When not writing regular columns for Bloomberg, Matthew Lynn occasionally pens fine business pieces in The Spectator. His latest is on HSBC and especially Chairman Stephen Green.
I've never owned HSBC stock and remember thinking (at the time) that its purchase of Household in the US was, if not a mistake, not well timed. But with HSBC suffering from Household's subprime involvement and the refocus on Asian growth, perhaps this is one to keep an eye on.
Back to Lynn's article:
HSBC is a curious beast, born out of colonialism yet despite that,
perfectly placed to ride the wave of 21st-century globalised
capitalism. It was founded as the Hong Kong & Shanghai Banking
Corporation by a Scotsman, Thomas Sutherland, in 1865, and has always
been dominated by Scots. For much of its history, it was just one among
many colonial banks — until the explosive post-war growth of Hong Kong
and southeast Asia carried it into a higher league. In 1992 it came
home, both metaphorically and financially, buying the Midland Bank and
switching its headquarters to London.
And today? HSBC is the 13th largest company in the world. With a market cap around $230 billion. Meaning it is hard to see it ever being a takeover target.
So maybe it's not worth keeping an eye on after all?
Comments