Bank of China
303789
224060946
2008-07-07T03:31:52Z
Cunnosieur
7420891
/* References */
{{Unreferenced|date=May 2007}}
{{distinguish2|the [[Central Bank of China]]{{ndash}} the central bank of the [[Republic of China|Republic of China (ROC, "Taiwan")]]{{ndash}} or the [[People's Bank of China]] (the central bank of the [[People's Republic of China|People's Republic of China (PRC)]]}}
{{Infobox Company
|company_name = Bank of China Limited
|company_logo = [[Image:BOC.svg|150px]]
|company_type = Joint stock company
|company_slogan =
|foundation = [[1912]]
|location = [[Beijing]], [[People's Republic of China]]
|key_people = [[Xiao Gang]], [[Chairman]]</br>[[Li Lihui]], President
|num_employees = 209,265
|industry = [[Banking]]
|products = [[Financial services]]
|revenue = {{profit}} [[Renminbi|RMB]] 137,628 billion ([[2006]])<ref name="FH">[http://www.boc.cn/en/common/third_en_noright.jsp?category=1155524684100 Financial Highlights (A Share) - Bank Of China<!--Bot generated title-->]</ref>
|net_income = {{profit}} [[Renminbi|RMB]] 41.9 billion ([[2006]])<ref name="FH"/>
|homepage = [http://www.boc.cn www.boc.cn]
}}
'''Bank of China Limited''' ('''BOC''') {{SSE|601988}} {{sehk|3988}} ({{zh-stp|s=中国银行|t=中國銀行|p=Zhōngguó Yínháng}}; often abbreviated as 中行) is one of the [[big four]] state-owned commercial [[bank]]s of the [[People's Republic of China]]. Founded in 1912 to replace the [[Ta Ching Government Bank]], it is the oldest bank in China. From its establishment until 1942, it issued banknotes on behalf of the Central Government along with the "Big Four" banks of the period: the [[Central Bank of China]], [[Farmers Bank of China]] and [[Bank of Communications]]. Although it initially functioned as the Chinese central bank, in 1928 the [[Central Bank of China]] replaced it in that role. Subsequently, BOC became a purely commercial bank.
After the Chinese civil war ended in 1949, the Bank of China effectively split into two operations. Part of the bank relocated to Taiwan with the [[Kuomintang]] government. It was privatised in 1971 to become the '''International Commercial Bank of China''' (中國國際商業銀行). It has subsequently merged with the '''Taiwan Bank of Communications''' ('''Chiao Tung Bank''', 交通銀行) to become the [http://www.megabank.com.tw/ Mega International Commercial Bank (兆豐國際商業銀行).]The Mainland operation is the current entity known as the Bank of China.
It is the second largest lender in China overall, and the 8th largest bank in the world by market capitalization value<ref> http://money.cnn.com/2006/06/01/news/international/bc.financial.china.boc.reut/?section=money_news_international </ref>. Once 100% owned by the central government, via [[Central Huijin Investment]] and National Council for Social Security Fund (SSF), an [[Initial public offering|IPO]] of its shares took place in June 2006, the [[free float]] is at present over 26%.
It is the most international of China's banks, with branches on every 'major' continent. Outside of [[mainland China]], BOC also operates in 27 countries including:
* [[Australia]], [[Bank of China (Canada) Limited|Canada]], [[United Kingdom]], [[France]], [[Germany]], [[Italy]], [[Luxembourg]], [[Russia]], [[Hungary]], [[United States]], [[Panama]], [[Brazil]], [[Japan]], [[Republic of Korea]], [[Singapore]], [[Taiwan]], [[Philippines]], [[Vietnam]], [[Malaysia]], [[Thailand]], [[Indonesia]], [[Kazakhstan]], [[Bahrain]], [[Zambia]], [[South Africa]] and there's also another branch office in [[Cayman Islands]].<ref>http://www.boc.cn/en/common/third.jsp?category=ROOT>en>Information%20Center>BOC%20Network>Overseas%20Branches&pages=1 </ref>
Although it is present in the above countries/territories, its operations outside China accounted for less than 4% of the activity of the bank by both profits and assets. Mainland China accounts for 60% of the bank by profits and 76% by assets as at December 2005.
== Events in 2005 ==
In the runup to the IPO, BOC solicited long term investors to take strategic stakes in the company. In October 2005, the [[Royal Bank of Scotland]] Group PLC announced a $3.1 billion investment which would give the British bank control of just under 10 percent stake in the Bank of China. Further investments were made by Swiss bank UBS AG, and by Temasek Holdings Pte. Ltd, who also promised to subscribe for an additional $500 million worth of shares during Bank of China's initial public offering.
The Bank has been investigated by the United States in its money laundering probe related to the [[superdollar]]s affair.<ref>[http://english.chosun.com/w21data/html/news/200509/200509080007.html Digital Chosunilbo (English Edition): Daily News in English About Korea<!--Bot generated title-->]</ref>
==Events in 2006==
* Its listing, on the [[Hong Kong Stock Exchange]] on [[June 1]], [[2006]] was the largest [[initial public offering|IPO]] in the world since 2000, and the fourth largest IPO in the world ever, raising some US$9.7 billion in the H-share Global Offering. The Over-Allotment Option was then exercised on [[June 7]], [[2006]], raising the total value of their IPO to US$11.2 billion.<ref>[http://news.xinhuanet.com/english/2006-06/01/content_4632335_2.htm Xinhua - English<!--Bot generated title-->]</ref>
* It successfully made the largest IPO in mainland China on July 5, 2006, by offering up to 10 billion A-shares on the [[Shanghai Stock Exchange|Shanghai A Stock Exchange]], or up to RMB20 billion. These were priced at RMB3.00 per share.
* BOC has bought [[Singapore Airlines]]'s stake in [[BOC Aviation|Singapore Aircraft Leasing Enterprise]], in 2007 it was renamed [[BOC Aviation]].
* The bank held another IPO on the Shanghai Stock Exchange in 2006, raising around 20 billion yuan (US$2.5 billion).
== Bank of China in Hong Kong ==
{{main|Bank of China (Hong Kong)}}
BOC started operations in [[Hong Kong]] in 1917 and has become a major player there, challenging British banks in the territory. It became note-issuing bank [[Hong Kong]] in 1994; in Macao, it received note-issuing status in 1995.
In 2001, BOC regrouped its [[Hong Kong]] operations into [[Bank of China (Hong Kong)]]; then BOCHK listed on the [[Hong Kong Stock Exchange]] in October [[2002]]. Two-thirds of its share capital are in [[free float]]. The bank's headquarters in Hong Kong are located in the [[Bank of China Tower]], designed by the renowned architect [[I.M. Pei]], and was opened to the public in 1990 as the tallest building of Hong Kong at that time.
It listed on the [[Hong Kong Stock Exchange]] (independently from BOCHK) (SEHK:3988) by floating the largest [[initial public offering|IPO]] in the world by any institution since 2000 on [[June 1]], 2006, raising US$9.7 billion. The [[initial public offering|IPO]] attracted HK$286 billion (USD 36.7 billion) in retail orders and was the most heavily oversubscribed in the history of the Hong Kong Stock Exchange. The offer was around 76 times oversubscribed. Although some financial analysts advised caution due to the worrying amounts of non-performing loans, this hardly deterred investors. The [[initial public offering|IPO]] share price started at HK$2.95 per share and jumped 15% (to HK$3.40) after the first day of trading.
== Basic facts ==
[[Image:Bocdalian.jpg|thumb|200px|Bank of China branch in [[Dalian]].]]
* It has over RMB 3 trillion in assets, making it in the Fortune Global 500 for the past 17 years.
* It is the no.2 lender in China overall, the no.1 lender to non-institutions, and the no.1 foreign exchange lender. (The no.1 lender in China is the [[Industrial and Commercial Bank of China]])
* In 2002, it made RMB52.7 billion profit, an increase of over 20 per cent from the previous year.
* 7th tallest building in the world
== Ownership ==
* As of June 7, 2006, following the [[Hong Kong]] [[IPO]], the ownership of the Bank of China (SEHK:3988) was:
** [[Central Huijin Investment]]: 69.265%
** [[Royal Bank of Scotland|RBS China]]: 8.467%
** [[Asia Financial Holdings|AFH Pte. Ltd.]] (a wholly owned subsidiary of [[Temasek Holdings|Temasek]]): 4.765%
** [[National Council for Social Security Fund|SSF]]: 4.576%
** [[UBS AG]]: 1.366%
** [[Asian Development Bank|ADB]]: 0.205%
** Investors who received H shares from the Global Offering (IPO): 11.356%
== History of BOC's expansion outside (mainland) China ==
[[Image:Bank of China Tokyo.jpg|thumb|Tokyo branch.]]
[[Image:Bank of China New York by David Shankbone.jpg|thumb|[[New York City|New York]] branch.]]
[[Image:Bankofchina-sg.JPG|thumb|Bank of China building in [[Singapore]].]]
*[[1917]] BOC opened a branch in Hong Kong.
*[[1929]] BOC opened its first overseaas branch in [[London]]. The branch managed the government's foreign debt, became a center for the bank's management of its foreign exchange, and acted as an intermediary for China's international trade.
*[[1931]] BOC opened a branch in [[Osaka]].
*[[1936]] BOC opened a branch in [[Singapore]] to handle remittances to China of overseas Chinese. It also opened an agency in [[New York]].
*[[1937]] At the outbreak of hostilities with Japan, Japanese forces blockaded CHina's major ports. BOC opened a number of branches overseas to facilitate the gathering of remittances and the flow of military supplies. BOC opened branches in [[Jakarta|Batavia]], [[Penang]], [[Kuala Lumpur]], [[Haiphong]], [[Hanoi]], [[Yangon|Rangoon]], [[Mumbai|Bombay]], and [[Calcutta]]. It also opened sub-agencies in [[Surabaya]], [[Medan]], [[Dabo]], [[Xiaobo]], [[Batu Pahat]], [[Baichilu]], [[Mandalay]], [[Lashio]], [[Ipoh]], and [[Seremban]].
*[[1941]] and [[1942]] The Japanese conquest of South East Asia forced BOC to close all overseas its branches, agencies, sub-branches and sub-agencies, except London, New York, Calcutta, and Bombay.
*[[1942]] BOC set up six new overseas branches, including those at [[Sydney]], ([[Australia]]), [[Liverpool]], and [[Havana]], and possibly [[Karachi]].
*[[1946]] BOC reopened its branches and agencies in Hong Kong, Singapore, Haiphong, Rangoon, Kuala Lumpur, Penang, and Jakarta. It moved the Hanoi agency to [[Ho Chi Minh City|Saigon]]. At the suggestion of the Allied Forces Headquarters, it liquidated the branch in Osaka and opened a sub-branch in [[Tokyo]].
*[[1947]] BOC opened agencies in [[Bangkok]], [[Chittagong]], and [[Tokyo]].
*[[1950]] Some of the branches of Bank of China joined the bank headquartered in [[Beijing]] — i.e., Hong Kong, Singapore, London, Penang, Kuala Lumpur, Jakarta, Calcutta, Bombay, Chittagong, Karachi, and Jakarta — while others — New York, Tokyo, Havana, Bangkok, and one other, possibly Panama — opted to remain with the Bank of China headquartered in [[Taipei]]. In 1971, this bank took the name [[International Commercial Bank of China]].
*[[1963]] The Burmese government nationalized all banks, foreign and domestic, including the Bank of China's Rangoon branch.
*[[1971]] The Bank of China transferred its two branches in Karachi and Chittagong to the [[National Bank of Pakistan]].
*[[1975]] The People's Republic of Vietnam nationalized the Bank of China's branch in Saigon, while the [[Khmer Rouge]] government nationalized the Bank of China's [[Phnom Phen]] branch.
*[[1981]] BOC opened a branch in [[New York]].
* [[2001]] Kwangtung Provincial Bank was closed and merged under Bank of China, S'pore Branch.
*[[2001]] Bank of China Futures Pte Ltd wound up operations in Singapore.
== References ==
<div class="references-small">
<references />
* Bank of China, ''A History of the Bank of China, 1912-1949'', Beijing: 1999.
== External links ==
* [http://www.bank-of-china.com/en/static/index.html Official website]
{{Template group
|list =
{{CNX companies}}
{{Hang Seng}}
{{Banks of the People's Republic of China}}
{{SSE 50 companies}}
{{Hang Seng China Enterprises Index}}
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[[Category:Bank of China]]
[[Category:Banks of the People's Republic of China]]
[[Category:Hang Seng Index Constituent Stocks]]
[[Category:State-owned enterprises of the People's Republic of China]]
[[Category:Warrants issued in Hong Kong Stock Exchange]]
[[de:Bank of China]]
[[fr:Bank of China]]
[[ko:중국은행]]
[[ja:中国銀行 (中華人民共和国)]]
[[ru:Bank of China]]
[[fi:Bank of China]]
[[th:ธนาคารแห่งประเทศจีน]]
[[zh:中国银行]]