Ho Hong Bank

The Ho Hong Bank (1917–1932) was a Malayan 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.
Ho Hong's roots: The Chinese Commercial Bank.
The founders of Ho Hong Bank were Lim Peng Siang, Lim Boon Keng and Seow Poh Leng, all of whom were, before that time, founding members and officers of the earlier Chinese Commercial Bank.
On 17 August 1912, a largely attended meeting of Hokkiens, shareholders of the then proposed Chinese Commercial Bank Ltd., was held at the Chinese Chamber of Commerce in Hill Street, presided over by Lee Choon Guan. The assembled elected its first directors: 
- Chia Yew Siang ()
- Lee Choon Guan ()
- Liao Chia Heng ()
- Lim Peng Siang ()
- See Tiong Wah ()
- Seow Eng Tin ()
- Tan Chay Yan ()
- Tan Jiak Kim ()
- Tan Kah Kee ()
- Tan Sian Cheng ()
- Yeo Cheng Hai ()
- Yin Suat Chuan () (Dr. S. C. Yin)
The meeting decided to register the company with a nominal (authorised) capital of $4 million. At that time the issued capital of $2 million had been over-subscribed. The temporary premises of the bank was at No. 61 Kling Street and Seow Poh-Leng was pro. tem. Secretary. The bank commenced business at temporary premises at No. 31 Market Street on 2 December 1912, with Lim CHoon-Guan as Chairman, Lim Peng-Siang as both Deputy Chairman and Managing Director, Seow Eng-Tin as Manager and Seow Poh-Leng continuing as pro. tem. Secretary. By this time the Board of Directors comprised, besides Choon-Guan, Peng-Siang, and Eng-Tin, Tan Jiak-Kim, Liao Chia-Heng, Tan Chay-Yan, Yeo Cheng-Hai, Dr. Lim Boon Keng, Teo Soon-Sian, Dr. S. C. Yin, Tau Siau-Cheng, Seow Eng-Tin, and Cheoh Cheng-Kee.
The first year of the bank (2 December 1912 – 15 October 1913) had, despite the commercial depression and many other difficulties, produced a profit of $84,742.03, $30,000 of which was moved to general reserve, $10,000 to reserve for bad and doubtful debts and $44,742.08 carried forward. At that time the value of the bank's property had appreciated and the bank was considering opening a branch at Penang.
In November 1913, following continual withdrawals for about a week amounting to up to $700,000, a notice was posted on the door of the Kwong Yik Banking Company's premises at Kling Street informing the public that there had been a run on the bank and the bank was unable to meet its liabilities at that time. The Chinese Commercial Bank's position, at the time, was considered to have been on sound footing.
To allay public fears, the Chinese Commercial Bank, in the form of a letter dated 16 December 1913 from Secretary Seow Poh-Leng to the Editor of the Straits Times, wrote, "I notice a short paragraph in your issue of last Saturday to the effect that there has been a feeling of uneasiness in regard to the Chinese banks generally in Singapore and that in consequence many Chinese merchants have transferred their business from Chinese banks to European banks. I beg to state that these statements are not applicable to the Chinese Commercial Bank." Poh-Leng went on to note that the Chinese Commercial Bank had, far from experiencing any loss of business, had improved its turnover - the turnover of business between 20 November 1913 when the uneasiness began and 13 December, exceeded the turnover of the same number of days previously, by 25% and correspondingly customers also increased by more than 26%.
In March 1914, Secretary Seow Poh Leng reported that a general meeting of shareholders of the Chinese Commercial Bank Limited had been held on 10 March 1914 at 64 Kling Street to elect new Directors. Shareholders present were Seow and Chairman Lee Choon Guan, and included:
Cheo Cheng Kee (), Chia Yew Siang, Ching Chwee Phuan (), Gaw Khek Kheam (), Khoo Kok Wah (), Khoo Yang Tin (), Lew Hong Sek (), Lim Nee Soon, Lim Peng Siang (by proxy), Lim Teck Seong (), Oei Teck Seng (), Seow Eng Tin, Soh Siang Phuan (), Tan Ean Kiam (), Tan Sian Cheng and Yeo Hock Hoe ()
They represented in all 8,180 shares. A poll was conducted and the 12 members with the highest votes were elected Directors - Lim Peng Siang (7,420), Lee Choon Guan (6,640), Lim Nee Soon (6,520), Lim Boon Keng (6,340), Seow Eng Tin (5,580), Tan Sian Cheng (5,340), Yeo Cheng Hai (5,160), Tan CHay Yan (4,640), Tan Jiak Kim (4,470), Tan Kah Kee (4,420), Gaw Khek Khean (4,390) and Lew Hong Sek (4,240). Lim Choon Guan was made Chairman, Dr. Lim Boon Keng made Vice Chairman and Lim Peng Siang was made Managing Director, with Yeoh Cheng Hai as Acting Managing Director in his absence, Seow Eng Tin as Manager and Seow Poh Leng as Secretary and Assistant Manager.
in August 1914 there was a run on the Chinese Commercial Bank when $260,000 was drawn over the counter on Tuesday 4 August 1914. 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, after which he fell from sheer exhaustion. A notice, ordered by Sir Arthur, was published in the Staits Times of 7 August where the bank informed the public, "Owing to a run on the Chinese Commercial Bank, Limited, the directors have had to request the assistance of Government, and the latter has promised to help pending an examination into the accounts of the bank." By order of the Colonial Secretary, the bank was closed during the examination.
On 27 August 1914, Secretary Seow Poh Leng had a notice published in the major newspapers, informing the public of a Government proclamation, dated 26 August and published at the bank, "Maxwell, acting Colonial Secretary, Straits Settlements, issues this Proclamation for general information. The Government has examined thoroughly the accounts of the Chinese Commercial Bank and finds that its assets exceed the liabilities. The present trouble is partly due to the fact that many traders are hoarding their money instead of paying it into the bank. The Government now allows the shareholders of the bank to raise ready money; if no cash can be raised then they must make a call on the unpaid capital to meet this emergency. If the bank is able within a reasonable time to raise cash, the Government will certainly lend it a sum of money equal to the amount so raised. The bank is authorised to collect all debts due to it in the usual way. Further it should be well known to all that in the present time of war, people who have cash should pay it into the various banks in the Colony and thus allow it to circulate freely to help commerce and should not hoard it. Hoarding not only does no good to those who hoard but will certainly do harm to the local situation and thus help the enemy."
On 30 September 1914, the bank's statement of accounts, dated 15 August, was published by its auditors, Welsh & Co. On 30 September, Secretary Seow Poh Leng issued an announcement that the bank would resume business on Tuesday 1 October 1914. Within the first five minutes of the bank opening its doors there was more paid in than paid out and by noon deposits exceeded withdrawals by $27,552. Due to repeated complaints from shareholders, particularly Tan Cheng Siong, Lim Peng Siang, resigned.
The fourth annual report of the bank, in November 1916, noted a net profit of $199,105.80. Within 12 months, business volume had nearly doubled.
The net profit for the year ending 30 September 1917, amounted to $269,704.22. The bank had successfully recovered from the run, but due to complaints from shareholders, particularly Tan Cheng Siong, Lim Peng Siang resigned his position as Managing Director.
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 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, Hong Kong 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 Leng. Among those sent over to learn under the program implemented by Ko Leong Hoe and Dr. H. L. Huang, included bankers like Chua Keh Hai (), Kwa Siew Tee (), Tan Chwee Lee (), Tan Ee Leong () and Yeo Tiam Siew ().
A final transformation: The Oversea-Chinese Banking Corporation.
Difficulties brought on by the Great Depression forced the Ho Hong Bank to merge in 1932 with the Oversea-Chinese Bank (OCB) and the Chinese Commercial Bank (CCB) to form the Oversea-Chinese Banking Corporation (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 Xiamen. 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.