On November 26, Chong Hing Bank Shanghai Branch officially opened in Yuexiu building, Pudong, Shanghai. Shanghai branch is not only the fourth branch of Chong Hing bank set up in the mainland, but also the first branch of the bank to expand to the whole country. It marks that when Chong Hing bank has joined Yuexiu Group for nearly six years, the national license has made key progress, and its corporate vision of "building a comprehensive commercial bank with cross-border characteristics" has been accelerated.
Beginning in Hong Kong, Steady Operation
Chong Hing Bank was founded in Hong Kong in 1948 and listed on the Stock Exchange of Hong Kong in 1994 (Stock Code: 01111). At present, it has 47 service outlets at home and abroad. It has many subsidiaries such as securities, insurance, commodity futures, and so on. It provides comprehensive and high-quality commercial banking and comprehensive financial services for individual and enterprise customers.
Over the past 70 years, Chong Hing Bank has developed steadily in Hong Kong market with high degree of internationalization and fierce market competition, accumulated rich experience in financial management and innovation, and established an excellent brand, professional management team and loyal customer base. As a well-known Hong Kong bank and financial institution with a long history, Chong Hing Bank has been committed to serving all types of customers and maintaining a good momentum of development. Its complete financial service content, high-quality credit assets and sound business philosophy have won the praise of customers and the trust of regulators.
As of June 30 of this year, the core business and financial condition of Chong Hing Bank is sound, with total assets exceeding HKD 200 billion, total operating revenue rising 8.6% year-on-year compared with 2018, and the non-performing rate is only 0.47%. In the list of the "Top 1000 global banks" of the British Banker magazine, Chong Hing Bank was ranked in the top 400 for the first time in 2019, and its comprehensive strength was further recognized internationally.
Joint Development with Shareholders
In February 2014, Guangzhou Yuexiu group successfully acquired 75% of the equity of Chong Hing Bank, which formed a new development pattern of "state-owned capital holding and cross-border operations" of Chong Hing Bank. Yuexiu Group, a large state-owned enterprise in Guangzhou, was established in Hong Kong in 1985. After more than 30 years of reform and development, Yuexiu Group has formed a "4 + X" modern industrial system with finance, real estate, transport infrastructure, urban agriculture as core industries, and traditional industries such as paper making, development, and strategic emerging industries that may enter into the industry system in the future. At present, Yuexiu Group's total assets are reaching RMB 650 billion, and it has been selected into "TOP 500 Chinese enterprises" (No. 382), "TOP 100 multinational companies" (No. 15) and "TOP 500 service enterprises in China" (No. 136) published by China Enterprise Federation and China Entrepreneurs Association in 2019.
As a core member of Yuexiu Group's financial sector, Chong Hing Bank has continued to connect the dominant resources of major shareholders, actively strengthen the regional linkage between Guangdong and Hong Kong, give full play to the synergy effect of customers, outlets, technology and business development, comprehensively improve its market competitiveness, constantly expand its business, and achieved remarkable achievements: between 2013 and 2018, Chong Hing Bank's total assets increased by 2.4 times compared with that before the acquisition, and its business operation Industry revenue increased by 2.6 times and net profit by 3.2 times.
Guangzhou Metro and Guangzhou Automobile Group Co., Ltd. (GAC) are two strategic shareholders of Chong Hing Bank. At present, Guangzhou Metro is responsible for the investment, financing, construction, operation, property development and external expansion of Guangzhou urban rail transit; GAC Group's business covers the R & D, manufacturing, automobile business services, automobile finance, etc. GAC is one of the most complete automobile industry chain groups in China. The two strategic shareholders provide strong support for the stable development of Chong Hing Bank in terms of capital and business.
Chong Hing Bank will work closely with Yuexiu Group and strategic shareholders, cooperate with its mainland business network, customer resources and industrial ecology, actively play the advantages of upstream and downstream linkage in the industrial chain, seize cross-border business opportunities, and achieve win-win cooperation.
Expand the National Layout across China
In recent years, Chong Hing Bank has taken expanding the mainland market as an important strategy and vigorously promoted the construction of mainland institutional outlets. From 2014 to 2016, Chong Hing Bank set up branches in Guangzhou and Shenzhen, set up sub-branches in Tianhe District Guangzhou, Foshan City, Nansha District, Guangdong pilot free trade zone and Hengqin District, Guangdong pilot free trade zone. The number of mainland operating institutions increased from 1 (Shantou Branch) to 7, laying the foundation for Chong Hing Bank's domestic outlets. With nearly 40 branches in Hong Kong and Macao, these branches and sub-branches have jointly constructed advantageous layout in Guangdong, Hong Kong, and Macao Greater Bay Area. Chong Hing Bank realized the full coverage of four core cities in Greater Bay Area. The proportion of deposits and loans in the Area has reached 99.7% and 98.1% respectively, and its contribution to the economic development of the Greater Bay Area has gradually become prominent. Taking Guangzhou as an example, the branch has been set up about three years, it has accumulatively supported more than RMB 12 billion of loans for projects in Guangzhou, accumulatively turning in RMB 120 million of taxes, and providing financial support for large and well-known enterprises in the region, such as credit, debt issuance, overseas capital operation, etc. At present, Chong Hing Bank has gradually formed distinctive and differentiated cross-border financial products and services, and actively carried out businesses as cross-border RMB payment and settlement, cross-border RMB two-way capital pool, full caliber cross-border financing, cross-border two-way financing, cross-border asset transfer, cross-border commercial services, cross-border witness account opening, cross-border personal mortgage, etc., while leading in green finance, also continues to explore and expand science and technology finance domain.
Chong Hing bank, which has both the identity of Hong Kong funded bank and the background of state-owned shareholder, is actively promoting the national layout strategy. With the strong support from financial regulatory departments at all levels and local governments, Chong Hing Bank Shanghai Branch officially opened. This is the first branch of Chong Hing Bank set up in the Yangtze River Delta. With the opening of Shanghai Branch, Chong Hing Bank has realized a new development pattern of "4 branches + 4 sub-branches" covering the Pearl River Delta and the Yangtze River Delta.
In the future, Chong Hing Bank will further expand its business in the mainland. After the opening of Shanghai Branch, it will continue to make full use of the advantages of its national license, steadily and orderly access to the major regional economic development markets; at the same time, it is also vigorously promoting the establishment of the headquarters of mainland corporate bank in Guangzhou.
Set up Branch in Shanghai, Establishing a National Layout
Shanghai branch is a key step in the nationwide layout of Chong Hing Bank, and it will also become an important strategic support point for expanding the business in the Yangtze River Delta. It can give full play to the advantages of Chong Hing Bank's deep cultivation in Guangdong, Hong Kong and Macao Greater Bay Area, and its cross-border operation, and strive to play a positive role in deepening the financial cooperation between Shanghai and Hong Kong, helping the coordinated development of the region and the Yangtze River Delta.
At the same time, as a state-owned capital holding, cross-border operation and national layout Bank of Guangzhou, Chong Hing Bank takes more important tasks. After the completion of the layout in Shanghai, it means that Chong Hing Bank has completed its coverage in Hong Kong, the Pearl River Delta and the Yangtze River Delta, the three most developed regions in China's financial industry, with the highest degree of opening-up and internationalization. In the next step, through effective interaction with the head office of Hong Kong and the head office of the mainland corporate bank in Guangzhou in the future and the Yangtze River Delta, it will give full play to the unique advantages of cross-border and internal markets and the use of two resources to further improve the overall pattern of state-owned finance in Guangzhou, and help the transformation and upgrading of the real economy and serve the people's livelihood and social undertakings.
Adhering to its long-standing high-quality professional services and customer-oriented values of Chong Hing Bank, Shanghai Branch will take customers as the center, demand as the guide, operate and develop under the prudent risk management framework, and strive to give full play to the business characteristics of cross-border operation. In addition to serving Shanghai local customers well, Chong Hing Bank will give full play to the aggregation and link effect of financial resources, and build a new bridge for the capital resources connecting between the Yangtze River Delta and Shanghai international financial center and Guangzhou, as well as Guangdong, Hong Kong and Macao Greater Bay Area.
Besides the traditional businesses such as deposit, domestic payment and settlement, corporate credit, Shanghai Branch also provides unique cross-border product services, effectively connecting personal and corporate finance in Hong Kong, Guangdong and Shanghai. First, the head office and branches provide linkage services. Chong Hing Bank Shanghai branch works closely with the head office in Hong Kong and the mainland corporate bank in the future to provide low-cost and efficient capital services for multinational companies and companies in Guangdong and Shanghai that are developing cross regional business, so as to support the overall development of enterprises at home and abroad; Second, investment banking services with full license. The financial business license and service platform of Chong Hing Bank in Hong Kong include securities, insurance, commodity futures, and investment, which can provide financial business consulting and advisory services for domestic customers of its overseas branches; Third, comprehensive financial services. The various financial licenses of the head office in Hong Kong, the entity industrial chain of Yuexiu Group and the full license of financial industry lay a solid foundation for Chong Hing Bank Shanghai Branch to provide comprehensive financial services to corporate customers. Chong Hing Bank can provide integrated assets preservation and value-added services for corporates, integration of industry and finance, asset merger and reorganization, financing consulting and full value chain financial services.
The setup of Shanghai Branch not only marks that Chong Hing Bank has taken a key step in building a national territory, but also reflects the specific actions of Chong Hing Bank's fully integrating into the overall situation of national development. Today, Chong Hing bank will firmly grasp the historical opportunity and strive to build itself into an international banking group with core competitiveness based on Guangdong, Hong Kong and Macao Greater Bay Area, covering the whole country, radiating the Asia Pacific region, so as to better help China's economic transformation and upgrading.
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