China Construction Bank

China Construction Bank

Type	Public company
Traded as	SEHK: 0939 SSE: 601939
Industry	Banking Financial services Investment services
Founded	Beijing, China (1954 (1954))
Headquarters	Beijing, People's Republic of China
Key people	Guo Shuqing (Chairman) Zhang Jianguo (President) Xin Shusen (Vice President)
Products	Finance and insurance Consumer Banking Corporate Banking Investment Banking Investment Management Global Wealth Management Private Equity Mortgages Credit Cards
Revenue	$57.75 Billion (2009)[1]
Operating income	$20.13 Billion (2009)[1]
Net income	$15.63 Billion (2009)[1]
Total assets	$1.407 trillion (2009)[1]
Employees	301,537 (2009)
Website	ccb.com

Headquarters, China Construction Bank, Beijing

China Construction Bank (CCB; simplified Chinese: 中国建设银行; traditional Chinese: 中國建設銀行; pinyin: Zhōngguó Jiànshè Yínháng; often abbreviated as 建行; SSE: 601939, SEHK: 0939) is one of the 'big four' banks in the People's Republic of China. To date, it is ranked as the nation's second largest^[2] and the second largest bank in the world by market capitalization and 12th largest company in the world^[3][4]. The bank has approximately 13,629 domestic branches. In addition, it maintains overseas branches in Frankfurt, Hong Kong, Johannesburg, New York, Seoul, Singapore, Tokyo, and Sydney, and a wholly owned subsidiary in London. Its total assets reached 8.7 trillion RMB in 2009.^[5]

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.

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 later sentenced to 12 years in prison for the crimes. 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 $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.

Investment by Bank of America

In 2005, Bank of America acquired a 9% stake in China Construction Bank for $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.^[8]

In May 2009, speculation was raised that $7.3bn worth of CCB shares had been sold by BoA, to help bolster capital during stress testing.^[9]

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 NY State Banking Department and the Federal Reserve Board to establish a branch in New York City.^[10][11] CCB officially opened its New York branch on 6 June 2009.

China Construction Bank is a member of the Global ATM Alliance, a joint venture of several major international banks that allows customers of the banks to use their ATM card or check card at another bank within the Global ATM Alliance with no transaction fees when traveling internationally. However, handling costs and VISA processing fees may be applied. Other participating banks are:

• Barclays (United Kingdom),
• Bank of America (United States),
• BNP Paribas (France),
• Deutsche Bank (Germany),
• Santander Serfin (Spain and Mexico),
• Scotiabank (Canada) and
• Westpac (Australia and New Zealand).^[12]

Health fund

China Construction Bank investment division launched a 5 billion yuan ($731.3 million) fund called China Healthcare Investment Fund to focus on investments in China's rapidly growing heathcare 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 heathcare industry.[3].

Stock exchange listing

In late 2005, China Construction Bank made an initial public offering on the Hong Kong Stock Exchange (SEHK: 0939). Since its listing, the share price has risen about 50% (since Feb 2006). In late 2007, it made China's second-largest initial public offering of 57.12 billion Renminbi yuan (US$7.6 billion) on the Shanghai Stock Exchange (SSE: 601939).

See also

Companies portal

• List of Chinese companies
• List of asset management companies of the People's Republic of China

References

1. ^ ^{a b c d} http://www.ccb.com/en/ccbtoday/20090609_1244513012.html
2. ^ South China Morning Post. 29 May 2008.
3. ^ "The World's Biggest Public Companies". Forbes. http://www.forbes.com/global2000/. Retrieved June 6, 2011. 
4. ^ "China Construction". Forbes. http://www.forbes.com/companies/china-construction-bk/. Retrieved June 6, 2011. 
5. ^ http://news.xinhuanet.com/english/2009-04/26/content_11262044.htm Agricultural Bank of China posts 17.5% rise in 2008 net profit
6. ^ Barboza, David (22 March 2005). "Lawsuit Involving Bribery Preceded Bank Resignation". The New York Times. http://www.nytimes.com/2005/03/22/business/worldbusiness/22bribe.html. 
7. ^ http://www.chinadaily.com.cn/china/2006-11/03/content_724071.htm
8. ^ Bank of America | Newsroom - Press Releases
9. ^ Reuters | Story
10. ^ [1]
11. ^ [2]
12. ^ "Five big banks form Global ATM Alliance", ATMmarketplace.com. January 9, 2002. Accessed June 22, 2007.

External links

• China Construction Bank official website - ccb.com
• 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