Product Strategy Fathers New Products & Personal Wealth Management Creates the Flagship
 
Zhang Enzhao attendde the opening ceremony and Chen Zuofu chaired this ceremony.

 

 

The opening ceremony of CCB Wealth Management Center　　

　　On January 28, the first wealth management center of China Construction Bank Corporation (CCB) officially commenced operation at CCB Shanghai Branch in World Finance Center. Chairman of CCB’s Board Zhang Enzhao attended the opening ceremony and unveiled the plaque for the wealth management center. Officials from the head office of CCB, representatives from CCB Beijing Branch and CCB Guangdong Branch, VIP clients and friends from the press gathered together to witness the birth of the first top wealth management institution which would offer professional, specialized and tailored services for customers.
　　Zhang Enzhao delivered a speech at the opening ceremony and extended warm congratulations on the opening of the first wealth management center on behalf of CCB headquarters. He said, ‘The opening of CCB’s first wealth management center marks that CCB has entered a new stage in the business line of personal wealth management that offers value-added and specialized services. And it also indicates that CCB’s customers can access better services from this very day. After the establishment of China Construction Bank Corporation, the strategic position of personal banking has been nailed down, and the overall development philosophy of insisting on product strategy and developing customer services has also been set forth explicitly. And the establishment of the wealth management center is just a try for the product strategy. This kind of center will also be established in Beijing, Guangdong and other big cities.’ During his speech, Zhang Enzhao highly recognized CCB Shanghai Branch’s outstanding achievements in the business line of personal banking and also hoped that CCB Shanghai Branch would continue to make the first wealth management center a good center with its own characteristics.
　　The opening ceremony was chaired by Chen Zuofu, President Assistant of CCB. President of CCB Shanghai Branch addressed this ceremony and expressed that Shanghai Branch would continue to make efforts in perfecting services and increasing capability of working team to make this center a flagship center in this brand new service field.
　　After the opening ceremony, all guests present cheerfully visited the wealth management center. In the commodious and convenient waiting room for customers, Zhang Enzhao found his interest in the stock market trends sparkled on the plasma TV display screen. ‘here, let our account manager briefly make an introduction over today’s stock market trends.’ Zhang Enzhao suggested and took a sit in the red sofa to carefully listen to the account manager’s presentation. After the presentation, he asked whether there was the analysis for customers. As knowing the positive answer, Zhang Enzhao nodded pleasantly and left for the next place. When Zhang Enzhao met customer consultant Wang Hai, the champion gainer in the first Shanghai Wealth Management Star Competition, he asked about Wang Hai’s career experience. After knowing Wang Hai had worked in CCB for 8 years, Zhang Enzhao smiled and said, ‘You are an employee with expertise. And you are just the kind that CCB needs!’
　　Wealth management center introduces a dual-manager service model. That is to say, every customer of the wealth management center is equipped with one wealth management consultant and one account manager. Meanwhile, an expert team gathers all specialists in insurance, foreign exchange, securities, fund, real estate, law and other fields inside and outside CCB together to offer a specialized service bolster. In Wealth management center, VIP customers can enjoy six featured services including the dual-manager service, anywhere and anytime service, VIP special gate service, product-designing service, expert team service and value-added service. It is reported, individual-oriented products and services in the wealth management center have the following content: first, providing investment-based services including offering asset management service, assisting clients to achieve medium and long-term value maintenance and increment. Providing investment consultant service for individuals, that is, providing good suggestions about investment portfolio and tracking investment process to adjust portfolio to try the best to retain the anticipated return. Providing individual consultation service. Introducing wealth management products to customers. Providing finance information for customers. Second, offering personal services including door-to-door service, salon activities, genial service, finance and wealth management training for VIP customers children. Third, providing value-added services, such as, customers can enjoy a discount with Long wealth management card when they buy CCB financial products or receive CCB services, and can also access value-added services from CCB’s cooperative partners. Fourth, offering other services, such as, providing an easy way for customers of wealth management center when they go to CCB’s counter for common corporate business and offering consultation services for clients including corporate loan application, enterprises M&A, project financing etc.

4

Five Features of CCB Corporate Loan in 2004

In 2004, China Construction Bank Corporation (CCB) firmly carried out the scientific concept of development, integrated the implementation of state’s macro control policies into CCB’s internal development program, strengthened CCB’s loan portfolio management, focused on the market exploration, and improved the loan portfolio structure. The whole year domestic RMB and foreign currency loan increased RMB 228.9 billion, which was tightly restricted within the amount of CCB’s scheme. And the loan portfolio mix was mainly comprised by low risk loans and loans with preferential polices. Among these, the medium and long-term capital construction loan, technological renovation loan and personal housing loan represented the increase share of 61.79%, a rise of 28.78 percentage point in a year-on-year increase. Loans granted to the sector restricted by the state and with high risks were controlled strictly. It gained social benefits and economic benefits and was a win-win to CCB.

In 2004, CCB focused on strengthening the rationalization of the portfolio structure in the light of national macro control policies, and controlled loan amount and loan intervals in line with competent measures, and enhanced the marriage of the loan portfolio mix and national industry policies. CCB carried out capital budgeting and management techniques throughout the whole bank, drew upon economic capital allocation, controlled the rationalization of the loan portfolio mix, and enhanced the improvement of the loan portfolio structure. During the implementation process, CCB adjusted the allocation quotiety of economic capital in the right time according to national industry policies, and effectively made full use of the mechanism functions of the economic capital.

In 2004, CCB corporate loan had the following five features: first, corporate loan was  maintained steady growth as a whole and the amount exceeded the year plan; second, CCB improved policies insight, controlled the gross amount, and adjusted the portfolio structure; third, the portfolio structure was enhanced progressively; fourth, the balance proportion of foreign currency loan was increased, accounting for 5.79% of the balance of the total corporate loan, an increase of 0.22 percentage point over the previous year; fifth, loan quality was improved, and NPLs was reduced substantially. 

5

Outstanding Achievements of CCB Institutional Banking in 2004

Rapid Growth through Innovation

 

　　In 2004, China Construction Bank (CCB) was committed to exploration and innovation, strengthening business administration and risk management. And in this way, institutional banking scored a rapid growth. At the end of 2004, the total credit line for CCB institutional banking clients amounted to RMB 539.8 billion. CCB institutional banking clients deposits per day reached RMB 322.6 billion in 2004, an increase of RMB 14.373 billion or 4.7% over the previous year. The intermediary business income of institutional banking was RMB 109 million in 2004, quadrupling the income of 2003. CCB institutional banking achievements mainly came from the following aspects:

I Increased share of finance services as the agent. Finance service as the agent is CCB’s traditional business with its own advantages and strength and has   shaped a good brand image in the market. In 2004, CCB acted as the agent bank for 61 national departments and enterprise groups, with the settlement volume of RMB 60.545 billion in the whole year, accounting for 68% of all pilot organizations of Ministry of Finance.

II A major step towards acting as the agent for government entities. CCB actively tracked the reform of government administration mechanism, made lots of efforts in developing agency services to government entities in terms of taxes and fees payment. CCB’s agency services was expanded from taxation and custom entities to security bureaus, courts, inspection and quarantine bureaus, national resources institutions, education entities, transportation departments, etc. CCB signed an agreement with China National Registration of Product and Service Codes to become its first agent bank.

III Sound development of securities services. In view of weak stock market and increased risks, CCB made a timely adjustment on the market positioning and progressively transferred the business focus to  the fields such as separate custody as securities deposit bank, asset management and capital settlement for securities companies, etc to guarantee the sound development of CCB securities institutional banking business. CCB developed separate custody system for securities clients deposits and became the first commercial bank to offer this kind of services in China. And CCB has successfully conducted the separate custody as deposit bank for China Southern Securities, Hantang Securities, MF Securities and Fucheng Securities. Thus CCB clients deposits was increased substantially.

IV Strengthening products innovation. CCB engaged in products innovation and marketing in terms of credit asset transfer by integrating products in existence, and cooperation with other banks was effective and efficient. CCB established correspondent relations with 41 large-scale domestic banks in the whole year. The accumulated credit line authorized to customers stood at RMB 487.586 billion.  The callback work of fund borrowing and bill discount within the credit line was also sound.

V Great efforts in developing services to non-banking financial institutions. As the first bank to grant loans by using standard CDs as collateral, CCB actively negotiated the cooperation with emerging financial companies such as automobile financial businesses. CCB signed an agreement over the settlement network with Toyota Financial Service Corporation and became the first settlement bank since the establishment of automobile financial corporations in China. Non-banking financial intuitional banking has become a new profit growth point.