Bank of Communications
Encyclopedia
Bank of Communications Limited (BoCom or BoComm) , founded in 1908, is one of the largest bank
s in China
.
. It was charter
ed as "the Bank for developing the country's industries". In order to expand business into the overseas arena, the Bank opened its first Hong Kong
Branch on 27 November 1934.
ended in 1949, the Bank of Communications, like the Bank of China
, was effectively split into two operations, part of it relocating to Taiwan with the Kuomintang
government. In Taiwan, the bank is also known as Bank of Transportation (交通銀行, Chiao Tung Bank). It eventually merged with the International Commercial Bank of China (中國國際商業銀行), the renamed Bank of China in Taiwan after its 1971 privatization to become the Mega International Commercial Bank
(兆豐國際商業銀行).
operation is the current Bank of Communications.
Following the State Council's decision to restructure the Bank in 1986, the Bank was then restructured and re-commenced operations on 1 April 1987. Since then, its Head Office has been relocated from Beijing
to Shanghai
.
s in China and has an extensive network of over 2,800 branches covering over 80 major cities. Apart from Hong Kong, the Bank has also established overseas branches in New York
, Tokyo
, Singapore
and representative offices in London
and Frankfurt
. As of end-2002, the Bank had over 45,000 employees and a total asset
reaching RMB
766.874 billion.
The Bank was awarded "The Best Bank in China" by international acclaimed magazines Euromoney and Global Finance
in 1998 and 1999 respectively. According to the latest ranking of 1000 banks worldwide conducted by the authoritative magazine The Banker
, Bank of Communications was ranked 94th, its first time to join the Top-100 list. In addition, the Feb 2003 edition of The Banker also ranked Bank of Communications 92nd amongst the 100 most efficient lending banks of the world.
. An HSBC spokeswoman said HSBC Holdings Plc and its 19.9% held Bank of Communications (BoComms) affiliate, would seek to acquire a brokerage to expand their operations in China. The plan was part of HSBC's broader China expansion strategy, but "there is nothing further to disclose at the present." HSBC's operations in China include its own banking operations, its stake in BoCom and an 8% stake in Bank of Shanghai. HSBC also holds a 19.9% stake in Ping An Insurance
(Group) Co of China through its wholly owned subsidiary HSBC Insurance Holdings. The South China Morning Post
today cited Peter Wong Tung-shun, executive director at The Hongkong and Shanghai Banking Corporation, as saying that the acquisition
is being considered in the light of the Chinese government's reforms of the country's securities brokerages. This includes a provision allowing foreign companies to get management control of brokerage firms. Wong did not provide a timetable for any acquisition or identify any acquisition target. The Hongkong and Shanghai Banking Corp is a wholly owned HSBC subsidiary.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
.
Before 1949
The Bank of Communications was founded in 1908 (the 34th year of the Guangxu reign period, Qing Dynasty) and emerged as one of the first few major national and note-issuing banks in the early days of the Republic of ChinaRepublic of China
The Republic of China , commonly known as Taiwan , is a unitary sovereign state located in East Asia. Originally based in mainland China, the Republic of China currently governs the island of Taiwan , which forms over 99% of its current territory, as well as Penghu, Kinmen, Matsu and other minor...
. It was charter
Charter
A charter is the grant of authority or rights, stating that the granter formally recognizes the prerogative of the recipient to exercise the rights specified...
ed as "the Bank for developing the country's industries". In order to expand business into the overseas arena, the Bank opened its first Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
Branch on 27 November 1934.
Republic of China
After the Chinese Civil WarChinese Civil War
The Chinese Civil War was a civil war fought between the Kuomintang , the governing party of the Republic of China, and the Communist Party of China , for the control of China which eventually led to China's division into two Chinas, Republic of China and People's Republic of...
ended in 1949, the Bank of Communications, like the Bank of China
Bank of China
Bank of China Limited is one of the big four state-owned commercial banks of the People's Republic of China. It was founded in 1912 by the Government of the Republic of China, to replace the Government Bank of Imperial China. It is the oldest bank in China...
, was effectively split into two operations, part of it relocating to Taiwan with the Kuomintang
Kuomintang
The Kuomintang of China , sometimes romanized as Guomindang via the Pinyin transcription system or GMD for short, and translated as the Chinese Nationalist Party is a founding and ruling political party of the Republic of China . Its guiding ideology is the Three Principles of the People, espoused...
government. In Taiwan, the bank is also known as Bank of Transportation (交通銀行, Chiao Tung Bank). It eventually merged with the International Commercial Bank of China (中國國際商業銀行), the renamed Bank of China in Taiwan after its 1971 privatization to become the Mega International Commercial Bank
Mega International Commercial Bank
The Mega International Commercial Bank is a subsidiary of Mega Financial Holding Company. It is one of the leading banks in Taiwan. It has 105 branches in Taiwan along with 17 branches, 2 representative offices and 2 wholly owned subsidiaries abroad...
(兆豐國際商業銀行).
People's Republic of China
The mainlandMainland China
Mainland China, the Chinese mainland or simply the mainland, is a geopolitical term that refers to the area under the jurisdiction of the People's Republic of China . According to the Taipei-based Mainland Affairs Council, the term excludes the PRC Special Administrative Regions of Hong Kong and...
operation is the current Bank of Communications.
Following the State Council's decision to restructure the Bank in 1986, the Bank was then restructured and re-commenced operations on 1 April 1987. Since then, its Head Office has been relocated from Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
to Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
.
Today
Today, the Bank of Communications is amongst the top 5 leading commercial bankCommercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s in China and has an extensive network of over 2,800 branches covering over 80 major cities. Apart from Hong Kong, the Bank has also established overseas branches in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
and representative offices in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
. As of end-2002, the Bank had over 45,000 employees and a total asset
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...
reaching RMB
Renminbi
The Renminbi is the official currency of the People's Republic of China . Renminbi is legal tender in mainland China, but not in Hong Kong or Macau. It is issued by the People's Bank of China, the monetary authority of the PRC...
766.874 billion.
The Bank was awarded "The Best Bank in China" by international acclaimed magazines Euromoney and Global Finance
Global Finance (magazine)
Global Finance is an English-language monthly financial magazine.Joseph D. Giarraputo, the founder and former publisher of Venture, the magazine for entrepreneurs, in 1987 joined forces with Carl G. Burgen, Stephan Spahn, H. Allen Fernald, and Paolo Panerai to start a magazine on financial...
in 1998 and 1999 respectively. According to the latest ranking of 1000 banks worldwide conducted by the authoritative magazine The Banker
The Banker
The Banker is an English-language monthly international financial affairs publication owned by The Financial Times Ltd. and edited in London...
, Bank of Communications was ranked 94th, its first time to join the Top-100 list. In addition, the Feb 2003 edition of The Banker also ranked Bank of Communications 92nd amongst the 100 most efficient lending banks of the world.
Events in 2005
, 19.9% of the bank is owned by HSBCHSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
. An HSBC spokeswoman said HSBC Holdings Plc and its 19.9% held Bank of Communications (BoComms) affiliate, would seek to acquire a brokerage to expand their operations in China. The plan was part of HSBC's broader China expansion strategy, but "there is nothing further to disclose at the present." HSBC's operations in China include its own banking operations, its stake in BoCom and an 8% stake in Bank of Shanghai. HSBC also holds a 19.9% stake in Ping An Insurance
Ping An Insurance
Ping An , full name Ping An Insurance Company of China, Ltd. is a holding company whose subsidiaries mainly deal with insurance and financial services. The company was founded in 1988 and has its headquarters in Shenzhen.-Business:...
(Group) Co of China through its wholly owned subsidiary HSBC Insurance Holdings. The South China Morning Post
South China Morning Post
The South China Morning Post , together with its Sunday edition, the Sunday Morning Post, is an English-language Hong Kong newspaper, published by the SCMP Group with a circulation of 104,000....
today cited Peter Wong Tung-shun, executive director at The Hongkong and Shanghai Banking Corporation, as saying that the acquisition
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
is being considered in the light of the Chinese government's reforms of the country's securities brokerages. This includes a provision allowing foreign companies to get management control of brokerage firms. Wong did not provide a timetable for any acquisition or identify any acquisition target. The Hongkong and Shanghai Banking Corp is a wholly owned HSBC subsidiary.
See also
- Bank of Communications Hong Kong BranchBank of Communications Hong Kong BranchThe Bank of Communications Hong Kong Branch is a licensed bank in Hong Kong. It was opened in 1934.The Bank's Hong Kong Branch was consolated as part of "Joint Office of Joint Public-Private Banks" in 1952, and later part of the Bank of China Group, until April 14, 1998, when the Bank's head...
- Communications CliqueCommunications CliqueThe Communications Clique was a powerful interest group of politicians, bureaucrats, technocrats, businessmen, engineers, and labour unionists in China's Beiyang government . It is also known as the Cantonese Clique because many of its leaders hail from Guangdong...
- Banking in ChinaBanking in ChinaChina's banking system has undergone significant changes in the last two decades: banks are now functioning more like banks than before. Nevertheless, China's banking industry has remained in the government's hands even though banks have gained more autonomy...
- List of banks in the People's Republic of China