China Construction Bank Corporation (CCB, Stock Code:939) recently was awarded Best Domestic Debt House by Asiamoney, thanks to its mortgage-backed securities (MBS) product--CCB 2005-1 MBS, the first MBS product issued in China on December 15, 2005. This award again signifies the market’s positive affirmation on CCB’s excellent performance in 2006.

With the approval of the State Council in February 2005, CCB became the first bank in China to launch MBS as the pilot project. And on December 15 2005, CCB successfully completed this MBS project through issuing CCB 2005-1 MBS. And on February 15 2006, People’s Bank of China (PBOC) granted the license to CCB and agreed that CCB 2005-1 MBS A and B securities could enter the national inter-bank bond market.

The success of CCB MBS pilot project is a milestone for China’s finance development history and opens a new stage for China’s bank and its financial market. Chairman of CCB said,” the purpose of developing MBS is to not only match and optimize the liabilities and assets structure of the bank, increase the capital adequacy ratio and prevent, disperse and transfer risks, but also play an indispensable and positive role in promoting the standardization of credit assets business and advancing the overall management of the bank.”  

Facts have proven that MBS is just one part of CCB’s strong edge in real estate finance. As the first Chinese commercial bank issuing individual mortgage loans and conducting house provident fund loans, CCB stores tremendous experience in the field of real estate finance through its years of practices and services. And it has already built up a good brand image in the market. The common advertisement of “Go to CCB to buy your house” not only indicates CCB’s commitment to extensive customers about CCB’s continuous efforts in house loans, but also reflects CCB’s customers trust and confidence in CCB. In 2006, with customer-focused concept, CCB sped up its products innovation and process streamline to draw upon its advantage in information technology and improve its service quality, so that CCB’s products and services in individual house loans have been progressively towards standardization, personalization and modernization, and its innovation continued to be accelerated

In 2006, CCB launched various products of individual housing loans tailored to different groups and flexible repayment of housing loans for customers such as the typical products of revolving loans for individual housing loans, individual housing loans at fixed interest rate and “Ten Services of Individual Housing Loans”. For example, CCB launched product of step-up payment mortgage loan to young customers, and E-channel and agency service to provident fund housing loan clients. On the one hand, CCB helped extensive customers realize their house dream and on the other hand, it enhanced its sound development in individual housing loans business. Thus for this year, CCB scored a comparatively good achievement in this field and its housing loan balance and new increase also created a historical high. The loan balance, new loans and increase in this field ranked the leading position for 2006. Thus, its advantage and competitiveness in individual housing loans have been improved further.

Asiamoney, the most authoritative finance magazine, has its own extensive readers mainly including bankers in investment banks, experts in company finance and practitioners in capital markets. Its awards conducted annually are to honor Asian commercial banks, bonds brokers and securities dealers in recognition of their performance excellence in the capital market over the past 12 months. The award of Best Domestic Debt House granted to CCB not only honors CCB’s outstanding performance after its IPO in October 2005 as the first bank among China’s largest four state-owned banks, but also means its recognition of CCB’s big contribution to China’s banking industry as well as the real estate finance of China. 

Profile:

China Construction Bank Corporation (CCB), the first bank among China’s domestic commercial banks to take reform and development, took the lead to complete restructuring and reform among China’s four largest state-owned commercial banks. CCB introduced Bank of America and Temasek as its strategic investors and was successfully listed on the Stock Exchange of Hong Kong Limited in 2005. After its restructuring and listing, CCB took many efforts in reform and innovation and scored substantial achievements in such fields as corporate governance, internal structure, risk management, management and business process, products and service development. So far, it has become one of domestic banks with strongest capabilities of comprehensive competitiveness, marketing and promotion, risk management and control, customers relations and profitability, and as a result, it has already received extensive recognition both from domestic and overseas markets. CCB was named by The Banker magazine as the “Bank of the Year” in China in 2005. 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”.