China Construction Bank

中国各大银行英文名称中国银联：China UnionPay)中国银行：BOC（Bank of China)中国工商银行：ICBC （Industrial & Commercial Bank of China）中国农业银行：ABOC（Agricultural Bank of China）中国建设银行；CCB （China Construction Bank）中国招商银行：CMB （China Merchants Bank ）中国光大银行：CEB （China Everbright Bank）中国民生银行：CMBC （China Minsheng Banking Corp. Ltd.）中国进出口银行：EXIMBC (The Import-Export Bank of China)中信实业银行：CITIC Industrial Bank福建兴业银行：CIB （China Industrial Bank Co., Ltd.）交通银行：Bank of Communications华夏银行：Huaxia Bank深圳发展银行：Shenzhen Development Bank上海浦东发展银行：Shanghai Pudong Development Bank广东发展银行：Guangdong Development Bank国家开发银行：China Development Bank商业银行：Commercial Bank中国建设银行——CBC (Construction Bank of China) ——“存不存？”中国银行——BC （Bank of China）——“不存。

”中国农业银行——ABC (Agricultural Bank of China)——“啊，不存”中国工商银行——ICBC (Industrial and Commercial Bank of China)——“爱存不存”招商银行——CMBC(China Merchants Bank)——“存吗？？白痴！”兴业银行——CIB( Industrial Bank )——“存一百”北京市商业银行——BCCB (Beijing City Commercial Bank)——白存存不？”汇丰银行——（HSBC）还是不存”中国各大银行英文名称中国银联：China UnionPay)中国银行：BOC（Bank of China)中国工商银行：ICBC （Industrial & Commercial Bank of China）中国农业银行：ABOC（Agricultural Bank of China）: 中国建设银行；CCB （China Construction Bank）中国招商银行：CMB （China Merchants Bank ）中国光大银行：CEB （China Everbright Bank）中国民生银行：CMBC （China Minsheng Banking Corp. Ltd.）中国进出口银行：EXIMBC (The Import-Export Bank of China)中信实业银行：CITIC Industrial Bank福建兴业银行：CIB （China Industrial Bank Co., Ltd.）交通银行：Bank of Communications华夏银行：Huaxia Bank深圳发展银行：Shenzhen Development Bank上海浦东发展银行：Shanghai Pudong Development Bank 广东发展银行：Guangdong Development Bank国家开发银行：China Development Bank商业银行：Commercial Bank中国建设银行——CBC (Construction Bank of China) ——“存不存？”中国银行——BC （Bank of China）——“不存。

建设银⾏各分⾏国际代码SWIFT CODE建设银⾏各分⾏国际代码SWIFT CODE（转发）　SWIFT号码　分⾏名称省份或城市1PCBCCNBJAHX CHINA CONSTRUCTION BANKCORPORATION(ANHUI BRANCH)ANHUI2PCBCCNBJBJX CHINA CONSTRUCTION BANKCORPORATION(BEIJING BRANCH)BEIJING3PCBCCNBJCQX CHINA CONSTRUCTION BANKCORPORATION(CHONGQINGBRANCH)CHONGQING4PCBCCNBJDLX CHINA CONSTRUCTION BANKCORPORATION(DALIAN BRANCH)DALIAN5PCBCCNBJFJA CHINA CONSTRUCTION BANKCORPORATION(FUQINGSUBBRANCH)FUQING6PCBCCNBJFJF CHINA CONSTRUCTION BANKCORPORATION(FUZHOU CHENGDONGSUBBRANCH)FUZHOU7PCBCCNBJFJP CHINA CONSTRUCTION BANKCORPORATION(PUTIAN BRANCH)PUTIAN8PCBCCNBJFJQ CHINA CONSTRUCTION BANKCORPORATION(QUANZHOUSUBBRANCH)QUANZHOU9PCBCCNBJFJX CHINA CONSTRUCTION BANKCORPORATION(FUJIAN BRANCH)FUJIAN10PCBCCNBJFJZ CHINA CONSTRUCTION BANKCORPORATION(ZHANGZHOUSUBBRANCH)ZHANGZHOU11PCBCCNBJGDA CHINA CONSTRUCTION BANKCORPORATION(ZHANJIANG)ZHANJIANG12PCBCCNBJGDC CHINA CONSTRUCTION BANKCORPORATION(CHAOZHOUBRANCH)CHAOZHOU13PCBCCNBJGDD CHINA CONSTRUCTION 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中国建设银行（China Construction Bank）成立于1954年10月1日（当时行名为中国人民建设银行，1996年3月26日更名为中国建设银行）。

是国有五大商业银行之一，在中国五大银行中排名第四。

简称建设银行或建行。

基本情况中国建设银行股份有限公司是一家在中国市场处于领先地位的股份制商业银行，为客户提供全面的商业银行产品与服务。

主要经营领域包括公司银行业务、个人银行业务和资金业务，多种产品和服务（如基本建设贷款、住房按揭贷款和银行卡业务等）在中国银行业居于市场领先地位。

建设银行拥有广泛的客户基础，与多个大型企业集团及中国经济战略性行业的主导企业保持银行业务联系，营销网络覆盖全国的主要地区，设有约13629家分支机构，在香港、新加坡、法兰克福、约翰内斯堡、东京、首尔和纽约设有海外分行，在伦敦设有子银行，在悉尼设有代表处。

建设银行的子公司包括中国建设银行（亚洲）股份有限公司、建银国际（控股）有限公司、中德住房储蓄银行有限责任公司、建信基金管理有限责任公司和建信金融租赁股份有限公司。

中国建设银行被巴菲特杂志、世界企业竞争力实验室、世界经济学人周刊联合评为2010年（第七届）中国上市公司100强，排名第7位。

发展阶段建设银行自成立至今，经历了三个阶段：第一阶段：为经办国家财政拨款时期。

1954年10月1日成立原名为中国人民建设银行，建设银行经中央人民政府政务院决定成立后，其任务是经办国家基本建设投资的拨款，管理和监督使用国家预算内基本建设资金和部门、单位的自筹基本建设资金。

几十年来，建设银行为提高投资效益、加快国家经济建设和发展作出了卓越贡献。

第二阶段：为国家专业银行时期。

从20世纪80年代中期起，为适应经济金融体制改革和经济发展的要求，建设银行先后开办了现金出纳、居民储蓄、固定资产贷款、工商企业流动资金贷款、国际金融、住房贷款和各种委托代理业务。

通过开办各种面向社会大众的商业银行业务，丰富了银行职能，为向现代商业银行转轨打下了坚实的基础。

EAST ASIA SECURITIES COMPANY LIMITED9/F, 10 Des Voeux Road Central, Hong Kong.Dealing: 3608 8000 Research: 3608 8097 Facsimile: 3608 6132HONG KONG RESEARCHAnalyst: Vincent Leung 28thAugust 2007This report has been prepared solely for information purposes and we are not soliciting any action based upon it. Neither this document nor its contents shall be construed as an offer, invitation, advertisement, inducement or representation of any kind or form whatsoever. The information is based upon information which we consider reliable, but accuracy or completeness is not guaranteed. Opinions expressed herein are subject to change without notice. At time of this report, .CHINA CONSTRUCTION BANK CORPORATION (中國建設銀行)Sector: Banking Chairman : Mr. Guo Shuqing HKSE Code : 0939Market Price : HK$6.15 (27/08/2007)Vice Chairman & President : Mr. Zhang Jianguo Shares Issued : 224,689.084 million (H shares) Mkt. Cap.: HK$1,381,837.9 million (H shares) 52 weeks Hi/ Lo : HK$6.19 / HK$3.24HSI / HSCEI : 23,577.73 / 13,989.87 (27/08/2007) Main Business: Banking and related financial servicesSUMMARY OF THE INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2007Interim Results HighlightsRMB million Vs 1H2006 (%) Vs 31/12/2006 (%)• Net interest income 89,213 +36.7% • Non-interest income 10,573 +89.5% • Total operating income 99,786 +40.8% • Operating expenses (37,275)+26.3% • Operating profit before impairment losses 62,511 +51.2% • Impairment losses on loans and advances (11,648)+40.0% • Profit before taxation 50,542 +54.0% • Taxation (16,287)+69.8% • Profit attributable to shareholders 34,221 +47.4% • Total loans 3,165,567 +12.4% +10.2%• Total deposits 5,058,302 +12.5% +7.0%• Total assets 6,117,791 +18.4% +12.3%• Basic EPS (RMB) 0.15+47.4% • Interim DPS (RMB) 0.067 N/A • Special DPS (RMB) 0.072716N/ASelected Ratios1H20071H2006 FY2006• Net interest margin 3.11% 2.70% 2.79%• Cost-income ratio37.4%41.7% 44.0%• Return on average assets 1.18%0.95% 0.92%• Return on average equity 20.88%15.67% 15.00%• NPL ratio2.95%3.51% 3.29%• NPL coverage ratio 90.7%71.4% 82.2%• Loan-deposit ratio 62.6%62.6% 60.8%• Capital adequacy ratio11.34%13.15% 12.11%•1H2007 results within market expectations China Construction Bank (“CCB”) reported a 47.4% y-o-y rise in net profit to RMB34,221 million for 1H2007, attributable to solid top-line growth and improved operating efficiency that more than offset higher net FX loss due to the RMB appreciation and a jump in loan impairment losses. CCB’s 1H2007 bottom line was within market expectations (RMB30,625 million-RMB35,650 million).•Special dividend Besides an interim DPS of RMB0.067, CCB also declared a special DPS of RMB0.072716, being per share accumulated undistributed profits of the bank as at 30th June 2007 (after deduction of 2007 interim dividend), prior to the A-share issuance.• Widening NIM Net interest income jumped by 36.7% y-o-y in 1H2007 on an 18.7% y-o-y jump in average interest-earning assets and an expanded net interest margin. Net interest margin widened by41 bps y-o-y to 3.11% for 1H2007 on a stronger average asset yield amid rising interest rates followingrate hikes by the PBOC as well as improvement in asset-liability management. The buoyant domestic stock market helped raise the proportion of lower-cost demand deposits further to 56.7% of total deposits as of 30/06/2006 (31/12/2006: 55.3%; 30/06/2006: 53.7%) from time deposits. Reduction in the low-yielding discounted bills to 4.6% of total loan portfolio as of 30/06/2007 (31/12/2006: 5.5%;30/06/2006: 9.1%) also helped lift the average asset yield.• Solid loan growth CCB’s loan book expanded by 10.2% h-o-h during 1H2007. Corporate loans increased by 9.5% h-o-h and accounted for 71.2% of total loans as of 30/06/2007. The expansion in the bank’s corporate loan book was primarily driven by a 12.0% h-o-h increase in infrastructure loans that accounted for 35.3% of total corporate loans as well as a 15.2% rise in SME loans that accounted for 10% of the corporate book. Personal loans grew by 16.3% and accounted for 21.5% of total loans.Residential mortgage loans jumped 10.7% during the half-year period, enabling CCB to remain the largest mortgage lender on the mainland. On the other hand, the lower-yielding discounted bills dropped by 8.8% h-o-h. Meanwhile, with total deposits growth of 7.0% h-o-h, CCB’s loan-to-deposit ratio increased to 62.6% as of 30/06/2007 from 60.8% as of 31/12/2006.• Strong fee income growth Net fee and commission income shot up 101.8%, with growth momentum seen in various categories on increased investment in fee-based businesses. The biggest 5 categories - agency fees (+261.3%), bankcard fees (+32.7%), remittance, settlement & account management fees (+22.5%), consultancy & advisory fees (+62.0%) and commission on trust business (+80.9%) - accounted for 92.9% of total fee income. On the other hand, the bank booked a RMB3.6-billion net FX loss in 1H2007 (1H2006: RMB2.4bn), mainly due to RMB appreciation and derivative costs. As a result, net non-interest income jumped a tamer 89.5% y-o-y.• Rise in operating expenses Operating costs increased 26.3% y-o-y, driven by a 26.6% increase in staff costs on higher salaries, a 35.8% surge in business tax & surcharges as well as a 32.0% rise in other G&A expenses driven by branch transformation and advertising expenses. Nevertheless, a stronger 40.8% growth in total operating income helped improve the bank’s cost-to-income ratio to37.4% from 41.7% a year earlier. Meanwhile, the bank’s management said expense growth willaccelerate in 2H2007 while cost-to-income ratio will be stable at the current level.• Improving loan quality NPL ratio improved to 2.95% as of 30/06/2007 from 3.29% as of 31/12/2006 while NPL balance dropped by 1.0% h-o-h on strengthened efforts in recoveries and write-offs.Meanwhile, provision for loan impairment losses jumped 40.0% in 1H2007, and allowance coverage was bolstered to 90.7% as of 30/06/2007 from 82.2% as of 31/12/2006.• US subprime exposure As of 30/06/2007, the bank has holdings of US$1,062 million (or 2.75% of the bank’s foreign-currency denominated bond portfolio) in US-subprime mortgage loan backed securities, all with ratings of AA or above, compared with ICBC (stock code: 1398)’s US$1.2 billion and Bank of China (stock code: 3988)’s US$9.6 billion. CCB had made a RMB139-million (or US$18m) provision on these securities.• Strong profitability and healthy financial position CCB’s profitability enhanced notably, with ROAA and ROAE up to 1.18% and 20.88% respectively for 1H2007 from 0.95% and 15.67% for 1H2006.Meanwhile, the bank’s CAR stood at 11.34% as of 30/06/2007. Should the proposed special cash dividend, amounting to RMB16.3 billion, be deducted from capital, CAR would then become 10.87%.Outlook & Prospects• Strong fundamentals and business outlook CCB has the highest net interest margin among H-share banks and 2nd highest ROE [just behind China Merchants Bank (stock code: 3968)].Continual robust growth in fee income and retail banking business (25.1% of 1H2007 pre-tax profit) given its strong customer base should propel strong earnings growth going forward. In fact, CCB has the largest personal loan book (30/06/2007: RMB680.6bn) and is the No.1 residential mortgage lender in China.• Rising provisioning In 1H2007, CCB made a RMB11.6 billion provision charge, representing a 40% or RMB3.3 billion increase y-o-y while provision coverage rose to 90.7%. Management said the bank raises the provision coverage on expectation that the series of austerity measures by the central government may have an adverse impact on loan quality in the future. Such move by CCB should provide strong cushion for any asset quality deterioration should there be an economic downturn.• Maintain Buy on strong fundamentals Valuations of CCB’s shares, which are now trading at3.7x FY2007E P/B and 22.8x FY2007E P/E is well supported by the solid earnings outlook andthe strong profitability in terms of ROE. The pending A-share listing in 4Q2007 should serve as an added catalyst for CCB’s shares. As such, we maintain our “Buy” rating for the counter. Recommendation: BuyAppendix I I. Impairment allowances, overdue and rescheduled advances of China Construction BankAs % of total customer advances IndividualallowanceCollectiveallowanceNPLsAs of 30/06/2007 1.61% 1.07% 2.95%As of 31/12/2006 1.45% 1.25% 3.29%As of 30/06/2006 1.30% 1.21% 3.51%II. Comparison of China Construction Bank’s loan book: 30/06/2007 vs 31/12/2006Loans-by industry 30th June, 2007Up/(down)31st Dec, 2006RMBmillionRMB millionManufacturing564,902 +10.7% 510,427Other corporate loans 1,689,181 +9.2% 1,547,534Personal mortgage loans 474,037 +10.7% 428,039Other personal loans 206,534 +31.5% 157,046Discounted bills 145,403 -8.8% 159,368Loans for overseas operations 85,510 +20.1% 71,1953,165,567 +10.2% 2,873,609III. Comparison of China Construction Bank’s loan book: 30/06/2007 vs 30/06/2006Loans-by industry 30th June, 2007Up/(down)30th June, 2006RMBmillionRMB millionManufacturing564,902 +16.3% 485,817Other corporate loans 1,689,181 +12.4% 1,503,210Personal mortgage loans 474,037 +21.0% 391,875Other personal loans 206,534 +60.8% 128,465Discounted bills 145,403 -43.4% 257,035Loans for overseas operations 85,510 +74.6% 48,9663,165,567 +12.4% 2,815,368IV. China Construction Bank’s pre-tax profit breakdown by businessesPre-tax profit by businesses Breakdown(RMB million) 1H2007 1H2006 y-o-y (%)1H2007 1H2006 Corporate banking 27,984 20,145 +38.9% 55.4% 61.4% Personal banking 12,698 6,247 +103.3% 25.1% 19.0% Treasury operations 10,167 7,672 +32.5% 20.1% 23.4% Others & unallocated (307) (1,250) -75.4% (0.6%) (3.8%) Total pre-tax profit 27,984 20,145 +54.0% 100.0% 100.0%Appendix II Breakdown of loan book of China Construction BankImportant Disclosure / Analyst Certification / DisclaimerThis document is published by East Asia Securities Company Limited, a wholly-owned subsidiary of The Bank of East Asia, Limited (BEA).The research analyst primarily responsible for the content of this report, in part or in whole certifies that the views on the companies and their securities mentioned in this report accurately reflect his/her personal views. 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