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China Construction Bank

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China Construction Bank
Company typePublic
ISINCNE100000742
IndustryBanking
Financial services
Investment services
FoundedBeijing, China
(1 October 1954; 70 years ago (1954-10-01))
Headquarters
Beijing
,
China
Key people
Wang Hongzhang (Chairman)
Zhang Jianguo (President)
Xin Shusen (Vice President)
ProductsFinance and insurance
Consumer Banking
Corporate Banking
Investment banking
Investment management
Global Wealth Management
Private equity
Mortgages
Credit cards
RevenueIncrease CN¥633.77 billion
$175.1 billion (2020)[1][2]
Increase CN¥308.16 billion
$44.8 billion (2018)[1]
Increase CN¥255.63 billion
$37.2 billion (2018)[1]
Total assetsIncrease CN¥23.22 trillion
$3.375 trillion (2018)[1]
Total equityIncrease CN¥1.992 trillion
$290 billion (2018)[1]
OwnerGovernment of China
Number of employees
345,971 (2018)[1]
ParentMinistry of Finance (China)
Websitewww.ccb.com

China Construction Bank Corporation (CCB) is one of the "big four" banks in the People's Republic of China. In 2015 CCB was the 2nd largest bank in the world by market capitalization and 6th largest company in the world.[3][4] The bank has approximately 13,629 domestic branches. In addition, it maintains overseas branches in Barcelona, Frankfurt, Luxembourg, Hong Kong, Johannesburg, New York City, Seoul, Singapore, Tokyo, Melbourne, Kuala Lumpur, Santiago de Chile, Sydney and Auckland, and a wholly owned subsidiary in London. Its total assets reached CN¥ 8.7 trillion in 2009,[5] and it is considered a systemically important bank by the Financial Stability Board. Its headquarters is in Xicheng District, Beijing.[6]



































History

China Construction Bank, Beijing
China Construction Bank, Hong Kong
China Construction Bank in Hangzhou

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.

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.[7][8]

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.[9]

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.[10]

Investment by Bank of America

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 now holds about 25.1 billion H-shares, representing about 10.75% of CCB's issued shares. Bank of America may not sell the 6 billion shares that it purchased from Huijin using the call option before 29 August 2011 without prior consent of CCB. Bank of America still has the option to purchase additional shares.[11]

In May 2009, speculation was raised that US$7.3 billion worth of CCB shares had been sold by BoA after being ordered to obtain more capital following the results of the Dodd-Frank Act Annual Stress Test.[12]

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.[13]

In September 2013, Bank of America sold its remaining stake in the China Construction Bank for as much as $1.5 billion.[14]

In June 2017, China Construction Bank (Malaysia) signs 13 Memorandum of Understandings on its opening day in Malaysia.[citation needed]

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.[15][16] CCB officially opened its New York branch on 6 June 2009.

In 2013, CCB opened its European Headquarters in Luxembourg.[17]

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.[18]

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.

Awards

  • Global 2000 Rank #2 - World's Largest Public Companies in 2016[19]

See also

References

  1. ^ a b c d e f "Annual Report 2018" (PDF). China Construction Bank Corporation. 2019-03-27. Archived (PDF) from the original on 2019-05-30. Retrieved 2019-05-29.
  2. ^ "SHA:601939 - Google Search". Google.com. Archived from the original on 4 April 2016. Retrieved 4 December 2017.
  3. ^ "The World's Biggest Public Companies". Forbes. Archived from the original on December 23, 2012. Retrieved June 6, 2011.
  4. ^ "China Construction". Forbes. Archived from the original on June 25, 2011. Retrieved June 6, 2011.
  5. ^ "Archived copy". Archived from the original on 2009-04-28. Retrieved 2009-06-13.{{cite web}}: CS1 maint: archived copy as title (link)
  6. ^ "Corporate Profile Archived 2014-02-17 at the Wayback Machine." China Construction Bank. Retrieved on February 27, 2014. "Address of headquarters:No.25, Finance Street, Xicheng District, Beijing, China, Postcode 100033" - Address in Chinese Archived 2014-02-27 at the Wayback Machine: "总行地址：中国北京西城区金融大街25号邮编：100033"
  7. ^ 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.
  8. ^ "Former CCB head jailed for 15 years". Chinadaily.com.cn. Archived from the original on 4 March 2016. Retrieved 4 December 2017.
  9. ^ "More Chinese banks stop transactions with N.Korea - Mubasher". English.mubasher.info. 2013-05-11. Archived from the original on 2017-10-12. Retrieved 2013-05-18.
  10. ^ "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.
  11. ^ "Bank of America Newsroom". Newsroom.bankofamerica.com. Archived from the original on 1 June 2008. Retrieved 4 December 2017.
  12. ^ "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.
  13. ^ "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.
  14. ^ 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.
  15. ^ "Archived copy". Archived from the original on 2009-11-14. Retrieved 2008-11-25.{{cite web}}: CS1 maint: archived copy as title (link)
  16. ^ "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.
  17. ^ "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.
  18. ^ China Construction Bank to set up RMB 5 bln health fund Archived 2011-07-07 at the Wayback Machine, Alibaba.com, 5 November 2008
  19. ^ Schaefer, Steve. "China Construction Bank - pg.3". Forbes. Archived from the original on 2016-11-14. Retrieved 2016-11-14.
  • Business data for China Construction Bank:

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