Q: How has HSBC been affected by the financial crisis?
A: At the centre of the financial turmoil, banks are inevitably affected in one way or another. But, as our Group Chairman Stephen Green put it in the 2008 results statement, we have built our business on a very strong foundation and are able to report results which demonstrate our ability to withstand the storm. In China, we continued to register strong growth last year, driven by China's stimulus efforts which enabled continued economic growth and market confidence amid the global financial crisis. HSBC China remains one of the locally incorporated foreign banks that have the strongest capital base and highest credit rating.
Q: How do you see Liaoning's economy, which is relatively less internationally oriented, doing amid the financial crisis?
A: We noticed that the financial turmoil didn't have significant impact on China's Northeastern region when compared to other regions such as the coastal areas. For some local companies, there have even emerged opportunities. The local government has taken effective measures to stimulate the economy and help companies sustain growth in this difficult time. We are pleased to see that these measures are taking effect.
Q: How can HSBC benefit from these measures?
A: The stimulus measures generate opportunities for both local and foreign banks. We are keen to participate in the projects that can help contribute to economic growth. Some of the measures can directly benefit financial institutions such as incentives for establishing new financial institutions or increasing lending to the local market.
Q: Does your branch plan to add new outlets this year?
A: Upon regulatory approval, we plan to open our second sub-branch in the third quarter of this year. We are now looking for suitable property. In addition, we shall continue to invest in human resources and training to support our expanding operations.
Q: What will HSBC do to respond to the government's stimulus package?
A: As I said earlier, we are keen to participate in projects falling under the government's stimulus package and will continue to expand lending to support local economic growth. We believe that in order for this stimulus to work effectively, banks, both foreign and domestic, have an obligation to contribute to economic expansion by continuing to lend. For HSBC, we will maintain prudent risk controls while individually evaluating each loan application. At the same time, we will continue to deepen our relationships with our customers.
Q: What is the outlook for your business for this year?
A: We expect to continue to grow our business this year, although our expectation will be slightly conservative. This does not mean that we are not confident in the local market, but because we are still at the initial stage of investment, including network expansion and human resources development. In addition, we also must take into account the fact that there are still uncertainties in the global economic environment.
We see great potential in Shenyang, which has achieved rapid growth in recent years thanks to the central government's endeavors in rejuvenating the Northeastern region. This progress has been providing us with lots of opportunities and we are confident in Shenyang's future.
Q: How is HSBC doing in respect to CSR?
A: With a strong commitment to corporate social responsibility, HSBC supports extensive educational, environmental and charitable projects and has made accumulated donations of more than RMB300 million in Chinese mainland.
In Shenyang, we are also very active in CSR, with an accumulated donation of more than RMB1 million so far to support mainly education and social welfare, including the Liaoning University HSBC Scholarship and the Liaoning Rural School Teacher Training Course, which is part of a HSBC program for supporting China's rural children. We've also donated to Shenyang Homeless Children Centre and Social Welfare Centre. In 2008, HSBC Shenyang Branch received an award from the city government in recognition of our support to education.
We also attach significance to raising employee's CSR awareness; staff volunteer activities are always an important part of our annual work plan.
