HSBC 2007 Annual Report Download - page 417

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All the above make their financial statements up to 31 December except for HSBC Bank Argentina S.A., HSBC La
Buenos Aires Seguros S.A. and Maxima S.A. AFJP, whose financial statements are made up to 30 June annually.
The principal countries of operation are the same as the countries of incorporation except for HSBC Bank Middle
East Limited which operates mainly in the Middle East and HSBC Life (International) Limited which operates
mainly in Hong Kong.
Subsidiaries which experience significant restrictions on their ability to transfer funds to HSBC in the form of
cash dividends or to repay loans and advances
During 2007 and 2006, none of the Group’s subsidiaries have experienced significant restrictions on paying
dividends or repaying loans and advances.
Subsidiaries excluding SPEs where HSBC owns less than 50 per cent of the voting rights
Subsidiary
HSBC’s
interest in
equity capital
Description of relationship
that gives HSBC control
%
2007
HSBC Private Equity Fund 3 .................................. 38.8 HSBC has been appointed as investment adviser/manager of the
fund and is therefore deemed to have control in the fund.
2006
HSBC Private Equity Fund 3 .................................. 38.8 HSBC has been appointed as investment adviser/manager of the
fund and is therefore deemed to have control in the fund.
SPEs consolidated by HSBC where HSBC owns less than 50 per cent of the voting rights
Carrying value of total
consolidated assets Nature of SPE
US$bn
2007
Asscher Finance Limited ...................................................................................... 7.4 Structured investment vehicle
Bryant Park Funding LLC .................................................................................... 5.3 Conduit
Cullinan Funding Ltd ........................................................................................... 33.3 Structured investment vehicle
Household Consumer Loan Corporation .............................................................. 9.3 Securitisation
HSBC Affinity Corporation I ............................................................................... 5.8 Securitisation
HSBC Auto Receivables Corporation .................................................................. 5.2 Securitisation
HSBC Home Equity Loan Corporation I ............................................................. 8.2 Securitisation
HSBC Receivables Funding, Inc I ....................................................................... 6.0 Securitisation
Metris Receivables Inc ......................................................................................... 5.5 Securitisation
Regency Assets Limited ....................................................................................... 9.1 Conduit
Solitaire Funding Ltd ............................................................................................ 21.6 Conduit
2006
Bryant Park Funding LLC .................................................................................... 5.3 Conduit
Household Consumer Loan Corporation .............................................................. 6.1 Securitisation
HSBC Affinity Corporation I ............................................................................... 5.7 Securitisation
HSBC Auto Receivables Corporation .................................................................. 6.9 Securitisation
HSBC Home Equity Loan Corporation I ............................................................. 8.7 Securitisation
HSBC Receivables Funding, Inc I ....................................................................... 6.0 Securitisation
Metris Receivables Inc ......................................................................................... 6.2 Securitisation
Regency Assets Limited ....................................................................................... 9.4 Conduit
Solitaire Funding Ltd ............................................................................................ 20.4 Conduit
In each of the above cases, HSBC has less than 50 per cent of the voting rights, but consolidates because it has the
majority of risks and rewards of ownership of the SPE, or the substance of the relationship with the SPE is such that
its activities are conducted on behalf of HSBC according to its specific business needs so that HSBC obtains benefit
from the SPEs operation. HSBC also consolidates a number of other individually insignificant SPEs where it owns
less than 50 per cent of the voting rights.
Acquisitions
HSBC made the following acquisitions of subsidiaries or business operations in 2007, which were accounted for
using the purchase method: