship (Saunders taking this role until retirement in 1972).

In 1980, the Bank launched a hostile takeover bid for the Royal Bank of Scotland, although the bid was blocked by the British government.

The creation of the HSBC Group

In 1980, the Bank, now under the chairmanship of Michael Sandberg acquired a 51% stake in Marine Midland Bank, of the United States of America, and continued its expansion with the establishment of Hongkong Bank of Canada in 1981 and HongkongBank of Australia Limited in 1986. 1987, under the Chairmanship of William Purves, saw the bank's ownership of Marine Midland Bank increased to 100% and the acquisition of a 14.9% share in Midland Bank in the United Kingdom.

The present building in Hong Kong was designed by Sir Norman Foster and was held as one of the most expensive and technologically advanced building in the world in 1986 costing HKD $5.3 billion.

In 1991 HSBC Holdings plc was established to act as a parent company to the group; shares are currently traded on the London, Hong Kong, Paris, New York and Bermuda stock exchanges.

Hong Kong banking

Under the HSBC brand, the bank maintains a network of around 220 branches throughout the Hong Kong SAR, from which it offers a wide range of financial products and services. For some time in the late 1980s and early 1990s, the bank was known by the name Hong Kong Bank in its native city, although it now trades as HSBC. During that period, it also adopted the idiosyncratic practice of calling its ATMs Electronic Teller Card (ETC) machines.

Headquarters

HSBC's Hong Kong headquarters are at 1 Queen's Road Central in the Central area on Hong Kong Island. The HSBC Hong Kong headquarters building was also home to HSBC Holdings plc's headquarters until the latter firm's move to 8 Canada Square, London to meet the requirements of the UK regulatory authorities after the acquisition of the Midland Bank in 1992. It was designed by British architect Lord Norman Foster, and was the most expensive building in the world based on usable floor area at the time it was built.

Hong Kong dollar bank notes

HSBC is one of the three commercial banks which are authorised to issue banknotes for Hong Kong - the other two being the Bank of China (Hong Kong) and Standard Chartered Bank (Hong Kong). Of the total notes in circulation measured by value, HSBC is the most prolific issuer, its notes representing 62.9% of those in issue. Hong Kong is unusual in that it is one of the few countries or territories where commercial banks are still permitted to issue their own banknotes.

Other Hong Kong operations

Hang Seng Bank

HSBC acquired a 62.14%, controlling interest in the local Hang Seng Bank in 1965 during a crisis of the latter. The Hang Seng Index for stock prices in Hong Kong is named after the Hang Seng Bank.

Asia Pacific operations

The Hongkong and Shanghai Banking Corporation maintains a network of around 600 offices in 20 countries in Asia Pacific, as well as owning of a number of HSBC banks operating in various countries and holding the group's stakes in further lenders, particularly in mainland China.

Operations of the group in the Asia Pacific are under this subsidiary, and it forms the regional headquarters for Asia Pacific. This means that it is responsible for entities such as HSBC Bank Australia Limited, Hang Seng Bank Limited, HSBC Bank (China) Company Limited, HSBC Bank (Vietnam) Limited and HSBC Insurance (Asia-Pacific) Holdings Limited, and the management of stakes in Bank of Communications (19.9%), Barrowgate Limited (24.64%) and Industrial Bank. But excluding HSBC Bank Malaysia Berhad and the majority of the HSBC’s Private Banking business in Asia Pacific.

Bangladesh

HSBC opened its first branch in Bangladesh in 1997. As of December, 2008, there are now 12 branches.

China

HSBC established its Shanghai branch office on 3 March 1865 and has had a continuous presence in the city since then, except during the Japanese Occupation. Until the economic reforms of the late 1970s, its activities were mainly in inward remittances and export bills, however its activities now span a wider range.

On 6 August 2004, HSBC announced that it would pay USD 1.75 billion for a 19.9% stake in Shanghai-based Bank of Communications. At the time of the announcement, Bank of Communications was China's fifth-largest bank and the investment by HSBC was eight times bigger than any previous foreign investment in a Chinese bank. The industry considered this move, giving HSBC a lead in the race to grab pieces of mainland China's banking market. A year earlier, HSBC had joined with Hong Kong's Shanghai Commercial Bank to purchase an 11% stake in Bank of Shanghai (HSBC paid USD 62.6 million for an 8% stake) and USD 733 million for a 10% stake in Ping An Insurance.

In 1 April 2007, the mainland China offices of The Hongkong and Shanghai Banking Corporation transferred to its subsidiary HSBC Bank (China), and it started operations in 2 April.

India

IN 1959 HSBC acquired The Mercantile Bank of India, London and China, established in October 1853 in Bombay (now Mumbai). HSBC is now one of the fastest growing foreign banks in India, both in domestic banking and support operations for worldwide operations (see Group Service Centres).

Indonesia

The Hongkong and Shanghai Banking Corporation opened its first Indonesian office in Jakarta in 1884. Having been able to restart its operations after the Second World War, it was again forced to close in mid-1960s, however the Bank was granted a new banking licence in 1968 its operations have grown to make it one of the largest foreign banks operating in Indonesia.

Japan

HSBC opened its first Japan operations in Yokohama in 1866, followed by branches in other trading ports such as Osaka, Kobe and Nagasaki. It was heavily involved in the early development of Japan's current monetary system, and consulted with the government regarding fiscal policy, currency printing and related matters.

HSBC does not currently conduct ordinary retail banking in Japan, but conducts investment banking in Tokyo and Osaka. Since 2007 it has expanded its HSBC Premier private banking services for high net worth individual clients, opening new banking centers in the Hiroo and Akasaka areas of Tokyo.

New Zealand

HSBC's operations in New Zealand are as a branch of The Hongkong and Shanghai Banking Corporation, which first gained a licence from the Reserve Bank of New Zealand on 22 July 1987. Today HSBC offers a range of financial products from a network of 9 offices.

Philippines

HSBC's history in the Philippines dates back more than 130 years with the establishment of their first branch in Binondo, Manila in 1876. In its early years of operation, HSBC serviced the booming Philippine sugar industry. At the turn of the century, it financed railways that connected provincial towns across Luzon to Manila. During the American regime, HSBC was called to advise on Philippine currency reform. Its current headquarters are in Alabang where Mario Adison and Richard Birot is working, and a new building is being constructed in the Bonifacio Global City in Taguig. Today, HSBC Philippines operates in key Philippine cities such as Cebu and Davao. It has ended Citibank and Standard Chartered's monopoly on international banking in the Philippines.

Singapore

In Singapore, The Hongkong and Shanghai Banking Corporation Limited operates as a full service bank with its headquarters in Collyer Quay. It opened its doors in December 1877. Today, HSBC's flagship office remains at the original Collyer Quay site where its first branch was opened.

HSBC Singapore is a Qualifying Full Bank with 11 branches incorporating 5 HSBC Premier Centres and 33 Automated Teller Machines in Singapore and offers a comprehensive range of financial services including commercial banking, investment and private banking, insurance, forfaiting and trustee services, and securities and capital markets services.

South Korea

HSBC is expanding in competitive South Korean market, currently operating from a network of 11 branches, the first having been opened in Jemulpo in 1897.

Sri Lanka

HSBC has been present in Sri Lanka for 116 years. The Hongkong and Shanghai Banking Corporation Limited established its first branch in Colombo Sri Lanka on 1 July 1892, just 27 years after it began operating in Hong Kong and Shanghai.

Taiwan

HSBC’s presence in Taiwan dates back to 1885 when The Hongkong and Shanghai Banking Corporation appointed an agent in Danshui. A full service branch was established in Taipei in 1984. The bank now has a network of 8 branches (Hyperlink to service channel) island-wide, including Taipei, Chien Kuo, Panchiao, Tien Mu, Taoyuan, Taichung, Tainan City, and Kaohsiung. In 2007, The Hongkong and Shanghai Banking Corporation acquired The Chinese Bank in Taiwan. The acquisition made HSBC's island-wide branch network increase to 47.

Thailand

HSBC initially opened for business in Thailand in 1888, becoming the first commercial bank in the country. HSBC has made significant contributions to the establishment of solid foundations for Thailand’s financial and banking sectors. For example, in 1889 HSBC issued the first banknotes in Thailand. HSBC also issued the first foreign loan to the Thai government for its railroad construction project. HSBC has always been a major driving force behind Thailand’s commerce and economy.

Cultural References

In Hong Kong, the local population sometimes refers to the bank as 獅子銀行, 'the Lion Bank', because of the pair of lion statues outside the HSBC headquarters, which also appear in some banknotes. Local films and television series set in Hong Kong, especially comedies, uses this nickname when referring to the bank.

Although the Hong Kong Government changed the official spelling of 'Hongkong' to Hong Kong', by the instructions of the Secretary of State for the Colonies, on 3 September 1926, HSBC uses the older Hongkong, as the bank's name was conceived before the official declaration of the modern two-word name, and it was decided to retain the single word spelling in the Bank's name: Hongkong.

External links

The Hongkong and Shanghai Banking Corporation Limited - http://www.hsbc.com.hk
HSBC Group History - http://www.hsbc.com/hsbc/about_hsbc/group-history
HSBC Locations - http://www.hsbclocations.com/