The Study On The Autochthonous Strategy Of HSBC In Hunan Province

Since the 1960s, International Trade, Foreign Direct Investment, Capital Market Globalization and liberalization of domestic financial markets have been increasing, and the international banking activities also have been increased rapidly. The entering of foreign banks to the emerging market countries is an important performance and content of financial globalization.On December 11, 2006, China had opened up the banking market.For the population of more than 1.3 billion, near 50% of the national savings rate and a high level of economic growth, the foreign banks have entered the bangking market of China actively.HSBC is one of the typical representatives. HSBC (China) Co., Ltd. officially was found in 2007 with the head office located in Shanghai. In line with the national strategy to revitalize the central part of China, HSBC (China) Co., Ltd. Set up a branch in Changsha in 2008. It was the first foreign-funded banks in Hunan province. In the background of economic and financial globalization, as China had accedeed to the World Trade Organization, autochthonous operating has become a necessary choice for the development of finance internationalization. More and more banks and companies achieve the international operation. HSBC is the success typical of using the autochthonous strategy. It can provide a good reference value to the Chinese bank. This research has very important theoretical meaning and practical value. We will be ready to face the foreign banks-bingring in the new era of opportunities and challenges. Simultaneously, we will improve the environment of economy and finance in Hunan Province. In this context, this paper has studied the HSBC's autochthonous strategy in Hunan Province.At first, the article analyzes the theoretical basis and historical background of the autochthonous strategy by HSBC, and then defines the concept of localization and introduces the relevant theoretical basis of the autochthonous strategies by multinational companies. Secondly, it elaborates the autochthonous experience, the domestic practice, the autochthonous characteristics and the competitive forces of HSBC in China.Thirdly, an analysis of the opportunities and challenges for Hunan Province has benn given. It elaborates the environment of economy and finance, industrial policy and the status of multinational company in Hunan, and gets the advantages and disadvantages of attractting foreign banks for Hunan Province. It also analyses the motives of HSBC entering into Hunan Province and the opportunities and challenges for Hunan Province. Finally, as the conclusions before, the article gets the general idea of the autochthonous strategy of HSBC in Hunan Province. It contains the co-operation, operation, customer, human resource and financial innovation. Moreover, it gets desired objectives which HSBC will achieved in the future.