DOCSLIB.ORG

Change in China's Banking Sector As an Institutional Evolution

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Change in China's Banking Sector As an Institutional Evolution Change in China’s Banking Sector as An Institutional Evolution Guy Williams Darwin College University of Cambridge This dissertation is submitted for the degree of Doctor of Philosophy Summary Thesis Title: Change in China’s Banking Sector as An Institutional Evolution Name: Guy Williams This thesis explains how China’s banking system has evolved since the establishment of the socialist market economy in 1993, when the state began to develop a more standardised and robust system of banking regulation and commercialise China’s state-owned banks. China’s large state-owned banks, which were technically insolvent in the 1990s, are now some of the biggest commercial banks in the world. There has been a remarkable transformation of systems of governance and risk management across all types of banking institutions. China has developed a system of financial regulation characterised by close supervision and strong regulation of financial institutions to mitigate risk and ensure the banking system serves the real economy. This thesis has relied on qualitative research to understand this change. Interviews of a number of past and present stakeholders in China’s banking system were undertaken, including officials from the China Banking Regulatory Commission, the agency responsible for the regulation and supervision of China’s banking system since 2003. The thesis also makes use of Chinese language texts which provide the views of Chinese political leaders and banking officials with respect to reform of the banking sector. The principal conclusion of the thesis is that the development of China’s banking system can best be understood as an evolution of institutions which reflect historical patterns of political and economic organisation in China. This finding is in contrast with the main body of academic literature which evaluates the development of China’s banking system according to its degree of conformance with a neoliberal economic system. The thesis argues that policy for China’s banking sector was conceived and implemented by officials through a politically united, centrally controlled bureaucracy reflective of China’s bureaucratic tradition. China’s leaders applied the concept of ‘Chinese studies at the base, Western studies for practical use’ (中體西用 zhongti xiyong), when adapting Western ideas and technology within China’s traditional political and economic system to modernise the banking sector. The deep concern of officials for financial stability caused them to gradually and pragmatically adopt international standards of financial regulation and resist policies of financial liberalisation and deregulation which were advocated by self-interested Western-educated bankers and government officials. 2 Acknowledgements Completing my PhD at the Centre of Development Studies has been a difficult but extremely rewarding task. I could not have achieved this without the considerable support from a number of people along the way. First, I would like to thank my supervisor Professor Peter Nolan. Peter is incredibly professional and efficient and always made time to read my work and provide me with extremely thorough feedback. I thank him for his patience, encouragement and for his honest and constructive criticism. I also want to thank him for sharing his passion for Chinese civilisation and deep understanding of China’s banking sector. I very much enjoyed Peter’s company during the course of the PhD. I found the environment at the Centre of Development Studies to be extremely friendly, positive and stimulating. I would like to thank all the administrative staff, including Doreen and Nathalie, for all their help and for putting up with all my stupid questions! I would also like to thank Dr Kun-Chin Lin for giving me the opportunity to supervise his course on China in the International Order and give a lecture. It was a privilege to have the chance to engage with undergraduate students on this topic. I was also honoured to be part of the group which established the China Graduate Discussion Group, which brought together academics and graduate students with an interest in China’s political economy. I would like to thank Kun-Chin and Vasiliki, along with the other group members, for their hard work and commitment to the group, which remains active today. I was also grateful for the friendship and support of my fellow students at the Centre of Development Studies. I wish to thank Joao and Fu Zhenyu in particular. I would like to thank all the people who generously offered their time to me for interviews and advice during the course of the PhD. I offer special thanks to Zhu Yuanqian and the staff at CBRC headquarters. I am also especially indebted to Leon Walker at ANZ, Professor Wang Dashu at Peking University and David Chin of UBS for going out of their way to help me and taking a real interest in my work. I also want to thank all the people outside of my academic life which have supported me. To Zach, Niall, Mike, Renad, Katia M., Sazana, Barney, Stephanie, Eun-Joo, Gunce, Merve, James, Tom, Katia B., Maria, Darren and Blandine, thanks for sticking by me through the PhD and making it a fun time! You made all the difference. To my parents Anne and Lyn and my brothers Alex (Jerry) and Rupert, thank you for always believing in me and providing constant support from so far away! Thanks to all my other friends including the ‘habibis’ group, members of Darwin football and table tennis teams, and the climbing group. Thank you to Dongmei, Eric and Zha for hosting me in Beijing during my fieldwork. I am grateful also to Tom Chan and his family for so generously providing a ‘home away from home’ in the U.K. and treating me like family. Thank you to the staff of Darwin College for looking after me while I was here and giving me a place to stay. 3 Contents Summary ..................................................................................................................................................... 2 Acknowledgements .................................................................................................................................... 3 Tables and Figures ...................................................................................................................................... 5 Abbreviations .............................................................................................................................................. 6 Introduction ................................................................................................................................................ 9 Part I: The Orthodox View of Reform: ................................................................................................... 11 Part II: Reform as an Evolution of Institutions: ..................................................................................... 17 Part III Fieldwork: .................................................................................................................................. 30 Chapter 2: The Search for a Modern Banking System (800-1990) ............................................................ 33 Chapter 3: Building a Banking Regulatory System for the Socialist Market Economy (1990-96) .............. 59 Chapter 4: Reducing Systemic Risk in the Socialist Market Economy (1997-2002) ................................... 79 Chapter 5: The Development of a Sound and Sustainable Banking Model (2003-07) ............................. 105 Chapter 6: Reacting to the Global Financial Crisis (2008-17) .................................................................. 137 Conclusion .............................................................................................................................................. 163 Part I: Summary .................................................................................................................................. 163 Part II: Research Contribution ............................................................................................................. 172 Part III The Future of China’s Banking Sector: ..................................................................................... 176 References: ............................................................................................................................................. 179 4 Tables and Figures Table 1: China’s Top 25 Banks by Tier One Capital ................................................................................... 10 Table 2: Supervisory and Internal Auditing Tasks Carried Out by PBoC’s Organisational Units ................ 48 Table 3: Declining Capital Adequacy Ratios of the Four Specialised Banks, 1990-1996 ............................ 74 Figure 1: Photo of CBRC Headquarters in Beijing with ‘Shield’ Symbol................................................... 107 Table 4: Minority Investments in China’s Large State-Owned Banks ...................................................... 119 Figure 2: History of Interest Rate Liberalisation in China ........................................................................ 132 Figure 3: Wall Street Crumbles ............................................................................................................... 138 Figure 4: Monthly Average Loan Growth of Banking Institutions and Annualised GDP Growth ............. 141 Figure 5: China Total Debt (% of GDP) .................................................................................................... 144 Figure 6: Land Sales Revenue as a
Load more

Recommended publications
  • BANK of CHINA LIMITED (A Joint Stock Company Incorporated in the People's Republic of China with Limited Liability) Global Offering of 25,568,590,000 Offer Shares
    BOWNE OF HONG KONG 05/24/2006 06:09 NO MARKS NEXT PCN: 002.00.00.00 -- Page/graphics valid 05/24/2006 06:10BOM H00419 001.00.00.00 65 CONFIDENTIAL BANK OF CHINA LIMITED (A joint stock company incorporated in the People's Republic of China with limited liability) Global Offering of 25,568,590,000 Offer Shares The Offer Shares are being offered by Bank of China Limited (the ""bank'' or ""we''): (i) outside the United States through BOCI Asia Limited, Goldman Sachs (Asia) L.L.C. and UBS AG acting through its business group, UBS Investment Bank, (in alphabetical order) and other purchasers named on page W-39 of this Offering Circular (collectively, the ""International Purchasers'') in accordance with Regulation S (""Regulation S'') under the U.S. Securities Act of 1933, as amended (the ""Securities Act''), and (ii) within the United States by certain of the International Purchasers through their respective selling agents to qualified institutional buyers as defined in Rule 144A under the Securities Act (""Rule 144A''). This International Offering (as defined on page W-11 of this Offering Circular) is part of a Global Offering (as defined on page W-11 of this Offering Circular) in which the bank is concurrently offering Offer Shares in Hong Kong through the Hong Kong Public Offering (as defined on page W-11 of this Offering Circular). The offer price per Offer Share is HK$2.95. The offer price excludes a brokerage fee, a trading fee imposed by The Stock Exchange of Hong Kong Limited (the ""Hong Kong Stock Exchange''), and a transaction levy imposed by the Securities and Futures Commission of Hong Kong (the ""SFC''), which together amount to 1.01% of the offer price, and which shall be payable by investors.
    [Show full text]
  • Prospectus E.Pdf
    IMPORTANT If you are in any doubt about this prospectus, you should consult your stockbroker, bank manager, solicitor, professional accountant or other professional adviser. (Incorporated in Hong Kong with limited liability under the Companies Ordinance) GLOBAL OFFERING Number of Offer Shares in the Global Offering: 2,298,435,000 (subject to adjustment and the Over-allotment Option) Number of Hong Kong OÅer Shares: 229,843,500 (subject to adjustment) Maximum OÅer Price: HK$9.50 per OÅer Share payable in full on application in Hong Kong dollars, subject to refund Nominal Value: HK$5.00 per Share Stock Code: 2388 Joint Global Coordinators and Joint Bookrunners BOC International Goldman Sachs (Asia) L.L.C. UBS Warburg Holdings Limited Joint Sponsors BOCI Asia Limited Goldman Sachs (Asia) L.L.C. UBS Warburg Asia Limited The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited take no responsibility for the contents of this prospectus, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this prospectus. A copy of this prospectus, together with the documents speciÑed in the section headed ""Documents Delivered to the Registrar of Companies'' in Appendix VIII, has been registered by the Registrar of Companies in Hong Kong as required by Section 38D of the Companies Ordinance, Chapter 32 of the Laws of Hong Kong. The Securities and Futures Commission and the Registrar of Companies in Hong Kong take no responsibility as to the contents of this prospectus or any other document referred to above.
    [Show full text]
  • Journal of Current Chinese Affairs
    China Data Supplement March 2008 J People’s Republic of China J Hong Kong SAR J Macau SAR J Taiwan ISSN 0943-7533 China aktuell Data Supplement – PRC, Hong Kong SAR, Macau SAR, Taiwan 1 Contents The Main National Leadership of the PRC ......................................................................... 2 LIU Jen-Kai The Main Provincial Leadership of the PRC ..................................................................... 31 LIU Jen-Kai Data on Changes in PRC Main Leadership ...................................................................... 38 LIU Jen-Kai PRC Agreements with Foreign Countries ......................................................................... 54 LIU Jen-Kai PRC Laws and Regulations .............................................................................................. 56 LIU Jen-Kai Hong Kong SAR ................................................................................................................ 58 LIU Jen-Kai Macau SAR ....................................................................................................................... 65 LIU Jen-Kai Taiwan .............................................................................................................................. 69 LIU Jen-Kai ISSN 0943-7533 All information given here is derived from generally accessible sources. Publisher/Distributor: GIGA Institute of Asian Studies Rothenbaumchaussee 32 20148 Hamburg Germany Phone: +49 (0 40) 42 88 74-0 Fax: +49 (040) 4107945 2 March 2008 The Main National Leadership of the
    [Show full text]
  • Journal of Current Chinese Affairs
    China Data Supplement October 2006 J People’s Republic of China J Hong Kong SAR J Macau SAR J Taiwan ISSN 0943-7533 China aktuell Data Supplement – PRC, Hong Kong SAR, Macau SAR, Taiwan 1 Contents The Main National Leadership of the PRC 2 LIU Jen-Kai The Main Provincial Leadership of the PRC 30 LIU Jen-Kai Data on Changes in PRC Main Leadership 37 LIU Jen-Kai PRC Agreements with Foreign Countries 44 LIU Jen-Kai PRC Laws and Regulations 48 LIU Jen-Kai Hong Kong SAR 49 Political, Social and Economic Data LIU Jen-Kai Macau SAR 56 Political, Social and Economic Data LIU Jen-Kai Taiwan 60 Political, Social and Economic Data LIU Jen-Kai ISSN 0943-7533 All information given here is derived from generally accessible sources. Publisher/Distributor: GIGA Institute of Asian Affairs Rothenbaumchaussee 32 20148 Hamburg Germany Phone: +49 (0 40) 42 88 74-0 Fax: +49 (040) 4107945 2 October 2006 The Main National Leadership of the PRC LIU Jen-Kai Abbreviations and Explanatory Notes CCP CC Chinese Communist Party Central Committee CCa Central Committee, alternate member CCm Central Committee, member CCSm Central Committee Secretariat, member PBa Politburo, alternate member PBm Politburo, member Cdr. Commander Chp. Chairperson CPPCC Chinese People’s Political Consultative Conference CYL Communist Youth League Dep. P.C. Deputy Political Commissar Dir. Director exec. executive f female Gen.Man. General Manager Gen.Sec. General Secretary Hon.Chp. Honorary Chairperson H.V.-Chp. Honorary Vice-Chairperson MPC Municipal People’s Congress NPC National People’s Congress PCC Political Consultative Conference PLA People’s Liberation Army Pol.Com.
    [Show full text]
  • Growing with Stronger Foundations
    BOC Hong Kong (Holdings) Limited Summary Financial Report 2003 Growing with Stronger Foundations This Summary Financial Report only gives a summary of the information and particulars contained in the “2003 Annual Report” (“annual report”) of the Company from which this Summary Financial Report is derived. Both the annual report and this Summary Financial Report are available (in both English and Chinese) on the Company’s website at www.bochkholdings.com. You may obtain, free of charge, 52/F Bank of China Tower, 1 Garden Road, Hong Kong a copy of the annual report (English or Chinese or both) from the Website: www.bochkholdings.com Company’s Share Registrar, Computershare Hong Kong Investor Services Limited, details of which are set out in Shareholder Information of this Summary Financial Report. Summary Financial Report 2003 Contents BOC Hong Kong (Holdings) Limited (“the Company”) was incorporated in Hong Kong 1 Financial Highlights on September 12, 2001 to hold the entire equity interest in Bank of China (Hong Kong) 2 Five-Year Financial Summary Limited (“BOCHK”), its principal operating 5 Chairman’s Statement subsidiary. Bank of China holds a substantial part of its interests in the shares of the 7 Chief Executive’s Report Company through BOC Hong Kong (BVI) Limited, an indirect wholly owned subsidiary 13 Management’s Discussion of Bank of China. and Analysis BOCHK is a leading commercial banking group in Hong Kong. With approximately 300 37 Corporate Information branches and about 450 ATMs and other 39 Board of Directors and delivery channels in Hong Kong, it offers a comprehensive range of financial products Senior Management and services to retail and corporate customers.
    [Show full text]
  • China Data Supplement January 2007
    China Data Supplement January 2007 J People’s Republic of China J Hong Kong SAR J Macau SAR J Taiwan ISSN 0943-7533 China aktuell Data Supplement – PRC, Hong Kong SAR, Macau SAR, Taiwan 1 Contents The Main National Leadership of the PRC 2 LIU Jen-Kai The Main Provincial Leadership of the PRC 30 LIU Jen-Kai Data on Changes in PRC Main Leadership 37 LIU Jen-Kai PRC Agreements with Foreign Countries 55 LIU Jen-Kai PRC Laws and Regulations 57 LIU Jen-Kai Hong Kong SAR 62 Political, Social and Economic Data LIU Jen-Kai Macau SAR 69 Political, Social and Economic Data LIU Jen-Kai Taiwan 73 Political, Social and Economic Data LIU Jen-Kai ISSN 0943-7533 All information given here is derived from generally accessible sources. Publisher/Distributor: GIGA Institute of Asian Studies Rothenbaumchaussee 32 20148 Hamburg Germany Phone: +49 (0 40) 42 88 74-0 Fax: +49 (040) 4107945 2 January 2007 The Main National Leadership of the PRC LIU Jen-Kai Abbreviations and Explanatory Notes CCP CC Chinese Communist Party Central Committee CCa Central Committee, alternate member CCm Central Committee, member CCSm Central Committee Secretariat, member PBa Politburo, alternate member PBm Politburo, member BoD Board of Directors Cdr. Commander CEO Chief Executive Officer Chp. Chairperson COO Chief Operating Officer CPPCC Chinese People’s Political Consultative Conference CYL Communist Youth League Dep.Cdr. Deputy Commander Dep. P.C. Deputy Political Commissar Dir. Director exec. executive f female Gen.Man. General Manager Hon.Chp. Honorary Chairperson Hon.V.-Chp. Honorary Vice-Chairperson MPC Municipal People’s Congress NPC National People’s Congress PCC Political Consultative Conference PLA People’s Liberation Army Pol.Com.
    [Show full text]
  • China's Economic Decisionmakers
    China Foto Press China’s Economic Decisionmakers The country’s new economic leadership team will need to work together to balance China’s economic growth with its sociopolitical challenges Cheng Li etween the 17th Chinese Communist Party Although President Hu Jintao and Premier Wen Jiabao will (CCP) Congress in October 2007 and the 11th retain their government positions for another five-year National People’s Congress (NPC) in March term, most top economic decisionmakers, including three 2008, the PRC government will have under- vice premiers in the State Council, will be replaced by first- gone a major personnel transition. Senior gov- timers. These leaders are expected to shape the country’s Bernment leaders who were not elected to the new CCP economic policy for the next five years and beyond. Central Committee or Central Committee Politburo in An understanding of China’s emerging economic leader- October will likely be replaced by newcomers. The leader- ship team—the key players, their credentials, how they dif- ship turnover will be the greatest, and most consequential, fer, and the policy initiatives they may propose—is essential within China’s top economic decisionmaking team. for the outside world, especially for the international busi- 20 March–April 2008 chinabusinessreview.com FOCUS: POLITICS & ECONOMY ness community. Such an understanding is important for premier who has served in the position since Wen’s first two reasons. First, China is rapidly becoming a global eco- term as premier, will most likely remain in charge of agri- nomic powerhouse, and PRC government policies—includ- cultural affairs. Zhang Dejiang is expected to take primary ing monetary, trade, industrial, environmental, and ener- responsibility for industrial development and foreign trade gy—will likely have a large impact on the global economy.
    [Show full text]
  • Staff and Students
    KIB STAFF AND STUDENTS HAN Min CHEN Shao-Tian WANG Ying JI Yun-Heng Director: XUAN Yu CHEN Wen-Yun LI De-Zhu DUAN Jun-Hong GU Shuang-Hua The Herbarium Deputy Directors: PENG Hua (Curator) SUN Hang Sci. & Tech. Information Center LEI Li-Gong YANG Yong-Ping WANG Li-Song ZHOU Bing (Chief Executive) LIU Ji-Kai LI Xue-Dong LIU Ai-Qin GAN Fan-Yuan WANG Jing-Hua ZHOU Yi-Lan Director Emeritus: ZHANG Yan DU Ning WU Zheng-Yi WANG Ling HE Yan-Biao XIANG Jian-Ying HE Yun-Cheng General Administrative Offi ce LIU En-De YANG Qian GAN Fan-Yuan (Head, concurrent WU Xi-Lin post) ZHOU Hong-Xia QIAN Jie (Deputy Head) Biogeography and Ecology XIONG De-Hua Department Other Members ZHAO JI-Dong Head: ZHOU Zhe-Kun SHUI Yu-Min TIAN Zhi-Duan Deputy Head: PENG Hua YANG Shi-Xiong HUANG Lu-Lu HU Yun-Qian WU Yan CAS Key Laboratory of Biodiversity CHEN Wen-Hong CHEN Xing-Cai (Retired Apr. 2006) and Biogeography YANG Xue ZHANG Yi Director: SUN Hang (concurrent post) SU Yong-Ge (Retired Apr. 2006) Executive Director: ZHOU Zhe-Kun CAI Jie Division of Human Resources, Innovation Base Consultant: WU Master' s Students Zheng-Yi CPC & Education Affairs FANG Wei YANG Yun-Shan (secretary) WU Shu-Guang (Head) REN Zong-Xin LI Ying LI De-Zhu' s Group LIU Jie ZENG Yan-Mei LI De-Zhu ZHANG Yu-Xiao YIN Wen WANG Hong YU Wen-Bin LI Jiang-Wei YANG Jun-Bo AI Hong-Lian WU Shao-Bo XUE Chun-Ying ZHANG Shu PU Ying-Dong GAO Lian-Ming ZHOU Wei HE Hai-Yan LU Jin-Mei DENG Xiao-Juan HUA Hong-Ying TIAN Xiao-Fei LIU Pei-Gui' s Group LIANG Wen-Xing XIAO Yue-Qin LIU Pei-Gui QIAO Qin ZHANG Chang-Qin Division of Science and TIAN Wei WANG Xiang-Hua Development MA Yong-Peng YU Fu-Qiang WANG Yu-Hua (Head) SHEN Min WANG Yun LI Zhi-Jian ZHU Wei-Dong MA Xiao-Qing SUN Hang' s Group NIU Yang YUE Yuan-Zheng SUN Hang YUE Liang-Liang LI Xiao-Xian NIE Ze-Long LI Yan-Chun TIAN Ning YUE Ji-Pei FENG Bang NI Jing-Yun ZHA Hong-Guang XIA Ke HU Guo-Wen (Retired Jun.
    [Show full text]
  • Announcement Investigation of Liu Jinbao and Zhang Debao
    The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. (Incorporated in Hong Kong with limited liability under the Companies Ordinance) (the “Company”) (Stock Code : 2388) ANNOUNCEMENT INVESTIGATION OF LIU JINBAO AND ZHANG DEBAO SUMMARY The Company was informed by Bank of China today that Messrs. Liu Jinbao and Zhang Debao are also being investigated by judicial authorities in the Mainland of China in relation to the Matter, which, according to Bank of China, is unconnected with and does not affect the assets, liabilities and operating results of the Company. THIS ANNOUNCEMENT IS MADE BY THE COMPANY PURSUANT TO RULE 13.09 OF THE RULES GOVERNING THE LISTING OF SECURITIES ON THE STOCK EXCHANGE OF HONG KONG LIMITED (the “Listing Rules”). Following initial enquiries made into the allegations (the “Matter”) referred to in the Company’s announcement dated 2nd August, 2004 (the “Announcement”), the Company was informed by Bank of China, the Company’s controlling shareholder, today that Mr. Liu Jinbao (“Mr. Liu”), the former chief executive and Mr. Zhang Debao (“Mr. Zhang”), the former general manager of the Chief Executive’s Office, are also being investigated by judicial authorities in the Mainland of China in relation to the Matter which, according to Bank of China, is unconnected with and does not affect the assets, liabilities and operating results of the Company.
    [Show full text]
  • BANK of CHINA LIMITED A1A(1) (A Joint Stock Company Incorporated in the People's Republic of China with Limited Liability) GLOBAL OFFERING
    IMPORTANT: If you are in any doubt about any of the contents of this prospectus, you should obtain s342 independent professional advice. BANK OF CHINA LIMITED A1A(1) (A joint stock company incorporated in the People's Republic of China with limited liability) GLOBAL OFFERING Number of OÅer Shares under the : 25,568,590,000 (subject to adjustment and the Over- A1A(15)(2)( Global OÅering Allotment Option) Number of Hong Kong OÅer Shares : 1,278,430,000 (subject to adjustment) Number of OÅer Shares under the : 24,290,160,000 (subject to adjustment and the Over- International OÅering Allotment Option) Maximum OÅer Price : HK$3.00 per Hong Kong OÅer Share payable in full on A1A(15)(2)( application, subject to refund, plus brokerage of 1%, 3rd Sch 9 SFC transaction levy of 0.005% and Hong Kong Stock Exchange trading fee of 0.005% Nominal value : RMB1.00 each Stock code : 3988 Joint Global Coordinators, Joint Bookrunners, Joint Sponsors and Joint Lead Managers (in alphabetical order) The Stock Exchange of Hong Kong Limited and Hong Kong Securities Clearing Company Limited take no responsibility for the contents of LR11.20 this prospectus, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this prospectus. A copy of this prospectus, having attached thereto the documents speciÑed in Appendix X Ì ""Documents Delivered to the Registrar of s342C(1) Companies and Available for Inspection'' to this prospectus, has been registered by the Registrar of Companies in Hong Kong as required s342C(2) by Section 342C of the Companies Ordinance, Chapter 32 of the Laws of Hong Kong.
    [Show full text]
  • Appointment of Mr Xiao Gang As Chairman and Mr He Guangbei As Chief Executive
    28 May 2003 Appointment of Mr Xiao Gang as Chairman and Mr He Guangbei as Chief Executive With the approval of the monetary regulatory authorities in both Hong Kong and the Mainland of China, the Directors of BOC Hong Kong (Holdings) Limited (“the Company”, stock code “2388”) announced today that Mr. Xiao Gang, Chairman and President of Bank of China (BOC), has been appointed as the Chairman of the Company. Mr. He Guangbei, Executive Vice President of BOC and Director of the Company, has been appointed as Executive Director, Vice Chairman and Chief Executive of the Company. Mr Liu Mingkang, former Chairman of the Company, has been transferred to take up the position of the Chairman of China Banking Regulatory Commission, and has ceased to be the Chairman of the Company. Mr Liu Jinbao, former Vice Chairman and Chief Executive of the Company, has been transferred to Bank of China, and has resigned from all positions in the Company. Mr Xiao Gang had served as Deputy Governor of the People’s Bank of China. He has extensive experience in macro-economy and financial regulation, and a good mastery of financial knowledge and strong management ability. Mr He was born in 1954. He obtained a master’s degree in international management studies from the University of Texas in 1985. Mr He worked in the Treasury Department of the Bank of China New York Branch in 1985. Between 1985 and 1991, he served as a Manager of the Treasury Department of the Bank of China Paris Branch. From 1992 to 1998, Mr He was appointed as Manager of the Treasury Department of Bank of China, and subsequently promoted to Deputy General Manager and General Manager of the Treasury Department.
    [Show full text]
  • DP37 Corporate Governance Reform and International Listing
    Corporate Governance Reform and International Listing: Case of the Bank of China (Hong Kong) Laixiang Sun Department of Financial & Management Studies, SOAS, University of London International Institute for Applied Systems Analysis, Laxenburg, Austria Guanghua School of Management, Peking University, Beijing, China Damian Tobin Department of Financial & Management Studies, SOAS, University of London ABSTRACT While much research has focused on how weak domestic institutions constrain the emergence of good corporate governance practices in transition and developing economies, few studies have paid attention to the significant inter-firm variations in governance existing there. This paper focuses on firm-specific actions that aim to distinguish the firm from its peers. It reports the disparity in credit ratings between Chinese companies listed domestically and those listed on international stock exchanges. It examines the case of Bank of China Hong Kong (BoCHK). BoCHK’s preparation for listing on Hong Kong Stock Exchange (HKSE) induced corporate restructuring and improvement in governance practices. The ability of the parent company (Bank of China) to intervene at will in the affairs of the BoCHK is coun- tered by Hong Kong law and HKSE’s regulations, and bad governance habits are punished by the market. Although it takes time for BoCHK to fully converge to international standards of corporate governance, the listing process is a robust first step towards that destination. Please send correspondence to: 6 July to 25 August 2003: Prof. Laixiang Sun, International Institute for Applied Systems Analysis (IIASA), A-2361 Laxenburg, Austria. Tel. +43-2236-807-345, Fax. +43-2236-71313, Email: [email protected] Other periods: Prof.
    [Show full text]