HSBC Has Been Issuing Banknotes in Hong Kong Since 1865

In Hong Kong, the central banking institution—known as the Hong Kong Monetary Authority (HKMA) since 1993—authorizes commercial banks to issue their own banknotes. While numerous banking corporations have issued currency throughout Hong Kong’s history, only three commercial banks have retained this privilege since 1994: Standard Chartered Bank (Hong Kong), The Hongkong and Shanghai Banking Corporation (HSBC), and Bank of China (Hong Kong).

With 56% of the banknotes currently in circulation in Hong Kong issued by HSBC, anyone living in or visiting Hong Kong is highly likely to carry an HSBC banknote. Consequently, HSBC is the bank most people associate with the city. Established in Hong Kong on March 3, 1865, HSBC began issuing its own banknotes almost immediately, offering denominations of 1, 5, 10, 25, 50, 100, and 500 Hong Kong dollars.

Although widely accepted by local merchants, HSBC banknotes were not accepted by the Treasury for tax payments until 1935, the same year they officially became legal tender across the territory. Today, HSBC continues to issue banknotes in denominations of 20, 50, 100, 500, and 1,000 Hong Kong dollars.