China Construction Bank
| File:China Construction Bank.svg | |
| File:China Construction Bank Building.jpg Headquarters located in Beijing, China | |
Native name | 中国建设银行 |
|---|---|
| Company type | Public |
| |
| ISIN | |
| Industry | Financial services |
| Founded | 1 October 1954 |
| Headquarters | , China |
Key people | Wang Hongzhang (Chairman) Zhang Jianguo (President) Xin Shusen (Vice President) |
| Products | |
| Revenue | Increase Template:CNY $175.1 billion (2020) |
| Increase Template:CNY $44.8 billion (2018) | |
| Increase Template:CNY $37.2 billion (2018) | |
| Total assets | Increase Template:CNY $3.375 trillion (2018) |
| Total equity | Increase Template:CNY $290 billion (2018) |
| Owner | Government of China |
Number of employees | 345,971 (2018) |
| Website | {{URL|example.com|optional display text}}Lua error in Module:EditAtWikidata at line 29: attempt to index field 'wikibase' (a nil value). |
The China Construction Bank Corporation (CCB) is a multinational banking and financial services enterprise with partial state ownership, headquartered in Beijing, China. It is recognized as one of the nation's "big four" banks and holds the position of third largest worldwide by total assets, trailing only the Agricultural Bank of China and the Industrial and Commercial Bank of China. CCB manages roughly 13,629 branches domestically and operates international branches in key financial hubs such as London, Hong Kong, New York City, Singapore, Tokyo, and Sydney.
By 2009, its total assets had reached CN¥8.7 trillion, underscoring its classification as a systemically important financial institution by the Financial Stability Board. The bank’s main office is situated at No. 25 Finance Street in Beijing’s Xicheng District.
History
Established on 1 October 1954 initially as the People's Construction Bank of China (), it was renamed to China Construction Bank on 26 March 1996. The bank was created to fund investments following the People's Bank of China's separation of its commercial banking functions.
In January 2002, chairman Wang Xuebing stepped down amid bribery allegations linked to his previous tenure at Bank of China; he received a 12-year prison sentence. His successor Zhang Enzhao resigned in March 2005 citing "personal reasons" shortly after being accused of accepting a US$1 million bribe and was eventually sentenced to 15 years imprisonment.
In September 2004, following approval from the China Banking Regulatory Committee, China Construction Bank Corporation was restructured into a joint-stock commercial bank. Ownership was transferred to Central Huijin Investment Company, a government-owned holding entity.
During the Korean crisis in 2013, CCB ceased dealings with a North Korean bank that the United States accused of financing Pyongyang’s missile and nuclear weapons programs.
In Forbes’ Global 2000 rankings, CCB placed second among the world’s largest and most valuable companies in 2015. It held third place in the 2021 edition and was ranked fifth in 2022.
In 2022, CCB initiated a fund worth 30 billion yuan ($4.2 billion) dedicated to investing in affordable rental housing projects to support China's real estate market. Additionally, it contributed 50 billion yuan ($7 billion) toward an 80 billion yuan ($11.4 billion) fund aimed at aiding property developers.
While many Chinese banks reduced their exposure to Russia due to sanctions imposed after Russia's invasion of Ukraine in 2022, CCB expanded its business activities within Russia.
In July 2024, Reuters reported that CCB planned to reduce salaries for headquarters staff by at least 10%, with even steeper cuts for senior personnel, aligning with Chinese President Xi Jinping’s common prosperity initiative.
Bank of America's Investment (2005–2013)
In 2005, Bank of America made a significant move into China's growing banking market by acquiring a 9% share in China Construction Bank (CCB) for US$3 billion. With operational bases in Hong Kong, Shanghai, and Guangzhou, the bank sought to expand its presence within China through this strategic investment.
By early June 2008, Bank of America exercised call options to buy 6 billion H-shares at roughly HK$2.42 each, boosting its total holding to about 25.1 billion H-shares—equating to nearly 10.75% of CCB’s total issued shares. The agreement included a restriction preventing the sale of these shares before 29 August 2011 without CCB’s approval.
In May 2009, reports emerged indicating Bank of America sold US$7.3 billion worth of its CCB shares, a move influenced by capital adequacy requirements stemming from the Dodd-Frank Act Annual Stress Test.
On 29 August 2011, Bank of America revealed plans to divest half of its CCB holdings—approximately 13.1 billion shares valued near US$8.3 billion—to an undisclosed consortium.
By September 2013, the bank completed its exit from CCB by selling the remainder of its shares, generating proceeds up to $1.5 billion.
Global Expansion
In 2006, CCB acquired Bank of America (Asia), originally founded as Bank of Canton in Hong Kong in 1912, which also operated a subsidiary in Macao. To broaden its international footprint, CCB inaugurated an office in London on 2 June 2009.
During 2008, CCB applied for regulatory approval from both the New York State Banking Department and the Federal Reserve Board to open a branch in New York City, officially commencing operations there on 6 June 2009. The bank further solidified its European presence by establishing its European Headquarters in Luxembourg in 2013.
In Southeast Asia, CCB strengthened its position through the creation of CCB Indonesia in 2016, resulting from the merger between Bank Windu Kentjana and Bank Anda.
Healthcare Investment Fund
China Construction Bank's investment arm launched the China Healthcare Investment Fund, with an initial capital of CN¥5 billion (US$731.3 million), focusing on China's burgeoning healthcare industry. This fund targets investments across pharmaceuticals, medical device manufacturing, and healthcare services sectors, representing the first domestic fund dedicated exclusively to healthcare investments within China.
Stock Market Listings
CCB debuted on the Hong Kong Stock Exchange with an initial public offering in late 2005. Subsequently, in late 2007, it completed China's second-largest IPO on the Shanghai Stock Exchange, raising CN¥57.12 billion (US$7.6 billion).
The bank is a constituent of several prominent indices including the Hang Seng Index, SSE 180 Index, CSI 300 Index, Hang Seng China 50 Index, FTSE China A50 Index, and S&P Asia 50. It was also listed within the Hang Seng China Enterprises Index.
Executive Leadership
- Wu Boshan, president September 1980 – December 1984
- Zhou Daojiong, president December 1984 – April 1994
- Wang Qishan, president February 1994 – February 1998
- Zhou Xiaochuan, president February 1998 – February 2000
- Wang Xuebing, president February 2000 – January 2002
- Zhang Enzhao, president January 2002 – September 2004; chairman September 2004 – March 2005
- Chang Zhenming, president September 2004 – July 2006
- Guo Shuqing, chairman March 2005 – October 2011
- Zhang Jianguo, president July 2006 – June 2015
- Wang Hongzhang, chairman January 2012 – August 2017
- Wang Zuji, president June 2015 – March 2019
- Tian Guoli, chairman October 2017 – March 2024
- Liu Guiping, president March 2019 – November 2020
- Wang Jiang, president February 2021 – March 2022
- Zhang Jinliang, president May 2022 – March 2024; chairman since March 2024
Awards
- Global 2000 Ranking #2 - Among the Largest Public Corporations Worldwide in 2016
See also
External links
- Pages with script errors
- Pages with broken file links
- China Construction Bank
- 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
- Companies in the FTSE China A50 Index
- Companies in the S&P Asia 50
- H shares
- Systemically important financial institutions
- Chinese companies established in 1954
- Government-owned banks of China
- 1954 in Beijing