Industry Industry ResearchResearch

Players for Commercial & Investment Players for Commercial & Investment BanksBanks

Commercial BankCommercial Bank

HSBC GroupHSBC Group Over 130 years historyOver 130 years history 9,500 offices in 80 9,500 offices in 80

countries/territoriescountries/territories Domestic commercial banking and Domestic commercial banking and

financial servicesfinancial services

Commercial Bank - Commercial Bank - HSBC HSBC

Personal Service:Personal Service:

- Multi-currency accounts- Multi-currency accounts

- Term deposits- Term deposits

- Personal credit service- Personal credit service

- Mortgage finance- Mortgage finance

- Hire purchase and leasing - Hire purchase and leasing

Commercial Bank - Commercial Bank - HSBCHSBC

Business ServiceBusiness Service

- Cash management- Cash management

- Financing working capital - Financing working capital

- Importing/exporting accounts- Importing/exporting accounts

- Retirement planning- Retirement planning

- Premises leasing- Premises leasing

Strategy - HSBCStrategy - HSBC

Business ScopeBusiness Scope- Improvement- Improvement

1.1. Premier/PowerVantage/Super EasePremier/PowerVantage/Super Ease2.2. ATM, 24-hour Phone banking Center, ATM, 24-hour Phone banking Center,

over 20 Mortgage Advice Centersover 20 Mortgage Advice Centers3.3. Internet banking, PC banking over Internet banking, PC banking over

private network, interactive TV, fixed private network, interactive TV, fixed telephone and WAP-enabled mobiletelephone and WAP-enabled mobile

Strategy - HSBCStrategy - HSBC

Business ScopeBusiness Scope- Innovation: Investment Service- Innovation: Investment Service

1.1. Provides trust, custody and fund Provides trust, custody and fund administration services administration services

2.2. Launches “All Weather Plus Capital Launches “All Weather Plus Capital Guaranteed Fund”Guaranteed Fund”**  Absolute returns (Absolute returns (guaranteed return of 5%) guaranteed return of 5%) ** Increasing income ( Increasing income (Profit lock-in)Profit lock-in) * * Unlimited upside potential (absolute price Unlimited upside potential (absolute price movement ) movement )

Strategy - HSBCStrategy - HSBC

Geographical ScopeGeographical Scope

- - 2000.5, 2000.5, renamed to renamed to HSBC’s General HSBC’s General Representative Office Mainland ChinaRepresentative Office Mainland China

- 2001.12, took a minority stake of 8% in - 2001.12, took a minority stake of 8% in the Bank of Shanghai the Bank of Shanghai

- 2002.10, acquired a 10% stake in Ping - 2002.10, acquired a 10% stake in Ping An Insurance Company of China LimitedAn Insurance Company of China Limited

- - Gained permission to be custodians for Gained permission to be custodians for fund under the QFII schemefund under the QFII scheme

Strategy - HSBCStrategy - HSBC

Geographical ScopeGeographical Scope

- - Comes together with DTZ Debenham Tie Comes together with DTZ Debenham Tie Leung (Shanghai) to allow foreign Leung (Shanghai) to allow foreign investors, both living inside and outside investors, both living inside and outside China, to buy properties and manage their China, to buy properties and manage their mortgage financing in the foreign mortgage financing in the foreign currencycurrency

Investment Investment BankingBanking

Merrill Lynch & Merrill Lynch & Co.Co.

BackgroundBackground

The Early YearsThe Early Years

19071907 Charles E. Merrill arrived in New York and Charles E. Merrill arrived in New York and

met Edmund C. Lynch, and a great partnership met Edmund C. Lynch, and a great partnership began. began.

1914 1914 On 6 January, Charles E Merrill & Co. opens On 6 January, Charles E Merrill & Co. opens

its doors. Merrill persuades Lynch to join him its doors. Merrill persuades Lynch to join him and, on 19 May, they open their office at 7 and, on 19 May, they open their office at 7 Wall Street. Wall Street.

BackgroundBackground1915 1915 Charles E. Merrill & Co. changes its Charles E. Merrill & Co. changes its

name to Merrill, Lynch & Co. name to Merrill, Lynch & Co.

The PresentThe Present20002000 Merrill Lynch and HSBC form a joint Merrill Lynch and HSBC form a joint

venture to create the first global, online venture to create the first global, online investment and banking service aimed investment and banking service aimed at the growing number of self-directed at the growing number of self-directed affluent investors outside the United affluent investors outside the United States. States.

20022002 HSBC and Merrill Lynch agree in HSBC and Merrill Lynch agree in

principle that the joint venture is to be principle that the joint venture is to be integrated into the HSBC Group. integrated into the HSBC Group.

Merrill Lynch creates an equity Merrill Lynch creates an equity wholesaling business in Europe, which wholesaling business in Europe, which provides broker-dealer clients fast and provides broker-dealer clients fast and reliable trading in 15,000 European, reliable trading in 15,000 European, U.S. and U.K. equities. U.S. and U.K. equities.

The PresentThe Present

20022002 Merrill Lynch's browser-based MLX Merrill Lynch's browser-based MLX

portal provides a single electronic portal provides a single electronic window through which investors can window through which investors can access any product, any time in the access any product, any time in the trading cycle, anywhere in the world. trading cycle, anywhere in the world.

StrategyStrategy

Enlarge the market ( investors Enlarge the market ( investors outside US)outside US)

Provide variety of servicesProvide variety of services Satisfy the needs of different kinds Satisfy the needs of different kinds

of investorsof investors Cooperate with other corporations Cooperate with other corporations

( Joint Venture with HSBC)( Joint Venture with HSBC)

Customers TypesCustomers Types

Individual InvestorsIndividual Investors Small/Midsize BusinessSmall/Midsize Business Corporations and Institutional Corporations and Institutional

InvestorsInvestors

Individual Investor Individual Investor (inside US)(inside US)

Services OfferedServices Offered Banking and Banking and

LendingLending Business NeedsBusiness Needs Estate PlanningEstate Planning Investment Investment

StrategiesStrategies

Nonprofit Nonprofit OrganizationOrganization

RetirementRetirement Tax- Efficient Tax- Efficient

InvestmentInvestment

Small/Midsize BusinessSmall/Midsize Business

Objective : SIMPLY YOUR Objective : SIMPLY YOUR BUSINESS THROUGH ONE BUSINESS THROUGH ONE ACCOUNT(WCMA)ACCOUNT(WCMA)

Cash ManagementCash Management Business FinancingBusiness Financing Retirement and BenefitsRetirement and Benefits Selling the BusinessSelling the Business

Working Capital Working Capital Management Account Management Account

(WCMA)(WCMA) Sweeps incoming cash into your

choice of money market account where it can earn interest or dividends until needed.

Pays down loan balances to minimize interest costs.

Corporations and Corporations and Institutional InvestorsInstitutional Investors

Offer equity, debt, and investment banking Offer equity, debt, and investment banking services to corporations, financial services to corporations, financial institutions, agencies and governments institutions, agencies and governments around the world. around the world.

Offer clients total access to Merrill Lynch's Offer clients total access to Merrill Lynch's resources in order to deliver totally resources in order to deliver totally integrated and, often, pioneering solutions to integrated and, often, pioneering solutions to our clients. our clients.

Raise capital for its clients through securities Raise capital for its clients through securities underwriting, private placements, loan underwriting, private placements, loan syndication, and other financing techniques. syndication, and other financing techniques.

Provide investors with access to world Provide investors with access to world markets through global underwriting, markets through global underwriting, trading, and distribution of stocks, bonds trading, and distribution of stocks, bonds and other financial instruments, including and other financial instruments, including government securities, convertibles, government securities, convertibles, derivatives, and foreign currencies. derivatives, and foreign currencies.

Offer merger and acquisition solutions to Offer merger and acquisition solutions to corporations and governments around the corporations and governments around the world. We also leverage our industry-world. We also leverage our industry-leading technology and expertise to supply leading technology and expertise to supply clearance, settlement and securities clearance, settlement and securities financing services to its clients worldwide.financing services to its clients worldwide.

Q & AQ & A

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