1990 12 17. HSBC Group announced its reorganization and registered HSBC Holdings in the UK, but took Hong Kong as its general management office.
The Hongkong and Shanghai Banking Corporation Limited is a wholly-owned subsidiary of HSBC Holdings. In order to develop its business in Hong Kong, its registration in Hong Kong remains unchanged.
In that year, HSBC Group moved to the UK and established HSBC Holdings, but its comprehensive management office was still located in Hong Kong.
Undoubtedly, it takes into account the uncertain political factors in the transfer of sovereignty in Hong Kong. Through this strategy, HSBC can avoid the possible transfer of sovereignty in Hong Kong.
In turn, the risk can make all the collection and capital appreciation of HSBC free from the influence of British tax system and tax rate, which is conducive to HSBC's sustained and lucrative profits.
In this way, HSBC Group is in a position of "advancing and retreating freely".
June 5438 +2006 10, it was reported that the comprehensive management office of HSBC Group might move out of London, and some analysts said that it would not rule out returning to Hong Kong.
Because the tax rate in Britain is much higher than that in Hong Kong, and the scope and types of taxes are much wider than that in Hong Kong, HSBC Holdings has to bear high taxes.
HSBC Holdings pays 400 million pounds in taxes to the British government every year.
In addition to Hong Kong, some British newspapers pointed out that the general management office of HSBC Group might be moved to Ireland, but an HSBC spokesman immediately denied it.
In addition, Ji Qin, CEO of HSBC Holdings, said that Britain enjoys a superior geographical position and can quickly contact local commercial networks.
I am quite satisfied with the present comprehensive management office of the Group.
However, HSBC Holdings will review the location of the Group's General Management Office from time to time in accordance with established practice.