Hong Kong and Shanghai Banking Corporation (HSBC)1. The HSBC Group - The HSBC Group is named after its founding member, The Hong Kong and Shanghai Banking Corporation Limited, established in 1865 to finance the growing trade between Europe, India and China. - Is based in Hong Kong , where the bank's activities are carried out physically and with an extensive network of branches in Asia, a very large branch in London and several branches in the United States, as well as a branch bank in California and a representative office in New York. - HSBC operates in Hong Kong dollars, US dollars, European currencies and Japanese yen. - Certain HSBC activities: receive deposits from individuals and local (Chinese) companies; lent the money to both local borrowers and international banks in the Eurocurrency market; finances exports and imports with companies from the British Commonwealth countries (Great Britain and its former colonies) - HSBC has been present in the United States since 1875, when it opened a first agency in San Francisco. - In the 1960s, HSBC acquired the Republic Bank of California (with 11 branches in the state). - A second branch was opened in New York in 1880, which expanded into a branch in the 1970s following a change in New York banking laws. - By the 1970s, the bank had firmly developed a policy of expansion through acquisition or creation of subsidiaries with their own identity and expertise. - Other branches were established in Chicago , Seattle and Portland and another subsidiary was established in Houston.- During the 1980s, HSBC focused on expanding into these markets where it was not yet fully represented.1.2. Brief description of the case.Type of case: Foreign market entryS...... middle of document......d-long term view, which would lead to full ownership of this bank. The reason why a joint venture seems more suitable than a wholly owned subsidiary is mainly due to the initial investment costs, despite all the experience, network management, market, competition and local culture that this institution already possesses. existing American financial institution. and this option would also provide more expansion alternatives, which is the fundamental objective of HSBC management in Hong Kong. A joint venture is ideal for increasing market power or expanding into that foreign market with which it is relatively familiar. A local bank (joint venture partner) well established in the area or region, familiar with local business customs and equally exposed to risks, may be the most satisfactory mechanism for establishing a viable foreign presence..