What are the overall objective and principle for the joint-stock reform conducted by Bank of China (BOC)?
The overall objective and principle for turning BOC into a joint-stock company are: centering on reforming the management system, improving the governance structure, transforming the operating mechanism and realizing better performance, BOC will transform itself into a modern joint-stock commercial bank with adequate capital, rigorous internal control, safe operation, sound financial standing, stable shareholder return, and truly strong competitiveness. It will provide comprehensive quality services to its customers.
What's the relationship between Bank of China Limited and the former BOC?
Approved by the State Council of PRC, BOC will be converted from a wholly state-owned commercial bank to a joint-stock bank controlled by the State and be renamed to Bank of China Limited on August 26, 2004.
Since Bank of China Limited is converted from the former BOC, the new joint-stock company will fully assume all lines of business, assets and liabilities of the former BOC. According to the existing laws and regulations in China, Bank of China Limited will continue to conduct business within the scope of business approved/permitted in the original business license and other licenses held by the former BOC.
After conversion, are there any major changes in the Bank?
Become a modern financial enterprise that has clearly established ownership, well-defined power and responsibility, separation of enterprise from administration, and scientific management.
Improve the operation and management mechanism, define the business development strategy and focus, strengthen financial position, upgrade the risk management system, and tighten internal control.
Gradually establish HR management system in line with market practice.
Reinforce information disclosure, enhance transparency, and bring the market supervision into full play.
Establish the financial reporting system in line with international standards and set up a scientific budget control system.
Will there be any change in the market position and legal status of BOC after the conversion?
Bank of China Limited will fully assume all lines of business, assets and liabilities of the former BOC. According to the existing laws and regulations in China, Bank of China Limited will continue to conduct business within the scope of business approved/permitted in the original business license and other business licenses held by the former BOC. The legal status of BOC remains unchanged.
After conversion, asset quality as well as risk control of Bank of China Limited will be considerably improved. Bank of China Limited will be more energetic and creative. It will deliver more comprehensive, excellent and expeditious services to its customers.
After conversion, BOC will be transformed from a wholly state-owned commercial bank into a joint-stock commercial bank. Will its credibility be affected?
With the approval of the State Council of PRC, Central Huijin Investment Company Limited was set up to assume the rights and obligations of the owner on behalf of the State. The credibility of BOC will therefore not be affected.
After conversion, will BOC's original business operations, trade names and trademarks be changed?
The business operations, trade names, trademarks, Internet domain names and service hotlines of the former BOC will remain unchanged and succeeded to by Bank of China Limited. All business will be run as usual. Bank of China Limited will continue to deliver excellent and efficient financial services to its customers.
Will the conversion affect the routine business of BOC?
To be responsible to the society and customers, BOC has made systematic and thorough arrangements in terms of organization, management, capital, rules and regulations for the joint-stock reform, so as to ensure normal operation of all of its outlets and electronic banking facilities and timely fund payment. Customers' interests shall be fully protected. The conversion will not affect the routine business of Bank of China Limited.
After the conversion, will the business of BOC's overseas operations be affected?
After going through the necessary legal procedures, all the overseas operations of Bank of China Limited will assume their original lines of business, assets and liabilities, and their business will not be affected.