This article has multiple issues. Please help improve it or discuss these issues on the talk page . (Learn how and when to remove these messages)
|
Company type | Public |
---|---|
SEHK: 23 | |
Industry | Finance |
Founded |
|
Headquarters | 10 Des Voeux Road Central, Central, Hong Kong |
Key people | Sir David K.P. Li (Executive Chairman) Adrian M.K. Li (Co-Chief Executive Officer) Brian M.B. Li (Co-Chief Executive Officer) |
Products | Financial services consumer banking corporate banking investment banking private banking |
HKD17.1 billion (2018) [1] | |
HKD6.5 billion (2018) [1] | |
Total assets | HKD839 billion (2018) [1] |
Website | hkbea.com |
Bank of East Asia Ltd. | |||||||||
---|---|---|---|---|---|---|---|---|---|
Traditional Chinese | 東亞銀行有限公司 | ||||||||
Simplified Chinese | 东亚银行有限公司 | ||||||||
| |||||||||
BEA | |||||||||
Traditional Chinese | 東亞銀行 | ||||||||
Simplified Chinese | 东亚银行 | ||||||||
Literal meaning | Bank of East Asia | ||||||||
|
The Bank of East Asia Limited,often abbreviated to BEA,is a Hong Kong public banking and financial services company headquartered in Central,Hong Kong. It is currently the largest independent local Hong Kong bank,and one of two remaining family-run Hong Kong banks,with the other being Dah Sing Bank. It continues to be run by the 3rd and 4th generations of the Li family. [2]
It was incorporated as a publicly listed bank in Hong Kong on 14 November 1918,and officially opened for business on 4 January 1919,by a group of local Hong Kong Chinese businessmen who "not only understood modern banking,but the needs of modern Chinese business." Essentially,it aimed to serve local Hong Kong citizens and businesses who were currently underserved by the large British banks and small,unorganized,and often unincorporated local Hong Kong moneylenders. By the 1930s,BEA was considered the most influential local Hong Kong bank in the city. [3]
BEA was co-founded in Hong Kong on 14 November 1918 and officially opened for business on 4 January 1919. [4] The idea of a local Hong Kong bank to blend East and West,essentially by embracing the style of a Chinese,family-run bank but also adopting modern accounting and banking methods,came from Kan Tong-po (簡東浦). Kan had the necessary banking background but needed the financial support of the Li brothers (Li Koon-chun and Li Tse-fong) and the sociopolitical support of Sir Shouson Chow,who would become co-founders,along with several other prominent local Hong Kong Chinese businessmen,including Fung Ping Shan (馮平山). [3] [5]
While Kan later sold his stake in the bank in the run-up to Hong Kong's handover,the Li family's influence in the bank continues to run deep today,with Sir David Li (3rd generation) being chairman,and his sons Adrian Li and Brian Li (4th generation) being co-CEOs.
BEA expanded rapidly internationally after opening. In 1920,just one year after the bank's official opening,BEA opened its first branches outside of Hong Kong,in Shanghai and Ho Chi Minh City. In 1952,BEA opened its Singapore branch,located in Raffles Place at 60 Robinson Road. [6] BEA would later enter the North American market in 1991 (though operations would later be sold to Industrial and Commercial Bank of China in January 2010),and mainland China in 1992.
The late 1930s to 1940s were tough on the bank,as the Second Sino-Japanese War and later Japanese occupation of Hong Kong resulted in heavy losses,with many of BEA's assets seized. Even after the war,the Chinese Civil War and later the United Nations embargo on China negatively affected Hong Kong's economy,and as a result,BEA. [3]
In 1965,Hong Kong experienced a city-wide banking crisis which saw other local Hong Kong banks suffer bank runs and hostile takeovers,such as Hang Seng Bank. BEA,however,was undisturbed but became much more conservative thereafter. [3]
In 1984,after the Sino-British Joint Declaration,BEA refused to follow the lead of many leading firms at the time to move their headquarters overseas,and instead decided to double down and reaffirm their "Hong Kong roots". [3]
Traditionally more focused on internal growth rather than external acquisitions,in 1995,BEA made its first acquisition when it acquired United Chinese Bank (simplified Chinese :中国联合银行; traditional Chinese :中國聯合銀行),with the merger being completed in 2001. BEA also acquired First Pacific Bank in 2000,and that merger was completed in 2002.
On 24 September 2008,BEA experienced a serious test in the form of the worst bank run in its history. BEA had to issue a statement to counter "malicious rumours" about its stability,as queues of customers seeking to withdraw funds formed outside some of its Hong Kong branches. It condemned the rumour mongers,declaring that it had sufficient funds to meet customers' requests,and noting that its capital adequacy ratio was above the industry average,at 14.6 percent. [7] A statement by Joseph Yam,the then chief executive of the Hong Kong Monetary Authority,dismissed the rumour and strongly supported the bank,adding that funds would be made available to the bank if required but that no request had been made. Earlier in the week,the bank had been forced to restate its previous half-year's earnings downwards by nearly 12 percent after it was revealed that one of its staff had conducted unauthorised trades and then buried the losses. [8]
In October 2015,BEA entered into agreement with Sinopac Securities to sell BEA Wealth Management Services (Taiwan) Limited and Tung Shing Holdings Company Limited. BEA chairman and CEO David Li said that the disposals would allow BEA to rationalise its securities business in Greater China region. There was no disclosure of the transaction amount involved in this sales. [9] [10]
As the banking sector and BEA continued to face challenges,BEA launched a 3-year cost-cutting plan in the beginning of 2016 to save HKD 700 million by 2018,by reducing dividend payouts,controlling costs,and trimming assets. The saving target was about 8% of its cost base in 2015. It was expected that 40% of savings coming from business alignment,25% from restructuring middle to back offices,and remaining via branch automation and streamlining. By June 2016,BEA already slashed 180 jobs [11] and closed down 22 securities brokerages outlets. [12] [13] Other key assets sold during this period of cost cutting included its holdings in Tricor,a professional services firm to private equity firm Permira for HKD 6.47 billion (profit of HKD 3.1 billion), [14] [15] and various consumer finance assets to China moneylender QL Finance for HKD 1.08 billion. [16]
On 29 June 2018,after 34 years of being a constituent of the Hang Seng Index,BEA was cut during the quarterly review of Hang Seng Index composition,effective 10 September 2018. The index said that the Bank of East Asia did not meet the turnover and market capitalisation minimums. [17]
In late 2018,BEA began to venture into investment banking by setting up a debt capital markets team based in Hong Kong. [18]
BEA began 2019 by celebrating its centennial on 2 January 2019,with a reception at the Hong Kong Convention and Exhibition Centre attended by various business and political leaders from Hong Kong. [19]
On 1 July 2019,David Li stepped down as CEO after 38 years (but still retaining his Chairmanship),and was replaced by his sons Adrian and Brian Li as co-CEO's.
BEA faced a difficult 2019,with loan writedowns in China and unprecedented scale of protests in Hong Kong affecting business. [20]
BEA trades through the following segments: [21]
From 1918 to 1920,the bank was headquartered in 2 Des Voeux Road Central,in Central,Hong Kong. In 1920,the bank moved its headquarters to the 29-storey Bank of East Asia Building (東亞銀行大廈) located at 10 Des Voeux Road Central,standing between New Henry House and The Landmark.
The Bank of East Asia Building has had multiple rebuilds over the years:
Bank of East Asia began its mainland China business in 1992,and in 2007,was among the 4 foreign banks approved by China Banking Regulatory Commission (CBRC) to establish a locally incorporated bank,the Bank of East Asia (China) Ltd (BEA China). [25]
On 20 May 2008,BEA became a foreign bank that issued yuan-denominated debit cards in mainland China,taking advantage of the recent removal of a key restriction on foreign banks' retail business in the country. The bank issued the debit cards jointly with China UnionPay,the country's only bankcard network operator. The company claimed that the launch of debit cards would help attract retail banking customers by giving them greater convenience in accessing their deposits. In addition,it offers direct Alipay payment support and issues credit cards (RMB-denominated UnionPay credit cards in 2008,and more recently Visa-branded US dollar-denominated cards in April 2011).
BEA currently operate one of the most extensive networks in mainland China for a foreign bank. [26]
BEA operates overseas in several locations serving expatriate Hong Kong residents.
BEA operates overseas branches in the following countries and markets: [27]
Former overseas branches:
Major shareholders in BEA as of the 2023 annual report: [29]
Shareholder | Percentage |
---|---|
Sumitomo Mitsui Banking Corporation | 21.68% |
Criteria Caixa Holding | 19.19% |
Guoco Group | 16.44% |
The Li family | ~10.00% |
The position of Chief Executive Officer was known as Chief Manager prior to 1986 [30] [31]
Hedge fund activist investor Elliott Management filed a lawsuit against BEA in July 2016 in Hong Kong court over a share placement transaction. [32] Elliott Management,which held 7% of listed shares of BEA,had included majority of the bank's directors,its CEO and chairman in the lawsuit. The transaction in question was on BEA's issuance of new shares to Japan's Sumitomo Mitsui Banking Corp (SMBC) in 2015. Elliott cited "allegations of unfairly prejudicial conduct" and "alleged serious corporate governance failings". Elliott hoped to secure a declaration from the court that these placements were passed by BEA for "an improper purpose" and looked for an order requiring BEA to lift the contractual restrictions that would prevent SMBC and Caixa,another strategic investor on BEA,from reducing their stakes on BEA. [33]
In response,BEA applied to have Elliott's petition against them struck out. This case was heard by Mr Justice Jonathan Harris from 17 to 19 July 2017. [34]
During the 2019–20 Hong Kong protests,several BEA outlets were accidentally targeted as protestors vandalized mainland-linked business. Protestors later spray-painted "Sorry" at the vandalized branches,after they realized BEA is locally run and owned.[ citation needed ]
Bank of ChinaLimited,abbreviated as BOCHK,is a subsidiary of the Bank of China. Bank of China is the second-largest commercial banking group in Hong Kong in terms of assets and customer deposits,with more than 190 branches across Hong Kong as of the end of 2019. It is also one of the three commercial banks licensed by the Hong Kong Monetary Authority to issue banknotes for the Hong Kong dollar.
The Hongkong and Shanghai Banking Corporation Limited,commonly abbreviated as HSBC and formerly known as HongkongBank,is the Hong Kong–based Asia-Pacific subsidiary of the HSBC banking group,for which it was the parent entity until 1991. The largest bank in Hong Kong,HSBC operates branches and offices throughout the Indo-Pacific region and in other countries around the world. It is also one of the three commercial banks licensed by the Hong Kong Monetary Authority to issue banknotes for the Hong Kong dollar.
Ping An Insurance known also as Ping An of China,full name Ping An Insurance (Group) Company of China,Ltd. is a Chinese financial services holding company whose subsidiaries provide insurance,banking,asset management,financial services. The company was founded in 1988 and is headquartered in Shenzhen. "Ping An" literally means "safe and well". It is ranked as China’s 6th largest company.
JETCO,officially Joint Electronic Teller Services Limited is a network of automatic teller machines in Hong Kong and Macau.
The Shanghai Commercial Bank is an international bank based in Hong Kong. Its subsidiary companies offer banking and financial services across the world,but mainly in China,the United Kingdom,and the United States. The bank was founded by Chen Guangfu in 1915.
Oversea-Chinese Banking Corporation Limited,abbreviated as OCBC,is a Singaporean multinational banking and financial services corporation headquartered at the OCBC Centre.
Arthur Li Kwok-cheung,GBM,GBS JP is a Hong Kong doctor and politician. He is currently member of the Executive Council of the Hong Kong Special Administrative Region and the chairman of the Council of the University of Hong Kong (HKU). He was Vice-Chancellor of the Chinese University of Hong Kong (CUHK) from 1996 to 2002 and Secretary for Education and Manpower from 2002 to 2007. Li’s dictatorial and ruthless leadership style led some to refer to him as "King Arthur" and even "the Tsar". He is the grandson of the co-founder of the Bank of East Asia,Li Koon-chun,and brother of its current chairman,David Li. He was awarded the Grand Bauhinia Medal (GBM) by the Hong Kong SAR Government in 2017.
Citibank Limited is the division of Citigroup that operates in Hong Kong Island,Kowloon and New Territories. It has 15 branches for operating retail banking. Citibank 's address of the principal place of business is Citi Tower,One Bay East,No. 83 Hoi Bun Road,Kwun Tong,Kowloon. However,Citibank,N.A. Hong Kong branch office is located on the 50th floor of Champion Tower,3 Garden Road,Central,Hong Kong which doesn't operate retail banking.
DBS Bank Limited is a licensed bank incorporated in Hong Kong and is a subsidiary of DBS Bank headquartered in Singapore. As of 2022,it is the eighth-largest bank in Hong Kong by total assets.
China Construction Bank (Asia) Corporation Limited is a licensed bank incorporated in Hong Kong.
Sir David Li Kwok-poGBM GBS OBE JP is a Hong Kong banker and politician. He is the executive chairman of the Bank of East Asia and pro-chancellor of the University of Hong Kong. He was a member of the Legislative Council of Hong Kong and the Executive Council of Hong Kong in the 2000s.
The South China Morning Post (SCMP),with its Sunday edition,the Sunday Morning Post,is a Hong Kong-based English-language newspaper owned by Alibaba Group. Founded in 1903 by Tse Tsan-tai and Alfred Cunningham,it has remained Hong Kong's newspaper of record since British colonial rule. Editor-in-chief Tammy Tam succeeded Wang Xiangwei in 2016. The SCMP prints paper editions in Hong Kong and operates an online news website that is blocked in mainland China.
David Gordon Eldon CBE is the former chairman of The Hongkong and Shanghai Banking Corporation Limited. He retired in May 2005,after spending 37 years with HSBC Group,but made a return to banking in 2011 as non-executive chairman of HSBC Bank Middle East Limited. He stepped down from the role on April 30,2021 and was appointed non-executive deputy chairman of The Hongkong and Shanghai Banking Corporation in June 2021.
Sir Yuet-keung Kan was a Hong Kong banker,politician and lawyer who was successively appointed Senior Unofficial Member of the Legislative Council and Executive Council in the 1960s and 1970s. He also served as chairman of the Bank of East Asia for 20 years.
The four big families of Hong Kong is a term used to describe the four business families that historically rose to prominence and became influential in Hong Kong. In order of influence,they are the Li,Ho,Lo and Hui families.
Wong &Ouyang (HK) Ltd. is an architectural and engineering practice based in Hong Kong,with branch offices in Shanghai and Guangzhou.
Ho Sin Hang,also known as S. H. Ho and He Shanheng,was a Hong Kong entrepreneur,philanthropist and financier. He co-founded Hang Seng Bank in 1933,and served as its chairman. Ho also cofounded the Hang Chong Investment Co Ltd. and Dah Chong Hong Ltd.,and was the first chairman of New World Development Company.
Faster Payment System is a real-time gross settlement payment system in Hong Kong that connects traditional banks and electronic payment and digital wallet operators. Users are able to perform instant money transfer or make payment to merchants by using the recipient's phone number,e-mail or QR code that contains the user's numeric identifier. Using the "traditional way" of full name and account number to make interbank transfer is also allowed.
The Li family are a banking dynasty in Hong Kong and associated with the Bank of East Asia,although its family members have held positions in various other businesses,as well as the Hong Kong Government,the Hong Kong Judiciary,and the Hong Kong Legislative Council. While the Li family spans many generations and has many members,this page only includes those who were directly involved with the running of the Bank of East Asia. The "first generation" refers to the generation that founded the Bank.
{{cite book}}
: CS1 maint: multiple names: authors list (link){{cite web}}
: Missing or empty |title=
(help)