China Construction Bank
Encyclopedia
China Construction Bank (CCB; ; often abbreviated as 建行; ) is one of the 'big four' bank
s in the People's Republic of China
. To date, it is ranked as the nation's second largest and the second largest bank in the world by market capitalization
and 12th largest company in the world. 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.
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.
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.
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.
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.
On August 29, 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
, 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
. 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:
, medical equipment
manufacturing, medical institutions and services. It is the first domestic investment fund specializing in investments in China's heathcare industry.http://news.alibaba.com/article/detail/china/100020218-1-china-construction-bank-set-up.html.
on the Hong Kong Stock Exchange . 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 .
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 the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
. To date, it is ranked as the nation's second largest and the second largest bank in the world by market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
and 12th largest company in the world. The bank has approximately 13,629 domestic branches. In addition, it maintains overseas branches in 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...
, 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...
, Johannesburg
Johannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...
, 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...
, Seoul
Seoul
Seoul , officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world...
, 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...
, 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...
, and Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
, and a wholly owned subsidiary 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...
. Its total assets reached 8.7 trillion RMB in 2009.
History
CCB was founded on 1 October 1954 under the name of "People's Construction Bank of China" , 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.
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 AmericaBank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
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
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...
, 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...
, and Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...
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.
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.
On August 29, 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
International expansion
In 2006, CCB acquired Bank of America (Asia)Bank of America (Asia)
China Construction Bank Corporation Limited is a licensed bank incorporated in Hong Kong.-History:...
, which started in 1912 in Hong Kong as Bank of Canton
Bank of Canton
Bank of Canton was the first Chinese-owned bank in Hong Kong. At the time, all the other banks in Hong Kong were foreign, primarily British, including the locally incorporated but British-run Hongkong and Shanghai Banking Corporation....
, 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
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
. CCB officially opened its New York branch on 6 June 2009.
China Construction Bank is a member of the Global ATM Alliance
Global ATM Alliance
The Global ATM Alliance is a joint venture of several major international banks that allows customers of their banks to use their ATM card or debit card at another bank within the Global ATM Alliance with no International ATM Access fees. However, other fees, such as an international transaction or...
, a joint venture of several major international banks that allows customers of the banks to use their ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
card or check card
Check card
The term check card can refer to:* An identification card issued by a retailer allowing the holder to tender payment by check. Such cards were commonly issued in the United States by supermarkets and other retailers before the widespread use of debit cards....
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 KingdomUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
), - Bank of AmericaBank of AmericaBank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
(United StatesUnited StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
), - BNP ParibasBNP ParibasBNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. In October 2010 BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and largest company in the world by assets with over $3.1 trillion. It was formed through the merger...
(FranceFranceThe French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
), - Deutsche BankDeutsche BankDeutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
(GermanyGermanyGermany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
), - Santander Serfin (SpainSpainSpain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
and MexicoMexicoThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
), - ScotiabankScotiabankThe Bank of Nova Scotia , commonly known as Scotiabank , is the third largest bank in Canada by deposits and market capitalization. It serves some 18.6 million customers in more than 50 countries around the world and offers a broad range of products and services including personal, commercial,...
(CanadaCanadaCanada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
) and - WestpacWestpacWestpac , is a multinational financial services, one of the Australian "big four" banks and the second-largest bank in New Zealand....
(AustraliaAustraliaAustralia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and New ZealandNew ZealandNew Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
).
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 pharmacyPharmacy
Pharmacy is the health profession that links the health sciences with the chemical sciences and it is charged with ensuring the safe and effective use of pharmaceutical drugs...
, medical equipment
Medical equipment
Medical equipment is designed to aid in the diagnosis, monitoring or treatment of medical conditions.-Types:There are several basic types:* Diagnostic equipment includes medical imaging machines, used to aid in diagnosis...
manufacturing, medical institutions and services. It is the first domestic investment fund specializing in investments in China's heathcare industry.http://news.alibaba.com/article/detail/china/100020218-1-china-construction-bank-set-up.html.
Stock exchange listing
In late 2005, China Construction Bank made an initial public offeringInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
on the Hong Kong Stock Exchange . 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
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...
yuan (US$7.6 billion) on the Shanghai Stock Exchange .
See also
- List of Chinese companies
- List of asset management companies of the People's Republic of China