BOC growth tied to development of Chinese nation

BANK OF CHINA'S GLOBAL STRENGTHS SOLIDIFIED BY LONG-STANDING DEDICATION TO PARTY-LED COUNTRY

Bank of China, founded in 1912, is one of the oldest banks in the country. It has undergone numerous reforms and developments over the past century, becoming a significant financial institution both in China and globally.

Regardless of favorable conditions or adverse factors, employees of the bank have dedicated their passion and upheld the great founding spirit of the Communist Party of China throughout the decades. They have always followed the Party's will and order, and remained steadfast in their mission, according to BOC.

In 1938, BOC established its first Party branch in Shanghai in East China, making it the earliest bank there to have a Party organization. The first member of the Party branch was Xiang Kefang, and the first Party branch secretary was Jiang Chunze.

During the decade before the entire liberation of China in October 1949, the BOC employees in Shanghai, Nanjing, Hangzhou, Guangzhou and other places had engaged in anti-persecution struggles many times under the strong leadership of the Party branch.

Countless employees have forged ahead and persevered through continuous efforts, risking their lives to protect financial assets. Their dedication has laid a solid foundation for the financial development of New China.

In February 1949, the BOC Party branch took the lead in the financial industry to organize a "Bank of China Emergency Mutual Aid Association", which attracted hundreds of participants.

They had successfully completed the arduous task of "protecting bank assets and welcoming liberation".

Support for fighting aggression

In 1939, during China's War of Resistance Against Japanese Aggression (1931-45), BOC received a letter of thanks from the CPC-led Eighth Route Army, which was signed by representatives Zhou Enlai, Ye Jianying, Pan Hannian and Liao Chengzhi.

In the letter, they expressed gratitude for the bank's efforts in transferring overseas remittances to support the war.

The nationwide war required substantial financial support. After the full-scale outbreak of the war fighting against the invaders, China urgently needed to import large quantities of military supplies, leading to a sharp increase in foreign exchange demand.

Meanwhile, export trade was hindered by the war, making it difficult to increase foreign exchange earnings through exports. Therefore, securing overseas remittances became increasingly important.

Amid the turmoil, BOC strove to stabilize finance and invigorate the economy. Also, by fully utilizing its role as an international exchange bank and a specialized international trade bank, BOC proactively absorbed overseas remittances, collected donations and raised public bonds, in a bid to continuously send funds to the front lines.

The extensive global network established by the bank over many years became a crucial tool for collecting and transferring overseas remittances. In 1939, overseas remittances handled by BOC accounted for 14 percent of the national total. The proportion increased to 46 percent in 1941 and remained around 50 percent thereafter.

On May 25, 1949, nearly five months before China's entire liberation, two 30-meter-long banners were hung on the outer walls of the BOC building on the Bund (waitan) area in Shanghai. One banner read "celebrate the liberation of greater Shanghai", and the other read "welcome the People's Liberation Army".

As the earliest and highest banners welcoming liberation on the Bund area, they were written by the BOC employees and transported to the area amid gunfire. This was not only a source of pride for the bank's employees, but an important symbol of the bank's rebirth, according to BOC.

Key financial window

On June 6, 1949, the BOC general management office announced its resumption of operations. By that time, the bank had developed into a global financial institution with overseas branches across four continents.

On Jan 9, 1950, the Hong Kong branch of BOC sent a telegram to the bank's general management office, expressing its acceptance of leadership. Afterward, several overseas branches such as those in London and Singapore announced their return to the leadership of the headquarters.

Since then, BOC has become an important financial window for foreign communication and exchanges of New China based on its global service network.

At the beginning of the founding of New China, the formation of the country's own fleet became a major concern of the top central government leaders.

In 1963, the State Council decided to use BOC's foreign exchange loans to purchase ocean-going vessels. From 1964 to 1965, loans used for ship procurement totaled $25.6 million, and from 1972 to 1976, BOC provided $880 million in foreign exchange loans for the construction of the ocean-going fleet.

With the support of these loans, New China managed to establish an ocean-going fleet, reducing its reliance on rented foreign ships.

Additionally, in March and April 1980, BOC, serving as a main member of the Chinese delegation, negotiated with representatives of the International Monetary Fund and the World Bank respectively.

As a result, China's legitimate seats in these two international organizations were restored in April and May of that year. This was a powerful example of BOC's efforts to support national economic development and integrate the country into the global economic chain after China carried out its reform and opening-up policies in 1978.

Business innovation

To meet the needs of reform and opening-up, BOC began acting as an agent for foreign financial institutions to issue credit cards in 1978, handling payment services for foreign credit cards and travelers' checks, thus introducing credit cards into the Chinese mainland.

In March 1985, BOC issued the first credit card of the mainland in Zhuhai, South China's Guangdong province. In 1986, it issued the nationally accepted "Great Wall Card".

From the first credit card to the introduction of international factoring services and the first aircraft leasing deal, innovative achievements made by BOC after reform and opening-up showcased the persistent efforts of the bank's employees, and highlighted the bank's firm determination to follow the Party's guidance and serve the nation's prosperity and rejuvenation.

In 1989, BOC made history by becoming the first Chinese enterprise to be selected for the prestigious Fortune Global 500 list by Fortune magazine. This milestone highlighted the bank's significant growth and global influence, marking a pivotal moment in the international recognition of Chinese businesses.

BOC has since furthered its role as a major financial instrument, consciously shouldering the tasks of supporting China's opening-up and deepening the country's financial reform.

With excellent performances in the high-quality development and industrial transformation process, the bank's brand value has continuously improved, making the Fortune Global 500 list for 36 consecutive years.

Moreover, BOC is also the first commercial bank in China to be listed on both the A-share and H-share markets.

The H-shares were listed on the stock exchange of Hong Kong on June 1, 2006, and the raised funds of more than HKD 75.4 billion ($9.67 billion) made this initial public offering the largest stock issuance among Chinese companies, Asia's largest stock issuance except in Japan, the largest stock issuance in the global financial industry, and the fourth-largest IPO ever seen in the world.

On the first day when BOC was listed, the trading volume hit more than HKD 20 billion, higher than the highest trading volume of any stock on the first day of trading.

More than one month after listing on the Hong Kong Stock Exchange, the bank listed the A-shares on the Shanghai Stock Exchange on July 5. The total issuance of 6.49 billion A-shares set up a new record of the largest domestic IPO.

Data from the bank's official website showed that, after the IPO, the total share capital of BOC reached 253.8 billion yuan ($35.77 billion), including 177.8 billion A-shares representing market capitalization of 673.86 billion yuan, which was larger than the total market capitalization on Shenzhen Stock Exchange.

This made BOC the most valuable listed company among all stocks on both the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

In 2011, the bank became the first financial institution from an emerging economy to be designated as a Global Systemically Important Bank, a designation it has now maintained for 13 consecutive years.

Its inclusion into the G-SIBs list reflects the bank's critical role in the international financial market, and demonstrates its influence and stability in the global financial services sector.

As a G-SIB, BOC is required to adhere to additional capital requirements to ensure its robust operations, thereby maintaining the stability and security of the global financial system.

Furthermore, its inclusion is also a recognition of the overall strength of the Chinese banking industry, indicating that the status and influence of China's banking sector in the global financial system are continuously rising, experts said.

With growing international status, competitiveness and comprehensive strengths, BOC has marched forward into the ranks of the world's largest banks.

For a long time, it has regarded risk prevention and control as an eternal theme of financial work, continuously deepening the construction of a comprehensive risk management system, firmly maintaining the bottom line of preventing systemic risks, and resolutely serving as a ballast for maintaining financial stability.

Boosting opening-up

Over the past decade, BOC has continued to act as a main channel for cross-border financial services, with an aim to support the high-level opening-up and assist in achieving new results in the construction of the Belt and Road Initiative.

The bank has issued seven batches of BRI-themed bonds since 2015 by leveraging its advantages such as a high degree of internationalization, a high credit rating, and broad range of international investors.

These bonds have directed global funds toward BRI-related projects, providing stable financial support for their construction.

On June 18, it issued the world's first batch of BRI sustainable development bonds via three branches in China's Macao, Hungary and Panama. The funds will be used to support such projects as renewable energy, sustainable water and wastewater management, affordable basic infrastructure, and essential services.

The projects will be located in 13 countries involved in the Belt and Road Initiative in Southeast Asia, Central Asia, Europe and Latin America.

In addition to the BRI, BOC has supported sports events. In July 2004, for example, the Beijing Organizing Committee for the Olympic Games officially announced the bank as the sole banking partner for the Beijing 2008 Summer Olympics and Paralympics.

In July 2017, BOC was once again selected as the official banking partner for the Beijing 2022 Winter Olympics and Paralympics, becoming the only Chinese bank that has served two Olympic Games.

To support the smooth operations of the Winter Olympics and Paralympics, the bank established five temporary outlets and four self-service areas in the Olympic venue area, deploying over 200 employees to provide on-site services.

Backing for high-quality growth of real economy

As for promoting the real economy, BOC established technology finance and pension finance centers in April this year, firmly implementing the spirit of the Central Financial Work Conference and the Central Economic Work Conference held last year.

Also, focusing on major strategies, key areas and weak links, BOC will continue to ramp up efforts in technology finance, green finance, inclusive finance, pension finance, and digital finance, in a bid to accelerate the development of new quality productive forces, contribute to the building of a strong financial nation, and promote Chinese-style modernization.

Taking technology finance for instance, the bank has launched a "BOC tech innovation ecosystem partner program", which is aimed at building an integrated and ecological financial service system to comprehensively enhance its service capabilities for tech enterprises.

The program focuses on serving tech enterprises by gathering resources from government units, investment institutions, industry associations, universities and research institutes and consulting agencies to form a robust tech-finance ecosystem.

This ecosystem will provide comprehensive services for tech enterprises throughout their entire lifecycle, ranging from startup to maturity, listing and international development. At each stage, these enterprises will receive the necessary financial support and professional services.

Key parks, key industries, and leading enterprises of industry chains are the main focuses of the program. Key parks include national high-tech zones, and key industries cover integrated circuits, low-carbon energy, biotechnology, new materials, artificial intelligence, aerospace, and humanoid robots.

The program is not only an important measure for BOC to implement national strategies and fulfill social responsibilities, but also a significant exploration in the field of financial services for technological innovation, the bank said.

Since BOC places great importance on supporting the construction of high-tech innovative highlands, the program will be primarily implemented in major tech innovation hubs such as Beijing, Shanghai, and Shenzhen. These regions are home to a large concentration of high-quality tech enterprises and ecosystem resources.

International expansion, Chinese characteristics

Currently, BOC has developed into one of the most globalized and integrated Chinese banks, ranking fourth on the Top 1,000 World Banks list.

It boasts 15 overseas institutions serving as RMB clearing banks, and 39 institutions directly connected to the Cross-border Interbank Payment System, or CIPS — a system launched in 2015 to integrate channels for RMB cross-border payments and settlements.

The bank also acts as an agent for 665 financial institutions worldwide to indirectly participate in the CIPS system.

According to it, BOC will conscientiously implement the spirit of the Central Financial Work Conference; firmly follow the path of Chinese-style financial development; and actively build a strong, resilient and secure international financial institution featuring Chinese characteristics.

It will also contribute to the construction of a strong nation and achieving national rejuvenation through Chinese-style modernization.

Committed to the country's high-quality development, BOC will resolutely implement the decisions and deployments of the CPC Central Committee in the future.

It plans to become the main force in serving the real economy and the new development pattern of dual circulation; act as a ballast for maintaining financial stability; promote the optimization and strengthening of large State-owned financial institutions; and continuously contribute strength to the process of building a strong financial nation, according to the bank.

SU JINGBO/CHINA DAILY