Agricultural Bank of China
Encyclopedia
Agricultural Bank of China Limited (ABC), also known as AgBank, is one of the "Big Four" bank
s in the People's Republic of China
. It was founded in 1951, and has its headquarters in Beijing
. It has branches throughout mainland China
, Hong Kong
, London
, Tokyo
, New York
, Frankfurt
, Sydney
, Seoul
, and Singapore
.
ABC has 320 million retail customers, corporate clients, and nearly 24,000 branches. It is China's third largest lender by assets. ABC went public in mid-2010, fetching the world's biggest ever initial public offering
(IPO). As of 2011, it ranks 8th among the Top 1000 World Banks, meanwhile Forbes
Global 2000 named it the 25th-largest public company in the world.
, Farmers Bank of China
and Cooperation Bank, merged to form Agricultural Cooperation Bank, which ABC regards as its ancestor. However, the bank was merged into People's Bank of China
, the central bank in 1952. The first bank bearing the name Agricultural Bank of China was founded in 1955, but it was merged into the central bank in 1957. In 1963 the Chinese government formed another agricultural bank, and it was also merged into the central bank two years later. Today's Agricultural Bank of China was founded in February 1979. It was restructured to form a holding company
called Agricultural Bank of China Limited. It was listed on the Shanghai and Hong Kong stock exchanges in July 2010.
In April 2007 ABC was the victim of the largest bank robbery in Chinese history
. This occurred when two vault
managers
at the Handan
branch of the bank in Hebei
province embezzled almost yuan
(US$7.5 million).
" banks in China to go public. In 2010, A shares
and H shares of Agricultural Bank of China were listed on the Shanghai Stock Exchange
and the Hong Kong Stock Exchange
respectively. Each share was set to cost between 2.7RMB
and 3.3RMB per share. H shares were set to cost between HK$2.88 and HK$3.48 per share. The final share price for the IPO launch was issued on July 7, 2010. On completion in August 2010 it became the world's biggest initial public offering
(IPO) surpassing the one set by Industrial and Commercial Bank of China
in 2006 of .
ABC raised US$19.21 billion in an IPO in Hong Kong and Shanghai on July 6, 2010, before overallotment options were exercised. On August 13, 2010, ABC officially completed the world's largest initial public offering, raising a total of after both Shanghai and Hong Kong's over-allotments were fully exercised. The IPO was once thought to be able to raise , but weaker market sentiment dampened the value.
CICC
, Goldman Sachs
, and Morgan Stanley
led the Hong Kong offering, with JPMorgan, Macquarie
, Deutsche Bank
and ABC's own securities unit also involved. CICC
, Citic Securities
, Galaxy
and Guotai Junan Securities handled the Shanghai portion. ABC sold about 40% of the Shanghai offering to 27 strategic investors including China Life Insurance and China State Construction. They are subject to lock-up periods of 12–18 months. Eleven cornerstone investors were selected for its Hong Kong share offering, including Qatar Investment Authority
and Kuwait Investment Authority
, taking a combined worth of shares.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s in the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
. It was founded in 1951, and has its headquarters in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
. It has branches throughout mainland China
Mainland China
Mainland China, the Chinese mainland or simply the mainland, is a geopolitical term that refers to the area under the jurisdiction of the People's Republic of China . According to the Taipei-based Mainland Affairs Council, the term excludes the PRC Special Administrative Regions of Hong Kong and...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
, Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
, Seoul
Seoul
Seoul , officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world...
, and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
.
ABC has 320 million retail customers, corporate clients, and nearly 24,000 branches. It is China's third largest lender by assets. ABC went public in mid-2010, fetching the world's biggest ever initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
(IPO). As of 2011, it ranks 8th among the Top 1000 World Banks, meanwhile Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
Global 2000 named it the 25th-largest public company in the world.
History
After the establishment of the People's Republic of China in 1949, ABC has been formed and abolished several times. In 1951, two banks of the Republic of ChinaRepublic of China
The Republic of China , commonly known as Taiwan , is a unitary sovereign state located in East Asia. Originally based in mainland China, the Republic of China currently governs the island of Taiwan , which forms over 99% of its current territory, as well as Penghu, Kinmen, Matsu and other minor...
, Farmers Bank of China
Farmers Bank of China
The Farmers Bank of China was one of the largest banks in China and later in Taiwan.-History:The Farmers Bank of China was founded on April 1, 1933 in Hankou from the amalgamation of provincial agricultural banks in Henan, Hubei, Anhui and Jiangxi...
and Cooperation Bank, merged to form Agricultural Cooperation Bank, which ABC regards as its ancestor. However, the bank was merged into People's Bank of China
People's Bank of China
The People's Bank of China is the central bank of the People's Republic of China with the power to control monetary policy and regulate financial institutions in mainland China...
, the central bank in 1952. The first bank bearing the name Agricultural Bank of China was founded in 1955, but it was merged into the central bank in 1957. In 1963 the Chinese government formed another agricultural bank, and it was also merged into the central bank two years later. Today's Agricultural Bank of China was founded in February 1979. It was restructured to form a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
called Agricultural Bank of China Limited. It was listed on the Shanghai and Hong Kong stock exchanges in July 2010.
In April 2007 ABC was the victim of the largest bank robbery in Chinese history
Agricultural Bank of China robbery
The Agricultural Bank of China robbery was the embezzlement of nearly 51 million yuan from the Handan branch of the Agricultural Bank of China in Hebei province between March 16 and April 14, 2007...
. This occurred when two vault
Bank vault
A bank vault is a secure space where money, valuables, records, and documents can be stored. It is intended to protect their contents from theft, unauthorized use, fire, natural disasters, and other threats, just like a safe...
managers
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
at the Handan
Handan
Handan is a prefecture-level city located in the southwestern part of Hebei Province of China.- History :Handan was the capital of the State of Zhao during the Warring States period , after the capital moved from Zhongmu. The city was conquered by the State of Qin after the virtual annexation of...
branch of the bank in Hebei
Hebei
' is a province of the People's Republic of China in the North China region. Its one-character abbreviation is "" , named after Ji Province, a Han Dynasty province that included what is now southern Hebei...
province embezzled almost yuan
Renminbi
The Renminbi is the official currency of the People's Republic of China . Renminbi is legal tender in mainland China, but not in Hong Kong or Macau. It is issued by the People's Bank of China, the monetary authority of the PRC...
(US$7.5 million).
2010 initial public offering
ABC was the last of the "big fourBig Four (banks)
Big Four is the colloquial name for the four main banks in several countries, where the banking industry is dominated by just four institutions and where the phrase has gained currency.-Australia:...
" banks in China to go public. In 2010, A shares
A share (mainland China)
A shares are specialized shares of the [Renmembi]]currency that are purchased and traded on the Shanghai and Shenzhen stock exchanges.This is contrast to Renmembi B shares which are owned by foreigners who cannot purchase A-shares due to Chinese government restrictions.-See also:* A share * B...
and H shares of Agricultural Bank of China were listed on the Shanghai Stock Exchange
Shanghai Stock Exchange
The Shanghai Stock Exchange , abbreviated as 上证所/上證所 or 上交所, is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other is the Shenzhen Stock Exchange...
and the Hong Kong Stock Exchange
Hong Kong Stock Exchange
The Hong Kong Stock Exchange is a stock exchange located in Hong Kong. It is Asia's third largest stock exchange in terms of market capitalization behind the Tokyo Stock Exchange and the Shanghai Stock Exchange and fifth largest in the world...
respectively. Each share was set to cost between 2.7RMB
Chinese yuan
The yuan is the base unit of a number of modern Chinese currencies. The yuan is the primary unit of account of the Renminbi.A yuán is also known colloquially as a kuài . One yuán is divided into 10 jiǎo or colloquially máo...
and 3.3RMB per share. H shares were set to cost between HK$2.88 and HK$3.48 per share. The final share price for the IPO launch was issued on July 7, 2010. On completion in August 2010 it became the world's biggest initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
(IPO) surpassing the one set by Industrial and Commercial Bank of China
Industrial and Commercial Bank of China
Industrial and Commercial Bank of China Ltd. is the largest bank in the world by profit and market capitalization. It is one China's 'Big Four' state-owned commercial banks .It was founded as a limited company on January 1, 1984...
in 2006 of .
ABC raised US$19.21 billion in an IPO in Hong Kong and Shanghai on July 6, 2010, before overallotment options were exercised. On August 13, 2010, ABC officially completed the world's largest initial public offering, raising a total of after both Shanghai and Hong Kong's over-allotments were fully exercised. The IPO was once thought to be able to raise , but weaker market sentiment dampened the value.
CICC
China International Capital Corp
China International Capital Corporation is one of China's largest investment banking and research services companies. The founding shareholders of CICC are: China Jianyin Investment Limited, Morgan Stanley, China National Investment and Guaranty Co. , Ltd. , Government of Singapore Investment...
, Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
, and Morgan Stanley
Morgan Stanley
Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....
led the Hong Kong offering, with JPMorgan, Macquarie
Macquarie
Macquarie is a commonly encountered name for geographical and business entities in Australia, all of which are directly or indirectly named after Lachlan Macquarie, early colonial administrator and governor of New South Wales.Macquarie may refer to:...
, Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
and ABC's own securities unit also involved. CICC
China International Capital Corp
China International Capital Corporation is one of China's largest investment banking and research services companies. The founding shareholders of CICC are: China Jianyin Investment Limited, Morgan Stanley, China National Investment and Guaranty Co. , Ltd. , Government of Singapore Investment...
, Citic Securities
CITIC Securities
CITIC Securities Company Limited is engaged in securities business in China, including securities brokerage, investment banking, asset management, securities investment, stock and bond trading, stock market research and consulting services. It was established in 1999 and it is headquartered in...
, Galaxy
Galaxy
A galaxy is a massive, gravitationally bound system that consists of stars and stellar remnants, an interstellar medium of gas and dust, and an important but poorly understood component tentatively dubbed dark matter. The word galaxy is derived from the Greek galaxias , literally "milky", a...
and Guotai Junan Securities handled the Shanghai portion. ABC sold about 40% of the Shanghai offering to 27 strategic investors including China Life Insurance and China State Construction. They are subject to lock-up periods of 12–18 months. Eleven cornerstone investors were selected for its Hong Kong share offering, including Qatar Investment Authority
Qatar Investment Authority
The Qatar Investment Authority is Qatar's sovereign wealth fund, specializing in domestic and foreign investment. It was founded in 2005 to manage the oil and natural gas surpluses by the Government of Qatar...
and Kuwait Investment Authority
Kuwait Investment Authority
The Kuwait Investment Authority is Kuwait's sovereign wealth fund , managing body, specializing in local and foreign investment...
, taking a combined worth of shares.
See also
- Asset management in the People's Republic of China
- List of companies of the People's Republic of China