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About CMBC

Introduction to China Minsheng Bank

China Minsheng Banking Corp., Ltd. (hereinafter referred to as “China Minsheng Bank”, “CMBC”, “the Company” or “the Bank”) was formally established in Beijing on 12 January 1996. It is China’s first national joint-stock commercial bank initiated and founded mainly by non-state-owned enterprises (NSOEs). It is also a modern financial enterprise established in strict accordance with the Company Law and the Commercial Bank Law of the PRC. 


Over the past 23 years since establishment, along with the rapid growth of China’s economy and with the support from customers and various circles of the society, China Minsheng Bank has grown, through hard-working and innovative efforts, from a small bank with only RMB1.38 billion registered capital into a large commercial bank with total assets of RMB6 trillion, net assets of more than RMB430 billion, nearly 2,800 business units, and over 58,000 employees. In the Top 1000 World Banks ranking released by The Banker in July 2018, China Minsheng Bank was ranked No.30. In the Fortune Global 500 published by Fortune in July 2018, it stood at No. 251.


China Minsheng Bank is a pilot field of China’s banking reform that shoulders the mission of “From the People, For the People”. We take reform and innovation as our responsibilities, and commit to exploring development path for modern commercial banks in China’s banking industry, providing professional and distinctive modern financial services to customers, and creating higher market value and investment returns to investors. On 19 December 2000, China Minsheng Bank was listed on the Shanghai Stock Exchange (A share code: 600016). On 26 October 2005, the Company completed the Non-tradable Shares Reform as the first commercial bank doing so in China. On 26 November 2009, the Company was listed on the Hong Kong Stock Exchange (H share code: 01988). By continuing improving corporate governance and promoting reform and transformation, China Minsheng Bank has achieved outstanding performance and became a listed company that attracted much attention and respect from China’s securities market.


When China’s economy is entering into a high-quality development stage from a high-speed growth stage, China’s commercial banks have sped up strategic transformation to cope with the profound changes in economic and financial environment. In June 2015, China Minsheng Bank kicked off the Phoenix Project to promote the transformation of business development mode and operation management mode of the whole bank. All 30 projects under the Phoenix Project have been fully accomplished with expected results. In April 2018, the Board of Directors of China Minsheng Bank reviewed and approved the Scheme for Reform and Transformation and the Three-Year Development Plan, which clearly defined our three major strategic positionings, namely: “a bank for the NSOEs, a fintech-based bank and a bank of comprehensive services”, and promoted the overall implementation of reform and transformation, and high-quality development of the entire bank. 


To become “a bank for the NSOEs”: China Minsheng Bank and the NSOEs share the same root and the same origin. In line with its NSOE business strategy, China Minsheng Bank focuses on four major NSOE customer groups, namely strategic, niche, emerging and fundamental NSOEs, and provides segmented services accordingly. We refined our five major product systems including scenarised transaction bank, customised investment bank, personalised entrepreneur services, convenient online bank and integrated wealth management, striving to become a host bank and preferred bank for the NSOEs. In 2018, China Minsheng Bank provided a total of RMB1.37 trillion loans to NSOEs, accounting for 66.74% of the total corporate loans (including discounted bills). As at the end of 2018, the outstanding balance of loans to NSOEs accounted for 55% of the total of corporate loans. Initial results of the NSOE strategy have been achieved.


To become a "fintech-based bank": Driven by “data+technology”, China Minsheng Bank strives to build a digitalised smart bank. We took the lead to launch the "Remote Banking 1.0" and achieved full coverage of remote video-aided services for all customers. As the first direct bank in China, the brand and customer experience of our direct bank ranked top in the industry. Minsheng Fintech Corporation was established to continuously enhance the technological development capabilities. We have conducted independent research and development of the distributed core financial cloud platform, big data platform and artificial intelligence service system, joined the international blockchain alliance, and jointly formulated the blockchain technology standards applicable to the banking sector with the regulatory authorities. All these efforts have laid solid foundation for our leading position in the fintech area.


To become “a bank of comprehensive services”: China Minsheng Bank accelerated the diversification of business layout and promoted cross-selling and coordination between various business segments, business units, and between the Company and the subsidiaries, so as to provide customers with integrated financial services in a form of "financing + intelligence + business". Minsheng Financial Leasing, Minsheng Royal Fund Management, CMBC International and 29 Minsheng rural banks have maintained sound and rapid development. In 2018, the Board of Directors approved a series of resolutions to establish an asset management subsidiary and a financial asset investment company, in an aim to continuously improve comprehensive financial competitiveness. 


China Minsheng Bank fully implements the strategic positionings, comprehensively carries out reform and transformation, and put emphasis on key businesses. As a result, all business segments enjoys sound development.


Corporate Banking

China Minsheng Bank steadily presses ahead with the NSOE strategy, strengthens the segmented operation of customer groups, promotes the light-capital transformation of business models, and continues to expand and strengthen corporate banking business. As at the end of 2018, the outstanding balance of corporate loans of the Company amounted to RMB2,561,641 million, representing an increase of RMB126,894 million or 5.21% as compared with the end of the previous year. There were 1,167,900 domestic corporate customers with deposits, representing an increase of 155,100, or 15.31% as compared with the end of the previous year. Total amount of corporate loans was RMB1,822,835 million, of which, total amount of general corporate loans was RMB1,726,719 million, representing an increase of RMB108,903 million, or 6.73%, as compared with the end of the previous year.


In terms of investment banking, China Minsheng Bank has effectively promoted the reform of the investment banking business system, and continues to optimise the multi-level investment banking business and product system pillared by four key businesses and two major products of bond issuance and securitisation in the capital market, and pushes forward the transformation of corporate banking business to the investment banking end. In terms of bond underwriting, we underwrote RMB288,445 million bonds in the interbank bond market in 2018, and our ranking among all leading underwriters in the interbank bond market rose to 9th. In terms of asset securitisation, we successfully invested in the first supply chain finance securitisation product in China under the “Belt and Road Initiative” and the PPP asset-backed securitisation project for tertiary education. 


In terms of transaction banking, China Minsheng Bank focuses on enriching three major series of products, namely, international business, settlement and cash management business, domestic trade financing and factoring. The first approach is to strengthen the development and comprehensive application of innovative products such as “single window” financial services, global cash management, and Minsheng Global Payment Express. The second is to improve the "Express (通)", "Pool (聚)" and "Earnings (盈) " product system, and optimise settlement and cash management services. The third is to focus on financial demands including maturity matching, project contracts performance, property preservation, payment guarantee, financial reports optimisation and trade financing, in order to promote the upgrading of products including domestic guarantees, domestic letters of credit and factoring. The fourth is to promote the self-service level and operation standardization level of businesses, and to increase the coverage of online operations in corporate banking operations.


In terms of supply chain finance, China Minsheng Bank takes supply chain finance as the strategic key area of the overall reform and transformation, and established the Supply Chain Finance SBU. With the application of fintech, a new supply chain finance platform was developed to directly connect all upstream and downstream enterprises of the industry chain, and a comprehensive service system of supply chain finance under the brand of “Minsheng E Chain” was established. As at the end of 2018, the number of core customers of the supply chain finance increased by 121.43% as compared with the end of the previous year.


Retail Banking

Focusing on the three core customer groups, namely NSOEs ecosystem, small and micro enterprises and private banking entrepreneurs, China Minsheng Bank accelerated the promotion of data-based, online and scenarised financial services driven by the two wheels of wealth management and asset business. As at the end of 2018, the number of retail customers with deposits was 38,394,500, representing an increase of 10.96% as compared with the end of the previous year. Financial assets of individual customers under the management of the Company amounted to RMB1,650,120 million, representing an increase of RMB213,760 million as compared with the end of the previous year. Total retail deposits amounted to RMB650,188 million, representing an increase of RMB99,028 million as compared with the end of the previous year. Of which, savings deposit amounted to RMB565,276 million, representing an increase of RMB83,038 million as compared with the end of the previous year.


In terms of small business finance, China Minsheng Bank accelerates the implementation of the Small Business Finance 3.0. By focusing on small business owners, small and micro enterprises (+1), families of the owners and staffs and upstream and downstream enterprises (+N) ecosystems, we further improved our online service and digitalised management, so as to provide more convenient, customised and comprehensive small business financial services. As at the end of 2018, outstanding balance of loans to small and micro enterprises amounted to RMB406,938 million, representing an increase of RMB47,791 million as compared with the end of the previous year. The non-performing loan (NPL) ratio and the overdue ratio of small business loans granted since 2016 were 0.19% and 0.42%, respectively.


In terms of credit card business, China Minsheng Bank continues to optimise our brand positioning, product design, channel selection, and scenario construction with focus on core targeted customer group of the Millennial generation. As at the end of 2018, the aggregated number of credit cards issued was 49,547,200, and the number of new cards issued in 2018 was 10,808,600. Total transaction volume amounted to RMB2,211,625 million, representing a year-on-year increase of 34.18%. Total amount of account receivables was RMB393,249 million, representing an increase of 33.75% as compared with the end of the previous year.


In terms of private banking business, China Minsheng Bank further deepens the reform of the segmented customer management system for wealth management, the reform of comprehensive services for entrepreneur customer group and the synergy between corporate customers and individual customers, as well as the reform of the product system compliant with the new regulations on asset management. Efforts are also made in promoting cooperation between different business segments and enriching the variety of private banking products. As at the end of 2018, the number of eligible private banking customers was 19,250, representing an increase of 16.97% as compared with the end of the previous year. Financial assets under management amounted to RMB358,286 million.


In terms of community finance business, China Minsheng Bank thoroughly upgraded the business model of community finance to promote the sustainable and healthy operation of community outlets. As at the end of 2018, 1,347 community sub-branches and 157 small business sub-branches obtained licenses. The balance of financial assets of community (small business) sub-branches reached RMB253,706 million, representing an increase of RMB35,649 million as compared with the end of the previous year. The number of customers reached 6,267.2 thousand, representing an increase of 478.4 thousand as compared with the end of the previous year, indicating a further consolidated customer base.


Financial Markets

China Minsheng Bank continues to optimise asset structure and improve investment efficiency. As at the end of 2018, net investment in trading and banking books was RMB1,954,382 million, representing a decrease of RMB170,734 million, or 8.03%, as compared with the end of the previous year. The proportion of net investment in trading and banking books in total assets decreased by 3.66 percentage points as compared with the end of the previous year. 


In terms of interbank business, China Minsheng Bank strengthened the branding of “Minsheng Interbank Business E+”, built a differentiated marketing management system, refined the segmented management of interbank customers, and continuously optimised the interbank business structure. As at the end of 2018, interbank liabilities amounted to RMB1,615,590 million, down by 8.57% from the end of the previous year. Interbank assets amounted to RMB337,557 million, up by 38.51% from the end of the previous year. In 2018, a total of 656 tranches of interbank negotiable certificates of deposit (IBNCD) were issued with an aggregated amount of RMB1,109,400 million, representing an increase of 35.58% as compared with the corresponding period of the previous year. 


In terms of asset custody business, China Minsheng Bank continues to promote targeted marketing, refined management, procedure-based operation and standardised brand building, so as to transform custody business from basic services to comprehensive and value-added services. As at the end of 2018, assets under custody of the Company amounted to RMB8,714,750 million, representing an increase of 12.60%, as compared with the end of the previous year. Pension funds under the custody of the Company amounted to RMB243,990 million, representing an increase of RMB158,956 million, or 186.93%, as compared with the end of the previous year. Personal accounts of corporate annuity under management reached 176,300.


In terms of wealth management, China Minsheng Bank actively adapts to the new rules for asset management and initiated transformation to provide net-value products. The design of new product portfolio was completed in accordance with the new rules. In line with major national strategies, we supported the development of real economy with various instruments. A healthy development of asset management business has been achieved. As at the end of 2018, the existing scale of wealth management products of the Company amounted to RMB1,440,555 million.


In terms of precious metals and foreign exchange trading, in 2018, our on-?oor trading volume of gold and silver amounted to 5,058.51 tons and 10,720.03 tons, respectively, with total trading volume of RMB1,369,396 million. As such, we ranked among the top ten largest dealers at the Shanghai Gold Exchange, one of the most active proprietary dealers at the Shanghai Futures Exchange, and one of the important domestic gold importers. In 2018, the transaction volume of spot settlement and sale of foreign exchange of the Company amounted to USD509,143 million, while the transaction volume of forward settlement and sale of foreign exchange and RMB foreign exchange swap of the Company amounted to USD1,305,826 million. We actively introduced innovative products relating to option and its portfolios. The transaction volume of RMB foreign exchange options amounted to USD112,308 million, representing an increase of 204.60% as compared with the corresponding period of the previous year.


Internet Finance 

China Minsheng Bank continuously make innovations in platforms, products and services in relation to direct bank, retail internet finance, corporate internet finance and online payment by applying cutting-edge fintech, which greatly improved customers’ experience. We also consolidated our leading position in terms of brand influence and market share. As at the end of 2018, total number of direct bank customers was 19,171,300 and financial assets managed by the Company amounted to RMB132,291 million. The number of individual e-banking customers was 47,903.9 thousand, representing an increase of 9,492 thousand as compared with the end of the previous year. The number of transactions completed in 2018 was 1,877 million with total transaction volume of RMB16.01 trillion. In terms of customer transaction activity, we remained among the top of the industry.


Overseas Business 

Hong Kong Branch of China Minsheng Bank grasps the strategic opportunities arising from the “Belt and Road Initiative” and the “Guangdong-Hong Kong-Macau Greater Bay Area”, and constantly improves cross-border comprehensive financial services, so as to provide professional financial solutions for high-quality “going global” customers. Hong Kong Branch actively developed bond investment and trading and structured notes investment, and its individual wealth management was positioned as an internet-based light-capital bank. In 2018, net profit of Hong Kong Branch amounted to HKD1,456 million, representing an increase of 37.88% as compared with the corresponding period of the previous year. It actively grasped business opportunities arising in “Going Global”, such as cross-border investment and overseas project contracting, and strove to provide all-around and tailor-made cross-border financial services to “going global” customers as well as customers engaged in imports and exports. It also continuously explored new business fields, effectively expanded the size of total assets denominated in foreign currencies, and drove up the volume of cross-border settlements.


Integrated Operation 

China Minsheng Bank has established a “One Minsheng” system to promote cross-selling and coordination among business segments, business units, the Bank and its subsidiaries. As one of our wholly-owned subsidiary in Hong Kong, CMBC International has successfully built its investment banking service brand. Minsheng Financial Leasing focuses on the three major strategic segments of air crafts, ships and vehicles, and established the three business systems of operating leasing, financial leasing and asset transaction. Minsheng Royal Fund maintained its stable performance in stock and bond investments, and its leading position in the industry was further consolidated. 29 Minsheng rural banks further optimised the management system and mechanism, continued to improve their technology system and expanded the brand and service of China Minsheng Bank to counties and villages. 


In the past 23 years, in the tide of economic and financial reform and transformation, China Minsheng Bank steered the direction, gathered resources, made innovation and changes, explored the way forward, and achieved sustained growth both in scale and efficiency. As at the end of 2018, total assets of the Company amounted to RMB5,994,822 million, representing an increase of RMB92,736 million, as compared with the end of the previous year. Net profit in 2018 was RMB50,327 million, representing an increase of RMB514 million as compared with corresponding period of the previous year.


In the past 23 years, China Minsheng Bank continued to reward the society with gratitude. We have been dedicated to carrying out targeted poverty alleviation and formed a multi-level “six-in-one” system for targeted poverty alleviation with broad coverage and strong penetration, with education as the basis, health care as the focus, equity interests as the breakthrough, financial services as the support, skill training as the approach and e-commerce as a testing move. At the same time, we have also participated in a series of special charity activities, including the “ME Charity Innovation Funding Scheme”, art work exhibitions of masters in the past century, “Beautiful Villages”, medical care program for children with congenital heart disease, etc., which positioned our Bank as an important participant and promoter in giving back to the society from the financial side.


Looking forward, we will adhere to the guidance of Thought on Socialism with Chinese Characteristics for a New Era proposed by President Xi Jinping, implement the spirit of the 19th CPC National Congress and the spirit of the National Financial Work Conference, and strive to develop into a benchmark bank with distinctive features, increasing values and continuous innovations through reform and innovations, aiming at realizing our grand vision of becoming a time-honored bank, to create more values to customers and to bring higher returns to investors.

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