Chinese banks are already huge. Their total assets now surpass those of American and European banks. They are also providing more cross-border credit, the bread and butter of international banks. The sum they lend overseas has grown by 11% a year since 2016. More surprising to outsiders, they are gaining clout in the sophisticated universe of capital markets, too. Last year Chinese banks earned three times more investment-banking fees than all Asian rivals combined (excluding Japan).
Chinese banks have long been absorbed by their home market, where they have a 98% share, however in recent years Banks have followed their corporate clients, themselves inclined to grow beyond their saturated home market. They finance trade, take local deposits from local subsidiaries and serve their mundane needs, like cash management or foreign exchange.
They also fund Chinese-built infrastructure in emerging markets. Thanks to huge balance-sheets and inside knowledge of contractors’ history, they often outcompete foreign peers. The Big Four (Bank of China, Industrial and Commercial Bank of China (ICBC), China Construction Bank and Agricultural Bank of China) now have a total of 618 branches outside the mainland. Foreign assets account for 9% of their books. Their footprint differs from that of Western peers: Chinese banks supply two-thirds of all cross-border lending within emerging markets. The Belt and Road Initiative (BRI) has been a huge catalyst for them. Chinese banks have lent nearly $600bn to 820 official BRI projects since 2013, reckons RWR, a consultancy. Unofficial sums are probably bigger.
Last year regulators cleared the way for full foreign takeovers of local banks. They then allowed outsiders to control wealth-management firms, pension-fund managers and brokers. In April foreign-ownership caps were also removed on securities firms. The world’s A-team of money managers is teaming up with locals or seeding subsidiaries in the hope of grabbing a slice of China’s $45trn financial-services market.
Banks of Mainland China
Policy Banks:
Agricultural Development Bank of China |
中国农业发展银行 |
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国家开发银行 |
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中国进出口银行 |
Asian Infrastructure Investment Bank* 亚洲基础设施投资银行
*Not strictly a Chinese bank it is multilateral development bank that aims to improve economic and social outcomes in Asia. The bank currently has 103 members and is headquartered in Beijing.
State Owned Commercial Banks:
Industrial and Commercial Bank of China |
ICBC |
中国工商银行 |
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China Construction Bank |
CCB |
中国建设银行 |
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Bank of China |
BOC |
中国银行 |
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Agricultural Bank of China |
ABC |
中国农业银行 |
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Bank of Communications |
BoCom |
交通银行 |
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Postal Savings Bank of China |
PSBC |
中国邮政储蓄银行 |
Commercial Banks:
China Merchants Bank |
招商银行 |
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Shanghai Pudong Development Bank |
上海浦东发展银行 |
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Industrial Bank |
兴业银行 |
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China CITIC Bank |
中信银行 |
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China Minsheng Bank |
中国民生银行 |
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China Everbright Bank |
中国光大银行 |
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Ping An Bank |
平安银行 |
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Huaxia Bank |
华夏银行 |
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China Guangfa Bank |
广发银行 |
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China Zheshang Bank |
浙商银行 |
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China Bohai Bank |
渤海银行 |
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Hengfeng Bank / Evergrowing Bank |
恒丰银行 |
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Internet & Private Banks:
WeBank (Shenzhen) - The first private bank and Internet bank in China, initiated by Tencent.
MYbank (Hangzhou) - Internet bank in China, established by ANT Financial Services Group.
Shanghai Huarui Bank
Wenzhou Minshang Bank
Liaoning Zhenxing Bank