In line with the decision of the State Council and the approval of China Banking Regulatory Commission (CBRC), China Construction Bank Corporation held the incorporation conference in Beijing On September 21, 2004, which is not only a landmark in the history of China Construction Bank (CCB) but also a major achievement of the reform of Chinese banking industry.

On the conference officials of the CBRC declared the incorporation of China Construction Bank Corporation and issued the financial license. Officials of the State Administration of Industry and Commerce issued the business license to the Corporation. Executives of Central Huijin Investment Company, on behalf of the shareholders, announced the list of Directors and Supervisors of the Corporation. Approved as per standard procedures, Zhang Enzhao was appointed as the Chairman and Secretary of the CPC Committee, Chang Zhenming as the Vice Chairman, President and Vice Secretary of the CPC Committee and Xie Duyang as the Chairman of the Board of Supervisors and Vice Secretary of the CPC Committee of China Construction Bank Corporation. Zhou Xiaochuan, Director of the Leading Office of the State Council for Pilot Shareholding Reform of the State-owned Commercial Banks and Governor of the People’s Bank of China, Xie Ping, General Manager of the Central Huijin Investment Company and Chairman Zhang Enzhao addressed the conference respectively. Chang Zhenming, Vice Chairman and President of the Corporation, chaired the incorporation conference.

Earlier on September 15, China Construction Bank Corporation held the inauguration conference at which the Central Huijin Investment Company, China Jianyin Investment Limited, State Grid, Shanghai Bao Steel (Group) Co., Ltd. and China Yangtze Power Co., Ltd. jointly sponsored the establishment of China Construction Bank Corporation. As required by related Chinese laws and regulations, the conference deliberated and adopted the Articles of Association of China Construction Bank Corporation and proposals on the list of the Board of Directors and Board of Supervisors. The shareholding commercial bank with the state holding controlling shares transformed from CCB will be named as China Construction Bank Corporation and the abbreviation CCB remains unchanged. Immediately after the conference, the first meetings of the first Board of Directors and Board of Supervisors of China Construction Bank Corporation were held. Under the first Board of Directors 5 special committees were established, i.e. the Strategic and Nomination Committee, Auditing Committee, Risk Management Committee, Remuneration and Performance Evaluation Committee and Connected Transaction Control Committee.

The decision of the State Council to implement the pilot shareholding reform of state-owned banks in CCB makes the bank feel the heavy responsibility. Carefully verifying assets and capital, the bank laid down a solid foundation for the standard restructuring. Its efforts of raising quality of newly extended loans and intensifying disposal of NPAs have fundamentally improved asset quality and financial conditions. Meanwhile, CCB invited a leading international management consulting firm in a bid to facilitate the internal management reform, formulate clear development strategies, build a sophisticated corporate governance structure, organizational structure and risk management, deepen reform of financial management system, build effective HR management system and incentives system and enhance the application of advanced technologies, and initial results have shown. As required by related laws and regulations, China Construction Bank Corporation has developed the Articles of Association and a modern corporate governance structure composed of the shareholders’ meeting, the Board of Directors, Board of Supervisors and the senior management.

The establishment of China Construction Bank Corporation marks the complete restructuring of CCB centering on the major business of commercial banks. All the commercial bank services, assets, liabilities, business outlets and staff of CCB will be covered by the shareholding reform and then incorporated into the newly established China Construction Bank Corporation. Only less than 1% of the non-major business assets will go to China Jianyin Investment Limited. The new Corporation will focus on commercial bank services and be committed to growing big and strong. From the very beginning the Corporation will build a diversified equity structure by introducing a number of sponsor shareholders. In the future CCB will continue various management reforms in line with the standards of leading commercial banks and try to establish the operational and management system as required by modern commercial banks and grow into a modern shareholding commercial bank with adequate capital, sophisticated internal control, safe operation, sound services and performance and international competitiveness within 3 years.

Members of the Leading Office of the State Council for Pilot Shareholding Reform of the State-owned Commercial Banks, officials of related government ministries and commissions, members of the first Board of Directors and Board of Supervisors and senior executives of China Construction Bank Corporation, officials and employee representatives of the CCB head office, representatives of CCB retirees, the financial peers and key customers and domestic and overseas journalists participated in the conference which was broadcasted in the CCB domestic branches through video system.