HK economy and HSBC Yau Tat Kwan Jacob

HK economy and HSBC Yau Tat Kwan, Jacob 2008046921

Analysis of current economy of Hong Kong � � � � Overview of Hong Kong’s real GPA 2008 4 th quarter: -2. 6% 2009 1 st quarter: -7. 8% 2 nd quarter: -3. 6% 3 rd quarter: -2. 4%

internal growth � � � private consumption expenditure edged up 0. 2% in Q 3, contributing 0. 1 percentage points to GDP growth. Gross fixed capital formation did even better by rising 1. 3%, contributing 0. 3 percentage points to GDP. Government consumption expenditure also rising at the fastest pace of 3. 3% since the recession began and contributing another 0. 3 percentage points to GDP growth, all three internal growth drivers combined contributed 0. 7 percentage points

HSBC � � Stock number: 0005 The Hong Kong and Shanghai Banking Corporation Limited (HSBC)

HSBC � � � One of the largest banking and financial services organizations in the world. An international network of some 10, 000 properties in 86 countries and territories in Europe; Hong Kong; Rest of Asia-Pacific, including the Middle East and Africa; North America and Latin America. A comprehensive range of financial services is offered to personal, commercial, corporate, institutional, investment and private banking clients.

Profits in 2008 � � Europe: US$10. 9 billion, up 26 per cent. Asia: US$11. 9 billion, 11 per cent down (Hong Kong): US$5. 5 billion, down 26 percent Latin America: US$ 2 billion, down 6 percent

HSBC HOLDINGS - 10 Years (Monthly)

Earnings Summary

In the long run � � Chinese economy has maintained decent growth via domestic growth impetus, providing solid support to the Hong Kong economy. Q 1: 6. 1% Q 2: 7. 9% Q 3: 8. 9%

Coming into the China Market � � � After the opening of a subsidiary bank in Fo Shan, the next step is to set up further banks in Zhong Shan and Wei Zhou. The strategy is to occupy most important cities in the Pearl River Delta. Taking the advantage of this, HSBC would like to become the first listed foreign company in China.

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