Ho Hong Bank
Encyclopedia
The Ho Hong Bank was a Malaya
n bank, established to provide banking services that, until 1912, were solely delivered by European banks. The bank was founded in 1917 and in 1932 merged with two other banks in Singapore
to form the Oversea-Chinese Banking Corporation
.
, 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 with a paid up capital of $1 million 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
. Before the interview, 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:
Two weeks later the Government made another proclamation:
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.
In 1917, together with Dr. Lim Boon Keng and Seow Poh Leng, he set up the Ho Hong Bank with a capital of $3.5 million (£40406,976 half of which was paid-up) which grew to $4 million (£465,116 fully paid-up) by 1920 and over $6 million by 1931. 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 Ho Hong Bank was the first Chinese bank in Malaya to engage in international banking. Ho Hong Bank enhanced its foreign exchange business by establishing branches in Hong Kong
and later Shanghai
. 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.
. 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.
(OCBC).
. In the Hokkien (Minnan) dialect the name Ho Hong means "good winds". The allusion here is to the trade winds that pre-steamer sailors depended on when sailing for trade.
British Malaya
British Malaya loosely described a set of states on the Malay Peninsula and the Island of Singapore that were brought under British control between the 18th and the 20th centuries...
n bank, established to provide banking services that, until 1912, were solely delivered by European banks. The bank was founded in 1917 and in 1932 merged with two other banks in Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
to form the Oversea-Chinese Banking Corporation
Oversea-Chinese Banking Corporation
The Oversea-Chinese Banking Corporation Limited , abbreviated as OCBC Bank , is a publicly listed financial services organisation with its head office in Singapore. OCBC Bank is one of Singapore's leading local banks, with group assets of more than 224 billion SGD. It has one of the highest bank...
.
Ho Hong's roots: The Chinese Commercial Bank
The founders of Ho Hong Bank were Lim Peng SiangLim Peng Siang
Lim Peng Siang or Lin Bengxian together with his brother Lim Peng Mao of Lin Bingmao, through their Ho Hong Group of companies,, founded in 1904, had interests in banking, shipping, parboiled rice, oil mills, cement, coconut and other businesses. President of Singapore Chinese Chamber of Commerce...
, Dr. Lim Boon Keng and Seow Poh Leng
Seow poh leng
Seow Poh Leng , one of the first few Peranakan Babas at Emerald Hill, was a prominent and successful Singaporean banker, founding member of the Ho Hong Bank, member of the committee of the Straits Settlement , philanthropist and benefactor of public development works...
, all of whom were, before that time, officers of the Chinese Commercial Bank.
The Chinese Commercial Bank, founded with a paid up capital of $1 million 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
Arthur Young (governor)
Captain Sir Arthur Henderson Young GCMG KBE was born in 1854. He was the son of Colonel Keith Young. On 5 November 1885, Sir Arthur married Lady Evelyn Anne Kennedy, daughter of Sir Archibald Kennedy, 2nd Marquess of Ailsa and Lady Julia Jephson. He died on 20 October 1938.-Career:He joined the...
. Before the interview, Seow Poh Leng
Seow poh leng
Seow Poh Leng , one of the first few Peranakan Babas at Emerald Hill, was a prominent and successful Singaporean banker, founding member of the Ho Hong Bank, member of the committee of the Straits Settlement , philanthropist and benefactor of public development works...
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.
In 1917, together with Dr. Lim Boon Keng and Seow Poh Leng, he set up the Ho Hong Bank with a capital of $3.5 million (£40406,976 half of which was paid-up) which grew to $4 million (£465,116 fully paid-up) by 1920 and over $6 million by 1931. 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.
First Malayan Chinese bank to go international
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.The Ho Hong Bank was the first Chinese bank in Malaya to engage in international banking. Ho Hong Bank enhanced its foreign exchange business by establishing branches in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
and later Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
. 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 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 LengSeow poh leng
Seow Poh Leng , one of the first few Peranakan Babas at Emerald Hill, was a prominent and successful Singaporean banker, founding member of the Ho Hong Bank, member of the committee of the Straits Settlement , philanthropist and benefactor of public development works...
. 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.
A final transformation: The Oversea-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 CorporationOversea-Chinese Banking Corporation
The Oversea-Chinese Banking Corporation Limited , abbreviated as OCBC Bank , is a publicly listed financial services organisation with its head office in Singapore. OCBC Bank is one of Singapore's leading local banks, with group assets of more than 224 billion SGD. It has one of the highest bank...
(OCBC).
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 XiamenXiamen
Xiamen , also known as Amoy , is a major city on the southeast coast of the People's Republic of China. It is administered as a sub-provincial city of Fujian province with an area of and population of 3.53 million...
. In the Hokkien (Minnan) dialect the name Ho Hong means "good winds". The allusion here is to the trade winds that pre-steamer sailors depended on when sailing for trade.
Timeline
- 1917: Lim Peng SiangLim Peng SiangLim Peng Siang or Lin Bengxian together with his brother Lim Peng Mao of Lin Bingmao, through their Ho Hong Group of companies,, founded in 1904, had interests in banking, shipping, parboiled rice, oil mills, cement, coconut and other businesses. President of Singapore Chinese Chamber of Commerce...
founded the Ho Hong Bank Limited, opening branches simultaneously in SingaporeSingaporeSingapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, and Muar and MalaccaMalaccaMalacca , dubbed The Historic State or Negeri Bersejarah among locals) is the third smallest Malaysian state, after Perlis and Penang. It is located in the southern region of the Malay Peninsula, on the Straits of Malacca. It borders Negeri Sembilan to the north and the state of Johor to the south...
in what is now Malaysia. It then opened branches in IpohIpohIpoh is the capital city of Perak state, Malaysia. It is approximately 200 km north of Kuala Lumpur on the North-South Expressway....
, Kuala LumpurKuala LumpurKuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
, Batu PahatBatu PahatBatu Pahat is a district in the state of Johor, Malaysia. It lies south-east of Muar, south-west of Kluang, north-west of Pontian, and south of Segamat and the new Ledang district. The capital of the district is Bandar Penggaram, Batu Pahat....
and PenangPenangPenang is a state in Malaysia and the name of its constituent island, located on the northwest coast of Peninsular Malaysia by the Strait of Malacca. It is bordered by Kedah in the north and east, and Perak in the south. Penang is the second smallest Malaysian state in area after Perlis, and the...
. Ho Hong rapidly opened branches in BataviaJakartaJakarta is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of , and a population of 9,580,000. Jakarta is the country's economic, cultural and political centre...
and PalembangPalembangPalembang is the capital city of the South Sumatra province in Indonesia. Palembang is one of the oldest cities in Indonesia, and has a history of being a capital of a maritime empire. Located on the Musi River banks on the east coast of southern Sumatra island, it has an area of 400.61 square...
in the Dutch East IndiesDutch East IndiesThe Dutch East Indies was a Dutch colony that became modern Indonesia following World War II. It was formed from the nationalised colonies of the Dutch East India Company, which came under the administration of the Netherlands government in 1800....
. - 1923: Branch opened in Hong KongHong KongHong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
. - 1925: Branch opened in ShanghaiShanghaiShanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
. - 1930: CCB, Ho Hong and OCB agree a mutual support pact.
- 1932: The United KingdomUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
leaves the gold standardGold standardThe gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
and devalues the pound sterlingPound sterlingThe pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
. This leaves Ho Hong and OCB in financial trouble and they approach CCB for help. 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: OCBC starts functioning on 2 January 1933. OCBC emerges as the biggest and strongest bank in the Straits Settlements. The Ho Hong and OCB branches in MalayaBritish MalayaBritish Malaya loosely described a set of states on the Malay Peninsula and the Island of Singapore that were brought under British control between the 18th and the 20th centuries...
eventually become OCBC Bank (Malaysia) Bhd.
External links
- Application of the Ho Hong Bank Ltd. For Permission To Acquire Immovable Property In Hong Kong
- 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.
- OCBC Group Fact Sheet
- First Local Bank Engaged in International Banking
- OCBC 2001 Annual Report
- OCBC History
- Chinese In Singapore
- The International Expansion of Singapore's Largest Banks
- 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