Bank of China
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- This is about one of the 'big four' banks in the People's Republic of China. Since 1949, the central bank powers have been transferred to the People's Bank of China.
Bank of China Limited (Template:Zh-stp) (BOC) is one of the big four state-owned commercial banks of the People's Republic of China. Founded in 1912, it is the oldest bank in China. It was 100% owned by the central government, via Central Huijin Investment in the past but as of 2005, the Royal Bank of Scotland and Temasek Holdings of Singapore, each have a 5% stake.
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Operations outside of China
Bank of China operates as a private enterprise outside of China, but still linked with the state-owned BOC in China.
BOC started operations in Hong Kong in 1917 and has become a major player, challenging British banks in the territory.
The Hong Kong operations of the Bank of China were regrouped into Bank of China (Hong Kong) in 2001 and later BOCHK got listed on the Hong Kong Stock Exchange in October 2002. Headquarters of the BOCHK are located in the Bank of China Tower, which was designed by renowned architect I.M.Pei and was opened to the public in 1990 as the tallest building of Hong Kong at that time.
Bank of China became a limited company in August 2004.
BOC also operates outside of China in a number of countries including:
- Macau
- Canada - as Bank of China (Canada) Limited
- United States - Bank of China (America) Limited
- Singapore
- Philippines
Expansion
Like many other Chinese companies, BOC has been exploring outside markets and has become less dependent on the state for its day-to-day operations. BOC plans to be a dominant financial sector player in Asia and beyond.
A list of other Chinese financial sector players linked with the People's Bank of China and/or the Bank of China:
- Agricultural Bank of China
- Bank of China (Hong Kong)
- China Construction Bank
- CITIC
- Industrial and Commercial Bank of China
- Ping An of China (insurance)
- Shenzhen Development Bank
Events in 2005
- Swiss bank UBS AG confirmed Thursday September 12005 that it is in talks to take a stake in the Bank of China, China's second-biggest state-run commercial bank. "We announced at the end of June we hope to invest $500 million to become a strategic partner of Bank of China. That's still the case, and talks continue," Mark Panday, a UBS spokesman in Hong Kong, told Dow Jones Newswires. The Financial News, a newspaper backed by the Chinese central bank, said Thursday that UBS was in the final stages of the negotiations. It cited Bank of China spokesman Wang Zhaowen as saying that the investment was expected. "However the detailed figures haven't been decided upon yet. They're still under discussion," it quoted him as saying. That report followed news that Singapore government-owned Temasek Holdings Pte. Ltd. plans to pay about $3.1 billion for a 10 percent stake in Bank of China. Temasek, the Singapore government's investment arm, said it will acquire the interest in the state-owned commercial bank through its wholly owned subsidiary, Asia Financial Holdings. "Temasek has also undertaken to subscribe for an additional $500 million worth of shares during Bank of China's initial public offering," the company said in a statement issued late Wednesday.
On Wednesday it was disclosed that investors including Goldman Sachs Group Inc. and American Express Co., both headquartered in New York, and Allianz AG of Germany had signed a deal to buy a 10 percent stake in China's biggest lender, Industrial & Commercial Bank of China, for more than $3 billion. An ICBC official, who spoke on condition he not be named, said the investment would be made after the bank is restructured as a stockholding company in mid-October. The two banks are China's largest state-owned commercial banks. Foreign banks have been staking out strategic alliances in China, hoping to be well-positioned for the eventual full opening of the banking industry to foreign competition in late 2006. Chinese banks are being encouraged to seek such partnerships to help build up their capital and improve management. Reports said the memorandum with ICBC calls for Goldman Sachs to invest between $1.7 billion and $1.8 billion; Allianz would pay about $1 billion, while American Express would buy up to $300 million worth of shares. Earlier this month, the Royal Bank of Scotland Group PLC announced a $3.1 billion investment that will give the British bank control of a 10 percent stake in the Bank of China.
The Bank has been investigated by the United States in its money laundering probe related to the superdollars affair.[1]