China Construction Bank
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| Type | Public company SEHK: 0939, SSE: 601939 |
|---|---|
| Founded | 1954 |
| Headquarters |  Beijing, People's Republic of China |
| Key people | Guo Shuqing (Chairman) Zhang Jianguo (President) Chang Zhenming (CEO) Pang Xiusheng (CFO) |
| Industry | Finance and Insurance |
| Products | Financial services |
| Employees | 297,506 |
| Website | www.ccb.com |
The China Construction Bank (CCB) SSE: 601939 SEHK: 0939 (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) 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[1] and the 4th largest in the world by market capitalization.[2] The bank has approximately 13629 domestic branches. In addition, it maintains overseas branches in Hong Kong, Singapore, Frankfurt, Johannesburg, Tokyo and Seoul, as well as a representative office in Sydney. In June, 2009, CCB opened its New York Branch and a wholly-owned subsidiary in London. Its total asset reaches 7 trillions RMB in 2008 [3]
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[edit] History
CCB was founded on October 1, 1954 under the name of "People's Construction Bank of China" (中国人民建设银行; Zhōngguó Rénmín Jiànshè Yínháng), and later changed to "China Construction Bank" on March 26, 1996.
China Construction Bank Corporation was formed as a joint-stock commercial bank in September 2004 as a result of a separation procedure undertaken by their predecessor, China Construction Bank, under the PRC Company Law. Following the China Banking Regulatory Committee's approval on September 14, 2004, the next day the bank (Jianyin) became a separate legal entity, owned by the Chinese government holding company, (Central Huijin Investment Company; Huijin).
[edit] 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 June 5, 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 percent 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 August 29, 2011 without prior consent of CCB. Bank of America still has the option to purchase additional shares.[4]
[edit] 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.
In 2008, CCB submitted an application to the Federal Reserve Board to establish a branch in New York City.[5] New York State approval has already been given,[6] and a formal license is granted in 2009. The New York branch was opened officially in 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 fees when traveling internationally. 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).[7]
[edit] Scandals
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The former chairman, Zhang Enzhao, resigned on March 16, 2005, citing "personal reasons". However, a lawsuit in the United States alleges that he received a bribe of one million dollars from Alltel Information Services, for securing a contract.
[edit] Health fund
China Construction Bank investment division plans 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.[4].
[edit] 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 (7.6 billion US dollars) on the Shanghai Stock Exchange (SSE:601939), .
[edit] See also
[edit] References
- ^ South China Morning Post. 29 May 2008.
- ^ [1]
- ^ http://news.xinhuanet.com/english/2009-04/26/content_11262044.htm Agricultural Bank of China posts 17.5% rise in 2008 net profit
- ^ Bank of America | Newsroom - Press Releases
- ^ [2]
- ^ [3]
- ^ "Five big banks form Global ATM Alliance", ATMmarketplace.com. January 9, 2002. Accessed June 22, 2007.
