China Construction Bank

China Construction Bank
Native name
中国建设银行
Company typePublic
ISIN
  • CNE100000742
  • CNE1000002H1
IndustryFinancial services
Founded1 October 1954; 69 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
Chinese name
Chinese中国建设银行股份有限公司
China Construction Bank
Simplified Chinese中国建设银行
Traditional Chinese中國建設銀行
Second alternative Chinese name
Chinese建行
Websiteccb.com

China Construction Bank Corporation (CCB) is one of the "big four" banks in 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 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,[5] and it is considered a systemically important bank by the Financial Stability Board. Its headquarters is in Xicheng District, Beijing.[6]

History

Branch in Xinhui, Guangdong

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.[7]: 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.[8][9]

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.[10]

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.[11]

In 2021, China Construction Bank ranks the 3rd largest bank around the world in Forbes' 2021 Global 2000 list.[12] 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).[13]

Global 2000 Rank #2 - World's Largest Public Companies in 2023.[14]

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.[15]

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.[16]

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.[17]

In September 2013, Bank of America sold its remaining stake in the China Construction Bank for as much as $1.5 billion.[18]

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.[19][20] CCB officially opened its New York branch on 6 June 2009.

In 2013, CCB opened its European Headquarters in Luxembourg.[21]

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.[22]

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[23]

See also

References

  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.
  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 21 December 2012. Retrieved 6 June 2011.
  4. ^ "China Construction". Forbes. Archived from the original on 25 June 2011. Retrieved 6 June 2011.
  5. ^ "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.
  6. ^ "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"
  7. ^ 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.
  8. ^ 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.
  9. ^ "Former CCB head jailed for 15 years". Chinadaily.com.cn. Archived from the original on 4 March 2016. Retrieved 4 December 2017.
  10. ^ "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.
  11. ^ "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.
  12. ^ "The Global 2000 2021". Forbes. Retrieved 3 December 2021.
  13. ^ "China Construction Bank to set up 30b yuan rental housing fund". Businesstimes. Archived from the original on 29 January 2024. Retrieved 29 January 2024.
  14. ^ "The Global 2000". Forbes. Archived from the original on 25 January 2024. Retrieved 29 January 2024.
  15. ^ "Bank of America Newsroom". Newsroom.bankofamerica.com. Archived from the original on 1 June 2008. Retrieved 4 December 2017.
  16. ^ "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.
  17. ^ "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.
  18. ^ 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.
  19. ^ "NYSBD Weekly Bulletin 10/3/08". Archived from the original on 14 November 2009. Retrieved 25 November 2008.
  20. ^ "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.
  21. ^ "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.
  22. ^ China Construction Bank to set up RMB 5 bln health fund Archived 7 July 2011 at the Wayback Machine, Alibaba.com, 5 November 2008
  23. ^ 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:
    • Bloomberg
    • Google
    • Reuters
    • Yahoo!
  • Official website
  • China Construction Bank New York ccbny.com
  • China Construction Bank Singapore
  • China Construction Bank Frankfurt ccbff.de
  • China Construction Bank Johannesburg ccbjhd.com
  • China Construction Bank Korea ccbseoul.com
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