Improving Business Performance and increasing Tax Contribution

China Construction Bank Ranks Well on the List of “Top 500 Chinese Companies in 2006”

 

CCB has grown rapidly after its shareholding transformation and successful overseas listing, scoring increasing profits and creating huge fortune. Its ranking on the latest list of “Top 500 Chinese Companies in 2006” rose from the 10^th last year to the 8^th. It was rated the 6^th on the list of Top 500 Chinese Companies in the Service Industry. It was ranked the 2^nd and the 10^th on the list of 200 Chinese Companies with the Best Profits in 2005 and the list of Top 200 Chinese Tax-paying Companies respectively where among Chinese banks it stood in the 1^st and the 2^nd position.

 

The list of “Top 500 Chinese Companies” is released by China Enterprise Confederation (CEC) and China Enterprise Directors Association (CEDA). To better reflect the business performance and tax contribution of the top 500 Chinese companies, in 2006 CEC and CEDA start publishing the lists of 200 Chinese Companies with the Best Profits and Top 200 Chinese Tax-paying Companies which are selected from the top 500 Chinese companies, top 500 Chinese manufacturing companies and top 500 Chinese service companies.

 

Since the shareholding transformation and IPO, CCB has made effective reform and innovation efforts. It keeps improving governance and pushing forward the organizational reform and strategic transition. Following the “customer-oriented” philosophy, it strives to optimize business process and upgrade products and management system. While effectively controlling risks, it accelerates product innovation and strengthens marketing and customer services. As a result, its business grows rapidly and comprehensive strength continues rising. In particular, from last year CCB has made great efforts towards strategic transition. It works hard to consolidate its traditional competitive edge in the medium and long-term credit business for infrastructure projects and has established wide relations with most Chinese conglomerates which include 98 largest Chinese companies among the top 100 Chinese companies based on sales volume selected by CEC and CEDA at the end of last year. CCB’s corporate customers also include government agencies, financial institutions and a number of Fortune Global 500 companies operating in China. In line with the national macro control policies and industrial development policies, CCB also strengthens cooperation with quality companies in the energy, transport and petrochemical industries, controls credit to those industries with excessive output capacity such as iron & steel, electrolytic aluminum and cement and gradually withdraws from the industries with extremely excessive output capacity.

 

CCB also intensifies efforts to develop the retail financial services. Last year, it launched a number of credit products especially for small and medium-sized businesses, including the Growth Road which after making credit rating offers the one-stop and rapid credit services for the qualified small businesses and the Swift Loan which offers efficient credit services to the small businesses with effective pledge. CCB also formulates policies and rules on risk management, organizational structure, marketing force development and performance evaluation to promote the healthy growth of small and medium-sized business services. Putting priority on personal banking service, CCB is committed to providing private customers with comprehensive products and services. Last year, in response to the new market environment and related national policies, CCB launched unique individual housing loans for ordinary residents. As of the first half of this year, the increment of individual housing loans of CCB ranked the first among Chinese banks. CCB also speeds up bank card innovation and promotion efforts, including launching the “Automobile Long Card” and “University Long Card” and the credit card mail installment service in large cities. In addition, it provides private customers with a wide range of intermediary products, including personal wealth management, remittance and securities agent services. It actively expands the personal financial management, payment and settlement business and has scored rapid growth of the private intermediary services.

 

CCB enhances cooperation with such strategic investor as the Bank of America. In line with its development strategy, it introduces the advanced experience and management know-how of the strategic investor in such areas as corporate governance, risk management, retail services and outlet transition into its own business practices so as to boost business and management innovation and intensify risk management.

 

The reform of CCB not only stimulates its business growth but also raises its comprehensive competitive strength, marking it one of the Chinese banks with the strongest competitiveness, marketing, risk control and customer service capacities and profitability and also one of the leading banks even in Asia. Its role in promoting the stable and healthy growth of the financial industry in Asia has been widely recognized by the public and the international market. It is rated as the Best Chinese Bank of the Year by The Banker and awarded the Best Financial Risk Management Award in China by Asia Risk.

 

After the IPO, CCB has made great efforts to raise the transparency of information disclosure, adopted the internationally accepted accounting standards in formulating financial statements and become truly integrated into the international financial market. According to the Hong Kong media, amidst Chinese banks CCB has a fairly high quality and its return on capital and return on equity are both among the best of listed banks. Some experts point out that the biggest asset of CCB is not its tangible assets which can be measured by capital but the credibility of the bank which is built over the years, its 14,000 business outlets, its valuable experience accumulated over years in corporate governance, organizational reform and risk management innovation and the spirit and wisdom of its 300,000 employees.

 

The sustainable growth of the Chinese economy creates opportunities for the development of the Chinese banking industry. With prudent business philosophy, quality assets and a wide customer base, CCB will seek opportunities amid challenges and keep committed to growing into “a leading international commercial bank providing customers with the best services, creating the maximum value for the shareholders and offering employees the best career opportunities”.