Financial heavy weight
ICBC towers over its competitors at home and overseas. Controlling almost six trillion U.S. dollars in assets, the Industrial and Commercial Bank of China is the largest bank in the world, exceeding JPMorgan Chase and the Bank of America. According to its mission statement, the bank committed to a transformation strategy, aiding economic development while strengthening the linkage between the government, businesses, and consumers.The bank was still a business bank despite having a sizable consumer business. According to their financial statements, the largest share of loans was given to business clients. In 2022, the bank lent out almost 14 trillion yuan to corporations. The transportation, storage and postal service industries were the main recipients of ICBC loans, accounting for around one quarter of corporate loans.
Who runs the show?
ICBC is a publicly traded company, and the bank’s shares are both listed on the Hong Kong Exchange and the Shanghai Stock Exchange. As the largest IPO worldwide at the time, it raised almost 22 billion U.S. dollars in 2007, with more than 14 billion U.S. dollars in Hong Kong alone. The geographical distribution of the number of shares is roughly 76:24, with RMB-denominated ordinary shares traded in mainland China dominating the ratio.Despite being a publicly traded company, the ownership structure of ICBC is very concentrated. Of the five largest shareholders, four are controlled by the state. The largest is Central Huijin Investment, which is a Chinese sovereign fund that is under de facto control of the state council, the executive organ of the Chinese government. The largest non-governmental shareholder is the HKSCC Limited Nominee, which represents all owners of shares traded in Hong Kong. Ultimately, the state owns the majority of shares, so although ICBC has undergone many reforms, it remains a state-owned bank.
