HSBC Holdings is the financial services company most prolific at making international expansions, followed by Banco Santander and JPMorgan Chase & Co. GlobalData’s financial services foreign direct investment (FDI) company report highlights the current foreign investments made by leading financial services investors. Buy the report here.
HSBC Holdings has been the most active financial services greenfield investor between Q1 2019 and Q3 2023, according to GlobalData’s FDI Projects Database.
Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI, such as mergers and acquisitions, are not included as part of this definition.
The majority of HSBC Holdings investments were in the commercial banking subsector. In fact, 72.5% of its total foreign investments were in this subsector. It also created projects across a further 5 subsectors.
By business function, most (77.5%) of HSBC Holdings projects were related to financial services.
The company has been active across three world regions, mainly focused on Asia which received 65% of the company’s greenfield investments between Q1 2019 and Q3 2023. Its top three destination countries (by number of greenfield FDI projects) were China, the US and Taiwan. Combined these three countries account for 62.2% of its total number of financial services investments.
HSBC Holdings created more FDI projects in 2019 compared to any other year between Q1 2019 and Q3 2023.
The US is the leading source market for outbound financial services greenfield FDI projects. The country accounts for 21.7% of total outbound financial services investment projects. There have been 396 unique parent companies from the US that have announced financial services FDI projects between between Q1 2019 and Q3 2023.
To further understand the top financial services FDI companies, access GlobalData’s Top financial services Foreign Direct Investment Companies report.