Bank of China has a unique all-round financial services platform, providing commercial banking, investment banking, insurance, asset management, aircraft leasing and other financial services, capable of meeting the complex business needs of different customers.
Commercial Banking
Commercial banking is Bank of China's traditional main business, including corporate finance, personal finance and financial market business (mainly referring to funding business).
Corporate finance business
Corporate finance business is the main source of profit for the business of Bank of China. in 2007, corporate finance continued to focus on improving the customer service system, promoting the overall linkage of business, strengthening product innovation and implementing management transformation, forming the corporate finance segment and strengthening line management. Bank of China implemented a development strategy of serving key large and high-quality corporate clients, focusing on long-term relationships with large and high-quality clients, while making it clear that SME business is an important part of corporate finance business, and endeavoring to become an efficient and professional partner for SMEs, capable of meeting comprehensive needs.
Deposit Business
Bank of China actively responded to the impact of the rapid development of the capital market on the RMB corporate deposit business and vigorously developed the RMB corporate deposit business.
Loan Business
Bank of China continued to strengthen its loan restructuring, increase its investment in key support categories of industries, and achieve optimal allocation of credit resources.
Business with Financial Institutions
Bank of China focuses on comprehensive cooperation with financial institutions, providing customers with more comprehensive services through mutual customer referrals, resource ***sharing and ****co-development of new products.
Bank of China also clears US dollars, euros and Japanese yen through its New York, Frankfurt and Tokyo branches, all of which, together with its Singapore branch, are local Tier 1 clearing banks.
International Settlement and Trade Finance Business
International settlement business is Bank of China's strength. Bank of China strengthens the linkage between domestic and overseas institutions to realize the rapid development of international settlement and trade finance business.
Other Corporate Finance Businesses
Bank of China provides payment and settlement businesses, which mainly include bank drafts, cashier's checks, checks, remittances, bankers' acceptances, entrusted receipts, collection and payment, centralized payment, circled deposit of checks, and custody of bills.
Innovation of products and services
Bank of China combines and innovates corporate financial products to meet the latest business needs of its corporate clients; increases product cooperation with financial peers, and actively carries out the transfer of corporate credit assets among peers; and launches RongyiDa (financing services based on accounts receivable), TongyiDa (issuance of certificates on pledge of accounts receivable), Rongxinda (financing services based on export credit insurance) and Rongxinda (financing services based on receivable from export credit insurances). Launched Rong Yi Da (accounts receivable-based financing service), Tong Yi Da (accounts receivable pledge opening service), Rong Xin Da (accounts receivable financing service based on export credit insurance) and Rong Xin Da (goods pledge financing), which further enriched the "Da" series of trade financing products; launched new products such as hidden export factoring and forfaiting under D/A bank guaranteed bills; and, in response to the change of the mainstream settlement mode of the global trade, was the first batch of the industry in Mainland China to join SWIFT. In response to the changes in the mainstream mode of global trade settlement, the company was one of the first in mainland China to join the SWIFT service facility platform (TSU) and realized the first real TSU transaction in China.
Bank of China improved its SME business model by learning from the successful practices of its domestic and overseas counterparts and leveraging on the experience of strategic investors; revised its SME credit policy and system, and simplified the operational procedures of SME credit business; and launched the SME financing product "Quick Rich Easy" to provide short-term financing support to SME customers in accordance with the characteristics of SMEs' financing needs. The company also launched the SME financing product "Qufu Yi" to provide short-term financing support for SME customers.
Bank of China integrated clearing resources and was the first bank in Mainland China to launch a series of payment products integrating overseas branches and correspondent bank services, including "Full Payment", "Taiwan Remittance", "Priority Remittance" and "Special Remittance". Taiwan Remittance", "Priority Remittance" and "Special Remittance Service", realizing the simultaneous development of overseas branch and agent bank business***, maximizing the coverage of the products and filling the gap in the market. Among them, the "Taiwan Remittance" product has changed the situation that this business has been monopolized by the agent bank and expanded the business market.
Personal finance business
Personal finance business is one of the strategic development priorities of Bank of China. Bank of China continued to improve the management system and operation mechanism of personal finance business, formed the personal finance segment, and strengthened the management of personal business lines; focused on promoting the transformation of the operation mode of outlets, the construction of a tiered service system for customers, and the reform of the marketing mode and approval process of retail loans; and strengthened the innovation of products and services to optimize the business structure and income structure, and to expand the source of profits.
Savings deposit business
Bank of China has responded to the need to preserve and increase the value of personal financial assets, proactively adjusted its business strategy, and pushed forward the coordinated development of the savings business and wealth management business.
Personal Loan Business
Bank of China has vigorously promoted "direct customer" marketing services, as well as the online centralized approval system.
Personal intermediary business
Bank of China's personal intermediary business includes local and foreign currency remittance, personal settlement and sale of foreign currencies, foreign currency exchange, agency insurance and fund business, and collection and payment business.
Personal settlement and sale of foreign exchange and personal international remittance are the traditional strengths of Bank of China. Bank of China has continued to expand the acceptance outlets for settlement and sale of foreign exchange business and strengthened cooperation with international remittance companies, which has increased the sources of foreign exchange business. It has further segmented the market for personal foreign exchange business by integrating a wide range of foreign exchange products into a "one-stop" service and creating the "BOC Remittance" brand.
Bank of China seized the opportunity of the rapid expansion of the capital market and the rapid development of various new investment products to vigorously develop its fund distribution and insurance agency business, realizing a leapfrog growth in agency business income.
"BOC Wealth Management"
Bank of China has been actively expanding its personal wealth management business and is committed to the professionalization of "BOC Wealth Management". It has 366 unified wealth management centers, more than 1,000 wealth management studios and numerous wealth management counters in its outlets, forming a wide-coverage, multi-level wealth management service channel for personal customers; it has set up a professional wealth management team consisting of more than 200 wealth management and investment consultants and more than 2,500 wealth management managers to provide customers with professional services, such as investment and wealth management solutions and investment and wealth management series products; it has set up a wealth management service center in the airport of major cities in China; it has set up a wealth management service center in the airport of major cities in China; and it has set up a wealth management service center in the airport of major cities in China. We have established a professional wealth management team consisting of more than 200 wealth management advisors and 2,500 wealth management managers to provide customers with specialized services such as investment and wealth management solutions and investment and wealth management series products. We have also opened BOC Wealth Management VIP channels at airports in major cities in China to further improve the value-added service system for customers.
Private Banking
Bank of China provides private, exclusive, wealth-creating and high-quality services to high-net-worth individuals with personal financial assets of more than US$1 million, which has become a new platform for the development of Bank of China's personal finance business. Bank of China's private banking clients and assets under management are growing rapidly, with a clear first-mover advantage.
Banking Card Business
Bank of China continued to increase its efforts in research and development, marketing, service and system construction of banking card products.
Channel Construction
Bank of China's mainland China organization has 10,145 business outlets, which are an important strategic resource for Bank of China. Bank of China has comprehensively rolled out a network transformation program, categorizing outlets to give them core functions, optimizing business processes and implementing key performance pointer assessments.
Bank of China continues to increase its investment in self-service equipment, such as ATMs, and further optimizes the layout and functions of the equipment.
Innovation in products and services
Relying on its global service network and diversified service platforms, Bank of China provides customers with a full range of financial services, and continues to innovate and launch new local and foreign currency wealth management products. It continues to promote the overseas wealth management counter business, which facilitates customers' cross-border asset allocation.
Bank of China further segmented customers' financing needs in the areas of consumption and investment, and launched retail loan-related intermediary business services such as "Anxinbao" second-hand real estate transaction fund entrustment supervision business and "Anyibao" second-hand real estate transaction fund entrustment management business. The launch of intermediary business services such as the "An Xin Bao" second-hand house transaction fund entrustment supervision business and the "An Yi Bao" second-hand house transaction fund entrustment management business, which are related to retail loans, enhanced the impact of the "Ideal House" retail loan brand.
Strengthening the promotion of bank card products, the Company launched the UnionPay single-currency Great Wall business card, Air China Zhiyin BOC VISA Olympic credit card, BOC Ctrip credit card, Amway BOC credit card and other specialty products, which covered the needs of the domestic market for official expenditures of enterprises and public institutions, frequent flyers, business travel and business purchases, etc.; and the launch of segmented market joint cards such as the BOC Dazhong Joint-named Card, the Great Wall Ideal Home Joint-named Card, the Great Wall China Life Joint-named Card and other joint-named cards. It also launched BOC Dazhong co-branded card, Great Wall Ideal House co-branded card, Great Wall China Life co-branded card and other co-branded card products for niche markets. The core functions of credit card products have been continuously upgraded, including the opening of automatic repayment function from Great Wall RMB card to BOC credit card, and the completion of EMV standardization and upgrading of Great Wall International Card.
Financial Market Business
Bank of China's financial market business mainly includes: proprietary trading and nominee business of financial instruments in local and foreign currencies, investment in various types of securities or indices in local and foreign currencies, debt capital market business, nominee wealth management and asset management business, and financial agency and custodian business. Bank of China operates its funding business mainly through five trading centers established in Beijing, Shanghai, Hong Kong, London and New York.
Global Investment
Bank of China's global investment mainly includes foreign currency investment and local currency investment.
Bank of China's foreign currency investments mainly include government bonds, agency bonds, credit bonds, mortgage-backed bonds (MBS), asset-backed bonds (ABS), and money market fund splitting.
Global Trading
Bank of China's trading is mainly categorized into proprietary trading, market-making quote trading and related nominee trading.
In the market-making quotation business, Bank of China emphasizes the balance between business development and market liquidity risk control. In the interbank market, Bank of China maintains its leading position in the settlement and sale of foreign currencies, precious metals, RMB bonds and RMB swaps business.
In terms of nominee transactions, Bank of China actively seized the market opportunity of rising RMB interest rates and intensified exchange rate volatility, and stepped up the promotion of value-protection instruments such as forward settlements and RMB structured interest rate swaps, which drove the growth of non-interest income.
Asset management
Bank of China launched 331 products of local and foreign currency structured wealth management. RMB asset management launched 8 products in 16 phases.
Debt Capital Markets
Bank of China further optimized its customer service by launching a financing advisory business during the year.
Fund Distribution and Custody
Bank of China seized the favorable opportunity of the rapid development of the capital market to vigorously expand its fund distribution, custody and trusteeship business for various types of assets such as annuities, social security, insurance, QDII, QFII, trusts, special account wealth management, direct investment funds, etc., and at the same time, strengthened its risk management and internal control, and continuously enhanced the level of IT and service quality of the distribution and custodian business. At the same time, we have strengthened risk management and internal control, and continuously improved the information technology level and service quality of our distribution and custody business, realizing a sustained and rapid growth of our fund distribution and custody business.
Enterprise Annuity Management
Bank of China successfully obtained the qualification of enterprise annuity account administrator in 2007, and possesses the dual qualification of account administrator and custodian, which has created favorable conditions for the development of enterprise annuity business.
Product and service innovation
The ability to design and quote new products is one of the main competitive advantages of Bank of China's financial market business. Bank of China always adheres to the concept of customer demand-oriented innovation. With its rich experience in foreign exchange business and the expertise of strategic investors, Bank of China is committed to attracting customers through the development of innovative and tailor-made funding products and services.
Bank of China Hong Kong Operations
Bank of China operates commercial banking businesses in Hong Kong through its subsidiary, Bank of China Hong Kong (BOC Hong Kong). BOC Hong Kong is one of the leading commercial banking groups in Hong Kong, offering a comprehensive range of financial products and services to retail and corporate customers through more than 280 branches, 450 ATMs and other distribution channels in Hong Kong. BOC Hong Kong is one of the three note-issuing banks in Hong Kong. With 15 branches in Mainland China and one branch overseas, BOC Hong Kong provides cross-border banking services to its customers in Hong Kong, Mainland China and overseas. BOC Hong Kong Holdings, which holds the entire equity interest of BOC Hong Kong, has been listed on the Main Board of the Hong Kong Stock Exchange since July 25, 2002. It is 65.77% owned by Bank of China.
The year 2007 marks the 90th anniversary of BOC Hong Kong's service in Hong Kong. In the course of 90 years of history, BOC Hong Kong has shared the same breath, *** destiny, development and prosperity with Hong Kong, won the broad support and trust of all sectors in Hong Kong, and become an important force in Hong Kong's financial sector.2007 is also the second year of the implementation of the 2006-2011 Strategic Plan of BOC Hong Kong. BOC Hong Kong will leverage its strong foundation in Hong Kong, consolidate its position in Mainland China, establish a strategic foothold in the regional market, and strive to become the best financial services group.
Agent Business
Bank of China Hong Kong continued to optimize the service platform and enhance the service level of its equities business, with outstanding performance in the trading of equities on behalf of clients. In addition, the newly launched private placement service was well received by clients.
RMB business in Hong Kong
BOC Hong Kong was authorized by the People's Bank of China to continue to act as the clearing bank for Hong Kong banks' RMB business. In 2007, in line with the opportunity for Hong Kong to issue RMB bonds, BOC Hong Kong successfully acted as the co-lead bank and one of the bookrunners and placing banks for the RMB bonds issued by China Development Bank, Export-Import Bank of China and Bank of China, further consolidating its market position.
Money products business
Including structured notes and equity derivative warrants products, as well as China Qualified Domestic Institutional Investor (QDII) products. The new products were well received by customers and achieved satisfactory sales results. 2007 saw BOC Hong Kong further expand its cash management service platform to provide tailor-made cash management services to key customers.
Mainland China Business
For its Mainland China business, BOC Hong Kong, while actively developing its own business, continued to leverage on the linkage effect with the Bank of China, whereby the two organizations have been able to achieve mutual benefits*** through referrals of business from each other.
As an important step in BOC Hong Kong's "two-pronged" China business development strategy, Nanyang Commercial Bank (China) Limited (hereinafter referred to as "NSCB China") was officially opened on December 24, 2007, with its head office located in Shanghai. Headquartered in Shanghai, Nanyang Commercial Bank (China) operates a full range of banking services, including RMB retail banking. The Mainland branches of BOC Hong Kong and Chiyu Banking Corporation will continue to operate as branches of existing foreign banks, focusing on corporate banking and foreign exchange business.
Investment Banking