Bank of Communications

Bank of Communications
	File:Bank of Communications logo.svg Logo of Bank of Communications
Company type	Public
Industry	Banking, Financial services
Founded	1908; 118 years ago
Headquarters	Shanghai, China
Area served	Worldwide
Key people	Liu Jun (President since 2020)
Products	Commercial banking, securities trading, trust management, financial leasing, fund administration, insurance, offshore financial services
Number of employees	88000+
Parent	Government-owned (Ministry of Finance holds 26.53%)
Website	www.bankcomm.com

Bank of Communications (commonly referred to as BOCOM or BankComm) is a Chinese multinational entity specializing in banking and financial services. Founded in 1908, it was one of the limited number of domestic Chinese banks authorized to issue banknotes during the modern era. Following the 1949 Communist Revolution, its mainland branches were consolidated into the People's Bank of China and the People's Construction Bank of China under a unified banking framework, whereas its Taiwan operations became integrated into Mega International Commercial Bank.

The bank was re-established in 1986 as a commercial credit institution on the mainland. It went public on the Hong Kong Stock Exchange in June 2005 and later on the Shanghai Stock Exchange in May 2007. According to The Banker, it ranked 151st globally by operating income and held the 11th position worldwide among banks by Tier 1 capital. In 2023, Forbes placed it at number 53 in their Global 2000 list.

Pre-1949 Era

The concept for the Bank of Communications was proposed by Liang Shiyi in 1907 with the goal of reclaiming control over the Beijing–Hankou Railway from its Belgian proprietors, thereby returning it to Chinese ownership. Established in 1908, the bank financed more than half of the railway's purchase price, bolstering Liang's influence within the Communications Clique.

Its name symbolizes "communications" as a reference to transportation connections between locations. To facilitate international expansion, the bank inaugurated its first branch in Hong Kong on 27 November 1934.

In July 1942, alongside the Bank of China and Farmers Bank of China, it lost its authority to issue banknotes due to the Central Bank of China obtaining exclusive rights within Nationalist-controlled territories.

Operations in Taiwan

Following the conclusion of the Chinese Civil War in 1949, the Bank of Communications, similar to the Bank of China, divided its operations; part relocated to Taiwan with the retreating Kuomintang government. In Taiwan, it operated under the name Bank of Communications or Chiao Tung Bank (). Eventually, it merged with what became the Mega International Commercial Bank, after combining with the International Commercial Bank of China (the former Bank of China’s Taiwan entity post-1971 privatization).

Mainland Re-establishment

During the early years of the People's Republic of China, its mainland operations were absorbed into both the People's Bank of China and People's Construction Bank of China. Meanwhile, its Hong Kong branch continued functioning under its original name within the Bank of China Group. The State Council reinstated Bank of Communications as a commercial bank on the mainland in 1986. It recommenced activities on 1 April 1987, with headquarters situated in Shanghai.

As of , HSBC held a 19.9% ownership stake in BOCOM. HSBC and Bank of Communications intended to acquire a brokerage firm to broaden their presence in China's financial markets as part of HSBC’s overall strategy for growth in China. HSBC’s footprint includes direct banking operations, equity stakes in BoCom and an 8% shareholding in Bank of Shanghai, along with a 19.9% interest in Ping An Insurance via HSBC Insurance Holdings. Peter Wong Tung-shun, an executive director at HSBC, indicated that acquisitions were being considered following reforms permitting foreign control over securities brokerages in China; however, no specific timelines or targets were revealed.

On 22 July 2015, Bank of Communications issued Basel III-compliant bonds worth $2.45 billion (approximately 14.93 billion yuan), convertible into preferred shares to strengthen its additional Tier 1 Capital base. These bonds are listed on the Hong Kong Stock Exchange and carry an annual coupon rate of 5%.

Operations

Bank of Communications stands as one of the leading five commercial banks in China, with a network exceeding 2,800 branches distributed across more than 80 key cities. Its global footprint extends to branches in Hong Kong, New York, Tokyo, and Singapore, along with representative offices located in London and Frankfurt. By the close of 2002, the institution employed upwards of 88,000 individuals and held total assets amounting to RMB 5.15 trillion.

Within China, the bank oversees 236 entities, comprising 30 provincial branches, seven branches under direct management, and 199 sub-branches. This network is further supported by 3,529 outlets spanning over 239 large and medium-sized urban centers. On the international front, it operates 21 branches situated in cities such as Hong Kong, New York, San Francisco, Tokyo, Singapore, Seoul, Frankfurt, Macau, Sydney, Ho Chi Minh City, London (through BOCOMUK), and maintains a representative office in Taipei.

In 2011, The Banker placed Bank of Communications at 35th globally based on tier 1 capital, marking its second consecutive year within the top 50 worldwide. Additionally, the bank secured the 168th position on Fortune’s 2018 World's Top 500 Enterprises list, continuing its presence on this ranking for ten straight years.

The bank provides a broad range of financial services encompassing commercial banking operations, securities trading, trust management, financial leasing activities, fund administration, insurance products, and offshore financial offerings.

In November 2023, Bank of Communications was designated as a global systemically important bank (G-SIB), joining peers such as Bank of China, ICBC, China Construction Bank, and Agricultural Bank of China. This status requires it to maintain an extra capital buffer of 1%, underscoring its significant role in maintaining worldwide financial stability.

Shareholders

Major shareholders (ordinary shares) as of 31 December 2016
Rank	Name	Number of shares	%	Footnotes
1	The Ministry of Finance, excluding subsidiaries	19,702,693,828	26.53	A + H shares, government entity
1.1	Shanghai Haiyan Investment Management	808,145,417	1.09	A shares, state-owned enterprise
1.2	Yunnan Hehe Group	745,305,404	1.00	A shares, state-owned enterprise
2	HSBC (and subsidiaries)	14,147,386,095	19.05	H shares
3	National Social Security Fund	10,919,909,783	14.70	A + H shares, government entity
4	China Securities Finance	1,698,194,809	2.29	A shares, state-owned enterprise
5	Capital Airport Holding	1,246,591,087	1.68	A shares, state-owned enterprise
6	Wutongshu Investment Platform	794,557,920	1.07	A shares, state-owned enterprise
7	FAW Group	663,941,711	0.89	A shares, state-owned enterprise
	Total	50,726,726,054	68.3

Note: Trustee HKSCC Nominees Limited for H shares is not included

Leadership

Hu Bijiang, served as chairman during the 1930s
Chen Guodong, held chairmanship in the early 1950s
, led as chairman throughout the 1950s
, chairman from 1987 to 1993
, chaired from October 1993 until November 1998
, held the chairman position between November 1998 and June 2004
Jiang Chaoliang, chairman from January 2004 to September 2008
Hu Huaibang, served as chairman from September 2008 to April 2013
, chairman from May 2013 through February 2018
Peng Chun, led as chairman between February 2018 and April 2019
, assumed chairmanship starting April 2019
Liu Jun, president since 2020

External links