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All-out Undertaking of Social Responsibility Collaborative Drawing of Harmonious Society Blueprint
Published time: 2007-05-24

--The Corporate Social Responsibility Report from CCB

Being a listed state-owned commercial bank and a pioneer in shareholding reform, CCB has taken a new step in its commitment to carrying out social responsibilities.  On 24th May, CCB officially issued its “Corporate Social Responsibility Report 2006” to the public, the first of its kind among state-controlled commercial banks.

It is a way of reciprocating and demonstrating accountability to its country and society for an enterprise to publish a corporate social responsibility report, convey its corporate values and pursuance of social responsibility to the public in a thorough and effective way and openly accept scrutiny of its performance.  This 50-page report clearly portrays CCB’s experience in exploring ways to implement social responsibility since its inception and especially after it was listed.  It encapsulates all the understandings and considerations of CCB staff in their endeavour to carry out social responsibility while undertaking the missions of a major state-controlled commercial bank.

From our point of view in CCB, CCB’s interests and national interests are still highly aligned even after CCB’s share reform and listing.  And every step in CCB’s development is an annotation of this perception.

After CCB’s restructuring and listing, the State still directly and indirectly owns over 74 of its shares, making it a public company which the State has absolute share control while at the same time boasting more than 100,000 domestic and overseas investors.  As Mr. Guo Shuqing, Chairman of the Board, says, “It is our fundamental responsibility to maintain sustainable development and create the largest value for our shareholders”.

It is precisely because of this responsibility that CCB personnel are keen to carry out innovations and are constantly making progress.  Through system restructuring, process reengineering and product innovation, it has re-invented itself as a listed public bank with greatly enhanced service capability, risk controlling ability, profit making capability and overall competitiveness.  A state-owned commercial bank which was once burdened with unrelenting non-performing loans, which was weak in risk controlling and was in severe shortage of capitals, has now become one of the 10 largest banks of the world in terms of market value.  Such earth-shaking changes in CCB have resulted in a new appraisal of China’s banking industry.

As a listed state-owned commercial bank, CCB’s every step forward means that it has contributed a little bit more for the country and has carried out one more part of its responsibilities.  For every 10 yuan made by CCB, the country’s income is about 8.5 yuan.  In 2006, CCB’s profit before tax was 65.717 billion yuan.  Tax attributable to the country was 43% of CCB’s profits; dividend attributable to the country was about 30% of CCB’s profit after tax; state-owned shareholders’ interests increased by over 40% of CCB’s profit after tax.  As at the end of last year, the asset value of CCB has appreciated by HK$433.76 billion comparing to its value when it was publicly listed in October 2005, representing an increase of 111%.  While comparing to the end of 2003 when it had received an injection of capital and was undergoing capital restructuring, its asset value has appreciated by HK$659 billion, representing an increase of 395%.  These figures reflect the close bonding between interests of CCB and that of the country.

Being a listed state-owned commercial bank, CCB on the one hand has to operate its business in complete accordance with market principles.  On the other hand, it has the compelling obligation to carry out the State's macro-economic regulating policies and to assume its historical responsibility of promoting and facilitating the healthy, stable and rapid development of China’s economy.

In terms of lending preferences, by an all-out shrinking of lending to industries which either have or are going to have redundant capacities, CCB has managed to satisfy loan demands for infrastructures and for national strategic development purposes.  In 2006, two thirds of CCB’s lending were allocated to the “Two Basics and One Pillar” (basic infrastructures, basic industries and pillar industry) industries.  Through CCB, financial “blood” is being continuously infused for the development of Western China, the revival of the old industrial bases in the North-east, the emergence of Central China and the construction of the Tianjin Binhai New District.  In 2006, CCB’s new advances to these regions amounted to 131.5 billion yuan, representing almost 50% of the total increase of CCB or a year-on-year increase of 18%, which was 4% higher than that for the eastern regions.  Although CCB’s headcount and number of establishments in the central and western regions are one third of the whole and the profit generated is only about 20% of the total, (with some branches having negative growth), CCB’s consideration is not on short term benefits but rather on supporting the development of the local economy, on solving unemployment problems and on relieving the pressure for local governments to maintain stability.  In short, CCB is driving for balanced development of these regions through its concrete actions.

In expanding its business, CCB strictly observes the nation’s industrial policies of giving preference to industries in energy, transportation, telecommunications and urban infrastructures.  In 2006, CCB had set up fund settlement networks for over 30 corporate clients such as China Aviation Industry Corporation I and Shougang Group Corporation.  It had signed strategic partnership agreements with 12 premium corporate clients like China Metallurgical Group Co., Ltd. and China Guangdong Nuclear Power Holding Co., Ltd.; and had given credit supports and financial services to leading conglomerates like Baosteel Group, China Aerospace Science and Technology Corporation, China Southern Power Grid, China National Chemical Corporation, China Shipping Group Company, as well as major projects like Guizhou-Guangdong Railway, Ningbo-Hangzhou Intercity Railway and Chongqing-Sichuan Railway.  Through the provision of comprehensive, high quality and personalised financial services to its clients, CCB has brought into full play the role of a state-owned bank as a mainstay in the building up of the national economy.

CCB attaches much importance to the alignment of national interests and corporate interests in the course of developing its business.  In the second half of 2006, facing high demands for funding, CCB managed to overcome the difficulties in balancing the use of funding while observing the macro-control policies of State Council and relevant authorities by various measures to contain the volume of lending and new loans to within a reasonable level.

To comply with the State’s express stipulation that no loan should be granted to projects and enterprises in breach of environment protection regulations, CCB insists on sticking to stringent approval criteria and has not lent to such projects or enterprises at all.  A well known chemical plant has asked for a loan of 120 million yuan.  From normal banking considerations, the financial indicators of the enterprise have met CCB’s lending conditions and the prospects of its products are good.  However, the waste residues of its leading products, chromium salts, contained abundant amount of not easily decomposable carcinogenic substances and may have the possibility of contaminating water sources.  For this reason, CCB has decisively rejected the loan request.

In CCB we believe that the best way to serve and reciprocate society is to realise a “Customer focussed” operating concept.

Two years ago, CCB hired an international consultancy firm to give advice in strategies to CCB.  According to the estimation of this consultancy firm, profit contributions in CCB’s personal banking business from rich customers and moderately rich customers are respectively 50% and 60%, whereas profit contribution by the average customers is -10%.  Adjustments in service fee may slightly improve this situation, but the overall situation can never be totally turned around.  In CCB we believe that turning the average customers away would not only be against the interests of society, but would also be against CCB’s own long term interest in development.

Within the China banking industry, CCB has taken the lead in renovating its retail banking outlets and carrying out business transformation.  It has rationalised and optimised its business processes, increased the number of public service counters and implemented flexible shifts for providing counter services.  As soon as a customer walks into a CCB outlet, a lobby manager will come to make greetings and provide guidance in conducting business.  At present, in outlets that have undergone trial transformation, waiting time of 96% of the customers is basically controlled to within 10 minutes.


In providing basic services to the public, CCB does not only take management costs into consideration, but is placing more consideration in customer convenience and experience.  In many areas and business processes, CCB is insisting on offering free services or is charging only token fees.  For example, in all CCB outlets, exchanges for small or broken notes or the tallying of small notes are free of charge.  While the cost of handling each cheque is 16.32 yuan, CCB is charging its customers a mere 0.6 yuan.

For outlets situated in populous residential areas or crowded bazaars, CCB staff are oblivious of toil and dirtiness in their enthusiasms to help ordinary folks exchange damaged notes, tally loose changes, clean up soiled notes and  patch up torn ones, etc., all for free.  Once a customer came to an outlet to deposit several sacks of coins weighing two and a half tons.  Throughout the evening, 47 staff participated in counting the 240,000 yuan worth of coins, and this had deeply moved the customer whose request had already been turned down by many banks.

To a bank, handling payments for telephone service, water, electricity, gas, etc. involves small sums, is time- and manpower consuming while profits are minimal.  But since such payments relate to the daily life of millions of households, CCB has invested resources to develop self-service banking, internet banking, phone banking, etc. to facilitate the public to settle these payments in time.

For special groups and those having difficulties in the community, CCB also extend its helping hands.  In 2006, on behalf of civil affairs departments, CCB had distributed all sorts of social security funds like pensions, low-security group insurance, etc. free of charge.  In the period leading to the Lunar New Year, preferential rates are offered to migrant workers making inter-city remittance.

Since 2006, CCB has launched various products and services to satisfy customer needs.  From CCB Headquarters to each of its 13,000 or so outlets spread around the whole country, all business lines are operating in full throttle around the needs of the customers.  With a CCB fixed or demand deposit bankbook or a deposit certificate, a customer can make direct deposits or withdrawals, make transfers or check accounts at any CCB outlet in the country.  No matter where a customer is, he or she can process fixed or demand deposits using CCB’s national pass service.  With its internet banking service, 20,111 sets of ATMs and nearly 1,500 self-service banks, CCB is at the early stage of weaving up a self-service banking network and is becoming a truly mobile bank.


To meet the financing needs of its corporate clients, CCB has launched nine types of investment banking products: short-term financial bills, international bonds, trust beneficiary vouchers, asset securitization, project financing, domestic and overseas IPO and refinancing, equity investment, financial consultancy and wealth management.  A client once remarked, “What we have thought of, CCB would already have thought of; what we haven’t thought of, CCB would also have thought of.”

We in CCB promises to pay close attention not only to various economic indices, but will also concern ourselves with the balanced development of the economy and society and, by treating considerations of social issues as part of our business development plans, we are improving the livelihood of the people.

To possess one’s own home is the dream of every family.  CCB is the first bank to engage in housing provident fund operations and residential mortgage loan business in China.  Last year, to help ordinary people buy their own living quarters, CCB had introduced ten new loan services.  Such repayment concepts as “Repayment with Grace Period”, “Flexible Repayment Scheme” and “Carefree Youth Scheme”, etc, had helped thousands of families realise their dreams of buying their own home.  “To buy a house, simply go to CCB” is now a slogan known to every family.

Providing financial services to help solve the housing problems of low-income families has been an important business development issue noted and studied by CCB for many years.  As early as October 2002, CCB and Bausparkasse Schwaebisch Hall of Germany jointly established a house savings bank aiming at providing preferential property financing services to middle and low income groups by drawing on the German experience in house savings underpinned by fixed interest rates and low-interest loans.  Last year, CCB commissioned a task group to study the establishment and improvement of a housing security system for mid- to low-income citizens.  The mandate of this task group is to search for a new and all-win model for the Government, CCB and the individuals by designing different low-interest product packages to suit the needs of mid- and low-income families.

Small and mid-sized enterprises (SMEs) are important forces in pulling economic growth.  Since 2006, CCB has daringly tailor-made two products to serve their needs, viz. “Growth Loan” and Quick Finance”.  Currently, in Wenzhou, Zhejiang Province, where SME development is fastest, an average of 1.3 million small enterprises a day are receiving loan supports of approximately RMB4 million from CCB, and over 200 key account managers are specially assigned to serve this group.  As pointed out by the manager of a small enterprise in Wenzhou, “For the successful development of our enterprise, CCB deserves more than half of the credit.”

In the area of supporting new rural development, CCB is focussing on the speeding up of modern agriculture development.  Hence it is spending tremendous efforts to support intensive agricultural production, circulation of agricultural products and intensive processing of agricultural by-products.  Such efforts should results in diversified increases in financing needs in the rural areas and will provide timely and convenient services to help farmers become comparatively well-off.  In Tieling, Liaoning Province, a farm-use vehicle is being marketed by a major group of township and village level agricultural means of production companies led by Da De Resource Company Limited.  The vehicle is very popular with local farmers but sales have been slow because the farmers are short in money.  CCB has launched in time a personal loan business mostly to help the farmers buy their vehicles.  By the end of 2006, total loans advanced to agricultural industries, rural areas and farmers amounted to 33.3 billion yuan and cumulative personal loans for farm-use vehicle purchase amounted to 840 million yuan—all in helping farmers on their way to prosperity.

We in CCB regard it a duty bound responsibility to participate in charity causes and contribute to the building of a harmonious society

Chongqing Wuxi Country CCB Hope Primary School”, “Tsinghua University - CCB Scholarships & Bursaries”, “Lead Sponsor of the Inner Mongolia Broadcast Television Artistic Performance Troupe”, “Xiabaiyan Buyi’s Marine Inhabitation Cultural Museum”  A long list of projects and functions records all the charities ever undertaken by CCB.  For many years, CCB has been regarding the caring of underprivileged communities and participating in charity causes as important ways of fulfilling its corporate social responsibility and helping build a harmonious society.  Since 1996, the CCB Caring Foundation, which was established by voluntary donations of CCB staff, have collected 32.56 million yuan.  So far, it has helped subsidise 16,203 needy students at 86 Chinese tertiary institutions and financed the construction of 25 Hope primary schools.

Observant customers may notice that CCB outlets are not only places providing quality services but are hubs of caring hearts.  Since 2002, to help children from impoverished regions resume their schooling, CCB has cooperated with the China Children and Teenagers Fund in running a Small Change Donation Fund and has donated one million yuan to make the collection boxes.  As at the end of 2006, 3.27 million yuan had been collected from 5,000 CCB outlets on behalf the China Children and Teenagers Fund.  As a result of these trickles of caring love, 1,965 students from elementary and secondary schools and universities have been subsidised.  CCB’s assistance not only improves the educational environment of local communities but also arouses local attention and support towards education.  In recognition of CCB’s outstanding contribution in the Small Change Donation campaign, the China Children and Teenagers Fund presented CCB with the "Most Caring Organisation for Children” award in January 2007 and had CCB’s name inscribed on the “Monument for Civic Actions for Chinese Children” on the Great Wall at Baidaling, Beijing.

In the campaign to structure a harmonious society, CCB has never forgotten to reciprocate the great kindness it has been receiving from all circles by helping the poor and the distressed whole-heartedly.  In 2006, CCB decided to sponsor as a “Games Partner” the Special Olympics World Summer Games Shanghai 2007 to be held in Shanghai in October 2007.  The aim of Special Olympics is to support sporting events for individuals with intellectual disabilities and help them realise their potentials, develop their physical fitness, demonstrate their courage and enjoy life and friendship.  On May 23rd, a series of related charitable activities began at over 3,000 CCB outlets in 12 Chinese hosting and reception cities including Shanghai, Beijing, Hong Kong, etc.  In July 2006, CCB donated a relief fund of RMB4.5 million through the Red Cross Society of China to help victims in six southern provinces including Hunan, Guangdong, Fujian, Guangxi, Zhejiang and Jiangxi who had lost their homes in typhoons and floods.

CCB has gained much praise from all sectors of society for the contributions it has made to various charity causes.  For example, it has been awarded the honour of providing “Outstanding Contributions for the Care of Children” and has received “The Second China Poverty Alleviation Special Contribution Award”.  Moreover, it is the only bank which was named one of the “Most Responsible Corporate Citizen in China 2006”.

Great ways are invisible and profound love is silent.  In their pursuance to become a first class international commercial bank, over 300,000 CCB staff, are joining together hand in hand, shoulder to shoulder and heart to heart, not just for the goal of developing CCB in strides, but also for the persistent devotion of their passion and love towards a harmonious society.

Link to the CCB Corporate Social Responsibility Report 2006

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