Hong Kong And Shanghai Banking Corporation Research Articles

HSBC: Facilitating Trade Finance Through Blockchain

HSBC (The Hong Kong and Shanghai Banking Corporation Limited) Holdings Plc. is a part of various trade finance consortia which aimed to digitise the traditional paper-based trade finance process. It had successfully executed multiple trade finance pilots using a blockchain based platform Voltron and was launching its Contour blockchain trade finance platform as a service to its clients. The trade finance market was estimated to be USD 18 trillion on an annual basis and HSBC had a 12% share in the trade finance transactions worldwide. This case revolves around the challenges facing banks/consortia while porting the traditional trade finance process to the blockchain based system. The crux is how the banks form the consortia, implement blockchain and facilitate trading globally given that it is a new technology and will require bringing all the stakeholders involved in the trade finance value chain to the blockchain based platform. HSBC is facing some decision questions on the formation, governance and management of the consortium, on the interoperability between consortia and on how to price its services to its customers.

Financial Supply Chain Management and Working Capital Management: The Competitive Analysis of HSBC Financial Chain Management

In this paper, a far reaching report on Supply Chain Management (SCM) is displayed. SCM is the administration of a system of interconnected organizations associated with the arrangement of item and administration bundles required by the end clients in a store network. Production network administration traverses all development and capacity of crude materials, work-in-process stock, and completed merchandise from purpose of cause to purpose of utilization. Budgetary Supply Chain Management at Hong Kong and Shanghai Banking Corporation (HSBC) is displayed. Another definition is given by the APICS Dictionary when it characterizes SCM as the "structure, arranging, execution, control, and observing of inventory network exercises with the goal of making net esteem, constructing an aggressive foundation, utilizing overall coordination, synchronizing supply with interest and estimating execution all around." According to late investigations a gigantic measure of working capital is tied up in the Supply Chain. Process-arranged exercises in the Supply Chain, for example, capability, receipt and guarantee administration and back situated exercises, for example, administration of working capital, valorization and capital allocation and request discharge working capital packaged in the Supply Chain. This is acknowledged by a decrease in Days-Sales-Outstanding, which therefore abbreviates the Cash-to-Cash Sequence. Subsequently prompting higher liquidity and expanded investor esteem. Understanding that an enormous potential lies in Financial Supply Chain Management can have the effect between intensity or disappointment, particularly during emergency, as we encounter the Global Financial Disaster.

HSBC Mexico AML failings: a case study

Purpose This paper aims to provide a brief overview of the anti-money laundering (AML) failings documented by the US Permanent Subcommittee on Investigations found in Hong Kong and Shanghai Banking Corporation (HSBC) Mexico. This paper focuses in on the key areas of concern raised by the 2012 report in respect of HSBC Mexico (HBMX) such as failure to undertake correct customer due diligence on high risk customers and repeated failings by senior management at HBMX to remedy these problems. Design/methodology/approach The relevant parts of the Subcommittee report relating to HBMX were examined along with the evidence submitted to the Subcommittee. From this examination, the author then noted the key examples of AML failings at HBMX and then commented on these examples while also referring to academic and regulatory guidance such as that from Financial Action Task Force. Findings Certain proposals are made throughout the paper, but these remain only suggestive. The key point is that the failings evident in HBMX may very well arise in other institutions, and this paper proposes how these failings may be resolved. Research limitations/implications Research for this paper remained limited to second-source references such as the Subcommittee report and the listed Exhibits along with other academic resources. The paper was also peer reviewed by a compliance officer. However, examining the paper from a more practical viewpoint may have struck a better balance between an optimal and realistic level of compliance. Practical implications Adopting an analytic approach to the subject of AML controls should aid those who work in compliance daily while also generating further commentary among both regulators and senior management within financial institutions. Originality/value The paper is the only one to date to focus on one geographical strand of the AML failings at HSBC and then comment on this from an academic perspective.

A LBV perspective on political risk management in a multinational bank during the First World War

PurposeThis paper aims to apply the Legitimacy-Based View (LBV) of political risk to the experience of the Hongkong and Shanghai Banking Corporation (HSBC) in the First World War. The paper shows that HSBC’s ability to survive this conflict was due, in part, to its ability to manage political risk by maintaining legitimacy in the eyes of stakeholders in its home market(s), Hong Kong and the UK.Design/methodology/approachThis case study is based on the surviving internal correspondence from this period in the HSBC Group archives in London and other primary sources.FindingsThis paper suggests that maintaining legitimacy in the home market is crucial to firm survival and profitability. Managers’ efforts to bolster firm legitimacy should ensure that individuals in all of the relevant government departments continue to regard the multinational enterprise (MNE) as legitimate.Research limitations/implicationsThis paper shows that the LBV is a potentially powerful analytical tool, but it also argues that the LBV must be modified so as to incorporate insights from the theoretical literature on ethnic and national identities, particularly the insight that such identities are culturally constructed and malleable.Practical implicationsWarfare tends to increase the degree to which a MNE’s stakeholders feel emotional bonds to their respective nations. HSBC’s experience in the First World War suggests that continued profitability in wartime may depend on the firm’s ability to shed its peacetime “world citizen” identity in favour of one that is more closely aligned with that of its home nation. Preserving political capital in wartime may require the ruthless termination of relationships with clients and employees who are associated with the enemy nation. Another lesson that MNE managers can derive from this paper is that preserving legitimacy in the home country may require the head office to exert more control over overseas managers, than would be the case in peace. A MNE in wartime that is concerned about the loss of legitimacy in the home country should consider adopting an organizational architecture that temporarily reduces subsidiary autonomy.Originality/valueBuckley (2009) called for the re-integration of business history in International Business research. This paper is part of the ongoing historic turn in International Business and other management disciplines. This paper also argues that International Business scholars need to consider the impact of past wars on contemporary multinationals as we may witness the re-emergence of Great Power rivalries similar to those that led to the First World War. This paper proceeds on the assumption the probabilities of a war between two major capitalist economies are non-trivial and that additional investigation of the impact of major interstate warfare on MNEs is therefore merited. Historical research can help us to think about what a war between capitalist countries would mean for today’s MNEs.

The Influence of Internet-Based Customer Relationship Management on Customer Loyalty

This research investigates the relationship between the marketing efforts of electronic customer relationship management (e-CRM) and loyalty in Hong Kong’s banking industry. A quantitative approach was employed, and 119 valid questionnaires were collected from 150 respondents. All the respondents are account holders of HSBC (the Hong Kong and Shanghai Banking Corporation Limited), the largest bank in Hong Kong. Reliability testing and multiple regression analysis were used to determine the relationships between various independent and dependent variables. The results suggest that all four e-CRM marketing tactics (direct mail, interpersonal communication, preferential treatment, and tangible rewards) play important roles in building customer relationships. There were also significant relationships between the e-CRM marketing tactics and customer relationship quality. The study also found that the latter has a positive impact on customer loyalty. The research results indicate that thorough implementation of e-CRM marketing efforts will heighten customer loyalty towards HSBC. Keywords: e-CRM, Customer Loyalty, Relationship Quality, Banking industry, Hong Kong To cite this document: Aris Y. C. Lam, Ronnie Cheung, and Mei Mei Lau, "The Influence of Internet-Based Customer Relationship Management on Customer Loyalty", Contemporary Management Research, Vol.9, No.4, pp.419-440, 2013. Permanent link to this document: http://dx.doi.org/10.7903/cmr.11095

Measuring Service Quality in the Banking Industry: A Hong Kong Based Study

The goal of this study is to identify the interrelationships between service quality, customer satisfaction and customer loyalty in the retail banking sector in Hong Kong. The study also aims to find out the most important attributes of service quality in retail banks, which can be used to evaluate the characteristics of banking service quality as perceived by customers. A sample of 119 retail banking customers was drawn from the Hong Kong and Shanghai Banking Corporation (HSBC) in Hong Kong. The questionnaire developed for this study was based on a SERVQUAL model that identified the influence of five dimensions (i.e. tangibility, responsibility, reliability, assurance and empathy) in banking service environments on customer satisfaction. The results indicate that the five SERVQUAL dimensions have a positive influence on customer satisfaction. Tangibility, responsibility, reliability and assurance were more significant in contributing to customer satisfaction, while empathy was the least significant. This study suggests that SERVQUAL is a suitable instrument for measuring service quality in the retail banking sectors in Hong Kong. Hence, banking industry practitioners can consider this instrument as a tool to assess and help improve their service quality. Keywords: SERVQUAL, Service Quality, Customer Satisfaction, Customer Loyalty, Banking Industry, Hong Kong To cite this document: Mei Mei Lau, Ronnie Cheung, Aris Y. C. Lam, and Yuen Ting Chu, "Measuring Service Quality in the Banking Industry: A Hong Kong Based Study", Contemporary Management Research, Vol.9, No.3, pp.263-282, 2013. Permanent link to this document: http://dx.doi.org/10.7903/cmr.11060

Government Control, Transaction Costs and Commitment Between the Hong Kong and Shanghai Banking Corporation (HSBC) and the Chinese Government

We use the tools of transaction cost politics (TCP) developed from transaction cost economics and economic analysis, to analyze the business relationship building between the Hongkong and Shanghai Banking Corporation (HSBC), the largest and most successful foreign bank in China, and the Chinese government between 1949 and 1978. We demonstrate the value of the TCP-based approach to evaluating the specialized governance structure of commitment built on mutual dependency. In particular, we identify several transaction attributes that give rise to hazards: transaction uncertainty, the role of the government in the economy, and the strength of the supporting coalition. Our analysis also confirms that commitment built on the mutual dependency between the international company and the local authorities and between the international company's home country authorities and the local authorities did reduce the company's transaction costs by guarding against the local authorities' opportunism.

Government Control, Transaction Costs and Commitment Between the Hong Kong and Shanghai Banking Corporation (HSBC) and the Chinese Government

We use the tools of transaction cost politics (TCP) developed from transaction cost economics and economic analysis, to analyze the business relationship building between the Hongkong and Shanghai Banking Corporation (HSBC), the largest and most successful foreign bank in China, and the Chinese government between 1949 and 1978. We demonstrate the value of the TCP-based approach to evaluating the specialized governance structure of commitment built on mutual dependency. In particular, we identify several transaction attributes that give rise to hazards: transaction uncertainty, the role of the government in the economy, and the strength of the supporting coalition. Our analysis also confirms that commitment built on the mutual dependency between the international company and the local authorities and between the international company's home country authorities and the local authorities did reduce the company's transaction costs by guarding against the local authorities' opportunism.

Corporate social responsibility reporting of twonote-issuing banks in Hong Kong

The environmental performance and management disclosure of organisations came under increased scrutiny over the past decade due to several factors, particularly the impact organisations have on the world’s environment and the rapid change in the world’s climate. These concerns prompted organisations, including financial institutions, to review the level of their environmental performance and management disclosures to demonstrate, amongst other objectives, their level of social responsibility. Due to the nature of their business, financial institutions are not generally seen to contribute directly to the degradation of the environment; however, they do provide the funds for many organisations’ projects which directly affect the environment. This paper reviews the environmental performance and management disclosure developments in China specifically by two note-issuing banks in Hong Kong: the Hongkong and Shanghai Banking Corporation (HSBC) and the Bank of China (Hong Kong) Limited (BOCHK) from 2003 to 2006. The review is conducted with reference to the Equator Principles, a voluntary environmental performance framework developed specifically for financial institutions. The paper also contributes to the literature on legitimation theory, using a social constructionalist perspective of legitimation. This journal article is available in Australasian Accounting, Business and Finance Journal: http://ro.uow.edu.au/aabfj/vol2/iss4/5 The Australasian Accounting Business & Finance Journal, December, 2008. Hui & Bowrey: Corporate Social Responsibility Reporting of Two Note Issuing Banks Vol. 2, No.4 . Page 69. CORPORATE SOCIAL RESPONSIBILITY REPORTING OF TWO NOTE-ISSUING BANKS IN HONG KONG

An empirical examination of the use of NN5 for Hong Kong stock price forecasting

Reliable stock market movement prediction is a challenging task. The difficulty is mainly due to the close to random-walk behaviour of a stock time series. A number of published techniques have emerged in the trading community for prediction tasks. One of them is neural network, NN. In this paper, the theoretical background of neural networks and the backpropagation algorithm is reviewed. Subsequently, an attempt on building a stock buying/selling alert system using a backpropagation neural network, NN5, is presented. The system is tested with data from one of the Hong Kong stocks, The Hong Kong and Shanghai Banking Corporation (HSBC) holdings. The system is shown capable of achieving an overall hit rate of 78%.

Design and implementation of NN5 for Hong Kong stock price forecasting

A number of published techniques have emerged in the trading community for stock prediction tasks. Among them is neural network (NN). In this paper, the theoretical background of NNs and the backpropagation algorithm is reviewed. Subsequently, an attempt to build a stock buying/selling alert system using a backpropagation NN, NN5, is presented. The system is tested with data from one Hong Kong stock, The Hong Kong and Shanghai Banking Corporation (HSBC) Holdings. The system is shown to achieve an overall hit rate of over 70%. A number of trading strategies are discussed. A best strategy for trading non-volatile stock like HSBC is recommended.