§        Operating income rose 12.6 % to RMB 70,864 million

（RMB 62,922 million in the first half of 2005）

§        Net profit  (adjusted) increased 13.3% to RMB 23,223 million^（1）

（RMB 20,501million in the first half of 2005） 

§        Annualized return on average assets of 0.95%^（2）

§        Annualized return on average equity (adjusted) of 15.67%^（3）

§        Capital adequacy ratio of 13.15 %

    （13.57 % as at 31 December 2005）  

§        Cost-to-income ratio of 41.65%

（45.13% as at 31 December 2005）

§        Allowances to non-performing loans ratio of 71.37%

    （66.78% as at 31 December 2005）

§        Non-performing loan ratio of 3.51%

(3.84% as at 31 December 2005)

§          Note:  ^（1）Profit is calculated after deducting the income tax benefits offered by the Chinese government in relation to the restructuring of the Bank; ^（2）Annualized return on average assets is calculated by dividing net profit by the average of total assets as of the beginning and end of the period, and doubling the resulted figure. ^（3）Annualized return on average equity is calculated by adjusted dividing net profit attributable to shareholders by adjusted equity attributable to shareholders as of the beginning and end of the period, and doubling the resulted figure.

      Hong Kong, 24 August 2006 – The China Construction Bank Corporation (“CCB”) (Stock Code: 939) today announced its 2006 interim results. 

     For the six months ended June 30, 2006, CCB reported operating income of RMB 70,864 million, representing an increase of 12.6 % over the corresponding period of last year. On a comparable basis, net profit was RMB 23,223 million, representing a 13.3% increase over the corresponding period of last year. Earning per share was RMB0.10. Annualized return on average assets and annualized return on average equity were 0.95% and 15.67% respectively. Cost-to-income ratio was 41.65%; capital adequacy ratio was 13.15 %, and non-performing loan ratio decreased from 3.84% as at December 31, 2005 to 3.51%.

     “In the first half of 2006, the Chinese economy experienced robust growth with steady increase in the income of urban and rural residents. There is also a slight rise in consumption, and the financial environment remains stable. All these factors helped us achieve a strong and healthy development,” said Mr. Guo Shuqing, Chairman of China Construction Bank Corporation.

During the period under review, CCB persisted in the efforts to implement its overall development strategies. The Bank accelerated the modification of its business structures, gradually increased resource deployment in coastal areas, boosted the development of its retail banking business, and achieved exceptional growth for its fee and commission-based services.  The strategy of prioritising the development of branches in key cities was enhanced, with authorization expanded, resource deployment strengthened, and assessment and incentive programs in place. The total deposit and loan balances across the 80 branches in key cities accounted for approximately one percentage point more in the total amount of the big four commercial banks. Overseas expansion was actively pursued, with Hong Kong as a platform for the consolidation of overseas branches and resources, and solid results were achieved.  The Department of Investment Banking was established to identify market opportunities, promote integrated business operations, consolidate and expand the underwriting business, realize asset securitisation and proceed with the businesses of financial consultancy and project financing. With an emphasis on long-term sustainable development, CCB enhanced its efforts in network expansion and technological development.

The internal management reforms of CCB also progressed smoothly to enhance the standards of risk management, customer service and competitiveness of the Bank. Through a wide array of measures, such as the optimization of teller operations, separation of front-end and back-end departments, and the establishment of a personal loan approval centre, CCB successfully enhanced its business efficiencies, as evidenced by the 10% increase in customer service efficiency to provide more effective and convenient services for customers. Reforms on risk management system progressed in a comprehensive manner, with the appointment of a Chief Risk Officer and risk supervisors in all tier-one branches to establish a vertical risk management framework. The parallel operation system of risk managers and customer managers was also implemented to enhance risk management. In addition, the economic capital control system was further optimised. While maintaining a gradual decrease in the total amount of branches, CCB expanded its branch network in the developed areas of Eastern China, and enhanced its network in Central and Western China. The matrix management model was also implemented gradually to continue the flattening of the branch network structure. Business development in the areas of Yangtze River, Pearl River Delta and Bohai was strengthened with the establishment of a dedicated committee to coordinate the connection and synergies of the three areas. New mechanisms were set up to promote innovation among all staff members, and a product innovation centre was established to provide distinctive financial products and value-added services for medium and high net worth personal and corporate customers. The reforms on business line management was also accomplished in healthy steps, with the appointment of a wholesale business director, retail business director and investment and financial business director, and the launch of pilot programs regarding personal banking and credit card businesses. New progresses were also made in human resources management, including the evaluation on stock appreciation rights and employee stock ownership programmes, the optimisation of employee contract system, and the implementation of training programmes for the entire staff force. During the first half of the year, the total number of CCB employees who received training reached 167,100 person-times.

During the first half of 2006, CCB improved its existing residential mortgage loan products, and introduced innovated products and combined financial services to meet the differentiated and individualised demands of its customers. As a result, the residential mortgage loan business recorded rapid growth and became a significant business driver in the period. The balance of residential mortgage loans of CCB surged 12.5% to RMB 391,875 million as at 30 June 2006, the highest growth among all PRC banks.

    The fee and commission-based services of CCB also achieved impressive results, with net fee and commission income for the first half of the year increased by 60.6% to RMB 6,274 million compared with the same period last year. Net fee and commission income represented 8.85% of the operating income of CCB, compared with 6.21% for the same period last year, reflecting the increased efforts and resources invested to push forward the fee and commission-based services.

    The bank card business expansion reached a historic high in the first half of the year. The realized fee income from the bank card business recorded a significant increase of 30.0% compared with the same period last year. The number credit cards in circulation increased by 1.35 million and reached 4.47 million during the period. The total spending amount  increased by 150% over the same period last year, and over 7,000 merchants were newly acquired by the Bank.

    There was breakthrough growth in the customer-driven Renminbi and foreign currency dealings. Acting as lead underwriter of short-term financial notes totalling RMB 43,500 million, CCB maintained its leading position in the market. The Bank became one of the first market-makers in Renminbi participating in the inter-bank foreign currency market in January 2006. The growth of CCB’s trade-related foreign currency exchange and settlement business amounted to US$48,933 million, up 30.4% from the same period last year. The volume of foreign currency derivative transactions conducted on behalf of customers reached US$6 billion, an increase of 102.4% over the same period last year.

    CCB actively proceeded with the reform of its risk management system with impressive results. Thanks to the growing credit business, a steady improvement was achieved in the credit asset quality, with the non-performing loan ratio decreasing to 3.51% at the end of the period from 3.84% at the end of last year. The non-performing loan ratio in the manufacturing, transportation, warehousing and postal, electricity, gas and water production and supply, and real estate development sectors, which accounted for a higher proportion in the credit business of CCB, also showed improvement.

    During the first half of 2006, CCB continued to implement its customer-centric culture in system reforms, business process reengineering and product innovation. The Bank received high regards from the market with its endeavour to provide customers with comprehensive and competitive financial products and services. According to the surveys conducted by local as well as foreign media and intermediary organizations, CCB has surpassed all competitors in mainland China to become the commercial bank with the best integrated service, highest profitability, strongest competitiveness and best risk control.

After the press conference, the CCB management reiterated the commitment of the Bank to further enhancing its corporate governance and improving its competitiveness and profitability by seizing market opportunities and promoting innovation, so as to progress towards the Bank’s objective of becoming a world class commercial bank that provides the best possible service to customers, maximizes shareholders’ value and provides the best development opportunities for employees.

On behalf of the Board of Directors, Mr. Guo expressed sincere gratitude s to the dedication and hard work of the management and staff, in particular the valuable contributions of Mr. Chang Zhenming and Ms. Liu Shulan, who left office this year, and welcomed the new president Mr. Zhang Jianguo, and the new directors, Mr. Luo Zhefu and Mr.Lord Peter Levene, to the Board of Directors. He also thanked the shareholders, customers and business partners for their generous support and confidence placed to CCB.

Corporate Profile

The history of China Construction Bank Corporation (“we” or the “Bank”) as one of the big four commercial banks dates back to 1954 when the People’s Construction Bank of China was founded, and was renamed China Construction Bank in 1996. The Bank was formed in September 2004 as a result of a separation of our predecessor, China Construction Bank, and we succeeded to its commercial banking business and related assets and liabilities.

 Headquartered in Beijing, as of 30 June 2006, we had a network of 13,847 branches and sub-branches in Mainland China and maintained overseas branches in Hong Kong, Singapore, Frankfurt, Johannesburg, Tokyo and Seoul, and representative offices in New York and London, with more than 300,000 employees. According to The Banker magazine in July 2006, we ranked 11th among the world’s top 1000 banks based on tier-one capital.

 Our business consists of three principal business segments:

l            Corporate banking, which provides financial products and services to corporations, government agencies and financial institutions, including corporate loans, trade financing, deposit taking, agency services, consulting and advisory, cash management, remittance, settlement, custody and guarantee services;

l            Personal banking, which provides financial products and services to individual customers, including personal loans, deposit taking, bank cards, personal wealth management, remittance and securities agency services; and

l            Treasury operations, which manage our money market activities, consisting of inter-bank transactions and repurchase transactions; manage our investment portfolio, including securities held for both trading and investment purposes; and conduct trading on behalf of customers, including foreign currency and derivatives trading.

Our shares began trading on the Stock Exchange of Hong Kong Limited on 27 October 2005 (Stock Code: 939).

Accolades and Rankings of CCB

l            Awarded the 11^th place and the first place respectively on the lists of “Top 1000 Global Banks” and “Top 100 PRC Banks”, which are compiled based on tier-one capital, and named “Best Chinese Bank of the Year,” “Retail Banking Cross-channel Experience Product Award” and “Retail Banking Payment Innovation Award” by The Banker magazine in 2006

l            Secured the seventh place on the list of “Top 300 Asian Banks” released by Asiaweek in 2006, which is compiled based on total assets. Also being recognized as the bank with the “highest net interest income” and the “highest net profit”, and therefore rated as the “most profitable bank in Asia.”

l            Ranked the 65^th on the list of “The World’s Biggest Public Companies” released by Forbes in 2006, which is compiled based on sales, profit, assets and market capitalization. The ranking is the second among all Chinese banks

l            Ranked the 277^th on the list of “Fortune 500” released by Fortune in 2006, which is complied based on operating income

l            Awarded “The Best Chinese Bank” by The Asset in 2006

l            Topped the list of “Top 100 Asian Banks”, which is complied based on net income, ranked the 5^th on the list of “FinanceAsia 100”, which is compiled based on net profits from 2003 to 2005, and awarded the “Best Management Company,” “Best Dividend Payout Company” and “Best Corporate Governance Compliance Company” by FinanceAsia in 2006

l            Awarded “Best Financial Risk Management Award in China” by The Asia Risk in 2006

l            Awarded “Best Custodian Bank in China” by The Global Custodian in 2006

l            Awarded Core Brand Award in the “Top 10 Brands Favoured by Chinese Internet Surfers,” and CCB “Long Card” named one of the “Top 10 Financial Brands Favoured by Chinese Internet Surfers” by the Internet Society of China in 2006.

-END-

Attached CCB’s unaudited consolidated income statement, balance sheet and cash flow statement for the six months ended 30 June 2006 for reference.

Forward Looking Statements

This press release contains certain forward-looking statements regarding the group's financial condition, operating results and businesses. Such forward looking statements represent the group's expectations of or beliefs in future events, and involve known or unknown risks and uncertain factors that may lead to material deviations of actual results, performance or events from the results, performance or events explicitly stated or implied in such statements. Certain statements, e.g., those containing words such as "potential”, "estimate", and similar wordings or different expressions of such wording, may all be considered "forward - looking statements".

* Materials distributed at the Results Presentation will be posted up on CCB’s website at www.ccb.com after the market closed for the day of August 24,2006.