The Bank of China is one of the 4 largest banks in China, owned by the government.
It is also one of the oldest banks in China, as it was founded in 1912 by the Republican government.
The Bank of China is also one of the largest banks in the world in terms of total assets.
Ownership Structure
Bank of China is primarily owned by the government of the People's Republic of China. Central Huijin Investment Ltd., a state-owned investment company, holds a majority stake in the bank, owning approximately 64.02% of its shares. This substantial ownership underscores the bank's status as a state-controlled entity. Other notable shareholders include China Securities Finance Corporation Ltd. and China Asset Management Co., Ltd., which hold smaller portions of the bank's shares. Additionally, the bank's shares are publicly traded on the Shanghai and Hong Kong stock exchanges, allowing for some public investment.
Government Control and Influence
The significant government ownership ensures that Bank of China operates under the guidance and policies set by the Chinese government. This control allows the government to influence the bank's strategic decisions, including its role in supporting national economic objectives and policies. The bank's operations are closely aligned with the government's economic and financial strategies, reflecting its integral role in China's financial system.
Public Trading and Minority Shareholders
While the Chinese government maintains a controlling interest, Bank of China's shares are also available to public investors. The bank's dual listing on the Shanghai Stock Exchange (A-shares) and the Hong Kong Stock Exchange (H-shares) facilitates investment from both domestic and international investors. This public trading introduces a level of market discipline and transparency, as the bank must adhere to the regulatory requirements of these exchanges. Minority shareholders, including institutional and individual investors, have the opportunity to participate in the bank's financial performance through dividends and capital appreciation.
Strategic Initiatives and Government Support
As a state-owned entity, Bank of China plays a pivotal role in implementing government policies, particularly in areas such as foreign trade, currency exchange, and international finance. The government provides support to the bank through various mechanisms, including capital injections and policy guidance, to ensure its stability and alignment with national economic goals. This relationship underscores the bank's function as a tool for executing the government's financial and economic strategies.