Ho Hong Bank

The Ho Hong Bank (1917 - 1932) was a Malayan bank, established to provide banking services that, until 1912, were solely delivered by European Banks. [ [http://www.tsinoy.com/article_item.php?articleid=659 Chinese in Singapore, Nov 7, 2005, Michelle Tan] ] . The bank was founded in 1917, only to merge with two banks to form the Oversea-Chinese Banking Corporation in 1932.

Ho Hong's roots: The Chinese Commercial Bank

The Ho Hong Bank was founded by Lim Peng Siang, Dr. Lim Boon Keng and Seow Poh Leng all of whom were, before that time, officers of The Chinese Commercial Bank.

The Chinese Commercial Bank, founded in 1912 by Dr. Lim Boon Keng, Lim Peng Siang, Lee Choon Guan, Tan Cheng Siong and others, had experienced a run on the bank which forced its closure just two years after it began business. Dr. Lim Boon Keng arranged an interview with Sir Arthur Henderson Young (1854-1938), Governor of the Straits Settlements and Seow Poh Leng was called on to produce a balance sheet within 48 hours, which he did until he fell from sheer exhaustion. Following the interview and review of the Bank's balance sheet, Sir Arthur ordered the following proclamation:

"The Government has undertaken to look into the position of the Chinese Commercial Bank with a view to lending it money, but before doing this the Government must examine the Bank's accounts and during this examination the Bank will be closed."

Two weeks later the Government made another proclamation:

"The Government has examined thoroughly the accounts of the Chinese Commercial Bank, and finds that its assets exceed the liabilities. The present trouble is due partly to the fact that many traders are hoarding their money instead of paying it into the Bank. If the Bank is able within a reasonable time to raise cash, Government will certainly lend it a sum of money equal to the amount so raised"

Although the Bank was quickly reopened on the 1st of October 1914, and public confidence restored, due to complaints from Tan Cheng Siong and other shareholders, Lim Peng Siang resigned.

Shortly after that, together with Dr. Lim Boon Keng and Seow Poh Leng, he set up the Ho Hong Bank. Lim Peng Siang became the Chairman of the new Bank with Lim Peng Mau as Managing Director, Seow Poh Leng as General Manager and Secretary, Mah Kee Keng as Head of The Business Department, Tan Eng Hin as Manager of the Malacca Branch and Tan Chin Tah as Sub Manager of the Muar Branch. [The Chinese Banks Incorporated In Singapore And The Federation of Malaya by Tan Ee-Leong, published in The Journal of the Malayan Branch of the Royal Asiatic Society, Vol 26 Pt 1, 1953, reprinted in T.H. Silcock, ed., Readings in Malayan Economics (Singapore: Eastern Universitites Press) 1961]

First Malayan Chinese bank to go international

The Ho Hong Bank was the first Chinese bank in Malaya to engage in international banking. Seow Poh Leng focused his efforts towards bringing the Ho Hong Bank in line with the well-established "exchange banks" of the Straits Settlements and relying solely on his own study and observation cautiously began foreign exchange activities. He was joined in his efforts, in 1923, by Dr. H. L. Huang who had existing practical exchange experience.

Progress in Ho Hong Bank's foreign exchange marketing was accelerated by the establishment of their Hongkong and later Shanghai branches and this, together with close co-operation of the South East Asian (Nanyang) offices and correspondents transformed this local bank into an important exchange bank in Shanghai, Hongkong and Malaya. [The Chinese Banks Incorporated In Singapore And The Federation of Malaya by Tan Ee-Leong, published in The Journal of the Malayan Branch of the Royal Asiatic Society, Vol 26 Pt 1, 1953, reprinted in T.H. Silcock, ed., Readings in Malayan Economics (Singapore: Eastern Universitites Press) 1961] Singapore By Gretchen Liu; p. 174] [ [http://fic.wharton.upenn.edu/fic/papers/01/0120.pdf The International Expansion of Singapore's Largest Banks by Adrian E. Tschoegl]

The Ho Hong Foreign Exchange Training Program

The opening of the Shanghai office offered opportunities to send Bank staff there to experience modern exchange operations, a far-sighted policy, the brainchild of Lim Peng Siang and Seow Poh Leng. Among those sent over to learn under the program implemented by Ko Leong Hoe and Dr. H. L. Huang, were, Tan Eng Hooi, Tan Eng Leong, Chua Keh Hai, Kwa Siew Tee, Hooi Yip Beng, Tan Chwee Lee and Yeo Tiam Siew. [The Chinese Banks Incorporated In Singapore And The Federation of Malaya by Tan Ee-Leong, published in The Journal of the Malayan Branch of the Royal Asiatic Society, Vol 26 Pt 1, 1953, reprinted in T.H. Silcock, ed., Readings in Malayan Economics (Singapore: Eastern Universitites Press) 1961]

A final transformation: The Overseas-Chinese Banking Corporation

Consequential to the great depression, the Ho Hong Bank merged in 1932 with the Oversea-Chinese Bank (OCB) and the Chinese Commercial Bank (CCB) to form the Oversea-Chinese Banking Corporation (OCBC). [ [http://www.aas.com.sg/features/archive/f05023.htm The Automobile Association of Singapore - Three Kings ] ]

Ho Hong Group

One of the founders, Lim Peng Siang or Lin Bengxian (1872 - 1948) was also the owner of the Ho Hong steamer company that operated from Xiamen. The name Ho Hong in Hokkien (Minnan) dialect means good winds. Which alluded to the trade winds that pre-steamer sailors depended to sail to Southeast Asia to trade. [Chinese Business Enterprise By Rajeswary Ampalavanar Brown; p. 137]

Timeline

*1917: Lim Peng Siang founded the Ho Hong Bank Limited with branches opened simultaneously in Singapore, and Muar and Malacca in what is now Malaysia. Branches then opened in Ipoh, Kuala Lumpur, Batu Pahat and Penang. Ho Hong rapidly opened branches in Batavia and Palembang in the Dutch East Indies.
*1923: Branch opened in Hong Kong
*1925: Branch opened in Shanghai
*1930: CCB, Ho Hong and OCB agree upon a mutual support pact
*1932: The United Kingdom leaves the gold standard and devalues the pound sterling. This leaves Ho Hong and OCB in financial trouble and they approach CCB for help. The OCBC is born as the result of the merger of Chinese Commercial, Ho Hong and OCB. Ho Hong and OCB branches in Malaya are converted to OCBC Bank branches.
*1933: The OCBC starts functioning on 2 January 1933. OCBC emerges as the biggest and strongest bank in the Straits Settlements. The Ho Hong branches in Malaya eventually become OCBC Bank (Malaysia) Bhd.

References

External links

* [http://www.grs.gov.hk/PRO/srch/english/show_detail.jsp?recordkey=585463&srchscreen=sys_archive&source=Y&version=internet Application of the Ho Hong Bank Ltd. For Permission To Acquire Immovable Property In Hong Kong]
* [http://www.grs.gov.hk/PRO/srch/english/show_detail.jsp?recordkey=587889&srchscreen=sys_archive&source=Y&version=internet Application From The OCBC Ltd For Exemption From The Payment of Ad Valorem Duty On The Transfer To Them, Of Their Premises, 13 Queen's Road Central By Ho Hong Bank Ltd.]
* [http://www.ocbc.com.sg/download/ocbc_factsheet.pdf OCBC Group Fact Sheet]
* [http://www.singaporebookofrecords.com/singapore_records_individual.php?id=NjAwMDAwMDM4Mg= First Local Bank Engaged in International Banking]
* [http://www.ocbc.com/download/annualreport/2001/02MissionProf.pdf OCBC 2001 Annual Report]
* [http://www.ocbc.com.sg/global/aboutOCBC/Gco_Abt_History.shtm OCBC History]
* [http://www.tsinoy.com/article_item.php?articleid=659 Chinese In Singapore]
* [http://fic.wharton.upenn.edu/fic/papers/01/0120.pdf The International Expansion of Singapore's Largest Banks]
* [http://mumford.albany.edu/chinanet/shanghai2005/kuohueiying_en.doc Paper Prepared to the Annual Conference on ‘Chinese Cities in Transition: The Next Generation of Urban Research: Part 4,’ Shanghai Academy of Social Science, Shanghai, July 7-9th, 2005]