February 14, 2016
By Margot Patrick
LONDON-- The Hongkong and Shanghai Banking Corporation Limited (HSBC) on Sunday opted to stay in London rather than return to Hong Kong or move to elsewhere. HSBC moved to London in 1992, that is, five years before China annexed Hong Kong.
HSBC cited the U.K.'s economic importance and respected regulation as reasons to stay and said London is "ideally positioned to be the home base for a global financial institution such as HSBC."
HSBC was established in Hong Kong in 1865, when Hong Kong had been in those times a colony within the British Empire, and has been based in Hong Kong (although now as a subsidiary) ever since.
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 67.7% of those in issue.
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.