1. HK economy and HSBC Yau Tat Kwan, Jacob 2008046921

2. Analysis of current economy of Hong Kong  Overview of Hong Kong’s real GPA  2008  4 th quarter: -2.6%  2009  1 st quarter: -7.8%  2 nd quarter: -3.6%  3 rd quarter: -2.4%

3. internal growth  private consumption expenditure edged up 0.2% in Q3, contributing 0.1 percentage points to GDP growth.  Gross fixed capital formation did even better by rising 1.3%, contributing 0.3 percentage points to GDP.  Government consumption expenditure also rising at the fastest pace of 3.3% since the recession began and contributing another  0.3 percentage points to GDP growth,  all three internal growth drivers combined contributed 0.7 percentage points

4. HSBC  Stock number: 0005  The Hong Kong and Shanghai Banking Corporation Limited (HSBC)

5. HSBC  One of the largest banking and financial services organizations in the world.  An international network of some 10,000 properties in 86 countries and territories in Europe; Hong Kong; Rest of Asia-Pacific, including the Middle East and Africa; North America and Latin America.  A comprehensive range of financial services is offered to personal, commercial, corporate, institutional, investment and private banking clients.

6. Profits in 2008  Europe: US$10.9 billion, up 26 per cent.  Asia: US$11.9 billion, 11 per cent down  (Hong Kong): US$5.5 billion, down 26 percent  Latin America: US$ 2 billion, down 6 percent

7. HSBC HOLDINGS - 10 Years (Monthly)

8. Earnings Summary

9. In the long run  Chinese economy has maintained decent growth via domestic growth impetus, providing solid support to the Hong Kong economy.  Q1: 6.1%  Q2: 7.9%  Q3: 8.9%

10. Coming into the China Market  After the opening of a subsidiary bank in Fo Shan, the next step is to set up further banks in Zhong Shan and Wei Zhou.  The strategy is to occupy most important cities in the Pearl River Delta.  Taking the advantage of this, HSBC would like to become the first listed foreign company in China.

11. References  http://www.hsbc.com/1/2/ http://www.hsbc.com/1/2/  http://n.yam.com/cna/china/200908/20090827845448.html http://n.yam.com/cna/china/200908/20090827845448.html  http://news.bbc.co.uk/chinese/trad/hi/newsid_7510000/newsid_751 6700/7516731.stm http://news.bbc.co.uk/chinese/trad/hi/newsid_7510000/newsid_751 6700/7516731.stm  http://hk.news.yahoo.com/article/100112/9/g2nm.html http://hk.news.yahoo.com/article/100112/9/g2nm.html  http://www.takungpao.com/news/07/05/11/JJ-734779.htm http://www.takungpao.com/news/07/05/11/JJ-734779.htm  http://big5.jrj.com.cn/gate/big5/bank1.jrj.com.cn/news/2007-12- 14/000003056099.html http://big5.jrj.com.cn/gate/big5/bank1.jrj.com.cn/news/2007-12- 14/000003056099.html  http://www.warrants.fortis.com.hk/warrants.aspx http://www.warrants.fortis.com.hk/warrants.aspx  http://news.bbc.co.uk/chinese/trad/hi/newsid_7670000/newsid_767 3400/7673496.stm http://news.bbc.co.uk/chinese/trad/hi/newsid_7670000/newsid_767 3400/7673496.stm  http://ct.acnnewswire.com/Article.Asp?Art_ID=559&lang=CT http://ct.acnnewswire.com/Article.Asp?Art_ID=559&lang=CT  http://boc.quotepower.com/web/bochk/stocks_quote.jsp?lang=zh_T W&domain=BOCHK&rand=354963938&lastLevel1Name=nav_stocks& lastStock=&stock=5&realtime= http://boc.quotepower.com/web/bochk/stocks_quote.jsp?lang=zh_T W&domain=BOCHK&rand=354963938&lastLevel1Name=nav_stocks& lastStock=&stock=5&realtime