Klaus Koehler著

産業中国および商業銀行(ICBC)が10月の株式取引所の終わりに公共取引のために開いたときに、銀行は開始に最も大きい新規公募を達成する合計米ドルを19.1十億との上げた。 今ではICBCは世界のアジアそして5番目に大きいのの上のリストされた銀行である。

ICBCのリストによって作成されるモーガンStanleyのような国際的な顧問が標準的な索引にICBCをすぐに加えることを計画しているという事実および熱意にもかかわらず何人かの分析者はまだ中国の金融業の基本原則そして基礎について心配する。 長期に、貸付け金は経済的な決定よりもむしろ行政上動機を与えられた理由によって承認され、何度か、銀行は政府によって前に「」救われなければならなかった。

中国の金融業の歴史

人民共和国の国有化の初期では、国の銀行の強化は最高のプライオリティを受け取った。 従って金融業は社会的ニされるべき最初のセクターだった。 すべての金融サービスのしっかりした制御を、信用およびマネーサプライを含んで維持するためには、銀行制度は財政の大臣の下で中心になった。

80年代半ばでは、中国の銀行業務のレベルは他の国のと同じレベルになかった。 少数の人々使用された普通預金口座だけおよびクレジットカードは、および銀行間の協同によってなかった。 これを変えるために1986に第一歩はなされた。 銀行間借用および貸出ネットワークは地域間財政ネットワークと同様、作成された。 6月1986日に最初のクレジットカードは「万里の長城」導入された。 それは外貨トランザクションのために使用された。 Another financial innovation in 1986 was the re-opening of China’s stock exchange since 1949.

Since 1987 the Chinese banking system includes the following major banks:
People’s Bank of China, Agricultural Bank, Bank of China, China Investment Bank, China Industrial and Commercial Bank, People’s Construction Bank, Communications Bank, People’s Insurance Company of China, Rural Credit Cooperatives and Urban Credit Cooperatives.

The People’s Bank of China (PBC or PBOC) was the foundation of the banking system and once was the “Central Bank of China”. Today the so called “Big Four” are the Agriculture Bank (ABC), the Bank of China (BOC), China Industrial and Commercial Bank (ICBC) and Peoples Construction Bank or China Constructions Bank (CCB) as it is called today. Together they still hold 55% of the Chinese credit volume.

The People’s Bank of China (PBC) overlapped in function with the Ministry of Finance. After it lost many of its responsibilities, it was restored in the 1970s to its leading position. As the central bank the PBC had sole responsibility for issuing currency, controlling the money supply, served as the government treasury, the main source of credit for economic units, the clearing center for financial transactions, the holder of enterprise deposits, the national savings bank and a ubiquitous monitor of economic activities. Today the PBC is responsible for the implementation of monetary policy for safeguarding the overall financial stability and provision of financial services.

The Agriculture Bank (ABC) was created in the 1950s to faciliate financial operations in the rural areas. It provided financial support to agricultural units, issued loans, handled state appropriations for agriculture, directed the operations of the rural credit cooperatives and carried out overall supervision of rural financial affairs.

The Bank of China (BOC) handled all dealings in foreign exchange. The BOC was responsible for allocating the country’s foreign exchange reserves, setting exchange rates for China’s currency, issuing letters of credit, arranging foreign loans, and generally carrying out all financial transactions with foreign firms and individuals.

The China Industrial and Commercial Bank (ICBC) is the youngest one of the “Big Four”. It was founded in 1984 and issued the primary bank card in 1989. It was the first Chinese bank to establish a branch outside China in 1992, and to open a branch in Europe in 1995. With the ICBC, China made the first step to a representation in the international banking arena.

The China Constructions Bank (CCB) checked the activities of loan recipients and ensured that the funds were used for their designated construction purpose. In general, the bank managed state appropriations and loans for capital construction.

In October 2005 the China Construction Bank listed successfully on the Hong Kong Stock Exchange. With a USD 9.2 billion IPO (Initial Public Offering) it was the biggest entry in the history of the Hong Kong Stock Exchange. In May 2006, the Bank of China followed with an even bigger success and as mentioned before this was topped again by ICBC in October of this year when it entered the Hong Kong and Shanghai stock market with an IPO record of USD 19.1 billion.

Reforms Before the WTO Entry

When China was preparing for entering the World Trade Organization (WTO), China’s banking system was not on an internationally appropriate level. In order to be more competitive with other countries, and to fulfill the WTO requirements, the structure of the banking organization was modified over the course of time repeatedly, to suit changing conditions and new polices.

Before joining the WTO in 2001, the reforms of China’s financial system could be divided into 5 phases:

In the first phase from 1979 to 1981, China opened the finance market for banks with overseas capital. In 1979 China allowed 31 foreign financial institutions to open a Representative Office in China and in 1981 foreign financial institutions were allowed to set up their commercial subsidiaries only in the special economic zones.

In the second phase from 1981 to 1989 the constitutional administration of the foreign financial institution was created step by step. From 1983 to 1985 China published the People’s Bank of China’s determination about the administration of the constant substitution of foreign representations and foreign Chinese financial institutions in China. In addition the determination about the administration of banks with foreign capital and Joint Ventures with an interest of foreign Chinese capital in the special economic zones was also announced. This was an official sign for the opening of the Chinese banking business.

In the third phase from 1990 - 1993 foreigners were allowed to settle down in the Lujiazui area in Pudong, Shanghai, in order to establish a new financial center. Because of the development of the Pudong New Zone in August 1990, Shanghai, as an outward costal city, was allowed to admit foreign commercial financial institutions and in 1992 the cities Ningbo, Nanjing, Guangzhou, Fuzhou, Dalian, Tianjin and Qingdao followed. At the same time, China allowed an American insurance company (AIG) to establish in China in order to demonstrate considerations of opening the Chinese insurance market to foreigners.

In the forth phase from 1994 to 1996 China opened non-costal cities for foreign banks and set up supra-regional financial institutions. The implementation of the regulation over the administration of foreign financial institution on the 1st of April in 1994 marked the standardization of the administration for these institutions. In August 1994 the Chinese state council allowed 11 additional cities including Beijing to set up commercial financial institution with foreign capital. At this point, China was negotiating to join the GATT (General Agreement of Tariff and Trade, predecessor to the WTO) and they needed to speed up the opening of the banking market for foreign companies.

In the fifth and last phase before joining the WTO China opened the renminbi business for banks with foreign capital. In December 1996 the People’s Bank of China announced that foreign financial institutions, which can provide the right conditions, are allowed to do local currency business in Lujiazui Pudong New Zone. In August 1998 five banks with foreign capital received permission from the Chinese state council to do local currency business in the special economical zone of Shenzhen. In July 1999 the People’s Bank of China expanded the local currency business to the foreign banks in Shanghai und Shenzhen.

Next week part II on China’s Banking Industry

Klaus Koehler, Managing Director, Klako Group