Bank in China
Bank of Communications
(
BOCOM
or
BankComm
) is the fifth-largest
bank
in
mainland China
. It was originally established in 1908 and was one of a handful of domestic Chinese banks that issued banknotes in modern history. Following the
Chinese Communist Revolution
in 1949, the mainland operation of that bank were merged into the
People's Bank of China
and
People's Construction Bank of China
under the Communist
single-tier banking system
, while its continuation in
Taiwan
eventually became part of
Mega International Commercial Bank
.
In 1986, the Bank of Communications was revived in the mainland as a commercial credit institution. It was listed on
the Stock Exchange of Hong Kong
in June 2005
[5]
and the
Shanghai Stock Exchange
in May 2007.
[6]
The Bank was ranked No. 151 among the
Fortune Global 500
in terms of operating income and No. 11 among the global top 1,000 banks in terms of Tier 1 capital rated by the London-based magazine
The Banker
.
[7]
In 2023, the company was ranked 53rd in the
Forbes Global 2000
.
[8]
History
[
edit
]
Before 1949
[
edit
]
In 1907,
Liang Shiyi
proposed the formation of a Bank of Communications to redeem the
Beijing?Hankou Railway
from its
Belgian
owners and place the railway under Chinese control.
[9]
The Bank of Communications was formed in 1908 and provided more than half of the financing needed to buy the railway.
[10]
The successful redemption enhanced the prestige of Liang's
Communications Clique
.
The bank's name uses the word "communications" to refer to the linking of two points by a means of transportation.
[11]
[12]
In order to expand the business overseas, the Bank opened its first
Hong Kong
branch on 27 November 1934.
Continuation in Taiwan
[
edit
]
After the
Chinese Civil War
ended in 1949, the Bank of Communications, like the
Bank of China
, was effectively split into two operations, with part of it relocating to
Taiwan
with the
Kuomintang
government. In Taiwan, the bank was also known as the Bank of Communications or Chiao Tung Bank (
Chinese
:
交通銀行
;
Wade?Giles
:
Chiao-T'ung Yin-hang
).
[13]
It eventually merged with the
International Commercial Bank of China
(
中國國際商業銀行
), the renamed Bank of China in Taiwan after its 1971 privatization, to become the
Mega International Commercial Bank
.
Re-establishment in the mainland
[
edit
]
In the early years of the People's Republic, the bank's operations in the mainland were merged into the PBC and PCBC, while the Hong Kong branch continued to exist under the same name and was integrated in the so-called
Bank of China Group
. The State Council decided to re-establish the Bank of Communication as a mainland commercial bank in 1986.
[14]
The Bank was then restructured and re-commenced operations on 1 April 1987.
[
citation needed
]
Since then, its Head Office has been located in
Shanghai
.
[14]
As of January 2005
[update]
, 19.9% of the bank was owned by
Hsbc holdings plc
. An HSBC spokeswoman said HSBC and its affiliate, the Bank of Communications, would seek to acquire a brokerage to expand their operations in China. The plan was part of HSBC's broader China expansion strategy, but "there is nothing further to disclose at the present." HSBC's operations in China include its own banking operations, its stake in BoCom, and an 8% stake in the
Bank of Shanghai
. HSBC also holds a 19.9% shares in
Ping An Insurance
through its wholly-owned subsidiary HSBC Insurance Holdings. The
South China Morning Post
cited Peter Wong Tung-shun, executive director at
The Hongkong and Shanghai Banking Corporation
, as saying that the
acquisition
is being considered in the light of the Chinese government's reforms of the country's securities brokerages. This includes a provision allowing foreign companies to get management control of brokerage firms. Wong did not provide a timetable for any acquisition or identify any acquisition target. The Hongkong and Shanghai Banking Corp is a wholly owned HSBC subsidiary.
On 22 July 2015, Bank of Communications sold $2.45 billion (about 14.93 billion yuan) of Basel III compliant bonds (convertible to preferred stock) "used to replenish the bank’s additional Tier 1 Capital." The bond is registered on the Hong Kong stock exchange and pays a coupon of 5 percent a year.
-
Bank of Communications in
Xi'an
-
Bank of Communications in
Zhengzhou
-
Bank of Communications in
Qingdao
-
Bank of Communications Tower in
Nanjing
-
Bank of Communications Tower in
Shenzhen
-
Bank of Communications Tower in
Hong Kong
(left)
-
Operations
[
edit
]
The Bank of Communications is among the top 5 leading
commercial banks
in China and has an extensive network of over 2,800 branches covering over 80 major cities. Apart from Hong Kong, the Bank has also established overseas branches in
New York
,
Tokyo
,
Singapore
and representative offices in
London
and
Frankfurt
. As of end-2002, the Bank had over 88,000 employees and a total
asset
reaching
RMB
5.15 trillion.
Bank of Communications currently possesses 236 domestic organs, including 30 provincial branches, 7 directly managed branches, 199 sub-branches managed by the provincial branches, with 3,529 network organs in over 239 large- and medium-sized cities. In addition, it has established 21 overseas organs including branch banks in
Hong Kong
,
New York
,
San Francisco
,
Tokyo
,
Singapore
,
Seoul
,
Frankfurt
,
Macau
,
Sydney
, and Ho Chi Minh City, BOCOMUK in
London
, and a representative office in Taipei.
[15]
According to the ranking announced by the British journal "The Banker" concerning 1,000 worldwide banks in 2011, Bank of Communications ranked 35th for its tier l capital, entering the world's top 50 banks for two consecutive years. Among the World's Top 500 Enterprises listed by Fortune in 2018, Bank of Communications ranked 168th., up by 3 as compared with 2017 and entering the World's Top 500 Enterprises for ten straight years.
[16]
Bank of Communications is one of the major financial service suppliers in China with its business scope covering commercial banking, securities, trust, financial leasing, fund management, insurance, offshore financial services, etc.
In November 2023, Bank of Communications joined the ranks of global systemically important banks (
Bank of China
,
Industrial and Commercial Bank of China
(ICBC),
China Construction Bank
and
Agricultural Bank of China
), becoming the fifth on the too-big-to-fail list.
Global systemically important banks
(G-SIBs) are required to hold between 1% and 3.5% additional capital, depending on their rating. Bank of Communications' additional capital requirement is 1%.
[17]
Shareholders
[
edit
]
The major shareholders (ordinary shares) as of 31 December 2016
[2]
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 its 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
: H shares trustee: HKSCC Nominees Limited was excluded in the table
Leadership
[
edit
]
- Hu Bijiang
, chairman in the 1930s
- Chen Guodong
, chairman in the early 1950s
- Hu Jingyuan
[
zh
]
, chairman in the 1950s
- Li Xiangrui
[
zh
]
, chairman 1987 - 1993
- Pan Qichang
[
zh
]
, chairman October 1993 - November 1998
- Yin Jieyan
[
zh
]
, chairman November 1998 - June 2004
- Jiang Chaoliang
, chairman January 2004 - September 2008
- Hu Huaibang
, chairman September 2008 - April 2013
- Niu Ximing
[
zh
]
, chairman May 2013 - February 2018
- Peng Chun
, chairman February 2018 - April 2019
- Ren Deqi
[
zh
]
, chairman from April 2019
- Liu Jun
, president since 2020
See also
[
edit
]
References
[
edit
]
- ^
a
b
c
d
e
"Annual Report 2018"
. Bank of Communications
. Retrieved
31 May
2019
.
- ^
a
b
"2016 Annual Report"
(PDF)
. Bank of Communications. 18 April 2017
. Retrieved
14 May
2017
.
- ^
"OCBC Bank Annual Report 2019"
(PDF)
.
OCBC Bank
. Retrieved
23 February
2020
.
- ^
"Stocks"
.
Bloomberg News
. 6 June 2023.
- ^
Bank of Communications to list in HK June 23, China Daily 2005-06-13. Retrieved 2018-06-03
- ^
"FACTBOX-China's BoCom enjoys strong Shanghai listing"
.
Reuters
. 15 May 2007
. Retrieved
31 August
2022
.
- ^
Bank of Communications 2019 Annual Report
- ^
"The Global 2000 2023"
.
Forbes
. Archived from
the original
on 29 January 2024
. Retrieved
7 February
2024
.
- ^
Dayer, Roberta Allbert (1981).
Bankers and Diplomats in China, 1917-1925: The Anglo-American Relationship
. Abingdon, UK and New York: Frank Cass. p. 22.
ISBN
9781135167585
.
In 1907 Liang Shih-i proposed the establishment of a Bank of Communications which would handle domestic and foreign funds for the redemption of the Peking-Hankow railway.
- ^
Lee, En-han (1977).
China's Quest for Railway Autonomy, 1904-1911: A Study of the Chinese Railway-rights Recovery Movement
. Singapore University Press. p. 223.
... three domestic loans of 5,000,000 taels, 1,000,000 taels, and 7,500,000 taels (CH$10,000,000) each, to be made through the Ministry of Finance, the Imperial Bank of China (ta-ch'ing yin-hang) and the Bank of Communications respectively. The loan provided by the Bank of Communications would be repaid by the issuing of internal bonds.
- ^
"Communication, n.".
The Oxford English Dictionary
.
- ^
Trotter, R.A., Captain J. K. (1881).
"The Military Prize Essay, 1881. Military Operations in the United Kingdom Considered, Particularly as Influenced by the Enclosed Nature of the Country"
.
The Journal of the Royal United Service Institution
.
XXV
(CIX): 3.
Means of Communication. These may be divided into rail communications, road communications, and water communications.
- ^
Tsai, Ching-yuan (1 June 1975).
"President C. K. Yen carries on"
.
Taiwan Today
.
His financial accomplishments included a revision of the tax system, budget and foreign exchange reforms, acceleration of economic development, and reactivation of the Central Bank of China, the Bank of China and the Bank of Communications.
- ^
a
b
"Guo wu yuan gu?n yu chong x?n z? jian ji?o t?ng yin hang de t?ng zh?"
??院?于重新?建交通?行的通知
(Press release) (in Chinese (China)). State Council of the People's Republic of China. 24 July 1986 [digital version was published on 6 September 2013]
. Retrieved
30 October
2017
.
- ^
"交通?行?介"
(in Chinese (China)). Archived from
the original
on 25 December 2018
. Retrieved
25 December
2018
.
- ^
"Bank of Communications (BKFCF) Stock Price, Financials and News"
.
Fortune
. Retrieved
25 December
2018
.
- ^
"China's Bank of Communications makes 'too-big-to-fail' list"
.
Nikkei Asia
. Archived from
the original
on 24 February 2024
. Retrieved
26 February
2024
.
External links
[
edit
]
- Business data for Bank of Communications:
Links to related articles
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