The “hongs” or Trade Houses of Hong Kong

Hong Kong, the pearl of Asia has been the center of allot and finance in Asia since the early 20th century. In a short history of about cl days, Hong Kong has dumbfound the source of growth for more near economies. In a certain sense, it can be even said that it is a merchant city founded and managed by Traditional hongs or batch houses of Hong Kong were the tug of the economy. Jardine Matheson and Hutchison were study hongs that led the economy and the Hong Kong & Shanghi edge were the m bingleyman of these hongs and has today grown to become virtuoso of the pear-shapedst avow in the world.These firms were the critical factors of the growth for Hong Kongs economy. Their role withal has changed everywheretime. They be no longer the de facto leaders of Hong Kong as they were in the mid 1800s. Their role has diminished as Hong Kong grew to become more international, and the 1997 handoer to the Peoples Republic of china has progress altered their position. Some hongs t hat adapted well to the ever-changing times prospered while others either The territory of Hong Kong is locate at the mouth of the Pearl River, a petty southwest of the Guangdong Province of the chinaw ar.Hong Kong was ceded to the British aft(prenominal) the Opium state of war in 1842. Many intend that the British hongs were arse lobbying the British presidency into fighting the Chinese policy-making relation and the find outtlement of the island. Kowloon was annexed in 1860, and the New territories were leased for 99 age in 1898. In 1984, the British and the PRC g everywherenment concord that Hong Kong as a full would return to Chinese soverienty in 1997. However, a realisement of one country ii systems were as well agreed upon where Hong Kong would retain its spot as a trim porthole, with its laws re principal(prenominal)ing unchanged for 50 years.Its main mphasis is to go on Hong Kongs laws and economic thawdom, thus to enhance the position of Hong Kong as a economic center. The banging British rent hongs were originally trade and wargonhouse companies set up by the British in the early days of Hong Kong colonialism, they hold back since grown in to major commerical conglomerates. They h honest-to-god entertain in cargo handling, manufacturing, real state, and even change. They be the engine of the Hong Kong economy.Since Britain took over the port city in 1842 to use as a gateway to the Chinese foodstuffs, the wrinkle of Hong Kong had been business, and the baron was eld by the hongs. The introductory traditional hong was the Jardine Matheson. It was once seen to be more influential than the colonial government alone directlyadays it has become a minor player compared to Li Ka Shings Hutchision Whampoa. Li Ka Shing, the Chairman or Taipan of Hutchision Whampoa, became the first Chinese to own a traditional hong. Lis drive and business ability helped foster Hutchision into a global conglomerate.Hong Kong Bank grew f rom a small traders brim into one of the Jardine, Matheson & Co. was founded by 2 Scottish merchants, William Jardine and James Matheson in Guangdong in 1832. It was an opium trader that were the initiates into the China trade. in conclusion James Matheson civilises dominate from 1836. It vie a mention role in the founding of Hong Kong and became the first to purchase land from the colonial government in 1842. Jardine expanded into other trade products in other Asian countries like lacquer and South einsteinium Asian countries and also enters the channelise/cargo handling industry and the real estate business.After populace War II, Jardine go their notch office from Shanghi back to Hong Kong and it offically goes public in the Hong Kong extraction Exchange in 1961. The 1970s saw Jardine orming many an(prenominal) ventures and aquisitions such(prenominal) as the joint venture with the Robert Fleming of UK to prepare the Jardine Fleming & Co. , a holding attach to the aquires many foreign and topical anesthetic firms and diversifies Jardines business. The mid- 1980s saw both(prenominal) mismanagments and misguided aquisition oddly aft(prenominal) the 1984 Sino-British announcement on the return of Hong Kong.Jardine wanted to substitute more abroad in cultism of the Chinese gestateover because their relations with the PRC was not good. It aquired the British construction giant Trafalgar House and ther dissimilar retail chains in atomic number 63 o that Jardine could emphasize more in Europe, except these investments would broadening to be disappointing in the future. The current taipan, or CEO is Alasdair Morrison. He has well-tried to undo many past mistakes and to rejuvenate the 160 year old hong. Morrison has sold off many losing companies and has a greater emphasis on profitability.The management has been changed to more aggresive and see managers such as Ronald J. Floto who previously worked as Kmart Corp. and is cognize for his turn-around ability. But most importantly, Morrsion has been trying to improve ties with Beijing. He realises that the China market as an indespenable location and has tried repeatly to mend the differences made by the previous Today, the Jardine Matheson collection is a multinational enterprise that operates in over 30 countries and employs some 160,000 people.It is divided into eight join companies Jardine Pacific(general trading), Jardine external Motors(Car dealership), Jardine Fleming, Jardine Lloyd Thompsion(Insurance), Jardine Strategic, Dairy Farm(supermarket and convenience stores), Hong Kong Land(Commerical property), and the Mandarin Oriental(luxury hotel chain) . brave years sales were US$11. 2 billion and a operating profit of US$190 one million million was made. The profits fell 34% from popu subsequently-hours year, and appropriate prices have fallen almost 60% since it moved its primary listing from Hong Kong to Singapore.The main business with Jardine is t hat it ineluctably to use its large cash resources to boost market shares in existing profitable businesses and crap aquistions in core business while assests in Asia are still cheap from the Asian crisis. It also need to refocus on Asia, because it is where its main expertise and connections are, but the supreme family, the Keswicks with nly a 4. 9% share are reluctant to invest heavily back to Asia and especially China.The Keswicks have held control through cross will power to build a financial defense against foreign takeovers. Li Ka Shing has tried but failed to take over Jardines in 1988 but many still believe that Li has not given up but is rather waiting for an opportunity. Although the current taipan, Morrison is trying to spring up Jardine again, many are doubtful as long as the Keswicks still retain the controlling shares. Jardine Matheson has had a astonishing past, but many fear that the golden days of the past John D. Hutchison social club was founded in 1828.Be ing one of the first major traditional hongs in Hong Kong, it had made vast investments in port facilities and other infrastructure projects in the colony. In the 1960s, in an effort to revitalize the hong, John Douglas Clague, the last British CEO of Hutchision made huge investments in not only in Hong Kong but It reoragnized itself to the Hutchision International and up til the early 1970s, many believed that Hutchision would indeed make a comeback as a predominant firm in the colony.However, losses started to occur from 1973, and being overstretched and hort in liquidity it lost the favors from its investors and creditors(most importantly the Hong Kong Shanghi Bank). Eventually the Hong Kong Bank would step in to take up 33% of Hutchision International and within 2 years merge with a subsidary, the Whampoa Dock Company and create the Hutchision Whampoa. Hong Kong Bank was looking for a suitable investor to take over the pre-opium war hong and eventually they chose a wage hike real estate tycoon, Li Ka Shing.There are many reasons that Hong Kong Bank chose Li Ka Shing, but two reasons stand out the most, His reputation as a honest nd able businessman and his contacts with the government in Today, Hutchison Whampoa has grown into one of Hong Kongs largest blue splinter companies with over 70,000 employees world entire. The Group operates five core businesses plaza Development and Investment, Ports and related operate, Retailing and manufacturing, Telecomminications and Media, and Hutchison Whampoa keeping develops residential and commerical properties for sale and lease.Its portfolio includes some of Hong Kongs largest private housing projects and several(prenominal) landmark developments in the Mainland. The groups expertise in port investment and management stems form its pioneering operations in Hong Kong. Its port operations arm, Hutchison International Port Holdings, is now exporting its professional experience and expertise to ports in different Watsons operates three of Asias most innovative retail chainsParkN Shop supermarkets, Watsons personal care stores, and Fortress, selling domestic electrical appliances.The manufacturing division produces and distributes a wide range of food and beverages throughput Hong Kong, the mainland and other Hutchison Telecom operates a wide range of intregrated elecommunications services worldwide and is one of the worlds major providers of mobile communications The Group has major shareholding in Cheung Kong Infrastructure, which holds interests in infrastructure and related businesses, and power plant projects such as the Hong Kong Electric. It is the sole provider of electricity to Hong Kong Island.Husky Oil, is one of Canadas largest privately possess oil and gas For the fiscal year finishing in December 31 1998, The Hutchison Whampoa Group had a net profit after tax of HK$8. 7 billion. It was lower than HK$12. 2 billion from 1997. The Asian crisis which rought on pressures on the en tire Asian region. It experienced a period of unprecedented asset and price deflation twin with severe recessionary conditions. These conditions had the hardest impact on the Property/Development and Retail/manufacturing operations of the group in 1998.Li Ka Shings another main weapon in Asian business is his solid ties to the Chinese Government. He has been favored since being the first Chinese to take over a western hong in the late 1970s. He also played a large role in the transition period for the 97 handover of Hong Kong. Currently he has a trong influence in the policies that effect Hong Kong both through his contacts with Beijing and the head teacher executive, Tung Headquartered in capital of the United Kingdom, HSBC holdings is one of the worlds largest banking and financial services organizations.The HSBC Groups international network comprises more than 5,000 offices The HSBC Group is named after its founding member, The Hong Kong and Shanghi Banking Coporation limited. Hong Kong Bank, as it is known for short, was accomplished in 1865 to finance the growing trade between China and Europe. The inspiration behind the founding of the bank was doubting Thomas Sutherland, a Scot who was then working as the Hong Kong superintendent of the Peninsular and Oriental Steam Navigation Company.He realised that there was considerable demand for topical anaesthetic banking facilities in Hong Kong and the China coast and he helped to establish the bank in March 1865. Then, as now, the banks main office were at 1 Queens Road in Hong Kong and a emergence was opened in April 1865 in Shanghai. passim the late nineteenth century and the early twentieth century, the bank established a network of agencies and branches base mainly in China and South East Asia but also with epresentation in the Indian sub-continent, Japan, Europe and North America.In many of its branches the bank was the pioneer of modern banking practice. From the outset, trade finance was a stro ng feature of the banks business with bullion, exchange and merchant banking also playing an important part. Additionally, the bank also issued notes in many locations throughout the Far During the Second World War the bank was forced to close many of its branches and the head office was temporarily moved to London. However, after the war the bank played a key role in the reconstruction of the Hong Kong economy and set about further iversifying the geographical dish out of the bank.The post-war political and economic changes in the world forced HongkongBank to collapse its strategy for continued growth in the 1950s. The bank diversified both its business and its geographical spread through acquisitions and alliances. However, the bank remained committed to its historical markets and played an important part in the reconstruction of Hong Kong where its branch network continued to expand. In 1965 the bank purchased a controlling interest in Hang Seng Bank, which had been established in Hong Kong in 1933.By the 970s the policy of elaborateness by acquisition of subsidiaries with their own identities and specialisations was firmly in During the 1980s the bank concentrated on touching into those markets where it was not yet fully represented. Hongkong Bank of Canada was established in 1981 and HongkongBank of Australia Limited in 1986. In 1987 naval Midland Bank, based in New York State, became a wholly owned member of the Group and its trail subsidiary in the United States. HSBC Holdings plc, the parent company of the HSBC Group, was established in 1991 with its shares quoted on both the London and Hong Kong stockAlready almost two years have passed since the handover Hong Kong to the PRC. It is hard to judge the impact of the handover to the Hong Kong economy, cod to the Asian Financial Crisis in 1997. What is definite nonetheless is that Hong Kong has suffered a difficult 1998 and is still in the surgical operation of recovering. The good news is that t he fallen prices of 1997 got rid of a lot of the bubbles that was being accumulated in the territory. Large landowners like Li may have had some losses but 1999 saw the economic prices and activities select up again. Many say that the worst is over and that recover is in process.Already land prices have recovered a lot of its losses during the 1997-8 The problem in the territory is more a political one. Many incidents have brought attention to the problem of implementing the one country, two system policy, which is fundamental in the Hong Kong staple fiber Law and which will guarntee the independent governing of Hong Kong. The main attraction that has made Hong Kong what it is today is its efficiency and lassie faire approach of the government. If the mainland interferes too much in Hong Kong, it status will decline as the international free port city that has made it so prosperous.