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China Minsheng Bank

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For other financial services companies named "Minsheng", see Minsheng.
China Minsheng Banking Corporation Limited
中国民生银行股份有限公司
Company typePublicly traded company
SSE: 600016
SEHK: 1988
SSE 50 Component
IndustryBank
Founded12 January 1996; 28 years ago (1996-01-12)
Headquarters
Beijing
,
China
Area served
Mainland China
Hong Kong
RevenueUS$25.99 billion (2019)
Total assetsUS$647.2 billion (2015)[1]
OwnerMainly private sector corporations in China
DivisionsMinsheng Private Banking Service
Websitewww.cmbc.com.cn

China Minsheng Bank (simplified Chinese: 中国民生银行; traditional Chinese: 中國民生銀行; pinyin: Zhōngguó Mínshēng Yínháng) is the first bank in China to be owned mostly by private sector enterprises.[2] The bank was founded by Jing Shuping, a Chinese lawyer and businessman.[3]

Minsheng Bank is well known for focusing on making loans to small-medium enterprise. It has over two hundred banking outlets throughout China and relationships with more than seven hundred banks overseas.[2] The bank was publicly listed on the Hong Kong Stock Exchange in 2009.[4]

Business description

Strategic positioning

Officially established on 12 January 1996, CMBC initially formulated its strategic positioning of non-state-owned, high-tech, and large enterprises. Nonetheless, the orientation ended in failure with 8.72% of the non-performing loan rate and 40% loss of Return On Equity (ROE) until 1999.[5] For reversing the unfavourable prospect, CMBC initiates continuous internal reformation such as the replacement of leadership in April 2000[5] and “the enterprise business and divisional organisation reform” in 2007.[6] In 2009, CMBC confirmed its strategic positioning that fundamentally focuses on private, small and medium corporations and advanced technological businesses, offers moderate risk-taking and heterogeneous financial products and services, and dedicates to expanding path to profitability.[5][6] In 2011, CMBC innovated its orientation by establishing “a ‘customer-focused’ scientific and strategic implementation system” for sufficient development and further interests.[6]

History

Minsheng Bank announced its plans to purchase a 9.9% stake in UCBH Holdings for approximately US$155 million (RMB 1.03 billion), with an opportunity to increase the holding to 20%.[7][8] However, on November 6, 2009, the US Federal Deposit Insurance Corporation (FDIC) took over UCB, a subsidiary of UCBH Holdings, resulting in a loss for Minsheng Bank. Despite this development, the bank had already made sufficient provisions for the investment and the loss did not have a significant impact on its operations.

Minsheng Bank also revealed that it intended to invest approximately US$343 million (RMB 2.342 billion) to acquire a 26.58% stake (equivalent to 143 million shares) in Shaanxi International Trust, which would have made it the largest shareholder. However, due to major changes in the capital market, Minsheng Bank later decided to cancel this investment.

In April 2008, Minsheng Bank was granted permission to establish Minsheng Financial Leasing Company with a total investment of approximately US$470 million (RMB 3.2 billion). Minsheng Bank and Tianjin Bonded Zone Investment Company jointly invested in the company, with Minsheng Bank holding an 81.25% stake and Tianjin Bonded Zone Investment Company holding an 18.75% stake. By December 2009, the total assets of Minsheng Financial Leasing Company had reached approximately US$3.5 billion (RMB 23.6 billion).

In November 2008, Minsheng Bank, together with the Royal Bank of Canada and the Three Gorges Finance Company, established Minsheng Royal Fund Management Co., Ltd. in Shenzhen, with a registered capital of US$422 million (RMB 300 million), of which the three shareholders hold 63.33%, 30%, and 6.67%, respectively. The company has been making considerable progress in fund issuance, management scale, investment performance, and profitability in line with the management concept of specialization and marketization since its inception.[9] In 2006, Royal Bank of Canada entered into a joint venture agreement with China Minsheng Bank to launch a new Chinese joint venture fund management company.[10] The joint venture company, with headquarters in Shanghai, will create, manage, and sell mutual funds in local currency to retail and institutional investors in China.[11]

On June 22, 2009, Minsheng Bank announced that it had completed the sale of more than 380 million Haitong Securities shares held for debt repayment, with an average selling price of US$2.12 (RMB 14.33) per share and a total disposal amount of US$800 million (RMB 5.458 billion).

In November 2009, Minsheng Bank launched an initial public offering in Hong Kong, with a maximum fundraising of US$4 billion (HKD 31.56 billion).[12] The bank's IPO was oversubscribed 157 times, freezing up to US$32 billion (HKD 249.3 billion) in funds. The bank eventually priced its IPO at HKD 9.08 per share and officially listed on November 26, 2009. [13][14]

See also

References

  1. ^ "The World's Biggest Public Companies". Forbes.com. Retrieved 4 December 2017.
  2. ^ a b "Official Company Profile". Cmbc.com.cn. Archived from the original on 2013-01-01. Retrieved 2013-02-22.
  3. ^ "Founder of China's private Minsheng Bank dies". Reuters. 2009-09-14. Retrieved 2009-09-21.
  4. ^ "HKEX Group". Hkex.com.hk. Retrieved 4 December 2017.
  5. ^ a b c A Guide To The Top 100 Companies In China. Zhang Wenxian & Alon Ilan. World Scientific. 2010. ISBN 978-1-282-76188-9. OCLC 729020693.{{cite book}}: CS1 maint: others (link)
  6. ^ a b c Chen, Jiagui; Huang, Qunhui; Peng, Huagang; Zhong, Hongwu (2015), "China Minsheng Banking Co., Ltd. (CMBC): Social Responsibility Is a Conscious Activity of Systematization, Institutionalization and Scientification of Enterprises", Research Report on Corporate Social Responsibility of China, Berlin, Heidelberg: Springer Berlin Heidelberg, pp. 241–262, doi:10.1007/978-3-662-45363-6_14, ISBN 978-3-662-45362-9, retrieved 2021-04-12
  7. ^ "民生银行宣布25亿元收购美资银行计划 _国内财经_新浪财经_新浪网 (translation)". sina.com.cn. Retrieved 2023-05-31.
  8. ^ "民生银行:拟收购美国联合银行控股公司9.9%股份-搜狐财经 (translation)". business.sohu.com. Retrieved 2023-05-31.
  9. ^ "民生加银基金管理有限公司". www.msjyfund.com.cn. Retrieved 2023-05-31.
  10. ^ "RBC to launch Chinese fund management company". Investment Executive. 2006-10-30. Retrieved 2023-05-31.
  11. ^ "Royal Bank of Canada announces joint venture agreement to launch Chinese Fund Management Company". WebWire. Retrieved 2023-05-31.
  12. ^ "民生银行H股上市_网易财经 (translation)". money.163.com. Retrieved 2023-05-31.
  13. ^ "民生银行H股首日挂牌失守招股价 受中资行融资阴霾拖累 (translation)". Reuters. 2009-11-26. Retrieved 2023-05-31.
  14. ^ "民生银行招股当天获2倍超额认购 ——中新网 (translation)". chinanews.com.cn. Retrieved 2023-05-31.
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