Page 21 - HSBC (D) Teaching Note

HSBC has a global network of some 9 ,000 branches
/offices in about 80 plus countries and territories that are

dispersed in Europe, the Asia-Pacific region, the Americas,
the Middle East and Africa. With its deep heritage in

China, as well as its global geographical presence, the

bank has an increasing slice of international trade.

Moreover, as China grows and develops (on the back of

free trade and co-operation) HSBC is well positioned to

profit from financing this trade. It might be argued that

China is a market that it understands best.

Likewise, project financing in developing countries which

want to finance large and costly infrastructure projects

where banks like HSBC are essentially repaid by the

revenues made from the project secures HSBC’s position

in these developing markets.

HSBC’s reputation has been severely damaged due to its

fraudulent activities such as money laundering, PPI, and

interest rate hedging products and costs that resulted in
substantial fines both in the U.S. and Europe.

Litigation in whatever form and associated fines damage

the bank’s reputation and this is still playing out.

However, success breeds success and the potential of

HSBC’s Global Banking and Markets and Commercial

Banking particularly in the faster-growing regions of Hong

Kong, the rest of Asia-Pacific provide an enormous

opportunity for the future.