On Feb 28, 2019, Chong Hing Bank Limited (hereinafter referred to as “Chong Hing Bank”, stock code: 01111) announced its 2108 results – core businesses and financial situation remained solid and sound, overall assets quality good, capital base solid, operation revenue & profit both reached a historical high, businesses in mainland developed steadily with a good profitability and a continuously increasing contribution to Yuexiu Group’s revenues. As at Dec 31, 2018, Chong Hing Bank’s total assets reached 19.06 billion HKD, representing a growth of 16% compared to that of last year; operation revenue 3.686 billion HKD, representing a growth compared to that of last year; profit attributed to shareholders 1.760 billion HKD, representing a growth of 12% compared to that of last year; return on equity 9.47%; and non-performing loan ratio fell to 0.35%, much less than that of the industry in Hong Kong.
Furthermore, Chong Hing Bank’s plan to set a branch in Shanghai has been approved by China Banking and Insurance Regulatory Commission, and now Chong Hing bank has taken its first step toward national presence.
Chong Hing Bank Realized a Leapfrog Development since Being Acquired by Yuexiu Group
On Feb 14, 2014, Yuexiu Group acquired 75% of equity interests of Chong Hing Bank, becoming an actual controller of the latter. And during the five-year period since it was acquired, Chong Hing Bank got a healthy and rapid development. As at Dec 31, 2018, Chong Hing Bank’s total assets reached 19.06 billion HKD, representing a growth 2.2 times of that of 2013; operation revenue 3.69 billion HKD, representing a growth 2.2 times of that of 2013; pre-tax profit 2.11 billion HKD, representing a growth 3.1 times that of 2013; return on equity (ROE) in 2018 increased to 9.5% from 7.4% in 2013; and non-performing loan ratio fell to 0.35%, much less than the average level of 0.6% of the industry in Hong Kong.
Among the list of global banks by The Banker, an English magazine, Chong Hing Bank moved from 722nd in 2013 to 476th in 2018, ranking among the world’s top 500 banks. In addition, domestic and foreign authoritative rating agencies issued investment ratings to it too.
Continuous Improvement in Operation & Management
In recent years, Chong Hing Bank has input a large amount of resources to improve internal operation & management capabilities from all angles, and determined future development directions by preparing strategic development plans; adjusted and optimized organizational structure to perfect cooperate governance; strengthened risk management by establishing an all-round risk control system and enhanced the pool of employees by strengthening performance evalsuation; accelerated the construction of information system and reshaped operation process, laying a more solid foundation for sustainable growth in the future.
Looking forward to the Future, Chong Hing Bank Foresees a Broad Future Prospect from the National Strategy of the Guangdong-Hong Kong-Macao Greater Bay Area
On Feb 18, the Central Committee of the Communist Party of China and the State Council jointly unveiled the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area. On seeing the strategic opportunity, Chong Hing Bank has set up a strategic goal “to create a comprehensive commercial bank characterized by cross-border services”, being a major provider for comprehensive financial service in the Area with good foundation and unique development advantages.
(I) Distributing branches in core cities throughout the Area
Till now, Chong Hing Bank has expanded its presence in most core cities in the Area with 47 branches at Hong Kong, Macao, Guangzhou, Shenzhen, Foshan and Zhuhai, etc.
(II) Proactively familiarizing and adapting to the banking supervision systems in Guangdong, Hong Kong and Macao
Chong Hing Bank remains close ties with government departments and banking supervision departments in Guangdong, Hong Kong and Macao to familiarize and adapt to supervision laws & regulations as well as administration environments in the three regions.
(III) Set up high-standard infrastructures beneficial to technology, risk control and operation
Chong Hing Bank has a professional & scientific management structure which could ensure effective checks and balances and high-performance operation; is active in the enhancement of the pool of employees and the introduction of high-quality talents; has an industry-leading information system; and is willing to persistently promote management level with regard to risk control, finance and operation, etc.
(IV) Laying a foundation and create the ability for cross-border services
Relying on the advantages of branches spreading over the three regions in the Area, Chong Hing Bank has set up a system for cross-border services; and it has creatively launched commercial affair registration service – “Registration Applicable to Guangzhou - Hong Kong”, “Registration Applicable to Shenzhen – Hong Kong” and “Registration Applicable to Hong Kong – Macao” to provide convenience for mainland residents to cross border for a witness of account-opening service; and it has become a test unit for cross-border RMB business.
(V) Knowing clearly the demands of customers in the Area because of having an international vision and international experiences
With a well-established international service system and a pool of excellent talents, being familiar with international laws and accounting principles, and having a profound understanding of enterprises in the Area, Chong Hing Bank has established a deep cooperative relationship with customers in the Area.
(VI) With the advantages of licenses across multiple fields, Chong Hing Bank being able to provide customers in the Area comprehensive and one-stop services
With licenses across multiple fields including security, insurance and futures, Chong Hing Bank could provide customers in the Area comprehensive and one-stop services, realizing closed-loop management and improving internal coordination capacity.
(VII) Having a considerable capital base affordable for the support for business expansion in the future
With a continuously and steadily growing capital base, Chong Hing Bank, in last year, successfully accepted Guangzhou Metro as the second largest shareholder, thus its capitalization reached over 25 billion HKD, beneficial to continuous business expansion.
(VIII) Rare advantage from powerful shareholders
The Area’s resource, influence and industrial ecology would bring Yuexiu Group and Guangzhou Metro, the two biggest shareholders of Chong Hing Bank rare strong core advantages.
Zhang Zhaoxing, the chairman of Chong Hing Bank said, the year 2018 marked the 70th anniversary of the establishment of Chong Hing Bank and witnessed Chong Hing Bank’s steady growth. In this year, Chong Hing Bank achieved satisfactory business performance through the implementation of the core value of “Being Beyond Excellence” and the promotion of its high-quality development based on its specific strategic vision. Whether from strategic vision, regional presence or from layout of key businesses, Chong Hing Bank adapted them to the national strategic plan for the Area. Particularly, the interconnection of work force, materials, capital and information in the Area, brings banking industry broader space for market expansion and innovation. As one member of the banking industry, Chong Hing Bank would get more new development opportunities, and Chong Hing Bank would seize the development opportunities brought by the construction of “the Guangdong-Hong Kong-Macao Greater Bay Area” to lay a solid business foundation. Furthermore, Chong Hing Bank would, by making use of its law-abiding and moderate image as a listed company in Hong Kong, provide target client group in the Area with in-depth service and high-quality differentiated and distinctive cross-border products and services to support them in expanding domestic and overseas markets and in upgrading their industries with the help of favouring policies such as “the Belt and Road” and the construction of “the Guangdong-Hong Kong-Macao Greater Bay Area” .
Zong Jianxin, the CEO of Chong Hing Bank stated that ,as for the next development stage, Chong Hing Bank would advance its five-year strategic plan in order, actively invest its resources in order to strengthen risk management and optimize operation process, drive digital transformation and establish competitive advantages for cross-border businesses, laying a solid foundation for its sustainable and steady development and moving toward the goal “to create a comprehensive commercial bank characterized by cross-border businesses”. Looking forward to the Future, Chong Hing Bank would seize the development opportunities brought by the construction of “the Guangdong-Hong Kong-Macao Greater Bay Area”, provide high-quality differentiated and distinctive cross-border products and services, and actively expand mainland businesses by relying on the abundant resources owned by Yuexiu Group, one of its big shareholders and making full use of cooperative effect. And also, Chong Hing Bank would, via the construction of digital banking platform, constantly optimize the functions of platforms for e-banking and integrated payment in Hong Kong and mainland so as to provide customers in Hong Kong and mainland with more convenient cross-border payment, money management and financial services.
By 2018, Chong Hing Bank has been set up for 70 years. It could be said that this bank with 70 years of history and deep cultural deposits is revitalizing and making large strides toward its strategic goal “to create a comprehensive commercial bank characterized by cross-border businesses”.
