Bank of Communications

{{Infobox company

| name = Bank of Communications Co., Ltd.

| logo = Bank of Communications Logo.svg

| logo_size = 250px

| image = Bocom Financial Towers.jpg

| image_size = 250px

| image_caption = Bocom Financial Towers, the bank's head office in Shanghai

| native_name = {{lang|zh-Hans|交通银行股份有限公司}}

| type = Public; state-owned enterprise

| traded_as = {{ubl|{{SSE|601328}} (A share)|{{SEHK|03328}} (H share)|Hang Seng Index component|{{SSE|360021}} (A preference)|{{SEHK|04605}} (H preference)}}

| foundation = {{start date and age|1908}} (origin)
{{start date and age|1986}}
(re-establishment)

| location = Shanghai, China

| key_people = Niu Ximing, chairman of the board
Peng Chun, President

| industry = Financial services

| products = {{ubl | Asset management | Banking | Commodities | Credit cards | Equities trading | Insurance | Investment management | Mortgage loans | Private equity | Wealth management }}

| revenue = {{Increase}} {{CNY|link=yes|144.08 billion}}
$20.53 billion (2019){{cite web|title=Annual Report 2018|url=http://www.bankcomm.com/BankCommSite/fileDownload.do?fileId=fccfe6dae69547f9b4d0a4d3b9e2264e|publisher=Bank of Communications|access-date=31 May 2019|language=en}}

| operating_income = {{Increase}} {{CNY|88.20 billion}}
$12.57 billion (2019)

| net_income = {{Increase}} {{CNY|77.28 billion}}
$10.78 billion (2019)

| assets = {{Increase}} {{CNY|10.670 trillion}}
$1.52 trillion (2020)

| equity = {{Increase}} {{CNY|802.54 billion}}
$114.36 billion (2020)

| num_employees = 87,828 (2019){{cite web |title=OCBC Bank Annual Report 2019 |url=https://www.ocbc.com/assets/pdf/quarterly-results/2019/ocbc%20fy19%20financial%20results.pdf |website=OCBC Bank |access-date=23 February 2020}}

| subsid = BOCOM (Hong Kong)
BOCOM International
BOCOM Insurance
BOCOM Leasing
BOCOM Schroder{{Cite web | url=https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=30865474 | title=Stocks | website=Bloomberg News | date=6 June 2023 }}

| parent = Central Government of China

| owner = {{ubl|various entities of the State Council (34.55%)|National Social Security Fund (14.7%)|HSBC (19.05%)|general public (31.7%)}}

| homepage = [https://www.bankcomm.com/BankCommSite/shtml/jyjr/en/2600212/list.shtml?channelId=2600212 bankcomm.com]

| footnotes =

}}

Bank of Communications (BOCOM or BankComm) is a Chinese multinational banking and financial services corporation. It was originally established in 1908 and was one of a handful of domestic Chinese banks that issued banknotes in modern history. Following the Chinese Communist Revolution in 1949, the mainland operation of that bank were merged into the People's Bank of China and People's Construction Bank of China under the Communist single-tier banking system, while its continuation in Taiwan eventually became part of Mega International Commercial Bank.

In 1986, the Bank of Communications was revived in the mainland as a commercial credit institution. It was listed on the Stock Exchange of Hong Kong in June 2005[http://www.chinadaily.com.cn/english/doc/2005-06/13/content_450999.htm Bank of Communications to list in HK June 23, China Daily 2005-06-13. Retrieved 2018-06-03] and the Shanghai Stock Exchange in May 2007.{{Cite news |date=15 May 2007 |title=FACTBOX-China's BoCom enjoys strong Shanghai listing |language=en |work=Reuters |url=https://www.reuters.com/article/bocom-shanghai-factbox-idUKSHA24799620070515 |access-date=31 August 2022}} The Bank was ranked No. 151 among the Fortune Global 500 in terms of operating income and No. 11 among the global top 1,000 banks in terms of Tier 1 capital rated by the London-based magazine The Banker.[http://big5.bankcomm.com/gate/big5/www.bankcomm.com/BankCommSite/shtml/jyjr/cn/7768/7771/list.shtml?channelId=7768 Bank of Communications 2019 Annual Report] In 2023, the company was ranked 53rd in the Forbes Global 2000.{{Cite web|lang=en|url=https://www.forbes.com/lists/global2000/?sh=51d599675ac0|title=The Global 2000 2023|website=Forbes|access-date=2024-02-07|archive-date=2024-01-29|archive-url=https://web.archive.org/web/20240129031905/https://www.forbes.com/lists/global2000/?sh=4f5ab07e5ac0}}

History

= Before 1949 =

In 1907, Liang Shiyi proposed the formation of a Bank of Communications to redeem the Beijing–Hankou Railway from its Belgian owners and place the railway under Chinese control.{{cite book|last1=Dayer|first1=Roberta Allbert|title=Bankers and Diplomats in China, 1917-1925: The Anglo-American Relationship|date=1981|publisher=Frank Cass|location=Abingdon, UK and New York|isbn=9781135167585|page=22|quote=In 1907 Liang Shih-i proposed the establishment of a Bank of Communications which would handle domestic and foreign funds for the redemption of the Peking-Hankow railway.}} The Bank of Communications was formed in 1908 and provided more than half of the financing needed to buy the railway.{{cite book|last1=Lee|first1=En-han|title=China's Quest for Railway Autonomy, 1904-1911: A Study of the Chinese Railway-rights Recovery Movement|date=1977|publisher=Singapore University Press|page=223|quote=... three domestic loans of 5,000,000 taels, 1,000,000 taels, and 7,500,000 taels (CH$10,000,000) each, to be made through the Ministry of Finance, the Imperial Bank of China (ta-ch'ing yin-hang) and the Bank of Communications respectively. The loan provided by the Bank of Communications would be repaid by the issuing of internal bonds.}} The successful redemption enhanced the prestige of Liang's Communications Clique.

The bank's name uses the word "communications" to refer to the linking of two points by a means of transportation.{{cite encyclopedia|title=Communication, n.|encyclopedia=The Oxford English Dictionary}}{{cite journal|last1=Trotter, R.A.|first1=Captain J. K.|title=The Military Prize Essay, 1881. Military Operations in the United Kingdom Considered, Particularly as Influenced by the Enclosed Nature of the Country|journal=The Journal of the Royal United Service Institution |volume=XXV |number=CIX |year=1881 |page=3 |url=https://books.google.com/books?id=fblMAAAAYAAJ&pg=PA3 |quote=Means of Communication. These may be divided into rail communications, road communications, and water communications.}}

In order to expand the business overseas, the Bank opened its first Hong Kong branch on 27 November 1934.

In late July 1942, it lost its note-issuance privilege simultaneously as the Bank of China and the Farmers Bank of China, whereas the Central Bank of China was granted the issuance monopoly in the territories still ruled by the Nationalist government.{{citation |publisher=Johns Hopkins Institute for Applied Economics, Global Health, and Study of Business Enterprise |url=https://sites.krieger.jhu.edu/iae/files/2020/01/Inflation-in-Eastern-China-during-the-Second-Sino-Japanese-War.pdf |title=Inflation in Eastern China during the Second Sino-Japanese War |author=Michell Li |date=May 2018}}{{rp|13}}

File:DeutschAsiatischeBund.png|Former building of the Deutsch-Asiatische Bank on the Bund, head office of the Bank of Communications from 1919 to the 1930s

File:China Bank of Communications Building Shanghai.jpg|Bank of Communications Building, completed in 1948 on the same site, head office 1948-1949

File:北京交通银行旧址正立面 2021-09-03.jpg|Former Bank of Communications building in Beijing

File:Jinan Bank of Communications 2009-08.JPG|Former branch building in Jinan

File:交通银行青岛分行旧址 2021-06-16.jpg|Former branch building in Qingdao

File:南京中山路 - panoramio (5).jpg|Former branch building in Nanjing

File:汉口交通银行旧址.JPG|Former branch building in Wuhan

File:Chongqing Jiaotong Yinhang Jiuzhi 2014.04.21 12-18-03.jpg|Former branch building in Chongqing

=Continuation in Taiwan=

After the Chinese Civil War ended in 1949, the Bank of Communications, like the Bank of China, was effectively split into two operations, with part of it relocating to Taiwan with the Kuomintang government. In Taiwan, the bank was also known as the Bank of Communications or Chiao Tung Bank ({{zh|t=交通銀行|w=Chiao-T'ung Yin-hang}}).{{cite news|last1=Tsai|first1=Ching-yuan|title=President C. K. Yen carries on|url=http://taiwantoday.tw/ct.asp?xItem=127634&ctNode=124|work=Taiwan Today|date=1 June 1975|quote=His financial accomplishments included a revision of the tax system, budget and foreign exchange reforms, acceleration of economic development, and reactivation of the Central Bank of China, the Bank of China and the Bank of Communications.}} It eventually merged with the International Commercial Bank of China ({{lang|zh-Hant|中國國際商業銀行}}), the renamed Bank of China in Taiwan after its 1971 privatization, to become the Mega International Commercial Bank.

=Re-establishment in the mainland=

In the early years of the People's Republic, the bank's operations in the mainland were merged into the PBC and PCBC, while the Hong Kong branch continued to exist under the same name and was integrated in the so-called Bank of China Group. The State Council decided to re-establish the Bank of Communication as a mainland commercial bank in 1986.{{cite press release|url=http://www.gov.cn/zhengce/content/2013-09/06/content_2550.htm|title=Guó wù yuàn guān yú chóng xīn zǔ jiàn jiāo tōng yín háng de tōng zhī|script-title=zh:国务院关于重新组建交通银行的通知|date=24 July 1986|orig-year=digital version was published on 6 September 2013|publisher=State Council of the People's Republic of China|language=zh-cn|access-date=30 October 2017}} The Bank was then restructured and re-commenced operations on 1 April 1987.{{citation needed|date=November 2017}} Since then, its Head Office has been located in Shanghai.

{{As of|2005|alt=As of January 2005}}, 19.9% of the bank was owned by Hsbc holdings plc. An HSBC spokeswoman said HSBC and its affiliate, the Bank of Communications, would seek to acquire a brokerage to expand their operations in China. The plan was part of HSBC's broader China expansion strategy, but "there is nothing further to disclose at the present." HSBC's operations in China include its own banking operations, its stake in BoCom, and an 8% stake in the Bank of Shanghai. HSBC also holds a 19.9% shares in Ping An Insurance through its wholly-owned subsidiary HSBC Insurance Holdings. The South China Morning Post cited Peter Wong Tung-shun, executive director at The Hongkong and Shanghai Banking Corporation, as saying that the acquisition is being considered in the light of the Chinese government's reforms of the country's securities brokerages. This includes a provision allowing foreign companies to get management control of brokerage firms. Wong did not provide a timetable for any acquisition or identify any acquisition target. The Hongkong and Shanghai Banking Corp is a wholly owned HSBC subsidiary.

On 22 July 2015, Bank of Communications sold $2.45 billion (about 14.93 billion yuan) of Basel III compliant bonds (convertible to preferred stock) "used to replenish the bank’s additional Tier 1 Capital." The bond is registered on the Hong Kong stock exchange and pays a coupon of 5 percent a year.

File:Bank of Communications,xi'an,CHINA - panoramio (1).jpg|Bank of Communications in Xi'an

File:20210621 Bank of Communications Tower, Zhengzhou 02.jpg|Bank of Communications in Zhengzhou

File:Bank Of Communications - panoramio.jpg|Bank of Communications in Qingdao

File:位于山西路广场的交通银行 - panoramio.jpg|Bank of Communications Tower in Nanjing

File:SZ 深圳 Shenzhen Bus 104 view 福田區 Futian 深南中路 Shennan Middle Road June 2017 IX1 12 花園格蘭雲天大酒店 Grand Skylight Garden Hotel Shenzhen.jpg|Bank of Communications Tower in Shenzhen

File:HK 香港島北 Island North 灣仔 Wan Chai District 鴻興道 Hung Hing Road view Gloucester Road buildings November 2020 SS2 06.jpg|Bank of Communications Tower in Hong Kong (left)

Image:HK Pedder Street BoCom Bus stop.jpg|A sub-branch of the Bank of Communications Hong Kong Branch

Operations

The Bank of Communications is among the top 5 leading commercial banks in China and has an extensive network of over 2,800 branches covering over 80 major cities. Apart from Hong Kong, the Bank has also established overseas branches in New York, Tokyo, Singapore and representative offices in London and Frankfurt. As of end-2002, the Bank had over 88,000 employees and a total asset reaching RMB 5.15 trillion.

Bank of Communications currently possesses 236 domestic organs, including 30 provincial branches, seven directly managed branches, 199 sub-branches managed by the provincial branches, with 3,529 network organs in over 239 large- and medium-sized cities. In addition, it has established 21 overseas organs including branch banks in Hong Kong, New York, San Francisco, Tokyo, Singapore, Seoul, Frankfurt, Macau, Sydney, and Ho Chi Minh City, BOCOMUK in London, and a representative office in Taipei.{{Cite web|url=http://fortune.com/global500/bank-of-communications/|title=交通银行简介|language=zh-cn|access-date=25 December 2018|archive-date=25 December 2018|archive-url=https://web.archive.org/web/20181225180916/http://fortune.com/global500/bank-of-communications/|url-status=dead}} According to the ranking announced by the British journal "The Banker" concerning 1,000 worldwide banks in 2011, Bank of Communications ranked 35th for its tier l capital, entering the world's top 50 banks for two consecutive years. Among the World's Top 500 Enterprises listed by Fortune in 2018, Bank of Communications ranked 168th., up by three as compared with 2017 and entering the World's Top 500 Enterprises for ten straight years.{{Cite web|url=http://www.bankcomm.com/BankCommSite/shtml/jyjr/cn/7804/16356/83859.shtml?channelId=7804|title=Bank of Communications (BKFCF) Stock Price, Financials and News|website=Fortune|language=en-US|access-date=25 December 2018}}

Bank of Communications is one of the major financial service suppliers in China with its business scope covering commercial banking, securities, trust, financial leasing, fund management, insurance, offshore financial services, etc.

In November 2023, Bank of Communications joined the ranks of global systemically important banks (Bank of China, Industrial and Commercial Bank of China (ICBC), China Construction Bank and Agricultural Bank of China), becoming the fifth on the too-big-to-fail list. Global systemically important banks (G-SIBs) are required to hold between 1% and 3.5% additional capital, depending on their rating. Bank of Communications' additional capital requirement is 1%.{{Cite web|lang=en|url=https://asia.nikkei.com/Spotlight/Caixin/China-s-Bank-of-Communications-makes-too-big-to-fail-list|title=China's Bank of Communications makes 'too-big-to-fail' list|website=Nikkei Asia|access-date=2024-02-26|archive-date=2024-02-24|archive-url=https://web.archive.org/web/20240224005237/https://asia.nikkei.com/Spotlight/Caixin/China-s-Bank-of-Communications-makes-too-big-to-fail-list}}

Shareholders

Rank ! Name ! Number of shares ! % ! Footnotes
class="wikitable" \|+The major shareholders (ordinary shares) as of 31 December 2016{{cite web\|url=http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0418/LTN20170418707.pdf\|title=2016 Annual Report\|date=18 April 2017\|access-date=14 May 2017\|publisher=Bank of Communications}}
1	The Ministry of Finance, excluding subsidiaries	style="text-align: right;" \|19,702,693,828	style="text-align: right;" \|26.53	A + H shares, government entity
1.1	Shanghai Haiyan Investment Management	style="text-align: right;" \|808,145,417	style="text-align: right;" \|1.09	A shares, state-owned enterprise
1.2	Yunnan Hehe Group	style="text-align: right;" \|745,305,404	style="text-align: right;" \|1.00	A shares, state-owned enterprise
2	HSBC (and its subsidiaries)	style="text-align: right;" \|14,147,386,095	style="text-align: right;" \|19.05	H shares
3	National Social Security Fund	style="text-align: right;" \|10,919,909,783	style="text-align: right;" \|14.70	A + H shares, government entity
4	China Securities Finance	style="text-align: right;" \|1,698,194,809	style="text-align: right;" \|2.29	A shares, state-owned enterprise
5	Capital Airport Holding	style="text-align: right;" \|1,246,591,087	style="text-align: right;" \|1.68	A shares, state-owned enterprise
6	Wutongshu Investment Platform	style="text-align: right;" \|794,557,920	style="text-align: right;" \|1.07	A shares, state-owned enterprise
7	FAW Group	style="text-align: right;" \|663,941,711	style="text-align: right;" \|0.89	A shares, state-owned enterprise
	Total	style="text-align: right;" \|50,726,726,054	style="text-align: right;" \| 68.3