Why Three Shanghai Banks Exist Today

One of my hobbies as a student was exploring cross-strait relations and history, and as you might know, Taiwan, China, and Hong Kong share a deeply intertwined past. Today, I want to share an interesting piece of story that reflects the development of that era: the journey of the three Shanghai Commercial Bank branches in Taipei, Hong Kong, and Shanghai.

The beginning of the story

The Shanghai Commercial & Savings Bank (SCSB) was founded on June 2, 1915, in Shanghai by Chen Guangfu, alongside key figures like the Rong family, known for their influence in China’s flour and textile industries. Starting with a capital of 100,000 silver dollars, the bank set out with the mission to "serve society, support industry and commerce, and develop international trade." By the 1930s, SCSB had become China’s largest private bank, known for pioneering services like warehouse collateral loans and international exchange operations.

However, the tides turned in 1949 when the Chinese Civil War concluded, and the People’s Republic of China (PRC) was established. Political upheavals forced SCSB to rethink its operations. This pivotal moment led to the creation of three distinct entities in Taipei, Hong Kong, and Shanghai.

Taipei

When the Republic of China government retreated to Taiwan in 1949, SCSB followed suit. In 1954, it established a General Management Office in Taipei, and by 1965, it formally resumed operations, becoming the only private bank to successfully relocate from China to Taiwan.

Today, SCSB is one of the leading financial institutions in Taiwan, boasting 69 branches, and remains deeply involved in fostering cross-strait financial cooperation. The bank’s enduring connection to its Shanghai roots is evident through its continued growth and influence.

Hong Kong

As tensions mounted in China, the Hong Kong branch of SCSB took a decisive step in 1950, registering as an independent entity under the name Shanghai Commercial Bank (SCB). This move safeguarded the bank’s assets from potential seizure by the PRC. While SCB became independent, it maintained strong ties to its parent organization in Taiwan, which holds a 57.6% stake.

SCB thrived in Hong Kong’s dynamic financial environment. By expanding internationally, it established a global footprint with branches in the U.S. and the U.K. By 2020, its total assets reached HK$226.7 billion.

Shanghai

The original Shanghai headquarters ceased operations in 1949, but its legacy was reborn in 1995 with the establishment of the new Bank of Shanghai. Emerging as a city commercial bank, it represented the evolving economic landscape of China.

Initially formed by merging 98 urban credit cooperatives, the Bank of Shanghai quickly adapted to China’s reform policies. In the late 1990s, it attracted international investments, including partnerships with HSBC and the International Finance Corporation. The bank expanded into free trade zones, becoming the first city commercial bank to operate beyond its region. By 2024, its total assets had grown to USD 435.14 billion, ranking among the top 100 global banks by tier-one capital.

Notably, Bank of Shanghai established a subsidiary in Hong Kong in 2013.

Ending thoughts

Despite their distinct paths, we have three very similar entities—The Shanghai Commercial & Savings Bank (SCSB) in Taipei, Shanghai Commercial Bank (SCB) in Hong Kong, and Bank of Shanghai in China—across the strait.

So, that’s why you can find three very similar, but different, Shanghai Banks entities in Hong Kong. Pretty interesting, right? I think this also reflects the complex interplay of national identity and emotions among people in Taiwan, where vastly different origins and beliefs have shaped our unique perspectives.