Hong Kong and Shanghai Banking Company (HSBC)1. The HSBC Group - The HSBC Group takes its name from its founding member, The Hong Kong and Shanghai Banking Corporation Limited, founded in 1865 to finance the growing trade between Europe, India and China. - Headquartered in Hong Kong, where the bank's business was conducted physically and with an extensive branch network in Asia, a large branch in London and several branches in the United States, as well as a subsidiary bank in California and an office of representation in New York. HSBC conducts its business in Hong Kong dollars, US dollars, European currencies and Japanese yen. - Some of HSBC's activities: receives deposits from local (Chinese) individuals and companies; it lent the money to both local borrowers and international banks in the eurocurrency market; finances exports and imports with companies in the countries of the British Commonwealth (Great Britain and its former colonies) - HSBC has operated in the United States since 1875 when it first opened an agency in San Francisco. - In the 1960s HSBC acquired Repubblica Bank of California (with 11 branches in the state).- A second branch opened in New York in 1880, converted to a branch in the 1970s following a change in New York banking laws.- By the 1970s the bank was firmly developed an expansion policy through the acquisition or creation of subsidiaries with their own identity and skills. - Other branches were established in Chicago, Seattle and Portland, and another branch was established in Houston. - During the 1980s HSBC focused on moving into those markets where it was not yet fully represented.1.2. Brief description of the case. Type of case: Foreign market entryS...... half of the document ......d-long-term vision, which would lead to full ownership of that bank. The reason why a Joint Venture seems more suitable than a wholly owned subsidiary is mainly due to the costs of initial investments, despite all the experience, network management, market, competition and local culture that this existing financial institution American already has, and this option would also offer more alternatives for expansion, which is the fundamental goal of HSBC's top management in Hong Kong. A joint venture alternative is ideal for expanding your market power or expanding into this foreign market with which you are relatively familiar. A local bank (joint venture partner) well established in the area or region, well informed about local business customs and equally at risk, can provide the most satisfactory mechanism for establishing a profitable foreign presence..