industrial and commercial bank of china

 

  • [10][non-primary source needed] ICBC was then the fourth of the four specialist banks of 1978–1979 to be made,[20] from the taking of control of commercial activities[20]
    (“industrial credit and savings business”[21]) from People’s Bank of China so that the latter might be transformed to a newly made central bank.

  • • Native name: Zhōngguó Gōngshāng Yínháng[1]; ; Type: Public, State-owned ; Traded as: SSE: 601398 (A ordinary), SEHK: 1398 (H ordinary), SSE: 360011 (CNY Preference), SEHK:
    84602 (CNH Preference), SEHK: 4603 (US$ Preference), SEHK: 4604 (€ Preference), Hang Seng Component; ISIN: CNE1000003G1; Industry: Financial services; Founded: 1984; 39 years ago; Headquarters: Beijing, China; Key people: Chen Siqing (Chairman)[2][3]
    Gu Shu (CEO)[4] ; Products: Finance and insurance, consumer banking, corporate banking, investment banking, investment management, global wealth management, private equity, mortgage loans, credit cards; Revenue: ¥725.12 billion RMB $105.4
    billion (2018)[5][6] ; Operating income: ¥369.32 billion RMB, $53.68 billion (2018)[5] ; Net income: ¥298.72 billion RMB, $43.42 billion (2018)[5] ; Total assets: ¥27.70 trillion RMB US$4027.44 billion (2018)[7] ; Total equity: ¥2.33 trillion
    RMB $338.7 billion (2018)[5] ; Owner: Chinese Central Government, (70.82% voting rights), – Central Huijin Investment Co., Ltd (34.71%)[8], – Ministry of Finance (34.60%), – China Securities Finance (1.23%), Temasek Holdings (2.44% voting
    rights), NSSF (2.43% voting rights, Others (24.31% voting rights); Number of employees: 434,798 (2022)[9] ; Chinese name: Literal meaning, China Industrial and Commercial Bank, Company Limited by Shares; Capital ratio: 12.87% (CET1)[6] History
    Preconditions of 1948–1979[edit] From 1948 the mono-banking system of China was the People’s Bank of China, providing both policy lending, and, operations to the commercial sector.

  • [34] It was announced at the end of July 2013 that South Africa’s Standard Bank was in talks to sell its markets business in London to the Industrial and Commercial Bank of
    China for more than $500 million.

  • During 1978 to[17] 1979 banking reform was initiated by the government of China, with the express desire of bringing into existence a central bank accompanying four total
    central governmentally owned specializing banks, one of these four being ICBC.

  • [61] Subsidiaries Domestic[edit] • ICBC Credit Suisse Asset Management Co., Ltd. International[edit] • Industrial and Commercial Bank of China (Asia) • ICBC Standard Bank
    Plc • ICBC International Securities Limited • Industrial and Commercial Bank of China (Canada) • Industrial and Commercial Bank of China USA NA • Industrial and Commercial Bank of China (Mexico) • Industrial and Commercial Bank of China (Macau)
    • Industrial and Commercial Bank of China (Thai) • ICBC Turkey • ICBC Argentina • Industrial and Commercial Bank of China (Pakistan) • Industrial and Commercial Bank of China (Zurich) Controversies In 2005, the Chinese government arrested
    several government officials in addition to bankers with regards to the accusation of a scheme to take illegally US$900 million from ICBC.

  • With capital provided by the Ministry of Finance of China,[11] the bank’s Tier 1 capital in 2013 was the largest of one thousand global banks, being the first bank headquartered
    in China to achieve this distinction in modern history.

  • [28] Foreign activity[edit] In August 2008, ICBC became the second Chinese bank since 1991 to gain federal approval to establish a branch in New York City.

  • According to Bloomberg, ICBC’s market capitalisation at the end of trade based on its Hong Kong shares was US$156.3 billion, making its equity the world’s fifth highest among
    banks, just behind JPMorgan Chase.

  • [63] In November 2015, ICBC Standard Bank, an overseas subsidiary acquired in February of that year, agreed to pay a fine of a maximum of $40 million to UK authorities.

  • During November 2012, ICBC acquires a 80% stake (valued at $600 million) of Standard Bank Argentina, the largest operation of a Chinese bank in Latin America.

  • China’s largest commercial bank was also the first company to debut simultaneously on both the Hong Kong and Shanghai stock exchanges.

  • ICBC Financial Services, the bank’s brokerage unit, provided about $88 billion of repo financing at the end of 2015, up from $59 billion two years ago, according to regulatory
    filings.

  • [12][8] Subsequently, ranked the largest bank in the world 2017 and 2018, by total assets,[13] (31 December 2020, US$4.324 trillion[7]), ICBC was positioned at 1st in The
    Banker’s Top 1000 World Banks ranking, every year from 2012,[14] and first (2019) on the Forbes Global 2000 list of the world’s biggest public companies.

  • [17] 1984–2005[edit] By rights of a contradiction within the economic functioning of the government of China, the People’s Republic, the State Council of China,[19] during
    September of[20] 1983 made a decision to separate certain activities of the government to an exclusively operating organisation, subsequently named the Industrial and Commercial bank of China,[19] established on 1 January 1984.

  • [54] This included an approval for a cash injection of US$15 billion (financed from China’s massive foreign exchange reserves) on 28 April 2005.

  • At the end of its first day of trading, the bank’s shares closed up almost 15% at HK$3.52 in Hong Kong, compared with the listing price of HK$3.07, which was set at the top
    of the indicative range due to the strong demand.

  • As of 2 December 2014, ICBC is ranked the largest bank in the world by assets and by tier 1 capital.

  • Founded as a limited company on 1 January 1984,[10] ICBC is a state-owned commercial bank.

  • [53] To clean up ICBC’s balance sheet and prepare it for overseas listing, the Chinese government orchestrated a series of capital injections, asset transfers, and government-subsidised
    bad loan disposals that eventually cost more than US$162 billion.

  • [24] IPO[edit] In the runup to its planned initial public offering, on 28 April 2006, three “strategic investors” injected US$3.7 billion into ICBC: • Goldman Sachs purchased
    a 5.75% stake for US$2.6 billion, the largest sum Goldman Sachs has ever invested.

  • [55] The Beijing-based state company, China Huarong Asset Management, helped ICBC dispose of its bad loans.

  • [27] In 2010, Agricultural Bank of China broke ICBC’s IPO record when it raised $22.1 billion.

  • As the 2005 annual report records, just under 5% of loans are classified as non-performing, in comparison with the majority of western banks who have lower NPL ratios (US
    commercial banks are typically around 1%).

  • [61] In 2008 ICBC was the first Chinese Bank to adopt the Equator Principles, an international set of social and environmental standards for financial institutions launched
    in 2003.

  • [33] On 20 May 2011, Industrial and Commercial Bank of China Ltd. established two branches in Pakistan, one in Karachi, the other in Islamabad.

  • As the first and currently the only Chinese bank in Kuwait, the establishment of ICBC Kuwait Branch ended the history of no Chinese bank’s presence in Kuwait.

  • Summary[edit] 2003–2018[edit] Financials in Renminbi[5][47][48][49][50][51][52] Loans[edit] Listed to industry[edit] In millions of Chinese RMB (Yuan) in 2005: • Manufacturing:
    662,376, 20.1% (28.7% in 2004) • Transportation, storage, postage & telecommunications: 367,371, 11.2% (10.2% in 2004) • Power, gas and water: 281,179, 8.6% (7.0% in 2004) • Retail and wholesale, catering: 265,906, 8.1% (6.9% in 2004) • Property
    development: 194,024, 5.9%, (5.6% in 2004) • Social service organization: 103,070, 3.1%, (3.2% in 2004) • Construction: 89,666, 2.7%, (2.1% in 2004) • Other industries: 313,804, 9.5%, (12.1% in 2004) • Discounted bills: 392,717, 11.9%, (8.4%
    in 2004) • Personal loans: 515,042, 15.7%, (13.1% in 2004) • Overseas business: 104,398, 3.2%, (2.7% in 2004) Total: 3,289,553 With collateralization[edit] • Secured by mortgages: 34.1% • Secured by other collateral: 22.1% • Guaranteed loans:
    23.3% • Unsecured loans: 20.5% Non-performing[edit] At the end of 2004, 19.1% of ICBC’s portfolio consisted of non-performing loans.

  • On 18 August 2011, ICBC passed the examination from State Bank of Pakistan and started its business in Pakistan.

  • ICBC raised at least US$14 billion in Hong Kong (H-shares) and another US$5.1 billion in Shanghai (A-shares).

  • over-allotment) placements were exercised and ICBC’s take rose to US$21.9 billion (17% of ICBC’s market value before the IPO), divided in US$16 billion in Hong Kong and US$5.9
    billion in Shanghai.

  • In June 2005, ICBC Credit Suisse Asset Management Co., Ltd., a joint venture between ICBC (55%), Credit Suisse First Boston (25%) and COSCO (20%), was formally established
    in China.

  • Several former employees of ICBC have moved on to work in prominent government positions in China.

  • [15] Furthermore, ICBC is considered one of the most profitable companies in the world, ranking fourth according to Forbes.

  • [36] On 25 May 2015, the Company further strengthened its presence in the Middle East and Europe by purchasing[37] Turkey’s TekstilBank and forming its ICBC Turkey subsidiary.

 

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Photo credit: https://www.flickr.com/photos/calliope/5398974188/’]