Background
China Construction Bank Corporation (‘‘CCBC’’) is the second largest bank in China and one of the largest banks in the world, with a growing global network of branches and subsidiaries. China Construction Bank (London) Ltd (‘‘CCBL’’) was authorised to operate as a subsidiary by the Financial Services Authority (‘‘FSA’’) in 2009. China Construction Bank Corporation, London Branch (“the Branch”) was authorised by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) on 22 December 2014.
CCBC was founded in 1954 as the People’s Construction Bank of China. It was devised as a wholly-owned state bank under the direction of China’s Ministry of Finance. Its principal function was to collect and disburse funds for use in construction and infrastructure-related projects on the Chinese mainland. In 1979, the People's Construction Bank of China became a financial institution under the direction of the State Council and gradually assumed more commercial banking functions.
With 14,650 branches and sub-branches in mainland China, the Bank provides services to over 3 million corporate customers and 291 million retail customers, and maintains close co-operative relationships with a significant number of high-end customers and leading enterprises in strategic industries in the Chinese economy.
There are significant opportunities in the UK and European markets which CCBC would be better placed to take advantage of by operating a UK subsidiary and a UK branch in parallel. For this reason, and to support the desire to serve better our global customers, the Branch was established in 2014. The firm reference number of the Branch in the Financial Service Register is 652628, and it is incorporated in England & Wales with Company Number FC032309. Its registered office is located at 111 Old Broad Street, London EC2N 1AP.
The establishment of a branch in the UK allows CCB to play a greater role in developing closer trade links between the UK and China and supporting increased Chinese investment in the UK and the EEA. With its direct access to CCBC’s capital and liquidity resources, the Branch is a key element in CCBC achieving its business objectives in the UK, which are:
To satisfy the investment and trade requirements of CCBC’s UK and Chinese customers;
To contribute to building London as the major off-shore RMB clearing centre outside Asia; and
To assist general Chinese investment into and out of the UK.
CCBC has an extensive list of large influential Chinese clients. By opening a London-based branch, CCBC will encourage these clients to do business in support of the growing Chinese investment flows into the UK. Through the Branch, CCBC can also bring to bear its expertise in financing large infrastructure projects.
Products and Services
The products and services offered by the Branch are similar to those already available through CCBL, but the Branch is able to offer larger facilities. The Branch offers products in the following areas of wholesale banking – trade finance, letters of credit, bilateral loans, syndicated loans and corporate deposit taking, all supported by appropriate treasury services. In due course, clearing operations will move from CCBL to the Branch. The ‘quality’ of exposures the Branch accepts is similar to that of CCBL. Strict booking policies and procedures are in place to ensure that clients are very clear on which entity they deal with. In order to ensure this works appropriately, all front office staff have received specific training to make them fully aware of their responsibilities for clear communication with clients and to act in their best interest at all times.
China Construction Bank Corporation London Branch’s ethos is clearly defined by our commitment to the highest levels of integrity, teamwork, customer service and a relationship-driven approach. Our expert, experienced London team is focused on delivering wholesale banking solutions to support companies conducting inbound and outbound business with China.