Bank of China
Encyclopedia
Bank of China Limited is one of the big four
state-owned commercial bank
s of the People's Republic of China
. It was founded in 1912 by the Government of the Republic of China
, to replace the Government Bank of Imperial China
. It is the oldest bank in China. From its establishment until 1942, it issued banknotes on behalf of the Government of the Republic of China
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. Its headquarters are in Xicheng District
, Beijing
.
In December 2010, the Bank of China New York branch began offering RMB products for Americans. This is the first major Chinese bank to offer such a product currently.
, which was in 1908 renamed to Daqing Bank (in ). When the Republic of China
was established in 1912, it was further renamed as Bank of China by President Sun Yat-sen
's government, adding a new role of the central 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
(KMT) 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 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 5th largest bank in the world by market capitalization value. Once 100% owned by the central government, via Central Huijin Investment
and National Council for Social Security Fund (SSF), an IPO
of its shares took place in June 2006, the free float is at present over 26%. In the Forbes
Global 2000 it ranked as the 21st-largest company in the world.
It is the most international of China's banks, with branches on every inhabited continent. Outside of mainland China
, BOC also operates in 27 countries including:
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.
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.
BOC started operations in Hong Kong
in 1917 and has become a major player there. 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 IPO
in the world by any institution since 2000 on June 1, 2006, raising US$9.7 billion. The 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 IPO
share price started at HK$2.95 per share and jumped 15% (to HK$3.40) after the first day of trading.
In 2008 the Bank of China was crowned Deal of the Year - Debt Market Deal of the Year at the 2008 ALB Hong Kong Law Awards.
(under the Portuguese
name "Banco Da China"), along with other commercial banks in those regions.
IPO, the ownership of the Bank of China (SEHK:3988) was:
Li Ka-shing, RBS
, Temasek
and UBS were contracted to hold their shares until 31 December 2008. All four sold their holdings on the open market in early January 2009.
Big 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:...
state-owned commercial bank
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 of 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 1912 by the Government of the Republic of China
Government of the Republic of China
The Republic of China was formally established by Dr. Sun Yat-sen in 1912 in Nanjing under the Provisional Constitution of the Republic of China but this government was moved to Beijing in the same year and continued as the internationally recognized government of China until 1928. In the history...
, to replace the Government Bank of Imperial China
Late Imperial China
Late Imperial China refers to the period between the end of Mongol rule in 1368 and the establishment of the Republic of China in 1912 and includes the Ming and Qing Dynasties...
. It is the oldest bank in China. From its establishment until 1942, it issued banknotes on behalf of the Government of the Republic of China
Government of the Republic of China
The Republic of China was formally established by Dr. Sun Yat-sen in 1912 in Nanjing under the Provisional Constitution of the Republic of China but this government was moved to Beijing in the same year and continued as the internationally recognized government of China until 1928. In the history...
along with the "Big Four" banks of the period: the Central Bank of China, 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 Bank of Communications
Bank of Communications
Bank of Communications Limited , founded in 1908, is one of the largest banks in China.-Before 1949:The Bank of Communications was founded in 1908 and emerged as one of the first few major national and note-issuing banks in the early days of the Republic of China...
. Although it initially functioned as the Chinese central bank, in 1928 the Central Bank of China
Central Bank of China
The Central Bank of the Republic of China , known in English from 1924 to 2007 as the Central Bank of China, is the central bank of the Republic of China . Its legal and common name in Chinese is literally translated as the "Central Bank"...
replaced it in that role. Subsequently, BOC became a purely commercial bank. Its headquarters are in Xicheng District
Xicheng District
Xicheng District is a district in Beijing, China. Xicheng District spans 32 square kilometres, making it the largest portion of the old city , and has 706,691 inhabitants . Its postal code is 100032. Xicheng is subdivided into 15 subdistricts of the city proper of Beijing...
, 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...
.
In December 2010, the Bank of China New York branch began offering RMB products for Americans. This is the first major Chinese bank to offer such a product currently.
History
Bank of China's history goes back to 1905, when the Qing government established Daqing Hubu Bank (in ) in BeijingBeijing
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...
, which was in 1908 renamed to Daqing Bank (in ). When the Republic of China
Republic 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...
was established in 1912, it was further renamed as Bank of China by President Sun Yat-sen
Sun Yat-sen
Sun Yat-sen was a Chinese doctor, revolutionary and political leader. As the foremost pioneer of Nationalist China, Sun is frequently referred to as the "Father of the Nation" , a view agreed upon by both the People's Republic of China and the Republic of China...
's government, adding a new role of the central bank.
After the Chinese Civil War
Chinese Civil War
The Chinese Civil War was a civil war fought between the Kuomintang , the governing party of the Republic of China, and the Communist Party of China , for the control of China which eventually led to China's division into two Chinas, Republic of China and People's Republic of...
ended in 1949, the Bank of China effectively split into two operations. Part of the bank relocated to Taiwan with the Kuomintang
Kuomintang
The Kuomintang of China , sometimes romanized as Guomindang via the Pinyin transcription system or GMD for short, and translated as the Chinese Nationalist Party is a founding and ruling political party of the Republic of China . Its guiding ideology is the Three Principles of the People, espoused...
(KMT) 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 Mega International Commercial Bank
Mega International Commercial Bank
The Mega International Commercial Bank is a subsidiary of Mega Financial Holding Company. It is one of the leading banks in Taiwan. It has 105 branches in Taiwan along with 17 branches, 2 representative offices and 2 wholly owned subsidiaries abroad...
(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 5th largest bank in the world by market capitalization value. Once 100% owned by the central government, via Central Huijin Investment
Central Huijin Investment
Central Huijin Investment Ltd. established on December 26, 2003 is an investment company owned by the government of the People's Republic of China. It is a wholly owned subsidiary of China Investment Corporation with its own Board of Directors and Board of Supervisors. Central Huijin's principal...
and National Council for Social Security Fund (SSF), an IPO
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...
of its shares took place in June 2006, the free float is at present over 26%. In the 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 it ranked as the 21st-largest company in the world.
It is the most international of China's banks, with branches on every inhabited continent. Outside of 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...
, BOC also operates in 27 countries including:
- AustraliaAustraliaAustralia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, Canada, United KingdomUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, IrelandIrelandIreland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
, FranceFranceThe French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, GermanyGermanyGermany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, ItalyItalyItaly , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, LuxembourgLuxembourgLuxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
, RussiaRussiaRussia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
, HungaryHungaryHungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
, United StatesUnited StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
, PanamaPanamaPanama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...
, BrazilBrazilBrazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, JapanJapanJapan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, Republic of Korea, SingaporeSingaporeSingapore , 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...
, TaiwanTaiwanTaiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
, PhilippinesPhilippinesThe Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
, VietnamVietnamVietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
, Malaysia, ThailandThailandThailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
, IndonesiaIndonesiaIndonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, KazakhstanKazakhstanKazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
, BahrainBahrain' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...
, ZambiaZambiaZambia , officially the Republic of Zambia, is a landlocked country in Southern Africa. The neighbouring countries are the Democratic Republic of the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique, Zimbabwe, Botswana and Namibia to the south, and Angola to the west....
, South AfricaSouth AfricaThe Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
and a branch office in the Cayman IslandsCayman IslandsThe Cayman Islands is a British Overseas Territory and overseas territory of the European Union located in the western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac, and Little Cayman, located south of Cuba and northwest of Jamaica...
.
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.
Timeline of overseas expansion
- 1917 BOC opened a branch in Hong Kong.
- 1929 BOC opened its first overseas branch in LondonLondonLondon 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...
. 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 OsakaOsakais a city in the Kansai region of Japan's main island of Honshu, a designated city under the Local Autonomy Law, the capital city of Osaka Prefecture and also the biggest part of Keihanshin area, which is represented by three major cities of Japan, Kyoto, Osaka and Kobe...
. - 1936 BOC opened a branch in SingaporeSingaporeSingapore , 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...
to handle remittances to China of overseas Chinese. It also opened an agency in New YorkNew YorkNew 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...
. - 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 BataviaJakartaJakarta is the capital and largest city of Indonesia. Officially known as the Special Capital Territory of Jakarta, it is located on the northwest coast of Java, has an area of , and a population of 9,580,000. Jakarta is the country's economic, cultural and political centre...
, PenangPenangPenang is a state in Malaysia and the name of its constituent island, located on the northwest coast of Peninsular Malaysia by the Strait of Malacca. It is bordered by Kedah in the north and east, and Perak in the south. Penang is the second smallest Malaysian state in area after Perlis, and the...
, Kuala LumpurKuala LumpurKuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
, HaiphongHaiphong, also Haiphong, is the third most populous city in Vietnam. The name means, "coastal defence".-History:Hai Phong was originally founded by Lê Chân, the female general of a Vietnamese revolution against the Chinese led by the Trưng Sisters in the year 43 C.E.The area which is now known as Duong...
, HanoiHanoiHanoi , is the capital of Vietnam and the country's second largest city. Its population in 2009 was estimated at 2.6 million for urban districts, 6.5 million for the metropolitan jurisdiction. From 1010 until 1802, it was the most important political centre of Vietnam...
, RangoonYangonYangon is a former capital of Burma and the capital of Yangon Region . Although the military government has officially relocated the capital to Naypyidaw since March 2006, Yangon, with a population of over four million, continues to be the country's largest city and the most important commercial...
, BombayMumbaiMumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
, and Calcutta. It also opened sub-agencies in SurabayaSurabayaSurabaya is Indonesia's second-largest city with a population of over 2.7 million , and the capital of the province of East Java...
, MedanMedan- Demography :The city is Indonesia's fourth most populous after Jakarta, Surabaya, and Bandung, and Indonesia's largest city outside of Java island. Much of the population lies outside its city limits, especially in Deli Serdang....
, DaboDaboDabo is a Japanese rapper. He first appeared on the Japanese hip-hop scene in the 1990s, collaborating in a Shakkazombie song, "Tomo ni ikkou". Since 2002, he has released three albums: Hitman , Diamond , and The Force...
, Xiaobo, Batu PahatBatu PahatBatu Pahat is a district in the state of Johor, Malaysia. It lies south-east of Muar, south-west of Kluang, north-west of Pontian, and south of Segamat and the new Ledang district. The capital of the district is Bandar Penggaram, Batu Pahat....
, Baichilu, MandalayMandalayMandalay is the second-largest city and the last royal capital of Burma. Located north of Yangon on the east bank of the Irrawaddy River, the city has a population of one million, and is the capital of Mandalay Region ....
, LashioLashioLashio is the largest town in northern Shan State, Myanmar, about northeast of Mandalay. It is situated on a low mountain spur overlooking the valley of the Nam Yao river. The population grew from around 5000 in 1960 to 88,590 in 1983. It is currently estimated at around 130,000.Lashio is the...
, IpohIpohIpoh is the capital city of Perak state, Malaysia. It is approximately 200 km north of Kuala Lumpur on the North-South Expressway....
, and SerembanSerembanSeremban is the capital of the Malaysian state of Negeri Sembilan, located within the district of Seremban, one of the seven districts of Negeri Sembilan. The town's administration is run by the Seremban Municipal Council or Majlis Perbandaran 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 SydneySydneySydney 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...
, (AustraliaAustraliaAustralia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
), LiverpoolLiverpoolLiverpool is a city and metropolitan borough of Merseyside, England, along the eastern side of the Mersey Estuary. It was founded as a borough in 1207 and was granted city status in 1880...
, and HavanaHavanaHavana is the capital city, province, major port, and leading commercial centre of Cuba. The city proper has a population of 2.1 million inhabitants, and it spans a total of — making it the largest city in the Caribbean region, and the most populous...
, and possibly KarachiKarachiKarachi is the largest city, main seaport and the main financial centre of Pakistan, as well as the capital of the province of Sindh. The city has an estimated population of 13 to 15 million, while the total metropolitan area has a population of over 18 million...
. - 1946 BOC reopened its branches and agencies in Hong Kong, Singapore, Haiphong, Rangoon, Kuala Lumpur, Penang, and Jakarta. It moved the Hanoi agency to SaigonHo Chi Minh CityHo Chi Minh City , formerly named Saigon is the largest city in Vietnam...
. At the suggestion of the Allied Forces Headquarters, it liquidated the branch in Osaka and opened a sub-branch in TokyoTokyo, ; 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...
. - 1947 BOC opened agencies in BangkokBangkokBangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom...
, ChittagongChittagongChittagong ) is a city in southeastern Bangladesh and the capital of an eponymous district and division. Built on the banks of the Karnaphuli River, the city is home to Bangladesh's busiest seaport and has a population of over 4.5 million, making it the second largest city in the country.A trading...
, and TokyoTokyo, ; 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...
. - 1950 Some of the branches of Bank of China joined the bank headquartered in BeijingBeijingBeijing , 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...
— 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 TaipeiTaipeiTaipei City is the capital of the Republic of China and the central city of the largest metropolitan area of Taiwan. Situated at the northern tip of the island, Taipei is located on the Tamsui River, and is about 25 km southwest of Keelung, its port on the Pacific Ocean...
. 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 PakistanNational Bank of PakistanNational Bank of Pakistan is one of the largest commercial bank operating in Pakistan. It has redefined its role and has moved from a public sector organisation into a modern commercial bank...
. - 1975 The People's Republic of Vietnam nationalized the Bank of China's branch in Saigon and the Khmer RougeKhmer RougeThe Khmer Rouge literally translated as Red Cambodians was the name given to the followers of the Communist Party of Kampuchea, who were the ruling party in Cambodia from 1975 to 1979, led by Pol Pot, Nuon Chea, Ieng Sary, Son Sen and Khieu Samphan...
government nationalized its Phnom Phen branch. - 1981 BOC opened a branch in New YorkNew YorkNew 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...
. - 2001 Kwangtung Provincial Bank was closed and merged under Bank of China, Singapore Branch.
- 2002 Bank of China Futures Pte Ltd wound up operations in Singapore.
- 2008 Bank of China buys 20 percent stake in La Compagnie Financiere Edmond de Rothschild (LCFR) for 236.3 million euros (US$340 million)
- 2001-2007 Massive staff layoffs and paycuts in BOC S'pore Branch.
- 2007 BOC S'pore Branch - Mr Zhu Hua asked to leave S'pore by the Monetary Authority of S'pore and rumoured to be posted to Bangkok, Thailand. For poor performance, he was replaced by Mdm Liu Yan Fen.
- 2008 Head of Settlements, Mr Chin Chuh Meng, Bank of China, was investigated involvement for Multi-Level Marketing Activities in S'pore; a scheme with some Bank of China and ex Kwangtung Bank Staff.
- 2009 Opened branches in São PauloSão PauloSão Paulo is the largest city in Brazil, the largest city in the southern hemisphere and South America, and the world's seventh largest city by population. The metropolis is anchor to the São Paulo metropolitan area, ranked as the second-most populous metropolitan area in the Americas and among...
and MaputoMaputoMaputo, also known as Lourenço Marques, is the capital and largest city of Mozambique. It is known as the City of Acacias in reference to acacia trees commonly found along its avenues and the Pearl of the Indian Ocean. It was famous for the inscription "This is Portugal" on the walkway of its...
. Reopened branch in PenangPenangPenang is a state in Malaysia and the name of its constituent island, located on the northwest coast of Peninsular Malaysia by the Strait of Malacca. It is bordered by Kedah in the north and east, and Perak in the south. Penang is the second smallest Malaysian state in area after Perlis, and the...
in October. - 2009 People's Park Remittance Centre opened in Singapore, operating 7 days a week, offering remittance and cash exchange services.
- 2009 Ceased Sunday Banking Business in Chinatown Sub-branch in Singapore.
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 ScotlandRoyal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
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
Superdollar
A superdollar or superbill is a very high quality counterfeit United States one hundred-dollar bill, alleged by the U.S. Government to have been made by an unknown organization or government. Various groups have been suspected of creating such notes, and international opinion on the origin of the...
s affair.
2006
- Its listing, on the Hong Kong Stock ExchangeHong Kong Stock ExchangeThe 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...
on June 1, 2006 was the largest IPOInitial public offeringAn 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...
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. - It successfully made the largest IPO in mainland China on July 5, 2006, by offering up to 10 billion A-shares on the Shanghai A Stock ExchangeShanghai Stock ExchangeThe 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...
, or up to RMB20 billion. These were priced at RMB3.00 per share. - BOC has bought Singapore AirlinesSingapore AirlinesSingapore Airlines Limited is the flag carrier airline of Singapore. Singapore Airlines operates a hub at Changi Airport and has a strong presence in the Southeast Asia, East Asia, South Asia, and "Kangaroo Route" markets...
's stake in 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).
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...
in 1917 and has become a major player there. It became note-issuing bank 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...
in 1994; in Macao
Mação
Mação is a municipality in Portugal with a total area of 400.0 km² and a total population of 7,763 inhabitants.The municipality is composed of eight parishes, and is located in the Santarém District....
, it received note-issuing status in 1995.
In 2001, BOC regrouped its 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...
operations into Bank of China (Hong Kong)
Bank of China (Hong Kong)
Bank of China Limited is the second-largest commercial banking group in Hong Kong in terms of assets and customer deposits, with more than 300 branches in Hong Kong. It was established on 1 October 2001 from a merger of 12 subsidiaries and associates of the Bank of China in Hong Kong, and listed...
; then BOCHK listed on 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...
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
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...
(independently from BOCHK) (SEHK:3988) by floating the largest IPO
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...
in the world by any institution since 2000 on June 1, 2006, raising US$9.7 billion. The IPO
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...
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 IPO
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...
share price started at HK$2.95 per share and jumped 15% (to HK$3.40) after the first day of trading.
In 2008 the Bank of China was crowned Deal of the Year - Debt Market Deal of the Year at the 2008 ALB Hong Kong Law Awards.
Basic facts
- It has over RMB 6,951.68 Billions in assets, making it part of 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 ChinaIndustrial and Commercial Bank of ChinaIndustrial 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 2002, it made RMB52.7 billion profit, an increase of over 20 per cent from the previous year.
- Bank of China owns the 7th tallest building in the world
- All overseas branches are only affiliated with Bank of China branches in China. That means that if you deposit money to China branch, you cannot access your money in overseas branches.
- Bank of China, New York internet banking is available for US dollar accounts and online access to stop payments, wire transfers and remittances. Great Wall debit MasterCard is available to account holders.
- Bank of China, New York also operates as a functional 24/7 clearinghouse for wire transfers and stop payments (allowing real time payments to China).
- Bank of China, New York has two locations: 410 Madison (open Monday - Friday); 42 East Broadway (open seven days)
Banknotes
Although it is not a central bank, the Bank of China is licensed to issue banknotes in two of China's Special Administrative Regions. Until 1942, the Bank of China issued banknotes in mainland China on behalf of the Government of the Republic of China. Today, the Bank issues banknotes in Hong Kong and banknotes in MacauMacanese pataca
The pataca is the currency of Macau. It is subdivided into 100 avos , with 10 avos called ho in Cantonese. The abbreviation MOP$ is commonly used....
(under the Portuguese
Portuguese language
Portuguese is a Romance language that arose in the medieval Kingdom of Galicia, nowadays Galicia and Northern Portugal. The southern part of the Kingdom of Galicia became independent as the County of Portugal in 1095...
name "Banco Da China"), along with other commercial banks in those regions.
Ownership
As of June 7, 2006, following the Hong KongHong 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...
IPO, the ownership of the Bank of China (SEHK:3988) was:
- State Administration of Foreign ExchangeState Administration of Foreign ExchangeThe State Administration of Foreign Exchange of the People's Republic of China is an administrative agency tasked with drafting rules and regulations governing foreign exchange market activities, and managing the state foreign exchange reserves, which at the end of July 2011 stood at $3.2 trillion...
(an investment arm of the government of the People's Republic of ChinaPeople's Republic of ChinaChina , 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...
): 69.265% - RBS ChinaRoyal Bank of ScotlandThe Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
: 8.467% (4.26% for the benefit of RBS, the remainer held as custodian for the interests of billionaire Li Ka-shing) - AFH Pte. Ltd. (a wholly owned subsidiary of TemasekTemasek HoldingsTemasek Holdings is an investment company owned by the government of Singapore. With an international staff of 380 people, it manages a portfolio of about S$193 billion at end of March 2011, focused primarily in Asia...
): 4.765% - National Council for Social Security FundNational Council for Social Security FundThe National Council for Social Security Fund is a supplementary fund of the People's Republic of China which is used for social security.-History:...
(PRC state pension fund): 4.576% - UBS AGUBS AGUBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland, which provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients worldwide, as well as retail clients in Switzerland...
: 1.366% - ADBAsian Development BankThe Asian Development Bank is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia...
: 0.205% - Investors who received H shares from the Global Offering (IPO): 11.356%
Li Ka-shing, RBS
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
, Temasek
Temasek Holdings
Temasek Holdings is an investment company owned by the government of Singapore. With an international staff of 380 people, it manages a portfolio of about S$193 billion at end of March 2011, focused primarily in Asia...
and UBS were contracted to hold their shares until 31 December 2008. All four sold their holdings on the open market in early January 2009.
See also
- List of asset management companies of the People's Republic of China
- Foreign exchange reserves of the People's Republic of China