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China Construction Bank Joins Hang Seng Index

Published time：2006-09-10

China Construction Bank Corporation (“CCB”, stock code: 939) will officially join the Hang Seng Index on September 11, 2006, becoming the first H share firm to be included in the blue-chip index. The weighting of CCB in the index will be 2.16%.

“Since the debut of the shareholding transformation and IPO, CCB has made effective reform and innovation efforts. It keeps improving corporate governance and speeds up organizational reform and strategic transition. Meanwhile, following the “market-centric” business philosophy, it is committed to optimizing business process, innovating products and services and improving management system. While effectively controlling risks, CCB has achieved stable business growth and increase of business strength. It has grown into the mainland Chinese bank with the strongest competitiveness, marketing and risk control capacity and profitability. That CCB becomes the first H share company joining the Hang Seng Index illustrates the recognition of its sound performance and market position,” said CCB spokesperson.

“We are honored of this achievement and would like to extend our gratitude once again to the investors, the HSI Services Ltd. and all circles of the society for their support over the years. Faced with the fluctuating market, we will continue working hard to improve corporate governance, strengthen risk management, accelerate business innovation and expansion, raise assets quality and profitability, provide the best services for the customers and bring the maximum return to the investors,” added the spokesperson.

In March this year, CCB became a constituent of Hang Seng China Enterprises Index and Hang Seng 50 (including Hang Seng Mainland 25). On August 11 this year, HSI Services Ltd. declared the upcoming formal inclusion of CCB (993) in Hang Seng Index in September, making the bank the first H share firm joining the blue-chip index.

HSI Services Limited is a wholly-owned subsidiary of Hang Seng Bank and is responsible for compiling, publishing and managing the Hang Seng Index, Hang Seng Composite Index Series, and Hang Seng Freefloat Index Series, etc. it announced changes of the calculation methodology of H-shares Index and its consideration of adding qualified H-share companies into Hang Seng Index on June 30, 2006. Then today, it announced its constituent list of Hang Seng Index.

CCB’s Profile:
　　

China Construction Bank Corporation (CCB, Stock Code:939) was successfully listed on the main board of the Stock Exchange of Hong Kong Limited on 27 October 2005, the first public listing of China’s four largest state-owned commercial banks in the overseas market. CCB provides a comprehensive range of commercial banking products and services, and its principal business activities consist of corporate banking, personal banking and treasury operations. CCB is among the market leaders in China in a number of products and services: the second largest lender of infrastructure loans; one of major lenders in terms of residential mortgage products; and the second largest issuer of bank cards. CCB has an extensive customer base, with the network of 14 thousand branch outlets throughout the whole country. Customers can access CCB’s services through various channels such as wealth management centers, electronic banking, and self-service banking centers. CCB has always been the leader in terms of comprehensive competitiveness, marketing and promotion, risk management and control and profitability compared with other Chinese banks. On August 24, CCB and Bank of America Corporation signed the agreement that announced the 100%-equity acquisition of Bank of America (Asia), the wholly owned subsidiary of Bank of America in Hong Kong. CCB was named by The Banker magazine as the “Bank of the Year” in China in 2005. According to The Banker magazine, CCB was rated 11th among Top 1000 World Banks and ranked the No. 1 on the list of top 100 China’s bank. According to the Hong Kong-based financial journal, Asiaweek, CCB was rated 7th among Top 300 Asian Banks released, and rewarded as the highest net interest income and net profit, and the “most profitable bank in Asia”. And CCB also was named by FinanceAsia of Hong Kong as Best Managed Company, Best Commitment to Strong Dividends and Best Corporate Governance.