China Construction Bank Corporation (CCB) is one of the "
big four"
bank
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.
Because ...
s in
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
. In 2015, CCB was the 2nd
largest bank in the world by
market capitalization
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by t ...
and 6th largest company in the world. The bank has approximately 13,629 domestic branches. In addition, it maintains overseas branches in
Barcelona
Barcelona ( , , ) is a city on the coast of northeastern Spain. It is the capital and largest city of the autonomous community of Catalonia, as well as the second most populous municipality of Spain. With a population of 1.6 million within ci ...
,
Frankfurt
Frankfurt, officially Frankfurt am Main (; Hessian: , "Frank ford on the Main"), is the most populous city in the German state of Hesse. Its 791,000 inhabitants as of 2022 make it the fifth-most populous city in Germany. Located on its na ...
,
Luxembourg
Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...
,
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
,
Johannesburg
Johannesburg ( , , ; Zulu and xh, eGoli ), colloquially known as Jozi, Joburg, or "The City of Gold", is the largest city in South Africa, classified as a megacity, and is one of the 100 largest urban areas in the world. According to Demo ...
,
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
,
Seoul
Seoul (; ; ), officially known as the Seoul Special City, is the capital and largest metropolis of South Korea.Before 1972, Seoul was the ''de jure'' capital of the Democratic People's Republic of Korea (North Korea) as stated iArticle 103 ...
,
Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
,
Tokyo
Tokyo (; ja, 東京, , ), officially the Tokyo Metropolis ( ja, 東京都, label=none, ), is the capital and largest city of Japan. Formerly known as Edo, its metropolitan area () is the most populous in the world, with an estimated 37.468 ...
,
Melbourne
Melbourne ( ; Boonwurrung/Woiwurrung: ''Narrm'' or ''Naarm'') is the capital and most populous city of the Australian state of Victoria, and the second-most populous city in both Australia and Oceania. Its name generally refers to a met ...
,
Kuala Lumpur
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,
Santiago de Chile
Santiago (, ; ), also known as Santiago de Chile, is the capital and largest city of Chile as well as one of the largest cities in the Americas. It is the center of Chile's most densely populated region, the Santiago Metropolitan Region, whose ...
,
Brisbane
Brisbane ( ) is the capital and most populous city of the states and territories of Australia, Australian state of Queensland, and the list of cities in Australia by population, third-most populous city in Australia and Oceania, with a populati ...
,
Sydney
Sydney ( ) is the capital city of the state of New South Wales, and the most populous city in both Australia and Oceania. Located on Australia's east coast, the metropolis surrounds Sydney Harbour and extends about towards the Blue Mountain ...
and
Auckland
Auckland (pronounced ) ( mi, Tāmaki Makaurau) is a large metropolitan city in the North Island of New Zealand. The List of New Zealand urban areas by population, most populous urban area in the country and the List of cities in Oceania by po ...
, and a wholly owned subsidiary in
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
. Its total assets reached
CN¥
The renminbi (; symbol: ¥; ISO code: CNY; abbreviation: RMB) is the official currency of the People's Republic of China and one of the world's most traded currencies, ranking as the fifth most traded currency in the world as of April 2022. ...
8.7 trillion in 2009, and it is considered a
systemically important bank
A systemically important financial institution (SIFI) is a bank, insurance company, or other financial institution whose failure might trigger a financial crisis. They are colloquially referred to as "too big to fail".
As the financial crisis o ...
by the
Financial Stability Board
The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. It was established after the G20 London summit in April 2009 as a successor to the Financial Stability Forum ...
. Its headquarters is in
Xicheng District
Xicheng District () is a district of Beijing. Xicheng District spans , covering the western half of the old city (largely inside the 2nd Ring Road - the eastern half is Dongcheng District, Beijing, Dongcheng District), and has 706,691 inhabitant ...
,
Beijing
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Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...
.
History
![ChinaConstructionBankHangzhou](https://upload.wikimedia.org/wikipedia/commons/0/03/ChinaConstructionBankHangzhou.jpg)
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
The Bank of China (BOC; ) is a Chinese majority state-owned commercial bank headquartered in Beijing and the fourth largest bank in the world.
The Bank of China was founded in 1912 by the Republican government as China's central bank, repl ...
; he was sentenced to 12 years in prison. 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 US$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
China Construction Bank Corporation (CCB) is one of the "Big four banks, big four" banks in China. In 2015, CCB was the 2nd List of largest banks, largest bank in the world by market capitalization and 6th largest company in the world. The bank ha ...
) became a separate legal entity, owned by the Chinese government holding company,
Central Huijin Investment Company or simply Huijin.
During the
2013 Korean crisis
The following lists events that happened in 2013 in the Democratic People's Republic of Korea. In 2013, tensions between North Korea and South Korea, the United States, and Japan escalated because of United Nations Security Council Resolution 2087 ...
, the China Construction Bank halted business with a North Korean bank accused by the United States of financing Pyongyang's missile and nuclear programs.
In 2015, China Construction Bank ranks the 2nd in ''
Forbes
''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...
''’ 13th annual Global 2000 ranking of the biggest, most powerful and most valuable companies in the world.
In 2021, China Construction Bank ranks the 3rd largest bank around the world in Forbes' 2021 Global 2000 list. It ranks 5th in Forbes' 2022 Global 2000 list.
Investment by Bank of America
In 2005,
Bank of America
The Bank of America Corporation (often abbreviated BofA or BoA) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina. The bank w ...
acquired a 9% stake in China Construction Bank for US$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 ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
,
Shanghai
Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flow ...
, and
Guangzhou
Guangzhou (, ; ; or ; ), also known as Canton () and alternatively romanized as Kwongchow or Kwangchow, is the capital and largest city of Guangdong province in southern China. Located on the Pearl River about north-northwest of Hong Kon ...
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 US$7.3 billion worth of CCB shares had been sold by BoA after being ordered to obtain more capital following the results of the Dodd-Frank Act Annual Stress Test.
On 29 August 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.
In September 2013,
Bank of America
The Bank of America Corporation (often abbreviated BofA or BoA) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina. The bank w ...
sold its remaining stake in the China Construction Bank for as much as $1.5 billion.
In June 2017, China Construction Bank (Malaysia) signs 13 Memorandum of Understandings on its opening day in Malaysia.
International expansion
In 2006, CCB acquired
Bank of America (Asia)
China Construction Bank (Asia) Corporation Limited (Traditional Chinese: 中國建設銀行(亞洲)股份有限公司) is a licensed bank incorporated in Hong Kong.
History
The Bank has over 100 years of history in Hong Kong, when its predecessor ...
, which started in 1912 in Hong Kong as
Bank of Canton
Bank of Canton () was established in 1912 in Canton but registered as a British company in Hong Kong. This made it the first Chinese-owned bank in Hong Kong. At the time, all the other banks in Hong Kong were foreign, primarily British, including ...
, and had a subsidiary in
Macao
Macau or Macao (; ; ; ), officially the Macao Special Administrative Region of the People's Republic of China (MSAR), is a city and special administrative region of China in the western Pearl River Delta by the South China Sea. With a pop ...
.
CCB opened a London office on 2 June 2009.
In 2008, CCB submitted an application to the New York State Banking Department and the
Federal Reserve Board
The Board of Governors of the Federal Reserve System, commonly known as the Federal Reserve Board, is the main governing body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement the mon ...
to establish a branch in
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
. CCB officially opened its New York branch on 6 June 2009.
In 2013, CCB opened its European Headquarters in
Luxembourg
Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...
.
In 2016, CCB Indonesia was founded by the merger between two banks: Bank Windu Kentjana and Bank Anda.
Health fund
China Construction Bank investment division launched a CN¥5 billion (US$731.3 million) fund called China Healthcare Investment Fund to focus on investments in China's rapidly growing
healthcare sector. The fund focuses on investments in
healthcare
Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and other physical and mental impairments in people. Health care is delivered by health profe ...
related sectors including
pharmacy
Pharmacy is the science and practice of discovering, producing, preparing, dispensing, reviewing and monitoring medications, aiming to ensure the safe, effective, and affordable use of medicines. It is a miscellaneous science as it links heal ...
,
medical equipment
A medical device is any device intended to be used for medical purposes. Significant potential for hazards are inherent when using a device for medical purposes and thus medical devices must be proved safe and effective with reasonable assura ...
manufacturing, medical institutions and services. It is the first domestic
investment fund
An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages inc ...
specializing in investments in China's healthcare industry.
Stock exchanges listing
In late 2005, China Construction Bank made an
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
on the Stock Exchange of Hong Kong. In late 2007, it made China's second-largest initial public offering of CN¥57.12 billion (US$7.6 billion) on the
Shanghai Stock Exchange
The Shanghai Stock Exchange (SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock Exc ...
.
The bank is a component of
Hang Seng Index
The Hang Seng Index (HSI) is a freefloat-adjusted market- capitalization-weighted stock-market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator ...
,
SSE 180 Index
SSE 180 Index is the stock index of Shanghai Stock Exchange, representing the top 180 companies by "float-adjusted" capitalization and other criteria. SSE 180 is a sub-index of SSE Composite Index, the latter included all shares of the exchange.
...
and other indexes of Pan-Chinese and Pan-Asia stock exchanges, such as
CSI 300 Index
The CSI 300 () is a capitalization-weighted stock market index designed to replicate the performance of the top 300 stocks traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange. It has two sub-indexes: the CSI 100 Index and the CS ...
,
Hang Seng China 50 Index Hang Seng China 50 Index () is a pan-China stock market index to represent the top 50 China-based companies in the stock exchanges of Hong Kong, Shanghai and Shenzhen, which covers A share (shares circulated in mainland China), H share (shares circ ...
,
FTSE China A50 Index
FTSE China A50 Index (was known as FTSE–Xinhua China A50 Index) is a stock market index by FTSE Group (FTSE–Xinhua joint venture until 2010), the components were chosen from Shanghai Stock Exchange and Shenzhen Stock Exchange, which issue A-sh ...
and
S&P Asia 50.
The bank was also a component of the
Hang Seng China Enterprises Index
Hang Seng China Enterprises Index is a stock market index of The Stock Exchange of Hong Kong for H share, red chip, and P chip.
H share is a class of ordinary share of the mainland China incorporated company that only traded outside the mainlan ...
.
Awards
* ''Global 2000 Rank #2'' - World's Largest Public Companies in 2016
See also
*
Asset management in China
Asset management companies in China came into being in 1998. The founding of commercial Asset management companies (AMC; ) established by the Ministry of Finance tasked with professionally managing third-party assets was a major landmark in the de ...
References
External links
*
*
China Construction Bank New York ccbny.comChina Construction Bank SingaporeChina Construction Bank Frankfurt ccbff.deChina Construction Bank Johannesburg ccbjhd.comChina Construction Bank Korea ccbseoul.com
{{authority control
Companies based in Beijing
Companies listed on the Hong Kong Stock Exchange
Companies listed on the Shanghai Stock Exchange
Banks established in 1954
Chinese brands
Companies in the Hang Seng Index
Government-owned companies of China
H shares
Systemically important financial institutions
Chinese companies established in 1954