Agricultural Bank of China
| File:Agricultural Bank of China logo.svg | |
| File:中国农业银行 西侧.jpg Headquarters located in Beijing, China | |
Native name | 中国农业银行 |
|---|---|
| Company type | Public |
| |
| ISIN | |
| Industry | Financial services |
| Founded | 10 July 1951 |
| Headquarters | Beijing, China |
Key people | Zhao Huan (President) |
| Products | |
| Revenue | Increase Template:CNY $153.9 billion (2020) |
| Increase Template:CNY $36.6 billion (2018) | |
| Increase Template:CNY $29.5 billion (2018) | |
| Total assets | Increase Template:CNY $3.286 trillion (2018) |
| Total equity | Increase Template:CNY $243 billion (2018) |
| Owner |
|
Number of employees | Decrease 467,631 (2020) |
| Website | abchina.com/en/ |
The Agricultural Bank of China (ABC), also referred to as AgBank, is a multinational banking and financial services enterprise with partial state ownership, headquartered in Beijing. It ranks among China's "Big Four" banks and stands as the world's second-largest bank by total assets, following the Industrial and Commercial Bank of China. Established on July 10, 1951, ABC’s main office is situated in Beijing’s Dongcheng District, with branch locations spanning mainland China as well as international financial centers including Hong Kong, London, Tokyo, New York, Frankfurt, Sydney, Seoul, and Singapore.
Serving approximately 320 million individual customers alongside 2.7 million corporate accounts through nearly 24,000 outlets, ABC holds the position of China's third-largest lender based on asset size. Its initial public offering in mid-2010 was the largest globally at that time until surpassed by Saudi Aramco’s IPO. The bank was ranked eighth in the Top 1000 World Banks in 2011, placed third on Forbes' Global 2000 list in 2015, fifth in 2017, and fourth in 2023. The Financial Stability Board classifies it as a systemically important financial institution.
History
Following the establishment of the People's Republic of China in 1949, ABC underwent several reorganizations and consolidations. On July 10, 1951, two banks from the Republic of China era—the Farmers Bank of China and Cooperation Bank—merged to create the Agricultural Cooperation Bank, recognized as ABC’s forerunner. This institution was absorbed into the People's Bank of China (the central bank) in 1952. The first iteration of the Agricultural Bank of China was created in 1955 but reintegrated into the central bank by 1957. A subsequent agricultural bank emerged in 1963 but merged again two years later in 1965. The modern Agricultural Bank of China was reestablished in February 1979 as commercial banking functions were separated from the People's Bank of China, enabling ABC to concentrate more on rural finance services.
In July 2010, ABC transitioned into a holding company structure named Agricultural Bank of China Limited and simultaneously listed on both the Shanghai and Hong Kong stock exchanges.
By 2012, ABC began migrating its operations to the Avaloq Banking System to upgrade its technological capabilities.
The bank discontinued dealings with a North Korean financial institution that the United States accused of supporting Pyongyang’s missile and nuclear initiatives.
In 2023, ABC's asset management arm collaborated with BNP Paribas Asset Management to form a joint venture called BNP Paribas ABC Wealth. Ownership is divided with BNPP AM holding a majority stake of 51%, while ABC Wealth Management retains 49%, and Alexandre Werno was appointed as CEO.
As of 2024, despite global sanctions imposed after Russia’s invasion of Ukraine, Agricultural Bank of China continues its activities within Russia. Unlike many Western banks that withdrew from the Russian market, ABC alongside other Chinese banks expanded their credit exposure to Russian financial institutions by four times as of March 2023. Together with ICBC, Bank of China, and China Construction Bank, ABC increased their combined financial assistance to Russia by $2.2 billion within fourteen months post-invasion, totaling $9.7 billion. This support is predominantly transacted in yuan currency, consistent with China's strategic aim to elevate its currency as an alternative to the U.S. dollar. Critics contend that these actions weaken efforts to economically isolate Russia and indirectly facilitate its military operations in Ukraine.
Incidents
In April 2007, ABC encountered the most significant bank heist in China's history when two vault supervisors at a branch in Handan, Hebei embezzled close to yuan (approximately US$7.5 million).
2010 initial public offering
Among China's "big four" banks, ABC was the final institution to launch a public offering. In 2010, its A shares and H shares were introduced on the Shanghai Stock Exchange and Hong Kong Stock Exchange, with A shares priced between 2.7 and 3.3 RMB and H shares ranging from HK$2.88 to HK$3.48. The definitive IPO pricing was established on 7 July 2010.
By August 2010, ABC's IPO had become the largest globally, generating US$22.1 billion after overallotments and surpassing the previous record set by Industrial and Commercial Bank of China in 2006 at US$21.9 billion. This milestone remained unbroken until Alibaba's IPO in 2014.
The initial funds raised on 6 July 2010 amounted to US$19.21 billion, with leading underwriters such as CICC, Goldman Sachs, Morgan Stanley, JPMorgan, among others. Approximately 40% of ABC’s Shanghai shares were allocated to 27 strategic investors including China Life Insurance and China State Construction, all subject to lock-up periods spanning 12 to 18 months. In Hong Kong, eleven cornerstone investors participated, featuring entities like the Qatar Investment Authority and Kuwait Investment Authority, collectively contributing $5.45 billion.
Although initial projections anticipated proceeds up to US$30 billion, subdued market conditions limited the final amount; nevertheless, the IPO proceeded without complications despite China's benchmark index hitting a 15-month low.
On 1 August 2024, Saudi Arabia's Public Investment Fund (PIF) revealed memorandums of understanding totaling $50 billion with six Chinese financial institutions, including Agricultural Bank of China and Bank of China, indicating a broadening of international financial collaboration.
List of governors
| Name (English) | Name (Chinese) | Tenure begins | Tenure ends | Note |
|---|---|---|---|---|
| He Songting | 何松亭 | July 1951 | May 1952 | |
| Qiao Peixin | 乔培新 | February 1955 | August 1955 | |
| Li Shaoyu | 李绍禹 | August 1955 | May 1957 | |
| Hu Jingyun | 胡景沄 | October 1963 | November 1965 | |
| Fang Gao | 方皋 | June 1979 | July 1981 | |
| Li Shaoyu | 李绍禹 | July 1981 | April 1982 | |
| Han Lei (banker) | 韩雷 | April 1982 | June 1985 | |
| Ma Yongwei | 马永伟 | July 1985 | June 1994 | |
| Shi Jiliang | 史纪良 | July 1994 | October 1997 | |
| He Linxiang | 何林祥 | October 1997 | February 2000 | |
| Shang Fulin | 尚福林 | February 2000 | December 2002 | |
| Yang Mingsheng (1955) | 杨明生 | September 2003 | July 2007 | |
| Xiang Junbo | 项俊波 | July 2007 | January 2009 | |
| Zhang Yun (born 1959) | [undefined] Error: {{Lang}}: no text (help) | January 2009 | December 2015 | |
| Zhao Huan (banker) | 赵欢 | January 2016 | September 2018 | |
| Zhang Qingsong | 张青松 | November 2019 | September 2022 | |
| Fu Wanjun | 付万军 | December 2022 |
See also
External links
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- Agricultural Bank of China
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- Government-owned companies of China
- Banks established in 1949
- Chinese companies established in 1949
- Companies based in Beijing
- H shares
- Systemically important financial institutions
- 2010 initial public offerings
- Government-owned banks of China
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- 1949 in Beijing
- Companies in the Hang Seng China Enterprises Index