FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of December, 2007
HSBC Holdings plc
42nd Floor, 8 Canada
Square, London E14 5HQ, England
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F).
Form 20-F X Form 40-F ......
(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934).
Yes....... No X
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ..............)
HSBC TO ACQUIRE THE CHINESE BANK IN TAIWAN
***Delivers a presence in every major city***
***Integral to Greater China growth strategy***
The Hongkong and Shanghai Banking Corporation Limited has been named the
successful bidder in a government auction to acquire The Chinese Bank Co., Ltd.
(The Chinese Bank) in Taiwan. The acquisition will increase HSBC's island-wide
branch network from eight to 47, giving it a presence in all the major cities in
Asia's fourth biggest banking market.
The Taiwan Government's Central Deposit Insurance Corporation (CDIC) took
control of The Chinese Bank in January 2007. As at 30 September 2007, gross
assets were NT$100.16 billion (approximately US$3,097 million). The agreement
relating to this acquisition will result in HSBC assuming The Chinese Bank's
assets, liabilities and operations with a payment by the CDIC to deliver an
agreed net asset position. In addition, HSBC will provide certain additional
capital to ensure that its enlarged operations maintain appropriate financial
ratios. The amount of such additional capital will be determined by reference to
the balance sheet as at completion. Based on information currently available, it
is estimated that this will be between the Taiwanese dollar equivalent of US$300
million to US$400 million.
The Chinese Bank has 36 branches and over one million customers throughout
Taiwan. It provides a full range of services to retail customers as well as
small-to-medium size enterprises and large corporates. Under the terms of the
transaction, HSBC will also be able to convert three business offices of The
Chinese Bank into new branches.
Vincent Cheng, Chairman of The Hongkong and Shanghai Banking Corporation
Limited, said: "Taiwan is a key component of HSBC's Greater China positioning.
Over 750,000 Taiwanese companies currently operate in China and there was US$7.6
billion of foreign direct investment from Taiwan in 2006, up over 180 per cent
year-on-year. Together with our market leading franchise in Hong Kong and
position as the largest foreign bank in China, HSBC is strongly positioned to
benefit from the growing level of trade and investment in Greater China and
across the region."
One of Asia-Pacific's wealthiest economies, Taiwan is growing significantly
faster than the major western industrialised economies, with GDP in recent years
expanding at an annual rate of almost five per cent. Domestic demand is expected
to strengthen over time as household income expands and long-term savings and
investments grow as individuals increasingly choose to plan for their futures.
Alistair Currie, Chief Executive Officer of HSBC in Taiwan, added: "The Chinese
Bank will provide HSBC in Taiwan with significant opportunities in retail,
commercial and corporate banking, while we believe HSBC's international network,
global expertise and financial strength will benefit our new customers and
employees in Taiwan."
The transaction is subject to obtaining the necessary regulatory approvals.
In accordance with the terms of the transaction, HSBC is required to establish a
local subsidiary within three years of completion or one year after HSBC's total
assets in Taiwan exceed NT$450 billion (approximately US$13.9 billion),
whichever is earlier. The new company will have a minimum capitalisation of
NT$10 billion (approximately US$309 million).
Notes to editors:
1. HSBC in Taiwan
HSBC's presence in Taiwan dates back to 1885 when The Hongkong and Shanghai
Banking Corporation Limited appointed an agent. A full service branch was
established in Taipei in 1984. The bank currently has a network of eight
branches and employs some 2,300 staff. HSBC provides a full range of insurance,
personal, commercial, corporate and private banking services to its customers in
Taiwan. In 2007 HSBC acquired one of Taiwan's leading factoring companies,
Chailease Credit Services, opened a new life insurance company and is now adding
the operations of The Chinese Bank to its growing presence in Taiwan.
2. The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding and a
principal member of the HSBC Group which, with over 10,000 offices in 83
countries and territories and assets of US$2,150 billion at 30 June 2007, is one
of the world's largest banking and financial services organisations.
3. The Chinese Bank Co., Ltd.
The Chinese Bank was one of the private banks approved for operation in the
first wave of liberalization of Taiwan's financial sector in 1990. The Chinese
Bank has 36 branches located in major cities in Taiwan.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
HSBC Holdings plc
By:
Name: P A Stafford
Title: Assistant Group Secretary
Date: December 14, 2007