In recent years China Construction Bank has been committed to pushing for reform and strengthening management in a bid to lay down a foundation for the shareholding reform. The reform involves the head office and all the branches and covers the acceleration of flat reform of city branches, the personnel and incentives system reform, establishment of a performance evaluation system focusing on EVA and the risk and efficiency discipline mechanism focusing on economic capital. Intermediary organizations are invited to repeatedly study and assess the shareholding reform plan. China Construction Bank kicked off the shareholding reform in April 2003. 

Early April 2003　

China Construction Bank set up the shareholding reform leading group and office in charge of the coordination and arrangement for the shareholding reform throughout the bank.

July-August 2003
China Construction Bank appointed the auditors, assessors, lawyers, the management consulting firm and other intermediary agencies involved in the reform.
August 11, 2003

The conference of intermediary agencies involved in the restructuring was held to formally launch the audit, assessment and legal due diligence.
October 17, 2003

The conference to launch the management consulting project was held. A Well-known international management consulting firm was invited to be the management reform consultant of CCB, preparing for the complete reform of the development strategies, organizational structure, risk management and financial management by learning from the successful practices of leading international banks in a bid to raising the competitiveness and management expertise of the shareholding company.

The training class on the classification of credit asset risks and credit loss provisions was held to introduce the bank’s new classification requirement for credit asset risks, theory of making credit loss provisions, the provision practices of leading international banks and the bank’s new standards and methods of making credit loss provisions. Credit assets were reclassified in accordance with the new methods throughout the bank.

The Central Huijin Investment Company injected US$22.5 billion into China Construction Bank.

China Construction Bank set up the leading group of the spin-off notice headed by its senior executives. Under the leading group the spin-off and emergency subgroups were established to take charge of the preparations for and other work related with the spin-off.

The preparations for the introduction of sponsor shareholders were launched at the same time.

The bank received the Reply Letter on the Approval of the Overall Plan on the Disposal of Land Assets during the Restructuring of China Construction Bank issued by the Ministry of Land and Resources, clarifying the land tenure policy of the bank. 

The land survey and assessment of the bank started.
May 10, 2004

The Office to Promote the Management System Reform was set up to prepare for the complete reform of development strategies, organizational structure, risk management and financial management by learning the successful experiences of leading international banks in a bid to raise competitiveness and management expertise and build a modern commercial bank management system and operating mechanism in China Construction Bank.

The first group of candidate sponsors was confirmed and contact and negotiations with the candidates were formally launched.

The China Banking Regulatory Commission approved the spin-off of China Construction Bank.

China Construction Bank initially drafted the list of independent directors.

China Construction Bank released the China Construction Bank Notice on the People’s Daily, Financial Times and China Daily consecutively. 

China Construction Bank and Xinda Asset Management Company signed the Agreement on the Transfer of Suspicious Loans.

Land assessors completed the property and field survey of land and buildings and submitted the land assessment report of the bank to the Ministry of Land and Resources for record upon finishing the country and provincial level initial assessments and received the reply of the Ministry on the land assets disposal of China Construction Bank.

China Construction Bank successfully issued RMB15 billion of subordinated bonds in the inter-banking bond market to improve its asset structure and raise capital adequacy.

The auditor produced the 2003 auditor’s report on the net assets and the asset assessors produced the asset assessment report and submitted the report to the Ministry of Finance for approval. On September 14, the Ministry of Finance issued the Reply on the Asset Assessment Report of China Construction Bank.
September 2-14, 2004

China Construction Bank submitted the Request for Instructions on Issues related with the Shareholding Reform of China Construction Bank to the Leading Office of the State Council for Pilot Shareholding Reform of the State-owned Commercial Banks, and the State Council made the reply on the Request on September 14.

Five sponsors including the Central Huijin Investment Company formally signed the Agreement of Sponsors.

The claim period of China Construction Bank Spin-off Notice came to an end.

The Ministry of Finance approved the management program of state-owned shares of the China Construction Bank Corporation.

China Banking Regulatory Commission approved the spin-off of China Construction Bank into China Construction Bank Corporation and China Jianyin Investment Limited, and the five sponsors including Central Huijin Investment Company set up China Construction Bank Corporation.

China Construction Bank Corporation held the inauguration conference & the first shareholder’s meeting and the first meeting of the first Board of Directors and the Board of Supervisors.

China Banking Regulatory Commission changed the Financial License of China Construction Bank Corporation and issued the Financial License to China Jianyin Investment Limited.

China Construction Bank Corporation completed the registration in the State Administration of Industry and Commerce and received the business license.

China Construction Bank Corporation held the incorporation conference.