China Construction Bank: Difference between revisions

China Construction Bank Corporation
China Construction Bank Corporation
Chinese	中国建设银行股份有限公司
Transcriptions
Transcriptions
China Construction Bank
Simplified Chinese	中国建设银行
Traditional Chinese	中國建設銀行
Hanyu Pinyin
Transcriptions
Standard Mandarin
Hanyu Pinyin	Zhōngguó Jiànshè Yínháng
Second alternative Chinese name
Chinese	建行
Hanyu Pinyin
Transcriptions
Standard Mandarin
Hanyu Pinyin	Jiànháng

China Construction Bank
	Head office in Beijing, China
Native name	中国建设银行
Company type	Public
Traded as	SSE: 601939 (A share); SEHK: 939 (H share); IDX: MCOR ; SSE MidCap Component (A share); Hang Seng Component (H share);
ISIN	CNE100000742; CNE1000002H1;
Industry	Financial services
Founded	1 October 1954; 70 years ago
Headquarters	Beijing, China
Key people	Wang Hongzhang (Chairman); Zhang Jianguo (President); Xin Shusen (Vice President)
Products	Consumer banking; corporate banking; investment banking; insurance; private banking; private equity; mortgage loans; credit cards; investment management; wealth management; asset management; mutual funds; exchange-traded funds; index funds;
Revenue	CN¥633.77 billion; $175.1 billion (2020)
Operating income	CN¥308.16 billion; $44.8 billion (2018)
Net income	CN¥255.63 billion; $37.2 billion (2018)
Total assets	CN¥23.22 trillion; $3.375 trillion (2018)
Total equity	CN¥1.992 trillion; $290 billion (2018)
Owner	Government of China
Number of employees	345,971 (2018)
Website	en.ccb.com

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The China Construction Bank Corporation (CCB) is a Chinese state-owned multinational banking and financial services corporation headquartered in Beijing, China. It is one of the "big four" banks in China, and is the third largest bank in the world by total assets behind the Agricultural Bank of China and the Industrial and Commercial Bank of China. The bank has approximately 13,629 domestic branches. In addition, it maintains overseas branches in London, Barcelona, Frankfurt, Luxembourg, Hong Kong, Johannesburg, New York City, Seoul, Singapore, Tokyo, Melbourne, Kuala Lumpur, Santiago de Chile, Brisbane, Sydney and Auckland. Its total assets reached CN¥ 8.7 trillion in 2009,^[3] and it is considered a systemically important bank by the Financial Stability Board. Its headquarters is in Xicheng District.^[4]

History

CCB was founded on 1 October 1954 under the name of People's Construction Bank of China (Chinese: 中国人民建设银行; pinyin: Zhōngguó Rénmín Jiànshè Yínháng), and later changed to China Construction Bank on 26 March 1996. It was established to focus on financing for investments, in the context of the People's Bank of China beginning to spin off its commercial banking functions.^[5]^: 225

In January 2002, CCB chairman Wang Xuebing resigned from the bank after being charged with accepting bribes while he was employed with Bank of China; he was sentenced to 12 years in prison. In March 2005, his successor, Zhang Enzhao, resigned for "personal reasons". Just prior to his resignation, he had been charged in a lawsuit with accepting a US$1 million bribe. He was later sentenced to 15 years in jail in connection with the case.^[6]^[7]

China Construction Bank Corporation was formed as a joint-stock commercial bank in September 2004 as a result of a separation procedure undertaken by its predecessor, China Construction Bank, under the PRC Company Law. Following the China Banking Regulatory Committee's approval on 14 September 2004, the next day the bank (Jianyin) became a separate legal entity, owned by the Chinese government holding company, Central Huijin Investment Company or simply Huijin.

During the 2013 Korean crisis, the China Construction Bank halted business with a North Korean bank accused by the United States of financing Pyongyang's missile and nuclear programs.^[8]

In 2015, China Construction Bank ranks the 2nd in Forbes’ 13th annual Global 2000 ranking of the biggest, most powerful and most valuable companies in the world.^[9]

In 2021, China Construction Bank ranks the 3rd largest bank around the world in Forbes' 2021 Global 2000 list.^[10] It ranks 5th in Forbes' 2022 Global 2000 list.

In 2022, CCB announced the creation of a 30 billion yuan ($4.2 billion) fund, plans to invest in real estate projects and turn them into affordable rental houses. This is part of China's initiative to support the real estate sector. Another initiative in the same year was an 80 billion yuan ($11.4 billion) fund to help real estate developers, of which China Construction Bank contributed 50 billion yuan ($7 billion).^[11]

At a time when the general trend was for Chinese banks to decrease their business with Russia due to the sanctions against Russia following its 2022 invasion of Ukraine, China Construction Bank expanded its business in Russia.^[12]^[13]

China Construction Bank Tower (left) in Shanghai
CCB Tower in Zhengzhou
CCB Tower in Xiamen

Investment by Bank of America (2005-2013)

In 2005, Bank of America acquired a 9% stake in China Construction Bank for US$3 billion. It represented the company's largest foray into China's growing banking sector. Bank of America currently has offices in Hong Kong, Shanghai, and Guangzhou and sought to expand its Chinese business as a result of this deal.

On or about 5 June 2008, Bank of America purchased 6 billion H-shares for approximately HK$2.42 per share using call options under a formula in the initial acquisition agreement. Bank of America subsequently held about 25.1 billion H-shares, representing about 10.75% of CCB's issued shares, with a commitment not to sell the 6 billion shares that it purchased from Huijin using the call option before 29 August 2011 without prior consent of CCB.^[14]

In May 2009, speculation was raised that Bank of America had sold US$7.3 billion worth of CCB shares after being ordered to obtain more capital following the results of the Dodd-Frank Act Annual Stress Test.^[15]

On 29 August 2011, Bank of America announced it would sell approximately half its stake in CCB (13.1 billion shares worth about US$8.3 billion) to an undisclosed group of investors.^[16]

In September 2013, Bank of America sold its remaining stake in the China Construction Bank for as much as $1.5 billion.^[17]

International expansion

In 2006, CCB acquired Bank of America (Asia), which started in 1912 in Hong Kong as Bank of Canton, and had a subsidiary in Macao.

CCB opened a London office on 2 June 2009.

In 2008, CCB submitted an application to the New York State Banking Department and the Federal Reserve Board to establish a branch in New York City.^[18]^[19] CCB officially opened its New York branch on 6 June 2009.

In 2013, CCB opened its European Headquarters in Luxembourg.^[20]

In 2016, CCB Indonesia was founded by the merger between two banks: Bank Windu Kentjana and Bank Anda.

Health fund

China Construction Bank investment division launched a CN¥5 billion (US$731.3 million) fund called China Healthcare Investment Fund to focus on investments in China's rapidly growing healthcare sector. The fund focuses on investments in healthcare related sectors including pharmacy, medical equipment manufacturing, medical institutions and services. It is the first domestic investment fund specializing in investments in China's healthcare industry.^[21]

Stock exchanges listing

In late 2005, China Construction Bank made an initial public offering on the Stock Exchange of Hong Kong. In late 2007, it made China's second-largest initial public offering of CN¥57.12 billion (US$7.6 billion) on the Shanghai Stock Exchange.

The bank is a component of Hang Seng Index, SSE 180 Index and other indexes of Pan-Chinese and Pan-Asia stock exchanges, such as CSI 300 Index, Hang Seng China 50 Index, FTSE China A50 Index and S&P Asia 50.

The bank was also a component of the Hang Seng China Enterprises Index.

Leadership

Wu Boshan [zh], president September 1980 - December 1984
Zhou Daojiong [zh], president December 1984 - April 1994
Wang Qishan, president February 1994 - February 1998
Zhou Xiaochuan, president February 1998 - February 2000
Wang Xuebing [zh], president February 2000 - January 2002
Zhang Enzhao, president January 2002 - September 2004, chairman 15 September 2004 - 16 March 2005
Chang Zhenming, president 15 September 2004 - 23 July 2006
Guo Shuqing, chairman 25 March 2005 - 28 October 2011
Zhang Jianguo [zh], president 27 July 2006 - 12 June 2015
Wang Hongzhang, chairman 16 January 2012 - 16 August 2017
Wang Zuji [zh], president 12 June 2015 - 27 March 2019
Tian Guoli [zh], chairman 9 October 2017 - 26 March 2024
Liu Guiping, president 27 March 2019 - 27 November 2020
Wang Jiang, president 5 February 2021 - 24 March 2022
Zhang Jinliang, president 27 May 2022 - 26 March 2024, chairman since 27 March 2024

Awards

Global 2000 Rank #2 - World's Largest Public Companies in 2016^[22]

References

^ ^a ^b ^c ^d ^e ^f "Annual Report 2018" (PDF). China Construction Bank Corporation. 27 March 2019. Archived (PDF) from the original on 30 May 2019. Retrieved 29 May 2019.
^ "SHA:601939 - Google Search". Google.com. Archived from the original on 4 April 2016. Retrieved 4 December 2017.
^ "Agricultural Bank of China posts 17.5% rise in 2008 net profit_English_Xinhua". Archived from the original on 28 April 2009. Retrieved 13 June 2009.
^ "Corporate Profile Archived 2014-02-17 at the Wayback Machine." China Construction Bank. Retrieved on 27 February 2014. "Address of headquarters:No.25, Finance Street, Xicheng District, Beijing, China, Postcode 100033" - Address in Chinese Archived 27 February 2014 at the Wayback Machine: "总行地址：中国北京西城区金融大街25号邮编：100033"
^ Roach, Stephen S. (2022). Accidental Conflict: America, China, and the Clash of False Narratives. New Haven: Yale University Press. doi:10.12987/9780300269017. ISBN 978-0-300-26901-7. JSTOR j.ctv2z0vv2v. OCLC 1347023475.
^ Barboza, David (22 March 2005). "Lawsuit Involving Bribery Preceded Bank Resignation". The New York Times. Archived from the original on 13 March 2014. Retrieved 18 February 2017.
^ "Former CCB head jailed for 15 years". Chinadaily.com.cn. Archived from the original on 4 March 2016. Retrieved 4 December 2017.
^ "More Chinese banks stop transactions with N.Korea - Mubasher". English.mubasher.info. 11 May 2013. Archived from the original on 12 October 2017. Retrieved 18 May 2013.
^ "Forbes' 13th Annual Global 2000: The World's Biggest Public Companies". Forbes.com. 7 May 2015. Archived from the original on 9 May 2015. Retrieved 9 May 2015.
^ "The Global 2000 2021". Forbes. Archived from the original on 13 May 2021. Retrieved 3 December 2021.
^ "China Construction Bank to set up 30b yuan rental housing fund". Businesstimes. 26 September 2022. Archived from the original on 29 January 2024. Retrieved 29 January 2024.
^ Reporter, Brendan Cole Senior News (7 September 2024). "Chinese state banks off-load Russia assets in blow to Putin: Report". Newsweek. Retrieved 27 December 2024.
^ "Exclusive: China firms go 'underground' on Russia payments as banks pull back". Reuters. Archived from the original on 21 September 2024. Retrieved 27 December 2024.
^ "Bank of America Newsroom". Newsroom.bankofamerica.com. Archived from the original on 1 June 2008. Retrieved 4 December 2017.
^ "Bank of America sells $7.3 billion CCB stake: source". Reuters.com. 12 May 2009. Archived from the original on 5 December 2017. Retrieved 4 December 2017.
^ "Bank of America to sell China bank stake for $8.3 billion". Reuters. 29 August 2011. Archived from the original on 24 September 2015. Retrieved 30 June 2017.
^ Elzio Barreto, Denny Thomas and Peter Rudegeair (3 September 2013). "Bank of America selling remaining stake in Chinese bank". Reuters. Archived from the original on 24 September 2015. Retrieved 30 June 2017.
^ "NYSBD Weekly Bulletin 10/3/08". Archived from the original on 14 November 2009. Retrieved 25 November 2008.
^ "Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received" (PDF). Federalreserve.gov. Archived (PDF) from the original on 1 August 2017. Retrieved 4 December 2017.
^ "Luxembourg lauds China bank opening in battle for yuan trade". Reuters.com. 29 October 2013. Archived from the original on 5 December 2017. Retrieved 4 December 2017.
^ China Construction Bank to set up RMB 5 bln health fund Archived 7 July 2011 at the Wayback Machine, Alibaba.com, 5 November 2008
^ Schaefer, Steve. "China Construction Bank - pg.3". Forbes. Archived from the original on 14 November 2016. Retrieved 14 November 2016.

External links

Media related to China Construction Bank at Wikimedia Commons
Business data for China Construction Bank:
Official website

[ar2018-1] ^ ^a ^b ^c ^d ^e ^f "Annual Report 2018" (PDF). China Construction Bank Corporation. 27 March 2019. Archived (PDF) from the original on 30 May 2019. Retrieved 29 May 2019.

[icbc-ltd.com-2] "SHA:601939 - Google Search". Google.com. Archived from the original on 4 April 2016. Retrieved 4 December 2017.

[3] "Agricultural Bank of China posts 17.5% rise in 2008 net profit_English_Xinhua". Archived from the original on 28 April 2009. Retrieved 13 June 2009.

[4] "Corporate Profile Archived 2014-02-17 at the Wayback Machine." China Construction Bank. Retrieved on 27 February 2014. "Address of headquarters:No.25, Finance Street, Xicheng District, Beijing, China, Postcode 100033" - Address in Chinese Archived 27 February 2014 at the Wayback Machine: "总行地址：中国北京西城区金融大街25号邮编：100033"

[:0232-5] Roach, Stephen S. (2022). Accidental Conflict: America, China, and the Clash of False Narratives. New Haven: Yale University Press. doi:10.12987/9780300269017. ISBN 978-0-300-26901-7. JSTOR j.ctv2z0vv2v. OCLC 1347023475.

[6] Barboza, David (22 March 2005). "Lawsuit Involving Bribery Preceded Bank Resignation". The New York Times. Archived from the original on 13 March 2014. Retrieved 18 February 2017.

[7] "Former CCB head jailed for 15 years". Chinadaily.com.cn. Archived from the original on 4 March 2016. Retrieved 4 December 2017.

[8] "More Chinese banks stop transactions with N.Korea - Mubasher". English.mubasher.info. 11 May 2013. Archived from the original on 12 October 2017. Retrieved 18 May 2013.

[9] "Forbes' 13th Annual Global 2000: The World's Biggest Public Companies". Forbes.com. 7 May 2015. Archived from the original on 9 May 2015. Retrieved 9 May 2015.

[10] "The Global 2000 2021". Forbes. Archived from the original on 13 May 2021. Retrieved 3 December 2021.

[11] "China Construction Bank to set up 30b yuan rental housing fund". Businesstimes. 26 September 2022. Archived from the original on 29 January 2024. Retrieved 29 January 2024.

[12] Reporter, Brendan Cole Senior News (7 September 2024). "Chinese state banks off-load Russia assets in blow to Putin: Report". Newsweek. Retrieved 27 December 2024.

[13] "Exclusive: China firms go 'underground' on Russia payments as banks pull back". Reuters. Archived from the original on 21 September 2024. Retrieved 27 December 2024.

[14] "Bank of America Newsroom". Newsroom.bankofamerica.com. Archived from the original on 1 June 2008. Retrieved 4 December 2017.

[15] "Bank of America sells $7.3 billion CCB stake: source". Reuters.com. 12 May 2009. Archived from the original on 5 December 2017. Retrieved 4 December 2017.

[16] "Bank of America to sell China bank stake for $8.3 billion". Reuters. 29 August 2011. Archived from the original on 24 September 2015. Retrieved 30 June 2017.

[17] Elzio Barreto, Denny Thomas and Peter Rudegeair (3 September 2013). "Bank of America selling remaining stake in Chinese bank". Reuters. Archived from the original on 24 September 2015. Retrieved 30 June 2017.

[18] "NYSBD Weekly Bulletin 10/3/08". Archived from the original on 14 November 2009. Retrieved 25 November 2008.

[19] "Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received" (PDF). Federalreserve.gov. Archived (PDF) from the original on 1 August 2017. Retrieved 4 December 2017.

[20] "Luxembourg lauds China bank opening in battle for yuan trade". Reuters.com. 29 October 2013. Archived from the original on 5 December 2017. Retrieved 4 December 2017.

[21] China Construction Bank to set up RMB 5 bln health fund Archived 7 July 2011 at the Wayback Machine, Alibaba.com, 5 November 2008

[22] Schaefer, Steve. "China Construction Bank - pg.3". Forbes. Archived from the original on 14 November 2016. Retrieved 14 November 2016.

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