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+++ "b/China/8.China Construction Bank_$178.16 B_Financials/2021/results.txt"
@@ -0,0 +1,28498 @@
+1.96 trillion of RMB Maintained A Grade
+Domestic preference share:
+Stock code:
+Stock abbreviation:
+H-share:
+Stock code:
+Stock abbreviation:
+Stock abbreviation:
+A-share:
+www.hkexnews.hk
+www.sse.com.cn
+Securities Daily, www.zqrb.cn
+Securities Times, www.stcn.com
+Shanghai Securities News, www.cnstock.com
+China Securities Journal, www.cs.com.cn
+Board of Directors Office of the Bank
+Stock code:
+Ernst & Young Hua Ming LLP
+Shanghai Stock Exchange
+建設銀行
+China Securities Depository and Clearing Corporation Limited, Shanghai Branch
+Address: No. 188 Yanggaonan Road, Pudong New District, Shanghai
+Address: 27/F, Jardine House, One Connaught Place, Central, Hong Kong
+Clifford Chance
+Address: 12-14/F, China World Office 2, No.1 Jianguomenwai Avenue, Beijing
+Commerce & Finance Law Offices
+Address: 27/F, One Taikoo Place, 979 King's Road, Quarry Bay, Hong Kong
+Signing accountants: Wang Pengcheng, Tian Zhiyong and Feng Suoteng
+Ernst & Young
+No.1 East Changan Avenue, Dongcheng District, Beijing
+Address: 16/F, Ernst & Young Tower, Oriental Plaza,
+360030
+建行優1
+Shanghai Stock Exchange
+939
+The Stock Exchange of Hong Kong Limited
+CCB
+601939
+Email: ir@ccb.com
+Computershare Hong Kong Investor Services Limited
+Facsimile: 86-10-66218888
+95533
+HKEXnews website of Hong Kong Exchanges and Clearing Limited for
+publishing the annual report prepared in accordance with IFRS
+Website of the Shanghai Stock Exchange for publishing the annual report
+prepared in accordance with PRC GAAP
+Media and websites for information disclosure
+Contact information for investors
+Hotline for customer service and complaints
+Website
+Place where copies of this annual report are kept
+Principal place of business in Hong Kong
+Registered address and office address
+Contact address
+Secretary to the Board
+Authorised representative
+Legal representative
+Legal name and abbreviation in English
+Legal name and abbreviation in Chinese
+Company secretary
+Listing stock exchanges, stock abbreviations and stock codes
+Certified public accountants
+Legal advisor as to PRC laws
+www.ccb.com
+Telephone: 86-10-67597114
+No. 25, Financial Street, Xicheng District, Beijing
+Postcode:100033
+28/F, CCB Tower, 3 Connaught Road Central, Central, Hong Kong
+Ma Chan Chi
+No. 25, Financial Street, Xicheng District, Beijing
+Hu Changmiao
+Ma Chan Chi
+Tian Guoli
+CHINA CONSTRUCTION BANK CORPORATION (abbreviated as "CCB")
+中國建設銀行股份有限公司(abbreviated as “中國建設銀行")
+Rating information
+H-share registrar
+A-share registrar
+Legal advisor as to Hong Kong laws
+Telephone: 86-10-66215533
+CORPORATE INFORMATION
+Address: Rooms 1712-1716, 17/F, Hopewell Centre, 183 Queen's Road East,
+Wanchai, Hong Kong
+Moody's: long-term "A1"/short-term "P-1"/stable outlook
+China Construction Bank (Malaysia) Berhad
+China Construction Bank (London) Limited
+CCB Life Insurance Co., Ltd.
+CCB Financial Asset Investment Co., Ltd.
+CCB International (Holdings) Limited
+PT Bank China Construction Bank Indonesia Tbk
+China Construction Bank (New Zealand) Limited
+CCB Futures Co., Ltd.
+China Construction Bank (Europe) S.A.
+China Construction Bank (Brasil) Banco Múltiplo S/A
+China Construction Bank Corporation and its subsidiaries
+China Construction Bank (Asia) Corporation Limited
+China Banking and Insurance Regulatory Commission
+Bank of China Limited
+Board of directors
+CCB Financial Leasing Co., Ltd.
+CCB Pension Management Co., Ltd.
+CCB Principal Asset Management Co., Ltd.
+CCB Property & Casualty Insurance Co., Ltd.
+China Construction Bank (Russia) Limited
+China Construction Bank Corporation
+Annual Report 2021
+The People's Bank of China
+Ministry of Finance of the People's Republic of China
+Industrial and Commercial Bank of China Limited
+Central Huijin Investment Ltd.
+"PBC"
+"MOF"
+"ICBC"
+"Huijin"
+The Stock Exchange of Hong Kong Limited
+"Hong Kong Stock Exchange"
+China Securities Regulatory Commission
+China CITIC Bank Corporation Limited
+CCB Wealth Management Co., Ltd.
+CCB Trust Co., Ltd.
+China Baowu Steel Group Corporation Limited
+Standard & Poor's: long-term "A"/short-term "A-1"/stable outlook
+China Construction Bank Corporation
+"CSRC"
+"CCB" or "Group"
+"CBIRC"
+"BOC"
+"Board"
+"Baowu Steel Group"
+"Bank"
+"CCB Asia"
+"ABC"
+In this annual report, unless the context otherwise requires, the following terms shall have the meanings set out below.
+DEFINITIONS
+Annual Report 2021
+China Construction Bank Corporation
+ESG rating of MSCI: A
+Fitch: long-term "A"/short-term "F1+"/stable outlook
+Abbreviations of organisations
+"CCB Brasil"
+"CCB Europe"
+"CCB Financial Leasing"
+"China CITIC Bank"
+"CCB Wealth Management"
+"CCB Trust"
+"CCB Russia"
+"CCB Property & Casualty"
+"CCB Principal Asset Management"
+"CCB Pension"
+"CCB New Zealand"
+"CCB Malaysia"
+"CCB London"
+"CCB Life"
+"CCB Investment"
+"CCB International"
+"CCB Indonesia"
+"CCB Futures"
+Agricultural Bank of China Limited
+4
+3
+China Construction Bank Corporation
+Annual Report 2021
+12
+10
+021
+REPORT OF CHAIRMAN OF THE BOARD OF
+SUPERVISORS
+CHAIRMAN'S STATEMENT
+FINANCIAL HIGHLIGHTS
+15
+8
+7
+13457
+RANKINGS AND AWARDS
+DEFINITIONS
+CORPORATE INFORMATION
+IMPORTANT NOTICE
+FINANCIAL AND OPERATIONAL HIGHLIGHTS
+ENVIRONMENTAL AND SOCIAL
+RESPONSIBILITY (ENVIRONMENT, SOCIETY
+AND GOVERNANCE)
+128
+RISK MANAGEMENT
+148
+PROGRESS IN SUSTAINABLE FINANCE AND
+INVESTMENTS
+37
+BUSINESS REVIEW
+18
+FINANCIAL REVIEW
+139
+SOCIAL DEVELOPMENT
+17
+MANAGEMENT DISCUSSION AND ANALYSIS
+131
+ENVIRONMENT AND CLIMATE
+128
+GOVERNANCE
+CORPORATE INTRODUCTION
+67
+CONTENTS
+DO
+C
+智慧政务
+• 劳动者港湾
+China Construction Bank
+中国建设银行
+調 建行生活
+①
+፡፡
+Annual Report 2021
+China Construction Bank Corporation
+China Construction Bank
+中国建设银行
+BE WITH EVERY FAMILY
+NEW FINANCE
+建融家园
+建行裕农通
+建行生活
+DODD
+www.ccb.com
+For further information, please visit
+Provide better services to our customers,
+create higher value to our shareholders, build
+up broader career path for our associates,
+and assume full social responsibilities as a
+corporate citizen.
+MISSIONS
+Integrity, Impartiality, Prudence, Creation
+CORE VALUES
+Build a world class banking group with top value
+creation capability
+VISION
+Adhering to the "market-oriented, customer-centric" business concept, the Bank is committed to developing itself into
+a world class banking group with top value creation capability. The Bank strives to achieve the integration of short-term
+and long-term benefits, and the synthesis of business goals and social responsibilities objectives, so as to maximise the
+value for its stakeholders including customers, shareholders, associates and society.
+The Bank proactively practices "New Finance", and fully promotes the implementation of the "Three Major Strategies"
+of house rental, inclusive finance and FinTech. By adhering to the digitalised operation strategy of "building ecologies,
+setting up scenarios and expanding user base", the Bank strives to achieve a breakthrough at the Customer Community
+with its root deeply planted among the general public so as to serve as a "warm and cosy" bank for the ordinary people.
+Moreover, the Bank focuses on empowering the Business Community, so as to create an ecology featuring co-existence
+and co-prosperity and become a lifetime partner of its corporate customers. Furthermore, the Bank promotes its
+connection with the Government Community, striving to support social governance so as to become a national trusted
+financial pillar.
+The Bank provides customers with comprehensive financial services, including personal banking, corporate banking,
+investment and wealth management. With 14,510 banking outlets and 351,252 staff members, the Bank serves
+hundreds of millions of personal and corporate customers. The Bank has subsidiaries in various sectors, including fund
+management, financial leasing, trust, insurance, futures, pension and investment banking, and has nearly 200 overseas
+entities covering 31 countries and regions.
+China Construction Bank Corporation, headquartered in Beijing, is a leading large-scale commercial bank in China. Its
+predecessor, China Construction Bank, was established in October 1954. It was listed on Hong Kong Stock Exchange in
+October 2005 (stock code: 939) and the Shanghai Stock Exchange in September 2007 (stock code: 601939). At the end of
+2021, the Bank's market capitalisation reached US$175,302 million, ranking sixth among all listed banks in the world. The
+Group ranks second among global banks by Tier 1 capital.
+DO
+CORPORATE INTRODUCTION
+Bodb
+00
+CAPITAL MANAGEMENT
+PROSPECTS
+DISCUSSIONS ON KEY TOPICS IN BUSINESS
+166
+BRANCHES AND SUBSIDIARIES
+126
+125
+124
+165
+建行生活
+ORGANISATIONAL STRUCTURE
+162
+REPORT OF THE BOARD OF SUPERVISORS
+104
+103
+156
+REPORT OF THE BOARD OF DIRECTORS
+122
+DODD
+APPENDIX I
+INDEPENDENT AUDITOR'S
+REPORT AND FINANCIAL STATEMENTS
+Copyright to this report is reserved for the Bank. Without the written permission of the Bank, no one shall copy, adapt, or extract any part of this
+annual report in any way, and shall not use the pictures, audio or video files for any other purpose.
+This report is prepared in both Chinese and English. In the case of discrepancy between the two versions, the Chinese version shall prevail.
+The main risks faced by the Group include credit risk, market risk, operational risk, liquidity risk, reputational risk and country risk. We proactively took
+measures to manage various risks effectively. For more information, please refer to "Risk Management" in the "Management Discussion and Analysis".
+We have included in this report certain forward-looking statements with respect to our financial position, operating results and business
+development. These statements are based on current plans, estimates and projections. Although we believe that the expectations reflected in these
+forward-looking statements are reasonable, these statements do not constitute a substantive commitment to investors. Please be fully aware of the
+risks and understand the differences between plans, projections and commitments.
+Mr. Xu Jiandong, non-executive director of the Bank, Mr. Kenneth Patrick Chung and Mr. Michel Madelain, independent non-executive
+directors of the Bank, hereby warrant the truthfulness, accuracy and completeness of the financial statements in this annual report.
+The financial statements of the Group prepared in accordance with PRC GAAP for the year of 2021 have been audited by Ernst & Young
+Hua Ming LLP, and the financial statements prepared in accordance with IFRS have been audited by Ernst & Young. Both auditors have
+provided audit report with unqualified audit opinion.
+The Board proposed a cash dividend of RMB0.364 per share (including tax) for 2021 to all shareholders.
+This annual report and results announcement have been reviewed and approved at the Board meeting of the Bank held on 29 March
+2022. All 13 directors of the Bank attended the meeting in person.
+The Board, the board of supervisors, directors, supervisors and senior management of the Bank warrant that the information in this report
+is truthful, accurate and complete and contains no false presentations, misleading statements or material omissions, and they assume
+several and joint legal liability for such contents.
+IMPORTANT NOTICE
+%%
+BANKS
+316
+APPENDIX II: INDICATORS FOR ASSESSING
+SYSTEMIC IMPORTANCE OF COMMERCIAL
+172
+101
+100
+154
+SUBSTANTIAL SHAREHOLDERS OF THE BANK
+DETAILS OF PREFERENCE SHARES
+SHAREHOLDERS' GENERAL MEETING
+86
+CORPORATE GOVERNANCE REPORT
+151
+CHANGES IN ORDINARY SHARES
+PARTICULARS OF SHAREHOLDERS
+DEVELOPMENT
+151
+CHANGES IN SHARE CAPITAL AND
+83
+82
+149
+MAJOR ISSUES
+80
+8%8
+86
+5
+BOARD OF DIRECTORS
+COMMITTEES UNDER THE BOARD
+152
+ORDINARY SHAREHOLDERS
+151
+SECURITIES ISSUANCE AND LISTING
+8 ⌘རྒྱ8༄རྗ ༅ མྨུཐཱཡྻ༠
+INVESTOR RELATIONS
+SHAREHOLDERS' RIGHTS
+INTERNAL CONTROL
+EMPLOYEES
+MANAGEMENT
+PROFILES OF DIRECTORS, SUPERVISORS AND SENIOR
+SENIOR MANAGEMENT
+COMMITTEES UNDER THE BOARD OF SUPERVISORS
+BOARD OF SUPERVISORS
+92
+87
+DEFINITIONS
+153
+"Sino-German Bausparkasse"
+0
+4,000
+8,000
+12,000
+16,000
+(in hundred million of RMB)
+0
+FinTech investments
+2020
+2021
+Number of FinTech employees
+30,000
+20,000
+10,000
+2019
+50
+100
+150
+40,000
+60,000
+Loans to private enterprises (in hundred million of RMB)
+2019
+2020
+2021
+Infrastructure loan (in hundred million of RMB)
+SERVING NATIONAL CONSTRUCTION CAPACITY
+CONTINUAL IMPROVEMENT IN THREE CAPABILITIES
+FINANCIAL AND OPERATIONAL HIGHLIGHTS
+Annual Report 2021
+China Construction Bank Corporation
+8
+250
+200
+0
+20,000
+0
+10,000
+House rental loans
+2017 2018 2019 2020 2021
+T
+0
+Dividends (RMB/share)
+0.1
+(in hundred million of RMB)
+2019
+2021
+the house rental platform (in ten thousand)
+Total number of registered users of
+COLLABORATIVE PROMOTION OF THREE MAJOR STRATEGIES
+134.70%
+27.64%
+2020
+4,000
+3,000
+2,000
+15,000
+20,000
+(in hundred million of RMB)
+Balance of agriculture-related loans
+2019
+2020
+2021
+(in hundred million of RMB)
+Balance of the inclusive finance loans
+1,500
+1,000
+500
+0
+0
+1,000
+5,000
+0
+0
+10,000
+(in hundred
+1.49 million)
+ÅÅÅÅÅÅÅ
+Monthly average number of
+active users of the Bank's
+personal mobile banking
+3
+(in ten
+thousand)
+Cumulative e-CNY
+transaction amount
+8,475
+4
+5
+The number of personal mobile
+banking users (in hundred million)
+(in ten
+thousand)
+3,400
+Over
+Over
+¥¥¥¥¥¥¥¥
+2
+1
+"SAFE"
+Annual Report 2021
+9
+China Construction Bank Corporation
+of RMB
+1.19 hundred million
+Public welfare
+donations
+of MSCI
+ESG rating
+Balance of
+green loans
+FULFILLING ESG RESPONSIBILITIES AS A LARGE BANK
+2017 2018 2019 2020 2021
+0
+(in hundred
+million of RMB)
+435
+of e-CNY transactions
+Cumulative number
+"CCB Lifestyle"
+Registered users of
+15
+14
+200
+220
+240
+260
+Total capital ratio (%)
+2019
+2020
+2021
+FINANCIAL RISK PREVENTION CAPABILITY
+Allowances to NPLs (%)
+40,000
+30,000
+20,000
+17
+1.04%
+18
+INTERNATIONAL COMPETITIVENESS
+SOLID PROGRESS IN DIGITALISED OPERATION
+30,000
+20,000
+10,000
+0
+8,000
+10,000
+12,000
+14,000
+16,000
+2019
+2020
+2021
+Cross-border RMB settlement volume (in hundred million of RMB)
+Trade financing (in hundred million of RMB)
+19
+0.2
+16
+Cost-to-income Ratio
+6
+Accounting Standards for Business Enterprises and other relevant requirements promulgated by the MOF on 15
+February 2006 and afterwards
+The Company Law of the People's Republic of China
+International Financial Reporting Standard No. 9 - Financial Instruments issued by International Accounting
+Standards Board, which came into effect on 1 January 2019
+"PRC GAAP"
+"PRC Company Law"
+China Construction Bank Corporation
+"New financial instruments standard" or
+"IFRS 9"
+International Financial Reporting Standards
+Environment, society and governance
+Anti-money laundering
+Stock Exchange"
+"Listing Rules of Hong Kong
+"IFRS"
+Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited
+Annual Report 2021
+The Banker
+The Banker
+Database
+2021
+GLOBAL
+FINANCE
+AWARD
+CHINA
+STARS OF
+25th in Fortune Global 500 2021
+US magazine FORTUNE
+Second in Top 1000 World Banks
+Ranking 2021
+UK magazine The Banker
+500
+RANKINGS AND AWARDS
+Country Ranking: 2
+World Ranking: 2
+WORLD BANKS 2021
+TOP 1000
+"ESG"
+"AML"
+Others
+A fund classification management product provided by the Bank for corporate customers
+"WMPS"
+"Long Pay"
+"FITS®"
+"Cross-border Quick Loan"
+"CCB Yunongtong"
+"CCB Start-up Station"
+"CCB Match Plus"
+"CCB Huidongni"
+Finance Platform"
+"Blockchain Trade (BCTrade)
+Platforms, products and services
+"Yangtze Power"
+"State Grid"
+Liquidity Coverage Ratio
+"State Council"
+"Yudao - Treasury Cloud"
+US magazine GLOBAL FINANCE
+"Yunong Quick Loan"
+State Administration of Foreign Exchange
+A loan service provided by the Bank to agriculture-related small and micro businesses, individual businesses, new
+agricultural business entities and farmers based on data of agricultural production and operation
+customers
+A comprehensive service platform for multi-bank fund management provided by the Bank for corporate
+Wealth management products
+An internet-based enterprise-level mobile digital payment brand of the Bank, which includes a group of
+comprehensive integrated payment and settlement products and services
+An online unsecured credit trade financing service provided by the Bank for small and micro cross-border trade
+enterprises
+A comprehensive service brand for rural revitalisation by implementing New Finance through offline inclusive
+finance service outlets and online comprehensive service platform of the Bank
+A one-stop online and offline comprehensive service platform featuring "Finance + Incubation + Industry +
+Education" for startups and innovative enterprises, established by the Bank in cooperation with government
+departments, venture capital companies, core enterprises, research institutions and incubators with internal and
+external high-quality resources
+An open platform leveraging FinTech to provide corporate customers with cross-border smart matchmaking
+services and a full range of financial solutions in cross-border transaction scenarios
+A one-stop mobile finance service platform built by the Bank for inclusive finance customers by using the
+Internet, big data, artificial intelligence and biometric technologies
+An online platform integrating technologies such as blockchain, artificial intelligence, Internet of Things with
+trade finance to provide diversified trade finance services for market players such as financial institutions and
+corporate customers
+China Yangtze Power Co., Limited
+State Grid Corporation of China
+State Council of the People's Republic of China
+Sino-German Bausparkasse Co., Ltd.
+"Zhangbutong"
+Best Domestic Bank for Renminbi
+Internationalization 2021
+Financial Total Solutions, a comprehensive investment banking brand of the Bank incorporating a host of
+financial products and instruments
+STRATEGIC BUSINESS INTELLIGENCE FOR THE HARDAL SERVICES COMMUNITY
+30 25 20
+35
+1,500-
+2,000-
+2,500-
+3,000-
+(in hundred
+million of RMB)
+Net profit
+LIABILITIES
+2017
+2018
+2019
+2020
+2021
+of RMB)
+15
+(in trillions
+10
+0
+ROA
+0.3
+THE ASIAN BANKER
+0.4
+1.42%
+NPL Ratio
+2.13%
+NIM
+12.55%
+ROE
+2017 2018 2019 2020 2021
+1,000
+30
+20
+15
+5
+ASSETS
+0
+STABLE AND BALANCED CORE INDICATORS
+Industry and Finance 2021
+Best Bank in Integration of
+FINANCIAL NEWS
+RE GDM
+Highly Competitive Digital Retail
+Bank 2021
+Management Award 2021
+周。南
+CHINA BUSINESS JOURNAL
+Most Socially Responsible
+Financial Institutions 2021
+Hong Kong Commercial Daily
+香港商報
+in China 2021
+Singapore magazine THE ASIAN BANKER
+Achievement in Enterprise Risk
+Best Mega Retail Bank
+中国经营报
+末方
+CHINA BUSINESS JOURNAL
+Annual Responsibility Case Award
+Southern Weekly
+7
+China Construction Bank Corporation
+Annual Report 2021
+Best Board
+DIRECTORS & BOARDS
+BOARDS
+DIRECTORS
+董事会
+FINANCIAL AND OPERATIONAL HIGHLIGHTS
+2021 IFF Global Green Finance
+International Finance Forum
+INTERNATIONAL FINANCE FORUM (IFF)
+国際金融論壇
+2021
+Innovation Award
+In 2021, the strategy development committee held six
+meetings in total. The committee enhanced research on the
+macroeconomic situations, analysed in depth the opportunities,
+risks and challenges faced by the Bank and proposed targeted
+strategies. Based on the new stage of development, the
+committee systematically planned for the Bank's 14th Five-Year
+Development Plan, Inclusive Finance, FinTech and other major
+strategies, and promoted the implementation of New Finance
+initiatives so as to enhance the strength of financial services
+to serve the real economy. The committee supported the
+issuance of capital instruments to help the Bank replenish capital
+through multiple channels and reinforce risk resistance ability
+continuously. The committee actively promoted the Bank to fulfill
+its social responsibility as a major state-owned bank and provide
+coordinated support for epidemic prevention and control, flood
+relief and sustainable economic and social development.
+drafting strategies and development plans, supervising and
+assessing implementation thereof;
+reviewing the implementation of annual business plans
+and fixed assets investment budgets;
+The primary responsibilities of the strategy development
+committee include:
+evaluating the coordinated development of various
+businesses;
+reviewing material restructuring and re-organisation plans;
+reviewing significant investment and financing projects of
+the Bank;
+exercising the power over equity investment, IT planning,
+capital adequacy ratio management and other matters
+within the scope of the Board's authorisation; and
+other duties authorised by the Board.
+reviewing annual business plans and fixed assets
+investment budgets;
+Mr. Xu Jiandong
+Number of meetings
+attended in person/
+Number of meetings
+during term of office
+Number of meetings
+attended by proxy/
+Number of meetings
+during term of office
+Mr. Tian Guoli
+6/6
+0/6
+Mr. Zhang Qi
+6/6
+Mr. Tian Bo
+Mr. Xia Yang
+Members of strategy development committee
+At the end of 2021, the strategy development committee
+consists of 11 directors. Mr. Tian Guoli, chairman of the Board,
+serves as chairman of the strategy development committee.
+Members include Mr. Wang Jiang, Mr. Xu Jiandong, Mr. Zhang
+Qi, Mr. Tian Bo, Mr. Xia Yang, Ms. Shao Min, Ms. Liu Fang, Sir
+Malcolm Christopher McCarthy, Mr. Kenneth Patrick Chung
+and Mr. Leung Kam Chung, Antony. Two of these members are
+executive directors, six are non-executive directors, and three are
+independent non-executive directors.
+11.
+CORPORATE GOVERNANCE REPORT
+5.
+0/6
+3.
+6.
+7.
+8.
+9.
+10.
+4.
+Strategy development committee
+From January 2021, Ms. Shao Min commenced her position as non-executive director, member of the strategy development committee and the
+nomination and remuneration committee of the Board.
+From April 2021, Mr. Michel Madelain commenced his position as member of the related party transaction, social responsibility and consumer protection
+committee of the Board.
+From June 2021, Mr. William Coen commenced his position as independent non-executive director, member of the audit committee, the risk
+management committee and the related party transaction, social responsibility and consumer protection committee of the Board.
+From October 2021, Mr. Leung Kam Chung, Antony commenced his position as independent non-executive director, chairman of the risk management
+committee, member of the strategy development committee and the nomination and remuneration committee of the Board.
+From May 2021, Mr. Lyu Jiajin ceased to serve as executive director, member of the strategy development committee and related party transaction, social
+responsibility and consumer protection committee of the Board.
+From January 2021, Ms. Feng Bing ceased to serve as non-executive director, member of the strategy development committee and the nomination and
+remuneration committee of the Board.
+From June 2021, Ms. Anita Fung Yuen Mei ceased to serve as independent non-executive director, member of the strategy development committee, the
+risk management committee and the nomination and remuneration committee of the Board.
+From June 2021, Mr. Carl Walter ceased to serve as independent non-executive director, chairman of the risk management committee, member of the
+strategy development committee, the audit committee and the related party transaction, social responsibility and consumer protection committee of the
+Board.
+China Construction Bank Corporation
+Annual Report 2021
+From January 2021, Ms. Liu Fang commenced her position as non-executive director, member of the strategy development committee and the audit
+committee of the Board.
+6/6
+Mr. Carl Walter
+6/6
+0/3
+0/0
+0/0
+Ms. Feng Bing
+Ms. Anita Fung Yuen Mei
+4/4
+0/4
+4/4
+0/4
+China Construction Bank Corporation
+Annual Report 2021
+93
+94
+CORPORATE GOVERNANCE REPORT
+In 2022, the strategy development committee will adhere to
+the principle of seeking progress while maintaining stability,
+implement the new development concept in a complete,
+accurate and comprehensive manner, implement the New
+Finance initiatives in depth and empower high-quality
+development with New Finance. To give the guiding role
+of strategies full play, it will strengthen the supervision and
+evaluation of the implementation of the Bank's 14th Five-Year
+Plan and other major strategies, so as to ensure the fulfillment of
+strategic planning goals and tasks. It will proactively integrate into
+the overall development of green and low-carbon transformation
+of the economy and society, and implement the country's major
+strategic deployment for "achieving carbon peak and carbon
+neutrality". The committee will promote the implementation of
+capital planning, so as to maintain capital adequacy and enhance
+the ability to serve the real economy and prevent and mitigate
+risks.
+Audit committee
+The audit committee of the Bank consisted of six directors. Mr.
+Kenneth Patrick Chung, independent non-executive director of
+the Bank, serves as chairman of the audit committee. Members
+include Mr. Tian Bo, Ms. Liu Fang, Mr. Graeme Wheeler, Mr. Michel
+Madelain and Mr. William Coen. Two of these members are non-
+executive directors and four are independent non-executive
+directors. The composition of the audit committee meets the
+requirements of corporate governance and domestic and
+overseas regulations.
+From January 2021, Mr. Xu Jiandong ceased to serve as member of the audit committee of the Board.
+monitoring the financial reports, reviewing the disclosure
+of accounting information and significant events of the
+Bank;
+The primary responsibilities of the audit committee include:
+3/3
+1/6
+5/6
+Mr. Lyu Jiajin
+0/6
+6/6
+0/6
+Ms. Shao Min
+6/6
+0/6
+Ms. Liu Fang
+6/6
+0/6
+0/6
+Sir Malcolm Christopher McCarthy
+0/6
+Mr. Kenneth Patrick Chung
+6/6
+0/6
+Mr. Leung Kam Chung, Antony
+1/1
+0/1
+Resigned members
+Mr. Wang Jiang
+6/6
+2.
+The Bank has adopted a code of practice in relation to securities
+transactions by directors and supervisors as set out in the
+Appendix 10 Model Code for Securities Transactions by Directors
+of Listed Issuers to the Listing Rules of Hong Kong Stock
+Exchange. All directors and supervisors had complied with the
+provisions of this code for the year ended 31 December 2021.
+Member
+91
+92
+CORPORATE GOVERNANCE REPORT
+COMMITTEES UNDER THE BOARD
+There are five committees under the Board: strategy development committee, audit committee, risk management committee,
+nomination and remuneration committee, and related party transaction, social responsibility and consumer protection committee. More
+than half of the members of the last four committees are independent non-executive directors.
+As of the disclosure date, details of the positions of the Bank's directors in committees under the Board are as follows.
+Strategy
+development
+Risk
+Audit
+Committees under the board of directors
+committee
+committee
+management
+committee
+Nomination and
+remuneration
+committee
+Related party transaction,
+social responsibility
+and consumer
+protection committee
+Executive director
+Mr. Tian Guoli
+Non-executive directors
+China Construction Bank Corporation
+Annual Report 2021
+The Bank is independent from Huijin, its controlling shareholder,
+with respect to business, personnel, assets, institutional and
+financial matters. The Bank has independent and complete
+operating assets as well as independent operating capability, and
+is able to survive in the market on its own.
+Independent operating capability
+Compliance with Model Code for Securities Transactions
+by Directors
+Duty performance of directors
+monitoring and assessing the internal controls of the Bank;
+monitoring and assessing the internal auditing work of the
+Bank;
+Facing the regular pandemic prevention and control, the 2021
+annual general meeting and the meetings of the Board and its
+special committees were held with the combination of onsite
+and online. All directors overcame the impact of time difference
+and persistent global pandemic, performed duties diligently
+pursuant to specific requirements of domestic and overseas laws
+and regulations, regulatory requirements, the Bank's Articles of
+Association and the Rules of Procedure for the board of directors,
+and successfully completed their work with high quality. During
+the year, three shareholders' general meetings were convened, to
+which the Board proposed 15 proposals, including final financial
+accounts, profit distribution plan, fixed assets budget, additional
+limit on poverty alleviation donations, election of directors and
+other major issues, protecting the legitimate rights and interests
+of shareholders. During the year, the board of directors held
+eight meetings, at which the board of directors considered
+64 proposals, reviewed 19 written reports, and debriefed 24
+committee reports, giving the decision making and the strategic
+guiding role of the board of directors to full play.
+The board members paid close attention to the external
+situations, strengthened the research on macro situations, studied
+major issues of the Bank in multiple ways, including symposiums
+on strategies, special researches, policies interpretation and
+communication meetings. It focused on supporting national
+strategies, consolidating traditional advantages, participating
+in international competition and supporting high-quality
+development of the economy, on promoting the formulation of
+the strategic plans for inclusive finance and FinTech of the Bank,
+supervised the implementation of the Three Major Strategies
+and digital construction, on improving the development of
+systems and mechanisms, including remuneration's incentive and
+restraint system, credit and risk management mechanism and
+ESG governance mechanism, and provided feasible comments
+and suggestions. The relevant suggestions have been adopted in
+the operation and management of the Bank.
+Please refer to "Corporate Governance Report - Shareholders'
+General Meeting" for details of the attendances of directors at the
+shareholders' general meeting.
+Please refer to "Corporate Governance Report - Committees
+under the Board "for details of the attendances of directors at
+meetings of the board committees.
+Please refer to the Work Report of Independent Directors for the
+Year of 2021 for details of duty performance of independent non-
+executive directors of the Bank during the reporting period, which
+would be disclosed by the Bank on the same day of this annual
+report.
+Special statement and independent opinion given by
+independent non-executive directors regarding the
+external guarantees provided by the Bank
+In accordance with laws and regulations and relevant regulatory
+requirements and based on the principles of impartiality, fairness,
+and objectiveness, the independent non-executive directors
+of the Bank, including Sir Malcolm Christopher McCarthy,
+Mr. Kenneth Patrick Chung, Mr. Graeme Wheeler, Mr. Michel
+Madelain, Mr. William Coen and Mr. Leung Kam Chung, Antony
+made the following statements on external guarantees provided
+by the Bank:
+Chairman
+The external guarantee business provided by the Bank has been
+approved by the regulators, and is part of the ordinary business
+of the Bank. With respect to the risks arising from guarantee
+business, the Bank formulated specific management measures,
+operation processes and approval procedures, and carried out
+the business accordingly. The guarantee business of the Bank
+is mainly in the form of letter of guarantees. As at 31 December
+2021, the balance under the letter of guarantees issued by the
+Group was approximately RMB1,289,600 million.
+CORPORATE GOVERNANCE REPORT
+Accountability of directors in relation to financial
+statements
+The directors are responsible for overseeing the preparation of
+financial statements for each accounting period to give a true and
+fair view of the Group's financial position, operating results and
+cash flows.
+During the reporting period, the Bank published annual report
+2020, first quarter report of 2021, half-year report 2021, and
+third quarter report of 2021 in accordance with relevant laws,
+regulations and listing rules of the listing venues.
+Training of directors
+All directors of the Bank took part in domestic and overseas
+anti-corruption laws and regulations training, and directors'
+compliance training on the US Bank Secrecy Act and AML laws.
+Mr. Xu Jiandong, Mr. Zhang Qi, Mr. Tian Bo, Mr. Xia Yang, Ms. Shao
+Min and Ms. Liu Fang attended corporate governance training
+of China's Banking Association. All independent non-executive
+directors completed the training required by the Hong Kong
+Stock Exchange and the Shanghai Stock Exchange, including the
+role and key duties of independent non-executive directors in
+the corporate governance structure, the rights and obligations of
+independent non-executive directors, inside information, related
+party transactions, notifiable transactions, and main requirements
+on independent non-executive directors by other applicable laws
+and regulations. Ms. Shao Min participated in special training
+including governance experience sharing and compliance
+operation. Ms. Liu Fang participated in special training covering
+macro trends, information disclosure and obligations and
+responsibilities of directors and supervisors, and direct financing.
+Mr. Kenneth Patrick Chung participated in the trainings including
+IFRS accounting standards and corporate governance organised
+by the Hong Kong Institute of Certified Public Accountants, as
+well as trainings regarding No.17 IFRS and ORSA organised by
+Hong Kong Insurance Authority.
+Training of company secretary
+In 2021, Mr. Ma Chan Chi, company secretary of the Bank,
+participated in several specialised training courses and
+workshops, which included company secretarial practice training,
+listed company information disclosure, retention of personal
+data, ESG reporting, FinTech and innovation, and AML refresher
+courses. The training totalled over 15 hours, which was in
+compliance with the requirements of the Listing Rules of Hong
+Kong Stock Exchange.
+China Construction Bank Corporation
+Annual Report 2021
+From March 2022, Mr. Wang Jiang ceased to serve as vice chairman, executive director, member of the strategy development committee and the risk
+management committee of the Board.
+Mr. Xu Jiandong
+Mr. Zhang Qi
+Member
+Mr. Graeme Wheeler
+Mr. Michel Madelain
+Member
+Member
+Member
+Chairman
+Member
+Member
+Member
+Member
+Mr. William Coen
+Mr. Leung Kam Chung, Antony
+1.
+Member
+Member
+Member
+Member
+Chairman
+Member
+Chairman
+Member
+Mr. Kenneth Patrick Chung
+Mr. Tian Bo
+Mr. Xia Yang
+Member
+Member
+Member
+Member
+Member
+Member
+Member
+Member
+Ms. Shao Min
+Member
+Ms. Liu Fang
+Member
+Member
+Independent non-executive directors
+Sir Malcolm Christopher McCarthy
+Member
+Member
+Chairman
+Member
+monitoring and assessing the external auditing work;
+designing and proposing measurement standards for
+material related party transactions and the policies for
+related party transaction management and policies for
+internal approval and filing of the Bank according to the
+requirements of rules, regulations and the Articles of
+Association of the Bank, and submitting the same to the
+Board of Directors for approval;
+appropriate arrangements;
+Ms. Anita Fung Yuen Mei
+Number of meetings
+attended in person/
+Number of meetings
+during term of office
+Number of meetings
+attended by proxy/
+Number of meetings
+during term of office
+7/7
+0/7
+7/7
+0/7
+7/7
+0/7
+7/7
+0/7
+7/7
+0/7
+1/1
+0/1
+0/0
+4/4
+0/0
+Ms. Feng Bing
+Resigned members
+Mr. Leung Kam Chung, Antony
+Mr. Michel Madelain
+The primary responsibilities of the nomination and remuneration
+committee include:
+formulating criteria and procedures for the selection and
+appointment of directors and senior management;
+proposing candidates for directors, president, chief audit
+officer, secretary to the Board and members of special
+committees under the Board to the Board;
+reviewing the structure, number of members and
+composition of the Board (including aspects on expertise,
+knowledge and experience) and proposing suggestions on
+the adjustment of the Board to implement the corporate
+strategies of the Bank;
+evaluating the performance of Board members;
+reviewing candidates for senior management nominated
+by the president;
+formulating development plans for senior management
+and key back-up personnel;
+reviewing the remuneration management rules submitted
+by the president;
+organising the formulation of performance evaluation
+measures for directors and senior management and
+submitting the measures to the Board for deliberation;
+organising performance appraisal of directors and senior
+management; proposing suggestions on the remuneration
+distribution plan for directors and senior management in
+accordance with the performance appraisal results and
+the board of supervisors' performance evaluations and
+submitting the plan to the Board for deliberation;
+proposing suggestions on the remuneration distribution
+plan for supervisors in accordance with the performance
+appraisal of the supervisors by the board of supervisors and
+submitting the plan to the Board for deliberation;
+monitoring the implementation of the Bank's rules on
+performance appraisal and remuneration; and
+other duties authorised by the Board.
+0/4
+China Construction Bank Corporation
+Annual Report 2021
+98
+CORPORATE GOVERNANCE REPORT
+In 2021, the nomination and remuneration committee convened
+seven meetings in total. Regarding nomination, the committee
+proposed to the Board on the re-election of and candidates for
+executive directors and independent non-executive directors,
+candidates for members of special committees under the Board
+and candidates for senior management; and ensured that the
+nominees were eligible for these positions, complied with laws,
+administrative regulations, rules and the Articles of Association of
+the Bank and performed their duties diligently for the Bank. The
+nomination and remuneration committee held that during the
+reporting period, the composition of the Board of the Bank was
+in conformity with the requirements of the Diversity Policy for the
+Board of Directors. Regarding remuneration and performance
+appraisal, the nomination and remuneration committee studied
+domestic regulatory policies on remuneration, organised the
+formulation of the settlement plan of the remuneration for
+directors, supervisors and senior management of the Bank
+for 2020, optimised and improved the performance appraisal
+plans for executive directors and senior management for 2021.
+The committee attached importance to the development
+and training of key back-up talents and the development
+of the Training Centre and paid attention to the employee
+remuneration. It guided the optimisation of the renewal plan
+of liability insurance for directors, supervisors and the senior
+management. It also put forward opinions and suggestions on
+continuously improving the quality and efficiency of operations
+of the Board, promoting the diversity of the board members,
+improving the performance appraisal plans for the executive
+directors and senior management, improving the remuneration
+incentive system and enhancing talent development and
+training.
+Members of nomination and remuneration committee
+Sir Malcolm Christopher McCarthy
+Mr. Zhang Qi
+Ms. Shao Min
+Mr. Graeme Wheeler
+97
+The nomination and remuneration committee consists of six
+directors. Sir Malcolm Christopher McCarthy, independent
+non-executive director of the Bank, serves as chairman of the
+nomination and remuneration committee. Members include
+Mr. Zhang Qi, Ms. Shao Min, Mr. Graeme Wheeler, Mr. Michel
+Madelain and Mr. Leung Kam Chung, Antony. Two of these
+members are non-executive directors and four are independent
+non-executive directors.
+In 2022, the nomination and remuneration committee will
+strengthen self-improvement, continue to accomplish the work in
+relation to nomination, review the structure, number of members
+and composition of the Board and supervise the performance
+of the board members. It will further refine the remuneration
+and performance appraisal measures for the directors and senior
+management in accordance with the national remuneration
+regulatory policies. It will put forward the remuneration
+settlement plan for directors, supervisors and senior management
+for 2021 and pay attention to the remuneration system and the
+personnel training of the Bank.
+The related party transaction, social responsibility and consumer
+protection committee of the Bank consists of four directors. Mr.
+Graeme Wheeler, independent non-executive director of the
+Bank, serves as chairman of the related party transaction, social
+responsibility and consumer protection committee. Members
+include Mr. Kenneth Patrick Chung, Mr. Michel Madelain and Mr.
+William Coen. All of the members are independent non-executive
+directors.
+during term of office
+during term of office
+9/9
+0/9
+9/9
+0/9
+6/6
+0/6
+4/4
+0/4
+2/4
+5/5
+2/4
+0/5
+In 2022, the related party transaction, social responsibility and
+consumer protection committee will strengthen the supervision
+and management of the related party transactions, improve the
+protection of consumer rights and interests, monitor and guide
+the promotion of ESG work, and promote the development of
+green finance. It will monitor and promote the implementation
+of the strategies of inclusive finance, finance for rural revitalisation
+and house rental. It will monitor and guide the fulfilment of social
+responsibility, the implementation of charitable donations and
+review the social responsibility report. It will also assist the Board
+in relevant work as authorised by the Board.
+China Construction Bank Corporation
+Annual Report 2021
+99
+CORPORATE GOVERNANCE REPORT
+Number of meetings
+attended by proxy/
+number of meetings
+Number of meetings
+attended in person/
+number of meetings
+Mr. Lyu Jiajin
+Mr. Carl Walter
+Resigned members
+China Construction Bank Corporation
+Annual Report 2021
+CORPORATE GOVERNANCE REPORT
+The primary responsibilities of the related party transaction, social
+responsibility and consumer protection committee include:
+identifying the related parties of the Bank, reporting them
+to the Board of Directors and the Board of Supervisors, and
+making them public towards relevant personnel of the
+Bank;
+accepting the filing for general related party transactions,
+or approving general related party transactions when
+necessary;
+reviewing material related party transactions, submitting
+them to the Board of Directors for approval, and reporting
+them to the Board of Supervisors;
+studying and formulating the social responsibility strategy
+and policy of the Bank;
+monitoring, inspecting and assessing the Bank's fulfillment
+of social responsibilities, guiding and overseeing the
+production of the corporate social responsibility report;
+studying and formulating the ESG management guidelines
+and strategies of the Bank, regularly tracking and evaluating
+the progress in ESG, guiding and supervising related
+information disclosure;
+Related party transaction, social responsibility and
+consumer protection committee
+studying and formulating the Bank's green finance strategy,
+and supervising and evaluating the implementation of the
+strategy;
+guiding and supervising the establishment and
+improvement of the management system for consumer
+protection, supervising the senior management's
+implementation of the relevant work, and guiding the
+disclosure of major information in consumer protection;
+and
+other duties and powers authorised by the Board.
+In 2021, the related party transaction, social responsibility and
+consumer protection committee convened nine meetings in
+total. The committee supervised and guided the management
+to improve the reporting of related party transactions and
+implement standardised and refined management of related
+party transactions in accordance with domestic and overseas
+regulatory requirements. It supervised the establishment and
+improvement of management system for consumer protection,
+continuously promoted the robustness of strategies, policies
+and objectives of consumer protection, oversaw the execution
+of consumer protection programs, and promoted Banks'
+compliance operation and healthy business development. It
+tracked and increased supervision of businesses such as house
+rental, inclusive finance and finance for rural revitalisation,
+enhanced refined business management, and maximised the
+social benefits of New Finance initiatives. It reviewed the social
+responsibility report, continuously monitored the execution of
+charitable donations, urged the management to thoroughly
+implement the concept of green development, and promoted
+the development of green finance. It defined the ESG-related
+responsibilities of the committee, tracked the development trend
+of ESG in and out of China, strengthened external communication
+with ESG-related institutions, and internally supervised the
+continuous improvement of the ESG governance structure and
+the integration of ESG concept into strategic promotion and
+operational management to promote the Bank's sustainable
+development.
+Members of related party transaction, social responsibility and
+consumer protection committee
+Mr. Graeme Wheeler
+Mr. Kenneth Patrick Chung
+Mr. Michel Madelain
+Mr. William Coen
+supervising and instructing on senior management to
+promote Inclusive Finance related work;
+paying attention to potential misconducts and ensuring
+Nomination and remuneration committee
+CORPORATE GOVERNANCE REPORT
+6/6
+0/6
+6/6
+0/6
+6/6
+0/6
+2/2
+0/2
+0/0
+4/4
+0/0
+0/4
+In 2022, the audit committee will continue to strengthen the
+supervision of periodic reports to comply with accounting
+standards as well as domestic and overseas regulatory
+requirements, optimise disclosures related to periodic reports,
+and provide professional advice to the Board. It will monitor and
+evaluate the external audits, and promote the improvement of
+service quality of external auditors. It will monitor and guide the
+internal audits, and urge rectifications related to audit findings. It
+will enhance the monitoring and evaluation of internal control,
+urge the continuous improvement of the robustness and
+effectiveness of the internal control system. The audit committee
+will also assist the Board in other relevant work as authorised by
+the Board.
+China Construction Bank Corporation
+Annual Report 2021
+95
+96
+CORPORATE GOVERNANCE REPORT
+Risk management committee
+0/6
+6/6
+0/6
+6/6
+reporting work to the Board; and
+other duties and powers authorised by the Board.
+In 2021, the audit committee convened six formal meetings, one
+pre-communication meeting for annual report and one for half-
+year financial report, and two separate meetings with external
+auditors. The audit committee put forward important opinions
+and suggestions and support the decision-making process of the
+Board by paying special attention to the following aspects:
+Supervising and reviewing periodic reports. The committee
+reviewed annual report 2020 and half-year report 2021 and
+related summaries and results announcements, and the first
+and third quarter reports of 2021, adhered to the practice of pre-
+communication before annual and half-year report approval
+and fully exchanged views with the management and external
+auditors. The committee paid attention to and promoted the
+remediation of existing wealth management assets, closely
+followed the measurement and disclosure of expected credit
+losses, and urged continuous optimisation of related disclosures
+in periodic reports. The committee also paid attention to the
+impact of the COVID-19 pandemic, macroeconomic situation and
+changes in regulatory policy on the asset quality.
+In terms of the annual report, pursuant to requirements of the
+CSRC and the Bank's annual report working procedures for the
+audit committee of the Board, the audit committee reviewed
+the annual financial report of the Bank, and fully communicated
+with the management and formed written opinions before
+the commencement of onsite work of external auditors. Based
+on the initial audit opinions given by the external auditors,
+the committee strengthened communication with external
+auditors and reviewed the annual financial report again. After the
+completion of the audit, the audit committee reviewed and voted
+on the annual financial report, and submitted it to the Board for
+deliberation.
+China Construction Bank Corporation
+Annual Report 2021
+CORPORATE GOVERNANCE REPORT
+Overseeing and evaluating external audit. The committee
+oversaw the annual assessment of external auditors, which
+was taken as an important consideration for engaging external
+auditors. It agreed to continue to engage Ernst & Young as the
+Bank's external auditor for 2021, submitted the proposal to the
+Board for review, and reviewed and approved the 2021 external
+audit service contract. The committee debriefed on the external
+audit plan and the updates and implementation thereof, and
+regularly listened to reports on the external audit of the financial
+reports. It studied the management suggestions from the external
+auditors, communicated over key audit matters, and accepted
+regular filings of work summaries of external auditors.
+At the end of 2021, the risk management committee of the
+Bank consists of nine directors. Mr. Leung Kam Chung, Antony,
+independent non-executive director of the Bank, serves as
+chairman of the risk management committee. Members include
+Mr. Wang Jiang, Mr. Xu Jiandong, Mr. Xia Yang, Sir Malcolm
+Christopher McCarthy, Mr. Kenneth Patrick Chung, Mr. Graeme
+Wheeler, Mr. Michel Madelain and Mr. William Coen. One of these
+members is executive director, two are non-executive directors
+and six are independent non-executive directors.
+Overseeing and assessing internal control and internal audit. The
+committee attached importance to internal control, assessed
+the effectiveness of internal control on a regular basis, issued the
+assessment report and disclosed to the public. The committee
+paid attention to internal control defects identified by internal
+and external auditors and those found in internal control
+assessment, and promoted the continuous improvement and
+perfection of the internal control. The committee paid attention
+to internal audit, debriefed on the internal audit plan and
+related updates, and ensured that internal audit had sufficient
+resources for operation. It regularly listened to the summary
+report on internal audit findings, continued to promote related
+rectifications, and promoted the coordination between the
+internal and external audit.
+Mr. Kenneth Patrick Chung
+Mr. Tian Bo
+Ms. Liu Fang
+Mr. Graeme Wheeler
+Mr. Michel Madelain
+Mr. William Coen
+Resigned members
+Mr. Xu Jiandong
+Mr. Carl Walter
+Number of meetings
+attended in person/
+Number of meetings
+during term of office
+Number of meetings
+attended by proxy/
+Number of meetings
+during term of office
+Members of audit committee
+In 2022, the risk management committee will continue
+to conscientiously perform its duties and improve the
+comprehensive and proactive intelligent risk management
+and control system. It will guide the orderly rectification of
+problems identified in regulatory inspections and strengthen the
+effectiveness of rectification work. It will continue to promote the
+fulfillment of the regulatory requirements on global systemically
+important banks to achieve compliance of capacity indicators. It
+will carry out in-depth studies on particular risk themes, pay close
+attention to the risks and challenges arising from the complex
+economic and financial situation and uncertainties at home and
+abroad and actively promote the management to strengthen
+the analysis and prevention and control of ESG-related risks such
+as climate and environmental risk and new types of risks such
+as data security, technology and cyber risks. The committee will
+promote the Group's management of consolidation, compliance
+and AML and improve the proactive, scientific and forward-
+looking risk management. It will enhance risk management of
+combined U.S. operations, and enhance the comprehensive risk
+management capabilities.
+The primary responsibilities of the risk management committee
+include:
+providing guidance on the building of risk management
+system of the Bank;
+0/7
+7/7
+0/7
+6/7
+1/7
+7/7
+0/7
+7/7
+0/7
+3/3
+0/3
+3/5
+2/5
+4/4
+0/4
+0/4
+4/4
+China Construction Bank Corporation
+Annual Report 2021
+6/7
+0/7
+7/7
+0/2
+monitoring and assessing the establishment, organisational
+structure, working procedures and effectiveness of risk
+management departments, and providing suggestions on
+improvement;
+reviewing the Bank's risk report, conducting periodic
+assessment of risk profile, and providing suggestions on
+improvement of risk management of the Bank;
+evaluating the performance of the Bank's senior
+management members responsible for risk management;
+supervising the compliance of core businesses,
+management systems and major operation activities of the
+Bank;
+taking the responsibilities of the US risk management
+committee as well; and
+other duties and powers authorised by the Board.
+In 2021, the risk management committee convened seven
+meetings in total. The risk management committee guided
+the management to consolidate the construction of risk
+management system, improve the quality and effectiveness of
+rectification of issues identified by regulators and implement
+regulatory requirements on global systematically important
+banks. It conducted in-depth thematic studies on the rectification
+of existing WMPs, online business risks and operational risks,
+organised research on hotspot issues, including Brexit, ESG-
+related risk reporting framework, e-CNY and the Evergrande issue
+and promoted the Group's comprehensive risk management,
+such as consolidation, compliance and AML. It actively studied
+and responded to U.S. sanctions risk, fully performed the duties
+of the U.S. risk management committee and played an important
+role in supporting the Board's scientific decision-making and
+overall improvement of the Bank's risk management standard.
+Under the framework of overall risk management system, the risk
+management committee continued to supervise and review the
+effectiveness of the risk management system of the Bank. The
+Board and the risk management committee of the Bank heard
+the management's reports on the overall risk management of
+the Group on a semi-annual basis. Please refer to "Management
+Discussion and Analysis - Risk Management" for details of risk
+management.
+Members of risk management committee
+Mr. Leung Kam Chung, Antony
+Mr. Xu Jiandong
+Mr. Xia Yang
+reviewing the risk management policies in accordance
+with the overall strategy of the Bank, monitoring and
+assessing their implementation and effectiveness;
+supervising and examining continuously the effectiveness
+of risk management system;
+Sir Malcolm Christopher McCarthy
+Mr. Graeme Wheeler
+Mr. Michel Madelain
+Mr. William Coen
+Resigned members
+Mr. Wang Jiang
+Ms. Anita Fung Yuen Mei
+Mr. Carl Walter
+Number of meetings
+attended in person/
+Number of meetings
+during term of office
+Number of meetings
+attended by proxy/
+Number of meetings
+during term of office
+2/2
+Mr. Kenneth Patrick Chung
+90
+Please refer to "Corporate Governance Report - Board of
+Directors" for details of the attendances of directors at the
+meetings of the board of directors.
+0/3
+Shareholder representative supervisor
+Wu Jianhang
+Resigned supervisors
+June 2020 to 2022 annual general meeting
+December 2021 to 2023 annual general meeting
+May 2018 to 2023 annual general meeting
+December 2021 to 2023 annual general meeting
+December 2021 to 2023 annual general meeting
+June 2019 to 2021 annual general meeting
+June 2020 to 2022 annual general meeting
+June 2020 to 2022 annual general meeting
+October 2019 to 2021 annual general meeting
+56
+Male
+External supervisor
+67
+Male
+External supervisor
+Ben Shenglin
+Liu Huan
+58
+Male
+External supervisor
+Zhao Xijun
+59
+Male
+Employee representative supervisor
+Deng Aibing
+Male
+56
+60
+Lu Kegui
+53
+Male
+Executive vice president
+Ji Zhihong
+Term of Office
+Age
+Gender
+Position
+Name
+CORPORATE GOVERNANCE REPORT
+Senior management of the Bank
+China Construction Bank Corporation
+Annual Report 2021
+May 2018 to March 2021
+59
+Male
+Employee representative supervisor
+Cheng Yuanguo
+May 2018 to December 2021
+60
+Male
+Employee representative supervisor
+June 2018 to June 2021
+Male
+Employee representative supervisor
+Liu Jun
+61
+Female
+Independent non-executive director
+Independent non-executive director
+Carl Walter
+Anita Fung Yuen Mei
+July 2017 to January 2021
+56
+Female
+Non-executive director
+Feng Bing
+December 2020 to May 2021
+53
+Male
+March 2021 to March 2022
+58
+Male
+Vice chairman, executive director
+Executive director
+Lyu Jiajin
+Wang Jiang
+Resigned directors
+October 2017 to 2022 annual general meeting
+June 2020 to 2022 annual general meeting
+July 2017 to 2022 annual general meeting
+August 2019 to 2021 annual general meeting
+August 2019 to 2021 annual general meeting
+January 2021 to 2022 annual general meeting
+January 2021 to 2022 annual general meeting
+August 2017 to 2022 annual general meeting
+November 2018 to 2023 annual general meeting
+October 2019 to 2021 annual general meeting
+January 2020 to 2021 annual general meeting
+June 2021 to 2023 annual general meeting
+October 2021 to 2023 annual general meeting
+October 2016 to June 2021
+Male
+74
+October 2016 to June 2021
+59
+Male
+Employee representative supervisor
+Wang Yi
+55
+Male
+Shareholder representative supervisor
+Lin Hong
+59
+Male
+August 2019 -
+88
+Male
+Chairman of the board of supervisors,
+shareholder representative supervisor
+Shareholder representative supervisor
+Yang Fenglai
+Wang Yongqing
+Term of Office
+Age
+Gender
+Position
+Name
+Supervisors of the Bank
+58
+Wang Hao
+Executive vice president
+Male
+China Construction Bank Corporation
+Mr. Liu Huan, external supervisor of the Bank, ceased to serve as
+independent non-executive director of Liaoning Wellhope Agri-
+Tech Joint Stock Co., Ltd. from February 2021.
+Mr. Zhao Xijun, external supervisor of the Bank, commenced his
+position as independent non-executive director of iFLYTEK Co.,
+Ltd. from April 2021, and ceased to serve as independent non-
+executive director of FAW Capital Holdings Co., Ltd. from August
+2021.
+Mr. Ben Shenglin, external supervisor of the Bank, commenced
+his positions as independent non-executive director of Industrial
+Bank Co., Ltd. from August 2021 and ceased to serve as external
+supervisor of Industrial Bank Co., Ltd. from June 2021.
+Mr. Leung Kam Chung, Antony, independent non-executive
+director of the Bank, commenced his position as chairman &
+co-founder of Solomon Learning Limited from April 2021, and
+ceased to serve as independent non-executive director of China
+Merchants Bank from August 2021.
+Mr. William Coen, independent non-executive director of the
+Bank, commenced his positions as member of the Advisory Board
+of Baton Systems, Inc. from June 2021, chief regulatory adviser of
+Suade Labs from April 2021, and ceased to serve as vice chairman
+of Reference Point from March 2021.
+Mr. Tian Guoli, chairman and executive director of the Bank
+ceased to serve as member of International Advisory Panel of
+Monetary Authority of Singapore from January 2022.
+Changes in Personal Information of Directors, Supervisors
+and Senior Management
+Due to change of job, Mr. Wang Jiang ceased to serve as
+president of the Bank from March 2022. Due to change of job,
+Mr. Zhang Yi ceased to serve as chief financial officer of the Bank
+from September 2021. Due to change of job, Mr. Lyu Jiajin ceased
+to serve as executive vice president of the Bank from May 2021.
+Due to change of job, Mr. Jin Yanmin ceased to serve as chief risk
+officer of the Bank from April 2021.
+Upon appointment of the Board of the Bank and approval of
+the CBIRC, Mr. Li Yun commenced his position as executive vice
+president of the Bank from November 2021. Upon appointment
+of the Board of the Bank and approval of the CBIRC, Mr. Cheng
+Yuanguo commenced his position as chief risk officer of the Bank
+from April 2021. Upon appointment of the Board of the Bank and
+approval of the CBIRC, Mr. Zhang Yi commenced his position
+as chief financial officer of the Bank from April 2021. Upon
+appointment of the Board of the Bank and filing with the CBIRC,
+Mr. Jin Panshi commenced his position as chief information
+officer of the Bank from March 2021. Upon appointment of the
+Board of the Bank and filing with the CBIRC, Mr. Wang Jiang
+commenced his position as president of the Bank from February
+2021.
+Senior Management of the Bank
+Due to expiration of his term of office, Mr. Lu Kegui ceased to
+serve as employee representative supervisor of the Bank from
+December 2021. Due to expiration of his term of office, Mr. Wu
+Jianhang ceased to serve as shareholder representative supervisor
+of the Bank from June 2021. Due to change of work, Mr. Cheng
+Yuanguo ceased to serve as employee representative supervisor
+of the Bank from March 2021.
+Upon election at the second session of the fifth employee
+representatives' meeting of the Bank, Mr. Wang Yi continued to
+serve as employee representative supervisor of the Bank from
+December 2021. Upon election at the 2021 second extraordinary
+general meeting of the Bank, Mr. Lin Hong commenced his
+position as the shareholder representative supervisor of the Bank
+from December 2021. Upon election at the second session of the
+fifth employee representatives' meeting of the Bank, Mr. Liu Jun
+and Mr. Deng Aibing commenced their positions as employee
+representative supervisors of the Bank from December 2021.
+Supervisors of the Bank
+CORPORATE GOVERNANCE REPORT
+106
+105
+China Construction Bank Corporation
+Annual Report 2021
+Due to change of job, Mr. Wang Jiang ceased to serve as vice
+chairman and executive director of the Bank from March 2022.
+Due to expiration of their terms of office, Ms. Anita Fung Yuen
+Mei and Mr. Carl Walter ceased to serve as independent non-
+executive directors of the Bank from June 2021. Due to change of
+job, Mr. Lyu Jiajin ceased to serve as executive director of the Bank
+from May 2021. Due to change of work, Ms. Feng Bing ceased to
+serve as non-executive director of the Bank from January 2021.
+Upon election at the 2020 annual general meeting of the Bank,
+Mr. Kenneth Patrick Chung continued to serve as independent
+non-executive director of the Bank from June 2021. Upon election
+at the 2021 first extraordinary general meeting of the Bank and
+approval of the Board of the Bank, Mr. Wang Jiang commenced
+his position as vice chairman and executive director of the Bank
+from March 2021. Upon election at the 2020 first extraordinary
+general meeting of the Bank and approval of the CBIRC, Ms.
+Shao Min and Ms. Liu Fang commenced their positions as non-
+executive directors of the Bank from January 2021. Upon election
+at the 2020 annual general meeting of the Bank and approval
+of the CBIRC, Mr. Leung Kam Chung, Antony commenced his
+position as independent non-executive director of the Bank
+from October 2021. Upon election at the 2020 first extraordinary
+general meeting of the Bank and approval of the CBIRC, Mr.
+William Coen commenced his position as independent non-
+executive director of the Bank from June 2021.
+Directors of the Bank
+Annual Report 2021
+BIOGRAPHICAL DETAILS OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
+Directors of the Bank
+Tian Guoli, chairman and executive director
+Mr. Tian has served as chairman and executive director of the Bank since October 2017,
+concurrently as chairman of Sino-German Bausparkasse since March 2018. Mr. Tian currently
+also serves as chairman of China Banking Association, a member of the Expert Committee
+for the 14th Five-Year Plan for Economic and Social Development of China and a member
+of the PBC's Monetary Policy Committee. Mr. Tian served as chairman of BOC from May
+2013 to August 2017, during which he also served as chairman and non-executive director
+of BOC Hong Kong (Holdings) Limited. From December 2010 to April 2013, he served as
+vice chairman and general manager of China CITIC Group Corporation, during which he
+also served as chairman and non-executive director of China CITIC Bank. From April 1999
+to December 2010, he served consecutively as vice president and president of China Cinda
+Asset Management Company, and chairman of China Cinda Asset Management Co., Ltd.
+From July 1983 to April 1999, Mr. Tian held positions in the Bank, including branch deputy
+general manager, general manager of head office departments, and assistant president of
+the Bank. Mr. Tian is a senior economist. He received a bachelor's degree in economics from
+Hubei Institute of Finance and Economics in 1983.
+109
+China Construction Bank Corporation
+Annual Report 2021
+CORPORATE GOVERNANCE REPORT
+Ms. Liu has served as non-executive director of the Bank since January 2021. Ms. Liu joined
+Huijin in 2021. Ms. Liu served as deputy director-general of the general affairs department
+(policy and regulation department) and counsel of SAFE from July 2019 to February 2021.
+From March 2015 to June 2019, she was deputy director-general of the General Affairs
+Department (Policy and Regulation Department) of SAFE. From July 1999 to February 2015,
+Ms. Liu consecutively served as chief staff member and deputy director of the balance
+of payments department of SAFE, deputy director and director of the general affairs
+department (policy and regulation department) of SAFE. Ms. Liu graduated from School of
+International Economics of Renmin University of China with a master's degree in economics
+in 1999.
+Liu Fang, non-executive director
+Ms. Shao has served as non-executive director of the Bank since January 2021. Ms. Shao
+joined Huijin in 2021. Ms. Shao served as senior counsel of the supervision and evaluation
+bureau of Ministry of Finance from June 2019 to February 2021. From April 2019 to June
+2019, Ms. Shao was counsel of the supervision and evaluation bureau of Ministry of
+Finance. From September 2015 to April 2019, Ms. Shao was deputy director-general of the
+accounting department of Ministry of Finance. From August 1987 to September 2015, Ms.
+Shao consecutively served as chief staff member and assistant consultant of the industrial
+transportation finance department of Ministry of Finance, assistant consultant and deputy
+director of the fiscal supervision department of Ministry of Finance and deputy director,
+director and deputy director-general of the supervision and inspection bureau Ministry
+of Finance. Ms. Shao graduated from Dongbei University of Finance & Economics with a
+bachelor's degree in economics in 1987.
+Shao Min, non-executive director
+Mr. Xia has served as non-executive director of the Bank since August 2019. Mr. Xia joined
+Huijin in 2019. From August 1997 to September 2019, Mr. Xia worked in Hua Xia Bank,
+and consecutively served in various positions including general manager of asset custody
+department, general manager of Jinan Branch, general manager of Hefei Branch, chief
+disciplinary officer and deputy general manager of Hangzhou Branch, secretary of discipline
+inspection committee and deputy general manager of Wenzhou Branch. From December
+1988 to August 1997, Mr. Xia worked for Zhejiang Branch of ICBC and Hangzhou Branch
+of China Merchants Bank. Mr. Xia is a senior economist and accountant. Mr. Xia graduated
+from Nanjing University with a bachelor's degree in human and animal physiology in 1988;
+he graduated from Nanjing University with a PhD degree in management sciences and
+engineering in 2018.
+Xia Yang, non-executive director
+Mr. Tian has served as non-executive director of the Bank since August 2019. Mr. Tian joined
+Huijin in 2019. From March 2006 to August 2019, Mr. Tian worked consecutively as division
+head of banking business department, division head and assistant general manager of
+corporate banking department, deputy general manager of trade finance department
+and deputy general manager of transaction banking department of BOC. From February
+2016 to February 2018, Mr. Tian also served as a member of the Standing Committee of
+the CPC Municipal Committee and Vice Mayor of Fangchenggang City of Guangxi Zhuang
+Autonomous Region. From July 1994 to March 2006, Mr. Tian worked at Beijing Branch of
+ICBC and head office of China Minsheng Bank. Mr. Tian graduated from Beijing College
+of Finance and Trade with a bachelor's degree in finance in 1994 and obtained a master's
+degree in management from the Capital University of Economics and Business in 2004.
+Changes in Directors, Supervisors and Senior
+Management
+Tian Bo, non-executive director
+Zhang Qi, non-executive director
+Annual Report 2021
+China Construction Bank Corporation
+108
+CORPORATE GOVERNANCE REPORT
+107
+China Construction Bank Corporation
+Annual Report 2021
+CORPORATE GOVERNANCE REPORT
+Mr. Xu has served as non-executive director of the Bank since June 2020. Mr. Xu joined
+Huijin in 2015. Mr. Xu served as non-executive director of ABC from February 2015 to June
+2020. Mr. Xu served as deputy counsel of the management and inspection department
+of the SAFE from June 2012 to April 2015, deputy director of the financial affairs office of
+Jilin Province from April 2011 to June 2012, deputy counsel of the balance of payment
+department of the SAFE from March 2004 to April 2011. Mr. Xu worked served as deputy
+division-chief of the Foreign Exchange Market Management Division of the Balance of
+Payment Department and division-chief of the Banking Management Division of the
+Balance of Payment Department at the SAFE from September 1994 to March 2004. Mr. Xu
+graduated from the Central University of Finance and Economics with a bachelor's degree in
+finance in 1986.
+Xu Jiandong, non-executive director
+Mr. Zhang has served as non-executive director of the Bank since July 2017. Mr. Zhang
+joined Huijin in 2011. Mr. Zhang served as non-executive director of BOC from July 2011 to
+June 2017. Mr. Zhang worked in central expenditure division one and general division of the
+budget department, and ministers' office under the general office of the Ministry of Finance,
+as well as in the office of China Investment Corporation, serving consecutively as deputy
+division-chief, division-chief and senior manager from 2001 to 2011. Mr. Zhang studied in
+Dongbei University of Finance & Economics from 1991 to 2001 and obtained his bachelor's
+degree, master's degree and PhD degree in economics in 1995, 1998 and 2001 respectively.
+Mr. Zhang is currently a doctoral supervisor at Dongbei University of Finance & Economics.
+Term of Office
+During the reporting period, there was no change in the
+shareholdings of directors, supervisors and senior management
+of the Bank. Some of the Bank's directors, supervisors and senior
+management indirectly held H-shares of the Bank via employee
+stock incentive plan of the Bank before they assumed their
+current positions. Mr. Yang Fenglai held 16,789 H-shares, Mr. Lin
+Hong held 15,555 H-shares, Mr. Wang Yi held 13,023 H-shares,
+Mr. Liu Jun held 12,447 H-shares, Mr. Deng Aibing held 17,009
+H-shares, Mr. Wang Hao held 12,108 H-shares, Ms. Zhang Min
+held 9,120 H-shares, Mr. Hu Changmiao held 17,709 H-shares,
+Mr. Cheng Yuanguo held 15,863 H-shares; Mr. Wang Jiang, the
+resigned vice chairman, executive director and president, held
+15,417 H-shares, Mr. Wu Jianhang, the resigned supervisor, held
+20,966 H-shares, Mr. Lu Kegui, the resigned supervisor, held 18,989
+H-shares, Mr. Jin Yanmin, the resigned chief risk officer, held
+15,739 H-shares and Mr. Zhang Yi, the resigned chief financial
+officer, held 9,848 H-shares. Apart from the above, the other
+directors, supervisors or senior management of the Bank did not
+hold any shares of the Bank.
+April 2021 to September 2021
+57
+Male
+Chief information officer
+Jin Panshi
+May 2019-
+58
+Male
+Secretary to the Board
+Hu Changmiao
+November 2021 -
+48
+Male
+Executive vice president
+Li Yun
+December 2020-
+51
+Female
+Executive vice president
+Zhang Min
+October 2020-
+50
+March 2021 -
+Cheng Yuanguo
+Chief risk officer
+Male
+51
+Male
+Chief financial officer
+Zhang Yi
+May 2019 to April 2021
+60
+Male
+Chief risk officer
+Jin Yanmin
+July 2020 to May 2021
+Shareholdings of directors, supervisors and senior
+management
+53
+Executive vice president
+Lyu Jiajin
+February 2021 to March 2022
+58
+Male
+President
+Wang Jiang
+Resigned senior management
+April 2021 -
+59
+Male
+3/3
+70
+Independent non-executive director
+The primary responsibilities of the performance and due diligence
+supervision committee:
+Performance and due diligence supervision committee
+The performance and due diligence supervision committee
+consists of six supervisors. Mr. Wang Yongqing, chairman of the
+board of supervisors, serves as chairman of the performance and
+due diligence supervision committee. Members include Mr. Yang
+Fenglai, Mr. Lin Hong, Mr. Deng Aibing, Mr. Zhao Xijun and Mr. Liu
+Huan.
+The performance and due diligence supervision committee
+and the finance and internal control supervision committee are
+established under the board of supervisors.
+COMMITTEES UNDER THE BOARD OF
+SUPERVISORS
+In 2021, Mr. Zhao Xijun, Mr. Liu Huan, Mr. Ben Shenglin, the
+external supervisors of the Bank, duly performed their duties,
+attended the meetings of the board of supervisors and special
+committees thereof, and participated in the studies and decision-
+making of major issues of the board of supervisors. They
+proactively attended major meetings of the Board, the special
+committees under the Board and the management as non-voting
+attendees, participated in the thematic researches organised
+by the board of supervisors, provided policy suggestions by
+leveraging their experience and expertise, and contributed to the
+effective supervision of the board of supervisors.
+Duty performance of external supervisors
+0/1
+1/1
+0/5
+5/5
+100
+CORPORATE GOVERNANCE REPORT
+BOARD OF SUPERVISORS
+Responsibilities of the board of supervisors
+The board of supervisors, being the supervisory body of the Bank,
+is accountable to the shareholders' general meeting and performs
+the following functions in accordance with relevant laws:
+supervising the performance of the Board, senior
+management and their members;
+requiring the directors and senior management to correct
+their acts when their acts infringe the interests of the Bank;
+inspecting and supervising the financial activities of the
+Bank;
+verifying the financial information, including financial
+reports, business reports and profit distribution plans that
+are proposed to be submitted to the shareholders' general
+meeting by the Board;
+supervising the Bank's business decisions, risk
+management, internal control, etc., and providing
+guidance on the internal audit work of the Bank; and
+exercising other duties authorised by the Articles of
+Association of the Bank and the shareholders' general
+meeting.
+Composition of the board of supervisors
+At the end of 2021, the board of supervisors of the Bank consists
+of nine supervisors, including three shareholder representative
+supervisors, namely Mr. Wang Yongqing, Mr. Yang Fenglai and
+Mr. Lin Hong, three employee representative supervisors, namely
+Mr. Wang Yi, Mr. Liu Jun and Mr. Deng Aibing, and three external
+supervisors, namely Mr. Zhao Xijun, Mr. Liu Huan and Mr. Ben
+Shenglin.
+formulating rules, work plans and schemes, and
+implementation plans for supervision and inspection,
+in connection with the supervision and assessment of
+the performance of the Board, senior management and
+their members, and implementing or organising the
+implementation of such rules, plans and schemes after the
+board of supervisors' approval;
+The term of office of the supervisors is three years, and they
+may be re-elected upon expiration of their term of office.
+The shareholder representative supervisors and the external
+supervisors of the Bank are elected by the shareholders' general
+meeting, and the employee representative supervisors are
+elected by the employee representative organisation.
+issuing evaluation report on the performance of the Board,
+senior management and their members; and
+organising the formulation of performance evaluation
+measures for the supervisors, and organising the
+implementation of such measures.
+101
+0/4
+4/4
+1/4
+3/4
+0/4
+4/4
+0/4
+4/4
+Number of meetings
+attended by proxy/
+Number of meetings
+during term of office
+Number of meetings
+attended in person/
+Number of meetings
+during term of office
+Mr. Cheng Yuanguo
+Mr. Wu Jianhang
+Resigned members
+Mr. Liu Huan
+Mr. Zhao Xijun
+Mr. Yang Fenglai
+Members of the performance and due diligence supervision committee
+Mr. Wang Yongqing
+shareholder representative supervisors, the performance appraisal
+plan for shareholder representative supervisors of the Bank. The
+committee listened to reports including the implementation of
+the macro-prudential management of real estate finance, support
+for innovative technology enterprises, support for the rural
+revitalisation strategy and the development of the "Yunongtong"
+business. The committee organised the implementation of
+annual supervisory work, assisted the board of supervisors in the
+supervision and evaluation of the Board, senior management and
+their members and the self-evaluation of the board of supervisors.
+In 2021, the performance and due diligence supervision
+committee convened four meetings, all on-site. The performance
+and due diligence supervision committee reviewed the
+report on evaluation of the performance of the Board, senior
+management and their members by the board of supervisors,
+and self-evaluation report on the performance of the board of
+supervisors and supervisors. It studied and formulated the work
+plan for performance supervision and evaluation for the year
+of 2021. It reviewed the proposals regarding the nomination of
+CORPORATE GOVERNANCE REPORT
+102
+China Construction Bank Corporation
+Annual Report 2021
+Chairman of the board of supervisors
+Mr. Wang Yongqing is the chairman of the board of supervisors
+of the Bank, and is responsible for the organisation of the
+performance of the duties of the board of supervisors.
+Operation of the board of supervisors
+Mr. Wu Jianhang
+Mr. Lu Kegui
+Mr. Cheng Yuanguo
+5/5
+0/5
+5/5
+0/5
+0/0
+0/0
+5/5
+0/5
+0/0
+0/0
+0/0
+0/0
+5/5
+0/5
+5/5
+0/5
+5/5
+0/5
+Resigned supervisors
+Mr. Ben Shenglin
+Mr. Liu Huan
+Mr. Zhao Xijun
+The board of supervisors convenes regular meetings no fewer
+than four times a year, and extraordinary meetings are convened,
+if and when required. Meetings of the board of supervisors
+may be convened by on-site conference or written resolutions.
+Supervisors are generally notified in writing ten days prior to the
+meeting, with meeting agenda specified in the written notice.
+During the meeting, the supervisors are free to express their
+opinions, and important decisions are only made after detailed
+discussions.
+Detailed minutes are prepared for the meetings of the board
+of supervisors and are provided to all supervisors. The board
+of supervisors may engage external legal advisors or certified
+public accountants at the Bank's expense if it deems it necessary
+to discharge its duties. The Bank takes necessary measures and
+methods to ensure supervisors' right to information, and provides
+relevant information and documents to them in accordance with
+related regulations.
+Supervisors may attend board meetings as non-voting attendees,
+and the board of supervisors may, when it deems necessary,
+assign supervisors to attend as non-voting attendees' meetings
+of the Bank such as meetings of board committees, annual
+work conference, meetings on business operation analysis, and
+presidents' executive meetings. The board of supervisors of the
+Bank also carries out supervisory work through measures such as
+information review, researches and inspections, interviews and
+panel discussions, and performance evaluation polls.
+The Bank effected supervisors' liability insurance policy for all
+supervisors in 2021.
+Meetings of the board of supervisors
+In 2021, the board of supervisors convened five meetings, which
+were held on 1 March, 26 March, 28 April, 27 August, 29 October
+respectively. Major resolutions reviewed and approved included
+the reports of the board of supervisors, supervisory work plan,
+periodic reports of the Bank, profit distribution plan, nominations
+of shareholder representative supervisors, and the assessment
+report on internal control for the year 2020. Relevant information
+was disclosed pursuant to the provisions of relevant laws,
+regulations and listing rules of the listing venues.
+China Construction Bank Corporation
+Annual Report 2021
+CORPORATE GOVERNANCE REPORT
+The following table sets forth the attendances of supervisors at the meetings of the board of supervisors in 2021:
+2/2
+Members of the board of supervisors
+Number of meetings
+attended by proxy/
+Number of meetings
+during term of office
+Shareholder representative supervisors
+Mr. Wang Yongqing
+Mr. Yang Fenglai
+Mr. Lin Hong
+Employee representative supervisors
+Mr. Wang Yi
+Mr. Liu Jun
+Mr. Deng Aibing
+External supervisor
+Number of meetings
+attended in person/
+Number of meetings
+during term of office
+0/0
+0/2
+0/0
+Male
+Non-executive director
+50
+Male
+Non-executive director
+49
+Male
+Non-executive director
+Xia Yang
+Tian Bo
+Zhang Qi
+58
+Male
+Non-executive director
+Xu Jiandong
+61
+Male
+Chairman, executive director
+Tian Guoli
+Age
+Gender
+Shao Min
+Non-executive director
+Female
+Liu Fang
+Leung Kam Chung, Antony
+59
+Male
+Independent non-executive director
+William Coen
+66
+Male
+Independent non-executive director
+Michel Madelain
+70
+Position
+Male
+Male
+Independent non-executive director
+Independent non-executive director
+Graeme Wheeler
+Kenneth Patrick Chung
+53
+57
+48
+78
+Male
+Independent non-executive director
+Malcolm Christopher McCarthy
+Female
+Non-executive director
+64
+Male
+Name
+PROFILES OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
+Particulars of directors, supervisors and senior management
+5/5
+Number of meetings
+attended by proxy/
+Number of meetings
+during term of office
+during term of office
+Number of meetings
+attended in person/
+Number of meetings
+Mr. Lu Kegui
+Mr. Wu Jianhang
+Resigned members
+Mr. Ben Shenglin
+Mr. Wang Yi
+Mr. Yang Fenglai
+Members of the finance and internal control supervision committee
+Mr. Zhao Xijun
+management, risk management of the real estate industry and
+clients, risk management of investment and trading business,
+reputational risk management, promotion of the rectification of
+existing WMPs and the integrated development of the Group's
+capital management business, construction of employee
+behaviour management system, AML and sanctions compliance
+management, strengthening financial standardisation
+management and financial inspections etc. and put forward
+targeted suggestions, and helped the board of supervisors
+perform the supervision of finance, risk and internal control.
+In 2021, the finance and internal control supervision committee
+convened five meetings, all on-site. It reviewed proposals
+including periodic reports, profit distribution plan and internal
+control evaluation report; listened to work reports on financial
+report auditing, internal audit findings and rectifications, and
+credit asset quality on a regular basis. The committee supervised
+and provided suggestions on internal control, acquisition and
+disposal of material assets, related party transactions and use of
+proceeds, etc. in accordance with regulatory provisions. It listened
+to special reports on green credit, risk appetite implementation
+and reassessment, overseas business strategy and risk
+CORPORATE GOVERNANCE REPORT
+China Construction Bank Corporation
+Annual Report 2021
+reviewing the annual financial reports of the Bank and
+the profit distribution plan prepared by the Board, and
+providing suggestions to the board of supervisors; and
+assisting the board of supervisors in organising the
+implementation of supervision and inspections on the
+finance and internal control of the Bank, as required by
+circumstances.
+formulating the rules, work plans and schemes in
+connection with supervision of finance and internal
+control, and implementing or organising the
+implementation of such rules, plans, and schemes after the
+approval of the board of supervisors;
+The primary responsibilities of the finance and internal control
+supervision committee:
+The finance and internal control supervision committee consists
+of six supervisors. Mr. Zhao Xijun, external supervisor, serves
+as chairman of the finance and internal control supervision
+committee. Members include Mr. Yang Fenglai, Mr. Lin Hong, Mr.
+Wang Yi, Mr. Liu Jun and Mr. Ben Shenglin.
+Finance and internal control supervision committee
+In 2022, the performance and due diligence supervision
+committee will carry out solid work in supervision of performance
+of duties and responsibilities, explore ways of improvement
+in work approaches, promote the improvement of the duty
+performance supervision mechanisms, and assist the board of
+supervisors in performance supervision and evaluation of the
+Board, senior management and their members.
+0/5
+4/5
+1/5
+4/5
+CORPORATE GOVERNANCE REPORT
+104
+103
+China Construction Bank Corporation
+Annual Report 2021
+Based on the authorisation of the Articles of Association of
+the Bank and other corporate governance documents and
+the Board, the senior management organises operation and
+management activities of the Bank in an orderly manner.
+According to the strategies and targets determined by the Board,
+it makes comprehensive business plans and regularly reports
+to the Board on implementation of strategies and plans. The
+senior management analyses, researches and assesses internal
+and external environment, works out operation strategies and
+management measures, and makes timely adjustments in line
+with market changes. The senior management invites directors
+and supervisors to participate in important meetings and
+major events, takes advice and suggestions, and keeps close
+communication with the Board and the board of supervisors, so
+as to enhance the operation and management capabilities and
+operational efficiency of the Bank.
+Operation of senior management
+Executive vice presidents and other senior management
+members of the Bank shall assist president with his work.
+exercising other functions that should be exercised
+by president according to laws, regulations, rules, the
+Articles of Association of the Bank, and decisions of the
+shareholders' general meeting and the Board.
+proposing the convening of extraordinary board meetings;
+and
+formulating basic management rules of the Bank;
+authorising persons in charge of internal functional
+departments and branches to conduct operating activities;
+establishing president accountability system, and
+evaluating business performance of managers of business
+departments, managers of functional departments and
+general managers of branches of the Bank;
+Directors of the Bank
+submitting operation and investment plans of the Bank
+to the Board, and organising the implementation of such
+plans upon approval of the Board;
+The senior management is accountable to the Board and
+supervised by the board of supervisors. Authorisation to
+the senior management by the Board strictly complies with
+the Articles of Association of the Bank and other corporate
+governance documents. Pursuant to the Articles of Association of
+the Bank, president of the Bank exercises the following functions:
+Responsibilities of senior management
+SENIOR MANAGEMENT
+In 2022, the finance and internal control supervision committee
+will perform its duties earnestly, continuously expand the breadth
+and depth of supervision, innovate the means of supervision, and
+continue to supervise the Bank's finance, risk and internal control
+well with increased force of supervision.
+0/5
+0/3
+3/3
+5/5
+1/5
+4/5
+1/5
+presiding over the operation and management of the Bank,
+and organising the implementation of resolutions of the
+Board;
+China Construction Bank Corporation
+Annual Report 2021
+119
+Graeme Wheeler, independent non-executive director
+Mr. Leung has served as director of the Bank since October 2021. Mr. Leung, former Financial
+Secretary of the Hong Kong SAR, is the chairman and CEO of Nan Fung Group in Hong
+Kong, and the chairman and co-founder of New Frontier Group. Since April 2021, Mr.
+Leung is also the chairman & co-founder of Solomon Learning. In addition, Mr. Leung is
+the chairman of two charity organizations, namely Heifer Hong Kong and Food Angel. Mr.
+Leung had extensive experience in financial services, including chairman of Greater China
+Region of Blackstone Group, chairman of Asia for JP Morgan Chase and head of Private
+Banking for Asia, Investment Banking, Treasury Department and Great China Region of
+Citi. Mr. Leung had also served as independent non-executive director of China Merchants
+Bank, Industrial and Commercial Bank of China, China Mobile (Hong Kong) Limited and
+American International Assurance (Hong Kong) Limited, international advisor of China
+Development Bank and chairman of Hong Kong Association of Harvard Business School.
+Other public services that Mr. Leung had engaged in included non-official member of
+the Executive Council of the Hong Kong SAR, chairman of the Education Commission,
+chairman of the University Grants Committee, member of the Exchange Fund Advisory
+Committee, director of Hong Kong Airport Authority and director of Hong Kong Futures
+Exchange, member of the Preparatory Committee and Election Committee for the Hong
+Kong Special Administrative Region and Hong Kong Affairs Advisors. Mr. Leung graduated
+from the University of Hong Kong in 1973 and attended Harvard Business School's
+Program for Management Development and Advanced Management Program. Mr. Leung
+was conferred an honorary doctor of law by the Hong Kong University of Science and
+Technology in 1998.
+Supervisors of the Bank
+Wang Yongqing, chairman of the board of supervisors and shareholder
+representative supervisor
+Yang Fenglai, shareholder representative supervisor
+Mr. Yang has served as supervisor of the Bank since June 2020. Mr. Yang served as general
+manager of Sichuan Branch of the Bank from June 2014 to April 2021. Mr. Yang was in
+charge of the operation and management department of the Bank from July 2011 to April
+2014, deputy general manager of Sichuan Branch of the Bank from January 2005 to July
+2011, assistant general manager (deputy general manager level) of Sichuan Branch of
+the Bank from October 2003 to January 2005, specialised credit approver (deputy general
+manager level) of credit approval department of the Bank from March 2003 to October
+2003, and specialised credit approver (deputy general manager level) of the credit approval
+office of the risk and internal control management committee of the Bank from April 2002 to
+March 2003. Mr. Yang is a senior economist. He graduated from University of Chengdu with
+a bachelor's degree in business administration in 1983 and obtained a master's degree in
+economics from Southwestern University of Finance and Economics in 2004.
+CORPORATE GOVERNANCE REPORT
+China Construction Bank Corporation
+Annual Report 2021
+Leung Kam Chung, Antony, independent non-executive director
+113
+114
+China Construction Bank Corporation
+Annual Report 2021
+Lin Hong, shareholder representative supervisor
+Mr. Lin has served as supervisor of the Bank since December 2021. Mr. Lin has served as
+general manager of the audit department of the Bank since May 2018. Mr. Lin served
+as leader of the inspection team of CPC China Construction Bank Committee from May
+2017 to May 2018, deputy general manager of the Jiangxi Branch of the Bank (general
+manager level) from March 2015 to May 2017, deputy secretary of the discipline inspection
+committee, deputy general manager of the disciplinary and supervisory department and
+deputy director of the inspection affairs office (general manager level) of the Bank from
+March 2007 to March 2015 and deputy general manager of the disciplinary and supervisory
+department of the Bank from August 2001 to March 2007. Mr. Lin is a senior accountant.
+He graduated from Jiangxi Finance and Economics College with a bachelor's degree in
+auditing in 1988 and obtained a PhD degree in industrial economics from Jiangxi University
+of Finance and Economics in 2008.
+Wang Yi, employee representative supervisor
+Mr. Wang has served as supervisor of the Bank since May 2018. Mr. Wang served as general
+manager of housing finance and personal lending department of the Bank from November
+2013 to May 2021. He concurrently served as chairman of CCB Housing Service Co., Ltd
+from December 2018 to November 2019. He served as deputy general manager of personal
+savings and investment department of the Bank (general manager level) from November
+2009 to November 2013, deputy general manager of personal savings and investment
+department of the Bank from December 2008 to November 2009, deputy general manager
+of personal finance department of the Bank from June 2005 to December 2008, and
+assistant general manager of personal banking department of the Bank from July 2001 to
+June 2005. Mr. Wang is a senior engineer. He graduated from Shandong University with a
+bachelor's degree in computational mathematics in 1984 and obtained an EMBA degree
+from Peking University in 2010.
+CORPORATE GOVERNANCE REPORT
+Liu Jun, employee representative supervisor
+Mr. Coen has served as independent non-executive director of the Bank since June 2021.
+He currently serves as a member of the Advisory Board of Baton Systems, Inc. since June
+2021 and chief regulatory adviser for Suade Labs since April 2021. He has been chairman
+of the IFRS Advisory Council from February 2020, a member of the board of directors of the
+Toronto Leadership Centre since November 2019 and technical advisor of the International
+Monetary Fund since July 2019. Mr. Coen served as secretary general of the Basel Committee
+on Banking Supervision from 2014 to 2019, deputy secretary general of the Basel Committee
+on Banking Supervision from 2007 to 2014, and supported the BIS Financial Stability Institute
+from 2003 to 2006. Prior to joining the Basel Committee on Banking Supervision Secretariat
+in 1999, he consecutively worked with the US Office of Comptroller of the Currency and the
+US Board of Governors of the Federal Reserve System. Mr. Coen is currently a member of
+the Bretton Woods Committee and was a member of the Financial Stability Board and its
+standing committees. He obtained his Bachelor of Science Degree from Manhattan College
+in 1984 and his Master of Business Administration Degree from Fordham University in 1991.
+China Construction Bank Corporation
+Annual Report 2021
+110
+CORPORATE GOVERNANCE REPORT
+China Construction Bank Corporation
+Annual Report 2021
+Malcolm Christopher McCarthy, independent non-executive director
+Sir McCarthy served as independent non-executive director of the Bank since August
+2017. He served as independent non-executive director of ICBC from December 2009 to
+October 2016. He worked first as an economist for ICI before joining the UK Department of
+Trade and Industry where he held various posts from economic adviser to undersecretary.
+He subsequently worked in senior positions of Barclays Bank in London, Japan and North
+America. He served as chairman and chief executive of Office of Gas and Electricity Markets
+(Ofgem), chairman of the Financial Services Authority (FSA), non-executive director of Her
+Majesty's Treasury, chairman of the board of directors of J.C. Flowers & Co. UK Ltd, non-
+executive director of NIBC Holding N.V., NIBC Bank N.V., OneSavings Bank plc, Castle Trust
+Capital plc and Intercontinental Exchange (ICE), and trustee of the Said Business School of
+Oxford University. He is an Honorary Fellow of Merton College, an Honorary Doctorate of the
+University of Stirling and the Cass Business School, and a Freeman of the City of London. He
+has a MA in history from Merton College of Oxford University, PhD in Economics of Stirling
+University, and Master from Graduate School of Business of Stanford University.
+Kenneth Patrick Chung, independent non-executive director
+William Coen, independent non-executive director
+Mr. Chung has served as independent non-executive director of the Bank since November
+2018. Mr. Chung served as independent non-executive director of ICBC from December
+2009 to March 2017. He joined Deloitte Haskins and Sells London Office in 1980, became
+a partner of PricewaterhouseCoopers in 1992, and was a financial service specialist of
+PricewaterhouseCoopers (Hong Kong and China) since 1996. Previously, he was the
+human resources partner of PricewaterhouseCoopers (Hong Kong), the responsible
+partner of the audit department of PricewaterhouseCoopers (Hong Kong and China), the
+global lead partner of the audit engagement team for BOC, the honorary treasurer of the
+Community Chest of Hong Kong and was a member of the Ethics Committee, Limitation
+of Professional Liability Committee, Communications Committee, and the Investigation
+Panel of the Hong Kong Society of Accountants. He has also served as the audit head for
+the restructurings and initial public offerings of BOC, Bank of China (Hong Kong) Limited
+and Bank of Communications, and chairman of the audit committee of the Harvest Real
+Estate Investments (Cayman) Limited and independent non-executive director of Prudential
+Corporation Asia. Mr. Chung currently serves as independent non-executive director of
+Sands China Ltd., Prudential Hong Kong Limited and Prudential General Insurance Hong
+Kong Limited, and trustee of Fu Tak lam Foundation Limited. Mr. Chung is a member of
+the Institute of Chartered Accountants in England and Wales, a member of the Hong
+Kong Institute of Certified Public Accountants as well as a member of the Macau Society
+of Certified Practising Accountants, and obtained a bachelor's degree in economics from
+University of Durham.
+Michel Madelain, independent non-executive director
+Mr. Madelain has served as independent non-executive director of the Bank since January
+2020. Mr. Madelain has been trustee of the IFRS Foundation since January 2018 and a
+member of the Supervisory Board of La Banque Postale in France since April 2018. From
+June 2016 to December 2018, Mr. Madelain was vice chairman of Moody's Investors Service
+(MIS). Concurrently, he served as chairman of Moody's European Boards and was a member
+of MIS US Board. From May 2008 to June 2016, he was president and chief operating officer
+of MIS, having previously assumed a number of positions in Europe and the USA with
+MIS from 1994 to May 2008. From May 1980 to May 1994, he worked with Ernst & Young
+in Belgium and France and was promoted to the partnership in 1989. Mr. Madelain is a
+Qualified Chartered Accountant of France. He obtained a master's degree in management
+from Kellogg Graduate School of Management of Northwestern University (USA) and a
+bachelor's degree in business administration from the Ecole Supérieure de Commerce de
+Rouen, France.
+CORPORATE GOVERNANCE REPORT
+China Construction Bank Corporation
+Annual Report 2021
+111
+112
+CORPORATE GOVERNANCE REPORT
+Mr. Wheeler has served as independent non-executive director of the Bank since October
+2019. Mr. Wheeler has served as non-executive director of Thyssen-Bornemisza Group since
+2017. He served as governor of Reserve Bank of New Zealand from 2012 to 2017, non-
+executive director of Thyssen-Bornemisza Group and cofounder of Privatisation Analysis and
+Consulting Ltd. from 2010 to 2012, managing director responsible for operations of World
+Bank from 2006 to 2010, vice president and treasurer of World Bank from 2001 to 2006,
+director of financial products and services department of World Bank from 1997 to 2001,
+treasurer of New Zealand Debt Management Office (NZDMO) and deputy secretary to New
+Zealand Treasury from 1993 to 1997, director of macroeconomic Policy of New Zealand
+Treasury from 1990 to 1993, economic and financial counsellor of New Zealand Delegation
+to the OECD, Paris, from 1984 to 1990 and an advisor in the New Zealand Treasury from
+1973 to 1984. Mr. Wheeler was awarded Companion of the New Zealand Order of Merit in
+2018. Mr. Wheeler obtained his master's degree of commerce in economics from University
+of Auckland in 1972.
+Mr. Liu has served as supervisor of the Bank since December 2021. Mr. Liu has served as
+general manager of Guangdong Branch of the Bank since December 2014. He served as
+head of Guangdong Branch of the Bank from November 2014 to December 2014, general
+manager of Shenzhen Branch of the Bank from April 2011 to November 2014, head of
+Shenzhen Branch of the Bank from March 2011 to April 2011, deputy general manager of
+Guangdong Branch of the Bank from September 2008 to March 2011, and assistant general
+manager of Guangdong Branch of the Bank from June 2006 to September 2008. Mr. Liu
+graduated from Anhui University with a bachelor's degree in law in 1986 and obtained an
+MBA degree from Hong Kong Baptist University in 2003.
+Mr. Wang has served as chairman of the board of supervisors of the Bank since October
+2019. Mr. Wang served as vice chairman of the China Federation of Industry and Commerce
+from December 2016 to July 2019. He served consecutively as deputy director-general
+(director-general level) and director-general of the fifth bureau, director of the sixth bureau
+of the United Front Work Department of the CPC Central Committee from December
+2003 to November 2016. He served consecutively as deputy director of the general office,
+assistant general manager and director of the general office, and chief accountant of China
+International Engineering Consulting Corporation from December 1998 to December 2003.
+He worked in China Development Bank from July 1994 to December 1998, and worked
+in the Ministry of Railway from July 1985 to July 1994. Mr. Wang is a senior accountant. He
+graduated from Hubei Institute of Finance and Economics, and obtained a master's degree
+in economics from Renmin University of China and a PhD degree in economics from Beijing
+Jiaotong University.
+Mr. Deng has served as supervisor of the Bank since December 2021. Mr. Deng has served as
+general manager of credit management department of the Bank since September 2015. He
+served as deputy general manager of credit approval department and general manager of
+credit department of the Bank (general manager level) from June 2014 to September 2015,
+deputy general manager of credit approval department and general manager of credit
+department of the Bank from July 2013 to June 2014, risk officer of Beijing Branch of the
+Bank from June 2006 to July 2013, deputy director of risk management mechanism reform
+leading group of the Bank from February 2005 to June 2006, deputy general manager
+of Dalian Branch of the Bank from May 2003 to February 2005, deputy general manager
+of risk management department of the Bank from March 2003 to May 2003, and deputy
+general manager of credit risk management department of the Bank from March 2001 to
+March 2003. Mr. Deng is a senior economist. He graduated from Hubei Institute of Finance
+and Economics with a bachelor's degree in infrastructure finance and credit in 1984, and
+obtained an MBA degree in finance from the Chinese University of Hong Kong in 2009.
+China Construction Bank Corporation
+117
+Annual Report 2021
+118
+CORPORATE GOVERNANCE REPORT
+China Construction Bank Corporation
+Annual Report 2021
+CORPORATE GOVERNANCE REPORT
+Li Yun, executive vice president
+Hu Changmiao, secretary to the Board
+Mr. Hu has served as secretary to the Board of the Bank since May 2019. Mr. Hu served
+as general manager of board of director office of the Bank since December 2018. Mr. Hu
+served as chairman of CCB Financial Leasing from August 2016 to December 2018, general
+manager of Guangxi Branch of the Bank from February 2012 to August 2016, general
+manager of public relations & corporate culture department of the Bank from March 2006
+to February 2012, and deputy general manager in charge of the management of the board
+of director office of the Bank from June 2005 to March 2006. He served as deputy general
+manager of the executive office of the Bank from December 2004 to June 2005, deputy
+general manager of credit card centre of the Bank from March 2003 to December 2004,
+and deputy general manager of personal banking department of the Bank from July 2001
+to March 2003. Mr. Hu is a senior economist. He graduated from Peking University with a
+master of science degree in economic geography in 1986.
+Deng Aibing, employee representative supervisor
+Mr. Jin has served as chief information officer of the Bank since March 2021. Mr. Jin served
+as information controller of the Bank from February 2018 to March 2021. He served as
+general manager of the information technology management department of the Bank from
+January 2010 to February 2018, general manager of the audit department of the Bank from
+December 2007 to January 2010, deputy director of the board of supervisors' office from
+November 2004 to December 2007, deputy general manager of the audit department of
+the Bank from June 2001 to October 2004. He was concurrently supervisor of the Bank from
+October 2004 to November 2016. Mr. Jin is a senior engineer and a certified information
+systems auditor. He graduated from Jilin University of Technology with a bachelor's degree
+and a master's degree in computer application in 1986 and 1989 respectively, and obtained
+an EMBA degree from Tsinghua University in 2010.
+Cheng Yuanguo, chief risk officer
+Mr. Cheng has served as chief risk officer of the Bank since April 2021. Mr. Cheng served
+as general manager of the corporate business department of the Bank from February
+2017 to May 2021, head and general manager of Hebei Branch of the Bank from July 2014
+to February 2017, general manager of the group clients department (banking business
+department) of the Bank from March 2011 to July 2014, deputy general manager of the
+group clients department (banking business department) of the Bank from May 2005 to
+March 2011, and deputy general manager of the banking business department of the Bank
+from September 2001 to May 2005. Mr. Cheng served concurrently as supervisor of the Bank
+from May 2018 to March 2021, chairman of CCB Trust from August 2017 to July 2018, and
+director of CCB International from September 2010 to October 2015. Mr. Cheng is a senior
+accountant. Mr. Cheng graduated from Dongbei University of Finance and Economics with
+a bachelor's degree in infrastructure finance and credit in 1986.
+CORPORATE GOVERNANCE REPORT
+Mr. Li has served as executive vice president of the Bank since November 2021. Mr. Li was
+general manager of Guizhou Branch of ABC from November 2017 to August 2021, head
+of Guizhou Branch from July 2017 to November 2017, general manager of the asset and
+liability management department/Sannong capital and fund management centre of ABC
+from May 2015 to July 2017, deputy general manager in charge of work of the strategic
+planning department of ABC from April 2014 to May 2015, deputy general manager of the
+strategic planning department from May 2011 to April 2014, deputy general manager of
+the strategic management department from December 2010 to May 2011. Mr. Li is a senior
+economist with special grants from the PRC government. Mr. Li graduated from Wuhan
+University with a master's degree in currency and banking in September 1997 and obtained
+a PhD degree in world economics from the same university in July 2000.
+Ms. Zhang has served as executive vice president of the Bank since December 2020. Ms.
+Zhang served as general manager of Tianjin Branch of the Bank from July 2018 to November
+2020, general manager of Ningxia Branch of the Bank from March 2017 to July 2018,
+deputy general manager of Hubei Branch of the Bank from November 2015 to December
+2016, deputy general manager of Shaanxi Branch of the Bank from July 2013 to November
+2015 and was assistant general manager of Shaanxi Branch of the Bank. Ms. Zhang is a
+senior accountant. She was specialised in accounting in Shaanxi Institute of Finance and
+Economics, and graduated with a master's degree in economics in 1996; and obtained a
+PhD degree in economics from Xi'an Jiaotong University in July 2013.
+Jin Panshi, chief information officer
+Mr. Wang has served as executive vice president of the Bank since October 2020. Mr. Wang
+served as general manager of Hubei Branch of the Bank from June 2018 to July 2020,
+general manager of Guizhou Branch of the Bank from August 2016 to June 2018, deputy
+general manager of Qinghai Branch of the Bank from August 2014 to June 2016, deputy
+general manager of Sichuan Branch of the Bank from October 2008 to August 2014, and
+assistant general manager of Sichuan Branch of the Bank from October 2005 to October
+2008. Mr. Wang was specialised in marketing at Southwestern University of Finance and
+Economics and obtained a bachelor's degree in economics in 1993.
+Zhang Min, executive vice president
+Zhao Xijun, external supervisor
+Mr. Zhao has served as supervisor of the Bank since June 2019. Mr. Zhao has served as joint
+dean of the China Capital Market Research Institute, Renmin University of China since 2020.
+He served as deputy dean of the School of Finance of Renmin University of China from 2005
+to 2019, director of international office of Renmin University of China from 2001 to 2005,
+head of finance department of the School of Finance of Renmin University of China from
+1995 to 2001 and a research fellow of the international department of the CSRC from 1994
+to 1995. Mr. Zhao is independent non-executive director of China National Foreign Trade
+Financial & Leasing Co., Ltd. and iFLYTEK Co., Ltd. Mr. Zhao served as independent non-
+executive director of the Bank from August 2010 to March 2014. Mr. Zhao was a visiting
+scholar in University of Sherbrooke and McGill University, Canada from 1989 to 1990 and
+Nijenrode University, Netherlands from 1995 to 1996. Mr. Zhao graduated from Wuhan
+University with a bachelor's degree in Scientific French in 1985, completed his graduate
+studies from the finance department of Renmin University of China in 1987, and received his
+PhD degree from the School of Finance of Renmin University of China in 1999.
+CORPORATE GOVERNANCE REPORT
+115
+CORPORATE GOVERNANCE REPORT
+116
+China Construction Bank Corporation
+Annual Report 2021
+China Construction Bank Corporation
+Annual Report 2021
+Mr. Liu has served as supervisor of the Bank since June 2020. Mr. Liu is a counselor of the
+State Council and a professor of the School of Finance and Taxation of the Central University
+of Finance and Economics. He served as deputy dean of the School of Taxation, Central
+University of Finance and Economics from 2006 to 2016, deputy dean of the Department of
+Taxation, and deputy dean of the School of Finance and Public Administration from 1997 to
+2006. From 2004 to 2005, he served as deputy director-general of the Local Taxation Bureau
+of Beijing Xicheng District and assistant director-general of the Local Taxation Bureau of
+Beijing. Mr. Liu is a member of the Standing Committee of Beijing Municipal Committee of
+the Chinese People's Political Consultative Conference and deputy director of the Economic
+Committee of Beijing Municipal Committee of the Chinese People's Political Consultative
+Conference. He is a visiting professor of School of Economics and Management of Tsinghua
+University, a visiting professor of the School of Overseas Education of Shanghai Jiaotong
+University and a supervisor of master's degree in taxation of the University of Chinese
+Academy of Social Sciences. Mr. Liu is a certified public accountant and graduated from the
+Central Institute for Fiscal and Finance with a bachelor's degree in economics in 1982.
+Ben Shenglin, external supervisor
+Mr. Ben has served as supervisor of the Bank since June 2020. Mr. Ben has served as a
+professor and doctoral supervisor of Zhejiang University since May 2014, executive director
+of the Institute of International Money, Renmin University of China since January 2014 and
+co-director since July 2018, dean of Academy of Internet Finance of Zhejiang University
+since April 2015 and dean of the International Business School of Zhejiang University since
+October 2018. Mr. Ben had served in senior positions in financial institutions including
+JPMorgan Chase Bank, HSBC and ABN AMRO Bank. He currently serves as independent non-
+executive director of China International Capital Corporation, Wuchan Zhongda Group
+Co., Ltd. and Industrial Bank Co., Ltd. Mr. Ben is a member of the Standing Committee
+of Zhejiang Provincial Committee of the Chinese People's Political and Consultative
+Conference and has served in social positions including co-chairman of the Zhejiang
+Association of FinTech. Mr. Ben graduated with a bachelor's degree in engineering from
+Tsinghua University in 1987, a master's degree in business administration from Renmin
+University of China in 1990, and a PhD degree in economics from Purdue University in 1994.
+Senior Management of the Bank
+Ji Zhihong, executive vice president
+Mr. Ji has served as executive vice president of the Bank since August 2019. Mr. Ji served
+as director-general of the financial market department of the PBC from August 2013 to
+May 2019, during which he was concurrently director of the financial market management
+department of the Shanghai Head Office from August 2013 to May 2016. From September
+2012 to August 2013, he was director-general of the research bureau of the PBC. From
+April 2010 to September 2012, he was deputy director-general of the monetary policy
+department of the PBC. From February 2008 to April 2010, he was deputy director (deputy
+director-general level) of the open market operations department of the PBC Shanghai Head
+Office. Mr. Ji Zhihong is a research fellow. He obtained a master's degree in international
+finance from the Graduate School of the People's Bank of China in 1995 and a PhD degree in
+national economics from Chinese Academy of Social Sciences in 2005.
+Liu Huan, external supervisor
+Wang Hao, executive vice president
+The Bank has specified standards in relation to the remuneration
+policy for directors, supervisors and senior management. For
+enterprise leaders administered by CPC Central Committee, the
+remuneration policy complies with the relevant measures on
+remuneration for heads of financial enterprises under central
+administration. The Bank's remuneration policy for other
+directors, supervisors and senior management is based on the
+principle of the combination of incentives and disciplines, short-
+term incentives and long-term incentives, and governmental
+regulations and market adjustment, and it has adopted a
+structured remuneration system composed of basic annual salary,
+performance-based annual salary and welfare income. The Bank
+participates in relevant PRC mandatory retirement schemes for its
+directors, supervisors, senior management and other employees.
+Apart from the tenure incentive remuneration to enterprise
+leaders administered by CPC Central Committee in accordance
+with national regulations, the Bank does not implement mid-term
+and long-term incentive plan for other directors, supervisors and
+senior management.
+5.
+6.
+Mr. Cheng Yuanguo commenced his position as chief risk officer of the Bank from April 2021, and ceased to serve as employee representative supervisor
+of the Bank from March 2021. The allowance above is the remuneration before tax he received for acting as employee representative supervisor of the
+Bank in 2021.
+As some of the Bank's non-executive directors and external supervisors hold positions of directors or senior executives in other legal persons or
+organisations, such legal persons or organisations thus become related parties of the Bank. Apart from this, none of the Bank's directors, supervisors or
+senior executives received remuneration from the related parties of the Bank.
+SHAREHOLDERS' RIGHTS
+CORPORATE GOVERNANCE REPORT
+CORPORATE GOVERNANCE REPORT
+Annual Report 2021
+Remuneration policy for directors, supervisors and senior
+management
+The Bank has established a performance appraisal mechanism
+for executive directors, shareholder representative supervisors
+and senior management, and the results of appraisal are
+directly linked to remuneration. According to the requirements
+of regulatory policies, the Articles of Association and annual
+business plans of the Bank, the performance appraisal attaches
+great importance to sustainable development. Specifically, the
+quantitative evaluation includes indicators for serving ecological
+civilisation, serving strategic emerging industries, and fulfilling
+social responsibilities; the qualitative evaluation highlights
+indicators for implementing new development concepts,
+advancing business transformation, development and innovation,
+constantly improving corporate governance, and actively
+safeguarding the legitimate rights and interests of shareholders.
+4.
+The total compensation packages for some directors, supervisors and senior executives for 2021 have not yet been finalised in accordance with the
+regulations of relevant government authorities. The final total compensation will be disclosed by the Bank in a separate announcement when it is
+determined.
+Non-executive directors of the Bank receive their remuneration from Huijin, the shareholder of the Bank.
+Remuneration before tax paid for acting as employee representative supervisor of the Bank.
+2021
+The Bank may distribute dividends in the form of cash, shares
+and a combination of cash and shares. Unless under special
+circumstances, the Bank shall distribute dividends in cash if it
+gains profit and has positive accumulative undistributed profits
+in the year. The cash dividends distributed by the Bank in a year
+shall be no less than 10% of the net profit attributable to equity
+shareholders of the Bank on a consolidated basis in the same
+year. To make adjustment to the profit distribution policy, the
+Board shall conduct a specific discussion to elaborate on the
+reasons to make the adjustments and prepare a written report.
+Independent non-executive directors shall express their views,
+and the matter shall be approved in the form of special resolution
+by the shareholders' general meeting. The Bank shall provide the
+shareholders with online voting channels when discussing and
+approving the adjustments to the profit distribution policy.
+The Bank's formulation and implementation of profit distribution
+policies conform to the provisions of the Articles of Association
+and the requirements of the resolutions of the general meeting
+of shareholders. The Bank has sound decision-making procedures
+and mechanisms as well as clear and definite standard and
+ratio of dividends. The independent non-executive directors
+conducted due diligence and fulfilled their duties in the
+decision-making process of the profit distribution plan. Minority
+shareholders may fully express their opinions and appeals and
+their legitimate rights and interests are fully protected.
+The amounts of cash dividends and ratios of cash dividends to net profit of the Bank for the years from 2019 to 2021 are as follows.
+(In millions of RMB, except percentages)
+Cash dividends
+Ratio of cash dividends to net profit ¹
+1.
+91,004
+30%
+2020
+81,504
+30%
+2019
+80,004
+China Construction Bank Corporation
+Formulation and implementation of profit distribution
+policy
+121
+China Construction Bank Corporation
+Annual Report 2021
+30%
+Financial market business
+Personal banking
+Corporate banking
+Operating outlets and integrated tellers
+High school and below
+Post-secondary
+Associate degree
+qualification
+Bachelor's degree
+Academic
+Master's degree
+Doctor's degree
+Over 60
+51 to 59
+41 to 50
+Age
+31 to 40
+Below 30
+Female
+Gender
+Male
+Sub-category
+Category
+The compositions of the Bank's employees by gender, age, academic qualification and responsibilities are as follows:
+At the end of 2021, the Bank had 351,252 employees with a slight increase from 2020. The number of employees with academic
+qualifications of bachelor's degree or above was 260,106 or 74.05%. There were also 3,470 workers dispatched from labour leasing
+companies, a decrease of 2.41% from 2020. In addition, the Bank assumed the expenses of 92,344 retired employees.
+EMPLOYEES
+CORPORATE GOVERNANCE REPORT
+122
+21
+Net profit refers to the net profit attributable to equity shareholders of the Bank on a consolidated basis. Please refer to Note "Profit Distributions" to the
+financial statements of annual reports of the related years for details of cash dividends.
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+Right to convene an extraordinary shareholders' general
+meeting
+China Construction Bank Corporation
+Annual Report 2021
+We strived to build an eco-friendly
+investment and financing model to broadly
+support and foster green industries. At
+the end of 2021, the balance of the Bank's
+green loans was RMB1.96 trillion. In 2021,
+the Bank issued a number of multi-currency
+ESG-themed bonds; and underwrote 72
+green bonds and sustainability-linked
+bonds, amounting to RMB124.037 billion.
+In Yunnan Province, the Bank assisted the construction of the plank
+road in Wild Elephant Valley of Xishuangbanna; provided fund
+supervision and settlement services for the ecological restoration of
+the Asian elephant habitat and the development of food base in Pu'er;
+promoted the settlement of habitat degradation problem of 10 herds
+of 181 Asian elephants and help them to live a happy life in a poetic
+home permanently.
+128
+Responsibilities
+Upholding the new development concept, the Group has actively
+participated in the New Finance actions, providing financial
+solutions based on the economic and social development
+and customer needs. While the Group experiences steady
+development in each business, it strives to become a bank that
+serves the public and promotes people's livelihood, low-carbon
+development, environmental protection and sustainable growth.
+In 2021, the Bank established a Leading Group for Carbon Peaking
+and Neutrality to coordinate and promote the green and low-
+carbon transformation in serving the economy and society as well
+as advancing the fulfilment of the Carbon Peaking and Neutrality
+goal. Our MSCI ESG rating consistently achieved an A rating for
+two consecutive years, maintaining a leading position in the
+domestic banking industry.
+Details of the Bank's performance on fulfilling corporate social
+responsibilities and Environmental, Social and Governance ("ESG")
+requirements can be found in our Corporate Social Responsibility
+Report 2021.
+GOVERNANCE
+Board of directors
+The Board is responsible for formulating the Group's ESG and
+related strategy, defining the strategic objectives and priorities,
+promoting the management of significant matters, overseeing
+and evaluating the effectiveness of the ESG strategy, and guiding
+the disclosure of relevant information; introducing a series of
+ESG strategic initiatives to integrate ESG concepts into business
+operations, so as to promote the sustainable development of
+economy and society; urging the Management to deepen the
+implementation of green development concept and monitoring
+the progress on green finance regularly; strengthening the overall
+management and guidance on protecting consumers' rights and
+interests and consumer privacy.
+The Related Party Transaction, Social Responsibility and
+Consumer Protection Committee is set up under the Board,
+responsible for formulating ESG management policies and
+strategies, supervising, and guiding the fulfilment of social
+responsibilities, management on green finance strategy, inclusive
+finance, rural revitalisation finance, house rental, protection of
+consumers' rights and interests, related party transaction and
+others. In 2021, the Committee carried out the following tasks:
+revised the committee working rules, which strengthened its
+responsibility in overseeing the Bank's ESG governance, guiding
+and supervising the implementation of ESG-related work; held
+ESG special seminars, and stepped up communication with
+stakeholders; continuously guided and urged the development
+and improvement of consumer protection management policies
+and systems and the implementation of consumer protection-
+related work, and instructed on significant information disclosure
+of consumer protection.
+The Risk Management Committee under the Board has
+incorporated the risk management of ESG-related factors into
+the Bank's comprehensive risk management system to assist the
+Management in accurately identifying and effectively managing
+significant ESG-related risks. In 2021, the Risk Management
+Committee pushed forward the Management to strengthen the
+forward-looking management of environmental and climate
+risks by expanding the coverage of climate risks stress tests;
+optimised the credit policies for environmentally sensitive
+industries by incorporating environmental and social risk factors
+into the corporate credit rating; explored to construct an ESG
+assessment system for clients and improved risk assessment and
+pricing capabilities related to ESG factors; established a reporting
+mechanism for ESG-related risks to listen to regular reports on
+key tasks such as environmental and climate risk analysis and
+quantitative risk analysis of ESG-related factors and to provide
+guidance.
+Board of supervisors
+The Board of Supervisors performs its supervisory duties and
+incorporates the Group's ESG-related work and the construction
+of a green financial system into its annual supervisory priorities.
+The Duty Performance and Due Diligence Supervision Committee
+under the Board of Supervisors regularly listens to and reviews
+the progress in protecting consumers' rights and interests
+and supports improving the ESG governance. In 2021, the
+Board of Supervisors conducted analysis and research on the
+implementation path of ESG for commercial banks and put
+forward suggestions on strengthening the top-level planning and
+design, so as to enrich multi-level ESG practices and improve the
+risk management system and ESG brand building. The Finance
+and Internal Control Supervision Committee, within which
+listened to the report on the implementation of green credit
+and proposed suggestions around green finance development
+plans and seizing market opportunities to speed up structural
+adjustment in support of the Carbon Peaking and Neutrality
+goal and green transformation. A number of supervisors have
+attended special training sessions on carbon neutrality and green
+finance to keep abreast of the latest developments of green
+finance and other relevant information.
+China Construction Bank Corporation
+Annual Report 2021
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+Management
+The Management is responsible for formulating the ESG
+objectives and plans and promoting the implementation. On
+the environmental front, the Green Finance Committee has
+been set up to be responsible for the entire Bank's green finance
+development. On the social front, the Management has set up
+the Inclusive Financial Development Committee, the Financial
+Technology and Digital Construction Committee, the Consumer
+Rights Protection Committee, and the Talent, Remuneration
+and Organisation Planning Committee, to oversee the progress
+of ESG related objectives and strategies. To enhance risk
+management, the Management has set up the Risk Management
+and Internal Control Management Committee, chaired by the
+President, to incorporate ESG factors into the business operation
+and risk management process and include environmental
+and climate risks into the comprehensive risk management
+system. To realise specialised management and hold related
+departments accountable, the Risk Management and Internal
+Control Management Committee regularly holds meetings
+to report important matters and work progress. In 2021, the
+Bank established the ESG Promotion Committee to coordinate
+and promote the Group's overall ESG strategy planning,
+implementation and coordination.
+In 2021, the Green Finance Committee convened three meetings
+where attendees discussed key management tasks related
+to green finance and promoted key measures for cultivating
+competitive edges in green finance. The Inclusive Financial
+Development Committee held regular meetings to encourage
+business development, risk prevention and control, as well as
+product innovation related to inclusive finance. The Financial
+Technology and Digital Construction Committee convened four
+meetings where attendees discussed the optimisation of the top-
+level design, organisational promotion and resource allocation
+for issues related to digital operation. Data Governance Working
+Team under the Financial Technology and Digital Construction
+Committee convened six meetings where attendees discussed
+the improvement of data quality, management of data security,
+the promotion of the resolution of data problems, and the
+implementation of data responsibilities. The Consumer Rights
+Protection Committee held regular meetings to listen to
+the reports on protection of consumers' rights and interests,
+review related work plans and policies, and put forward specific
+requirements for the protection of consumers' rights and
+interests. In 2021, the ESG Promotion Committee held its first
+meeting at which the Working Rules of the Committee was
+deliberated and approved, plans were made for the coordinated
+implementation of the Group's overall ESG strategic planning,
+and the reporting mechanism was clearly specified.
+Related achievements
+In terms of policy application, the Bank formulated the Action
+Plan for Carbon Peaking and Carbon Neutrality in Full and Faithful
+Implementation of the New Development Philosophy and the
+Strategic Plan for Green Finance Development (2022-2025), and
+put forward the vision of striving to become the world's leading
+sustainable development bank. The Bank proposed to implement
+the "Five Projects" of green finance focusing on the areas of
+business development, product innovation, risk management,
+technology application and internal operation, with top priorities
+emphases the "15-Action" such as promoting the green and low-
+carbon transformation of energies and supporting industrial
+pollution cut and carbon reduction. The Bank also made steady
+efforts to promote the green and low-carbon transformation,
+striving to drive the building of the new pillar, green finance,
+towards high-quality development and making it a new strength
+to win the market competition. The Leading Group for Carbon
+Peaking and Neutrality held a work meeting in 2021 to formulate
+the 20-Action Plan to achieve carbon peaking and neutrality, so as
+to promote green and low-carbon transformation.
+In terms of performance assessment, the Bank included the
+"Supporting the Ecological Civilisation Strategy" as one of the
+Management performance indicators, expanded the scope of
+green finance assessment in the quantitative assessment of
+Head Office departments and increased the weight of green
+finance among the performance assessment indicators for tier-
+1 branches to promote high-quality development of green
+finance. The Bank have fully implemented the audit supervision
+system, with periodic internal audits conducted for different
+business segments in a risk-oriented manner to improve the risk
+management performance.
+In terms of capacity building, the Bank regularly conducted
+training on ESG strategy, management and disclosure, covering
+various topics such as the protection of consumers' rights and
+interests, inclusive finance, green finance, anti-corruption and
+human resources, to raise employees' awareness of ESG concepts
+and related working competence. In 2021, the Bank carried out
+2,151 ESG related training sessions, with a total of 913.4 thousand
+person-times across the Bank, including 602 online training
+sessions with 849.5 thousand person-times and 1,549 on-site
+training sessions with 63.9 thousand person-times.
+China Construction Bank Corporation
+Annual Report 2021
+129
+3.
+2.
+Remunerations of the Bank's leaders administered by CPC Central Committee have been paid in accordance with the State's remuneration reform policies
+since 2015.
+This annual report is available on the website of the Bank (www.
+ccb.com), the website of the Shanghai Stock Exchange (www.sse.
+com.cn) and the "HKEXnews" website of Hong Kong Exchanges
+and Clearing Limited (www.hkexnews.hk). If you have any queries
+on this annual report, please call our hotline at (8610) 6621-5533
+or (852) 3918-6212. If you have any comment or suggestions on
+the annual report preparation, please send email to ir@ccb.com.
+Please refer to “Details of Preference Shares" of this annual report for details of the profit distribution of preference shares.
+29/F, CCB Tower, 3 Connaught Road Central, Central, Hong Kong
+Telephone: (852) 3918-6212
+Facsimile: (8610) 6621-8888
+Email: ir@ccb.com
+Any shareholder, individually or jointly holding more than 10%
+of the total issued voting shares of the Bank, has the right to
+request the Board in writing to convene an extraordinary general
+meeting.
+The Board shall reply in writing within ten days after receiving the
+request. In case the Board approves the holding of the meeting,
+it shall issue a corresponding meeting notice within five days
+after the resolution is made. In case the Board refuses to hold
+the meeting or makes no reply, the proposing shareholder may
+propose to the board of supervisors in writing. In case the board
+of supervisors approves the holding of the meeting, it shall issue
+a corresponding meeting notice within five days after receiving
+the proposal. In case the board of supervisors does not issue the
+meeting notice, the shareholder, individually or jointly holding
+more than 10% of the total issued voting shares of the Bank for
+more than 90 consecutive days, may convene and preside over
+an extraordinary general meeting on its own.
+Right to raise proposals to the shareholders' general
+meeting
+Any shareholder, individually or jointly holding more than 3% of
+the total issued voting shares of the Bank, has the right to raise
+proposals to the shareholders' general meeting. Any shareholder,
+individually or jointly holding more than 1% of the total issued
+voting shares of the Bank, has the right to raise proposals.
+regarding the nomination of the candidates for independent
+non-executive directors and external supervisors.
+Proposals to the shareholders' general meeting shall be
+submitted to the organiser of such meeting prior to the issuance
+of the notice of such meeting; after the issuance of the notice,
+any shareholder, individually or jointly holding more than 3% of
+the total issued voting shares of the Bank, has the right to raise
+extraordinary proposals. Extraordinary proposals on nomination
+shall be submitted to the organiser of the meeting 35 days prior
+to the meeting and extraordinary proposals on other issues shall
+be submitted to the organiser of the meeting in writing 20 days
+prior to the meeting.
+China Construction Bank Corporation
+Annual Report 2021
+125
+126
+CORPORATE GOVERNANCE REPORT
+Right to raise proposals to the Board
+Any shareholder, individually or jointly holding more than 10% of
+the total issued voting shares of the Bank, may raise proposals to
+the Board.
+Right to raise enquiries to the Bank
+In accordance with the Bank's Articles of Association, the
+shareholders have the right to obtain relevant information of the
+Bank, including the Articles of Association, status of the share
+capital, financial report, report of the board of directors and report
+of the board of supervisors.
+INVESTOR RELATIONS
+Effective communication with shareholders
+In 2021, the Bank actively seized the new situations, new
+developments and new requirements after the prevention and
+control of COVID-19 was normalised in China, and adopted
+combined methods of "going out" and "bringing in" to further
+explore effective ways to communicate with investors. The Bank
+held live webcast conferences for the annual and interim results
+for the first time, and the number of online participants hit a
+record high. With both online and onsite measures, the Bank
+communicated with over 1,000 domestic and foreign investors
+and analysts by organising results presentation, open day,
+investor forums, visits to key investors, conference calls, collective
+reception day for investors and through official website, hotlines
+and emails from investors, etc. The Bank actively listened to the
+voice of the market, conveyed to the market the progress of the
+Bank's New Finance initiatives and strategy development, the
+efforts and results of the Bank in ESG, to illustrate the Bank's long-
+term development and competitive advantages.
+Shareholder enquiries
+Any enquiries from shareholders related to shareholding,
+including transfer of shares, change of address, loss reporting of
+share certificates and dividend notes, should be sent in writing to
+the following addresses:
+A-share:
+China Securities Depository and Clearing Corporation Limited
+No. 188 Yanggaonan Road, Pudong New District, Shanghai
+Telephone: (86) 4008-058-058
+H-share:
+Computershare Hong Kong Investor Services Limited
+Rooms 1712-1716, Hopewell Centre
+183 Queen's Road East, Wan Chai, Hong Kong
+Telephone: (852) 2862-8555
+Facsimile: (852) 2865-0990
+Investor enquiries
+Enquiries from investors to the Board may be directed to:
+Board of Directors Office
+China Construction Bank Corporation
+No. 25, Financial Street, Xicheng District, Beijing, China
+Telephone: (8610) 6621-5533
+Board of Directors Office - Hong Kong Office
+China Construction Bank Corporation
+Finance and accounting
+The subsidiaries of the Bank had 24,279 employees. The domestic
+and overseas employees were 19,471 and 4,808 respectively.
+There were also 1,179 workers dispatched from labour leasing
+companies. In addition, the subsidiaries assumed the expenses of
+103 retired employees.
+Management
+Overseas
+Total
+China Construction Bank Corporation
+Annual Report 2021
+31 December 2021
+Number of branches
+% of total
+Number of employees
+% of total
+2,277
+15.69
+52,183
+14.86
+Head Office
+1,865
+45,269
+12.89
+2,401
+16.55
+57,450
+16.35
+3,493
+24.07
+78,951
+22.48
+2,990
+20.61
+67,605
+12.85
+Northeastern
+Western
+Central
+21.33
+8,245
+2.35
+7,979
+2.27
+184,071
+52.40
+34,741
+9.89
+40,269
+11.47
+637
+0.18
+6,870
+1.96
+10,861
+3.09
+19,976
+5.69
+28,636
+8.15
+25,191
+7.17
+351,252
+100.00
+The following table sets forth, as at the date indicated, the geographical distribution of the Bank's branches and employees:
+Yangtze River Delta
+Pearl River Delta
+Bohai Rim
+19.25
+1,447
+9.97
+34,305
+In 2021, the Bank relied on the internal control evaluation system
+and digital management methods, continuously improved
+the support of internal control management tools, achieved
+normalised internal control evaluation and continued to improve
+the quality and efficiency of internal control management. Firstly,
+in accordance with the latest regulatory rules and regulations of
+the Bank, the Bank conducted targeted revision of the evaluation
+indicators, organised evaluation across the Bank, and identified
+internal control issues timely. Secondly, based on the evaluation
+system, the Bank strengthened the use of digital tools to
+achieve continuous and dynamic evaluation and improved the
+efficiency of issue identification. Thirdly, the Bank tracked internal
+control issues and deficiencies rectification effectively, so as to
+continuously improve the quality and efficiency of internal control
+management.
+The Board and the audit committee assess the effectiveness
+of internal control and review the report of internal control
+evaluation annually. The assessment conclusion is that, at the end
+of 2021, there was no material deficiency in the internal control
+over financial reporting of the Bank, and no material deficiency
+was detected in the internal control over non-financial reporting.
+The Board believed that the Bank conducted effective internal
+control over financial reporting in all major aspects, in compliance
+with the requirements regarding the standardised system of
+enterprise internal control and other relevant regulations.
+The Bank employed Ernst & Young Hua Ming LLP for the audit of
+internal control. The audit opinion on internal control was in line
+with the Bank's assessment conclusion on the effectiveness of
+internal control over financial reporting. The disclosure of material
+deficiencies of internal control over non-financial reporting in the
+audit report of internal control was in line with the disclosure of
+the assessment report of internal control of the Bank.
+For detailed information of internal control, please refer to the
+assessment report and audit report of internal control of the Bank
+on the websites of the Shanghai Stock Exchange, the "HKEXnews"
+of Hong Kong Exchanges and Clearing Limited, and the Bank.
+China Construction Bank Corporation
+Annual Report 2021
+63.75
+223,924
+10.16
+35,703
+0.14
+479
+0.06
+205
+22.94
+80,591
+26.26
+92,238
+29.75
+104,509
+20.99
+73,709
+53.96
+189,537
+46.04
+161,715
+% of total
+Number of
+employees
+Risk management, internal audit, legal and compliance
+Information technology development and operation
+Others
+The objective of the internal control of the Bank is to reasonably
+ensure the compliance of operation and management with
+laws and regulations, the safety of assets, and the truthfulness
+and completeness of financial reports and related information,
+improve operational efficiency and effectiveness, and facilitate
+the Bank to achieve its development strategies. The Board is
+responsible for establishing sound and effective internal control
+according to the requirements regarding the standardised system
+of enterprise internal control, evaluating its effectiveness, and
+supervising the effective operation of internal control system.
+The board of supervisors supervises the establishment and
+implementation of internal control of the Board. The senior
+management is responsible for organising and leading the daily
+operation of internal control.
+Total
+INTERNAL CONTROL
+124
+9.76
+3
+0.02
+14,146
+4.03
+34
+0.24
+1,343
+0.38
+14,510
+100.00
+351,252
+100.00
+CORPORATE GOVERNANCE REPORT
+Staff remuneration policies
+The Bank is committed to maintaining order and harmony in
+remuneration allocation, and continuously improves the standard
+of performance and remuneration management to serve the
+development of the Bank.
+Pursuant to relevant government policies regarding
+remuneration reform for heads of state-owned enterprise,
+remunerations for the Bank's leaders administered by the CPC
+Central Committee include three parts, namely the basic annual
+salary, performance-based annual salary and tenure incentive
+income. The Bank has established an incentive clawback
+mechanism. If a material error occurs during a leader's tenure
+and causes a significant loss for the Bank, part of or entire
+performance-based annual salary and tenure incentive income
+paid may be reclaimed. The Bank's major allocation policies and
+other significant matters related to remuneration management
+need to be reviewed by the nomination and remuneration
+committee under the Board. Material proposals related to
+remuneration allocation need to be voted at and approved by
+the shareholders' general meeting or reported to the competent
+authority of the state for approval and filing.
+The Bank made full use of remuneration allocation to motivate
+and constrain its employees. The Bank established an appraisal
+and allocation concept encouraging value creation, allocated
+more salary resources to operating outlets, front office
+departments, and positions that directly create value, further
+optimised the incentive and protection policies for outlet
+staff, and established a special subsidy system for outlet staff
+at remote county or under harsh conditions, to enhance the
+sense of gain for staff members. The Bank strengthened the
+role of performance appraisal to improve the cost-efficiency of
+its human resources and match remuneration to performance.
+The Bank strictly implemented deferred payment and clawback
+rules for performance-based remuneration to key positions.
+For employees subject to disciplinary or other penalties due to
+violation of rules or breach of duties, their remunerations were
+deducted in accordance with relevant rules and measures.
+Progress of implementation of employee stock incentive
+plan
+After the implementation of the first employee stock incentive
+plan of the Bank in July 2007, the Bank did not implement any
+new round of stock incentive plan during the reporting period.
+Staff development and training
+The Bank improved the training system for professional career
+of the staff to support the development of New Finance talents.
+The Bank cultivated a new employee learning brand of "Your
+Future with CCB" and created the three pillars of "orientation
+training, follow-up training and management trainee" for
+new employees, and strengthened one-stop training and
+guidance for new employees of the Bank. It developed an
+educational tracking programme during integration period
+for young employees working at the Bank for less than 2 years,
+launched a management trainee training programme, and
+explored the "2+N" training system for high potential young
+talents. The Bank empowered staff at outlets with more training
+resources channeled to branch outlets, and optimised the ability
+enhancement learning programmes including "Be Better with
+You"
+programme for client managers at outlets, and "Together
+with the Best" for heads of outlets. It launched the "Lead with
+Vision" programme to improve their duty performance and
+management capabilities, so as to provide robust talent support
+for deepening the New Finance initiatives.
+The Bank paid attention to the development path and cycle of
+growth for staff in various professional and technical positions
+to improve their professional competence and capability. It
+organised professional and technical position qualification
+examinations across the bank at preliminary, intermedium and
+higher levels, covering 23 business lines and 63 subjects, to
+strengthen employees' professional capability, broaden their
+career development channels, and make the professional and
+technical examinations a key driver for building a learning
+organisation.
+By the end of 2021, the Bank had organised 28,600 training
+sessions with a total enrolment of 1.73 million, including 1,147
+training sessions organised by CCB Learning Centre with a total
+enrolment of 107,800. The Bank optimised CCB Learning platform
+and improved the learning ecology with a total enrolment
+of 369,900 employees of the Bank in 2021. It organised 7,301
+webinars, with 6,813,500 attendances from the Bank, and 5,851
+online examinations with 3,625,300 participants from the Bank. In
+terms of overseas training, it organised four online international
+subject training camps and held 127 cross-border webinars.
+Staff in subsidiaries
+No
+China Construction Bank Corporation
+Annual Report 2021
+123
+CORPORATE GOVERNANCE REPORT
+536.7
+688.0
+442.2
+No
+270.0
+270.0
+Liu Huan
+No
+290.0
+290.0
+Zhao Xijun
+No
+3
+Deng Aibing 3
+No
+Liu Jun 3
+No
+50.0
+50.0
+Wang Yi ³
+No
+Lin Hong
+No
+1,365.3
+252.5
+1,112.8
+Ben Shenglin
+No
+Ji Zhihong
+250.0
+272.2
+1,335.5
+Hu Changmiao
+No
+258.8
+73.0
+185.8
+Li Yun
+No
+756.3
+198.9
+557.4
+Zhang Min
+No
+756.3
+198.9
+557.4
+No
+756.3
+198.9
+557.4
+No
+250.0
+Wang Hao
+1,607.7
+No
+206.2
+Liu Fang 2
+Yes
+Yes
+Yes
+Yes
+Yes
+No
+of the Bank
+Whether obtaining
+remuneration from
+related parties
+(In thousands of RMB)
+Total (before tax)'
+825.6
+Contribution by
+the employer
+to social insurance,
+housing fund, etc.
+206.2
+Remuneration paid
+619.4
+Allowance
+Shao Min 2
+Xia Yang 2
+Tian Bo²
+Xu Jiandong 2
+Zhang Qi 2
+Tian Guoli
+Name
+REMUNERATION OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
+CORPORATE GOVERNANCE REPORT
+120
+Yes
+825.6
+Malcolm Christopher McCarthy
+410.0
+619.4
+Wang Yongqing
+No
+100.8
+100.8
+Leung Kam Chung, Antony
+No
+195.0
+195.0
+William Coen
+No
+410.0
+410.0
+Michel Madelain
+No
+440.0
+440.0
+Graeme Wheeler
+No
+440.0
+440.0
+Kenneth Patrick Chung
+No
+410.0
+No
+Yang Fenglai
+890.3
+74.5
+306.8
+No
+Yes
+195.0
+No
+195.0
+220.0
+220.0
+No
+556.4
+131.6
+74,922
+No
+50.0
+50.0
+Jin Panshi
+95.3
+89.4
+441.4
+352.8
+232.3
+No
+No
+190.9
+758.6
+178.7
+1,069.0
+No
+12.5
+Cheng Yuanguo4
+890.3
+174.8
+1,077.6
+Resigned directors, supervisors and senior management
+No
+Lyu Jiajin
+Feng Bing 2
+Anita Fung Yuen Mei
+Carl Walter
+Wu Jianhang
+Lu Kegui 3
+Jin Yanmin
+Zhang Yi
+1.
+567.7
+Wang Jiang
+202
+61
+10,106
+849,463
+Please see the Corporate Governance and Management
+Discussion and Analysis – Risk Management sections of this
+Report for more information about governance. For more
+information on anti-corruption and petitioner protection, please
+refer to the Corporate Social Responsibility Report 2021 of the
+Bank.
+63,936
+1,549
+14,770
+913,399
+263
+2,151
+Regarding anti-corruption operation, the Bank emphasises
+corporate behaviour that are conform to the highest ethical
+standards and practices. The Bank has formulated codes
+of conduct for all employees and regulations on ethical
+procurement regarding the entire procurement process. Along
+with the anti-corruption training for directors, the Bank has
+also continuously carried out anti-corruption education for all
+employees and organised regular learning activities, including
+posting cautionary alerts and cases, making educational
+videos, holding cautionary conferences, etc. In tax compliance,
+the Bank has been strictly abiding by the tax laws in more
+than 30 countries and regions where we operate, with the
+implementation of tax policies supervised by relevant authorities.
+-
+China Construction Bank Corporation
+602
+4,664
+22
+1,452
+Annual Report 2021
+33,017
+913
+154,020
+1,119
+Green finance
+Anti-corruption
+Human resources
+42
+Total
+44
+1,470
+14,368
+66
+325
+3
+1,127
+39
+12,898
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+Annual Report 2021
+Green finance
+The Bank has developed differentiated management policies for
+green credit whitelist clients to provide policy support to high-
+quality green credit clients and contribute to the growth of green
+industries. The selection criteria for green credit whitelist clients
+clearly follows the national strategic goal of Carbon Peaking and
+Neutrality and prioritises areas with significant carbon reduction
+benefits such as clean energy and clean transportation and
+those with significant ecological and environmental benefits
+on pollution control and ecological environment. Clients from
+industries with high energy consumption and high carbon
+emission, serious overcapacity, high environmental and social
+risks or potential risks, or clients from industries presenting
+insignificant carbon emission reduction benefits such as those
+engaged in investment and asset management are excluded
+from the whitelist. To improve the compliance capabilities for
+environmental and social risk management, the Bank conducted
+special training on Green Credit Identification Policy System, FAQs
+and Case Analysis for all compliance reception review personnel
+in 2021.
+Environmental and climate risk response
+To cope with risks associated with climate change, the Bank
+has formulated environmental and climate risk management
+policies for all corporate credit clients, in which it has incorporated
+environmental and climate risks into the overall credit
+management process. The Bank has specifically considered
+projects with high energy consumption and carbon emission
+under the list for prior management, and incorporated key factors
+like energy efficiency, greenhouse gas emission and pollutant
+emission during the selection of clients and projects, credit
+approval and post-loan management.
+In terms of client selection and regulation, the Bank
+evaluates clients' environmental and climate risks and
+exercises the "One-Vote Veto" policy based on the
+evaluation results. The Bank rejects to grant credit to
+enterprises identified with incompetent environmental
+protection, and clients and projects with significant
+environmental and climate risks. The Bank reduces and
+withdraws support for enterprises or projects with serious
+problems, severe negative impacts, and repeated violations
+or deficiencies that cannot be rectified.
+In terms of credit approval, the Bank has implemented
+differentiated credit approval policies based on clients'
+environmental and climate risks. Credits will not be
+granted for enterprises or projects that fail to meet the
+environmental and climate risk control requirements on
+energy consumption and emission reduction.
+In terms of post-loan management, factors related to
+environmental and climate risks are covered in the post-
+loan inspection. The Bank has strengthened the follow-
+up management on the investigation of risk early warning
+to ensure timely processing of early warning signals. For
+clients with major environmental and climate risks, the
+Bank has implemented strict control over credit exposure
+for effective risk mitigation.
+Performance
+The Bank continued the progress in improving the long-term
+mechanism for green finance development, coordinated efforts
+in the Carbon Peaking and Neutrality action plan, leveraged the
+advantages of financial technology and fully licensed finance,
+actively explored new products, new services and new initiatives
+for the development of green finance, and utilised a combination
+of financial instruments, including green credit, green bonds,
+green leases, green trusts, green insurance and green wealth
+management, to extensively support and foster green industries.
+To strengthen the overall risk management and control of
+credit business, the Bank has classified clients from all industries
+into three categories (i.e., A, B and C, with a risk level of high,
+medium and low, respectively) based on their environmental and
+social risk rating and implemented differentiated management
+measures for clients with different risk levels. At the pre-loan
+investigation stage, the Bank conducts targeted investigation
+based on the characteristics of the industry and region where the
+client operates, focusing on factors including but not limited to
+the client's current environmental and social risk measures and
+historical violations against environmental safety requirements.
+The Bank declines new clients identified with high risks or rejects
+to grant new credits to existing clients identified with high risks.
+Clients with medium risks are required to go through strict access
+review and implement risk mitigation measures. For clients who
+have completed the rectification but are still under observation,
+approval is required before new credit is granted. Clients with
+low risks can apply for loans in accordance with the relevant
+rules and regulations. Clients pending to be classified will not be
+accepted for credit approval. At the loan granting approval stage,
+the Bank implements strict inspections on violations against
+environmental protection laws and regulations, safety accidents
+and other issues. At the post-loan management stage, the Bank
+reviews risk issues monthly, and conducts timely re-inspection,
+classification and confirmation. Clients identified with medium
+and high risks will be put under-listed management and subject
+to stricter inspection, including more frequent on-site inspections
+and quarterly dynamic assessment.
+In 2021, the Bank's green loans maintained rapid growth
+momentum. As of the end of December 2021, the balances of
+green loans were RMB1.96 trillion, an increase of 35.61% from the
+previous year.
+133
+134
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+The following table shows the environmental performance of the Bank's green loans during the reporting period.
+2021
+2020
+2019
+Balance of green loans (RMB million)
+China Construction Bank Corporation
+Annual Report 2021
+ENVIRONMENT AND CLIMATE
+Environmental and social risk management
+206
+Management policies
+The Bank has continuously optimised the operation and
+management system, and made active improvements in related
+fields including organisational promotion, policies, support and
+guarantee, evaluation and incentives as well as supervision and
+inspection to enhance effectiveness. Furthermore, the Bank has
+strengthened environmental and climate risk management
+and control, promoted green and low-carbon transformation
+of credit structure, integrated environmental and climate risk
+into the overall credit process management, coordinated
+energy safety and management and control over industries
+with high energy consumption and high carbon emission, and
+implemented climate risk stress testing in an orderly manner.
+In 2021, the Bank continued to increase the offering of green
+loans and continuously enriched the portfolios of products and
+services related to green finance to contribute to the green
+transformation in the economy and society.
+The Bank issued the Notice on Strengthening Environmental
+and Social Risk Management, the Notice on Strengthening the
+Environment and Climate Risk Management of Credit Business
+and the Notice on Strengthening the Management of Credit,
+Investment and Financing for Industries with High Energy
+Consumption and High Carbon Emission to define the policies
+for environmental and social risk management, support the
+technique upgrade of energy conservation and decarbonisation
+in core industries and companies to step up risk prevention
+and mitigation efforts. The Bank has set a series of development
+objectives to accelerate the development of green finance
+new advantages and reviewed the credit policies for relevant
+industries like photovoltaic power generation, photovoltaic
+manufacturing, steel, petroleum refining, railway and others. For
+major industries and environmentally sensitive industries such
+as power, transportation, green building, agriculture, forestry,
+mining, petrochemicals, steel and others, the Bank has also
+incorporated environment-related regulatory requirements in
+the industry-specific credit policies to actively support green
+development and control environmental risks.
+Power industry: To ensure energy supply and coordinate
+the green and low-carbon transformation of energy, the
+Bank has clarified requirements on pollutant discharge and
+coal consumption in selecting thermal power projects. The
+Bank firmly reduced and retreated support for outdated
+low-capacity projects that the state has clearly restrained
+and enterprises with high environmental and social risks.
+The Bank supported the coal and electricity enterprises
+in the "Three Reforms" (i.e. energy conservation and
+consumption reduction, heat supply and flexibility). In
+credit granting, the Bank gives priority to clean energy
+for improving the proportion of clean energy in credit
+structure. Since the fourth quarter of 2021, the Bank ceased
+providing financing support for new coal and electricity
+projects overseas, except for those already contracted.
+Transportation industry: The Bank has been actively
+supporting the green transformation of transportation
+structure, focusing on key green transportation projects
+such as urban public transport and rail transport, and the
+development of new energy vehicle industry and the
+upgrading of vehicles towards electrification and clean
+design.
+Green building industry: The Bank has taken active
+measures to promote the coordinated development
+of green finance, the construction of the green city
+and the promotion of green building. The Bank also
+supported energy conservation and emission reduction
+in construction. When selecting real estate projects,
+the Bank looked to whether the projects have met the
+green building criteria and regarded it as an essential
+consideration.
+Agriculture: When selecting agricultural clients, the Bank
+has specified requirements on compliant operation,
+environmental protection and quality safety, and exercised
+the "One-Vote Veto" policy over environmental and
+climate risks. Credits will not be approved for clients
+and programmes with significant environmental and
+climate risks. In addition, the Bank has actively supported
+clients with excellent performance in agricultural energy
+conservation, such as those possessing high efficiency and
+low power consumption agricultural machinery and those
+applying advanced technologies developed to reduce
+the consumption of fertilizer, pesticides, water, land and
+energy. The basic policy is to prioritise agriculture and grant
+more agriculture-related credit loans.
+China Construction Bank Corporation
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+131
+132
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+Forestry: When selecting forestry clients, the Bank
+has specified requirements on compliant operation,
+environmental protection and quality safety, and exercised
+the "One-Vote Veto" policy over environmental and
+climate risks. Credits will not be approved for clients and
+programmes with significant environmental and climate
+risks. In addition, the Bank actively supported key national
+superior tree seed bases and key projects under the
+national forest operation planning, thus contributing to the
+nationwide afforestation and helping increase the forest
+stock volume and enhance the carbon-sink capacity. The
+policy in this regard is to prioritise forestry and grant more
+forestry-related credit.
+Mining: The Bank supports green, clean and intelligent
+mining and considers various factors like production
+safety, environmental protection and resource utilisation
+to decide whether the client or project is eligible. In
+addition, the Bank exercised the "One-Vote Veto" policy
+over environmental and climate risks. Credits will not be
+approved for clients and programmes with significant
+environmental and climate risks. The Bank resolutely
+reduces and withdraws support for outdated low-capacity
+enterprises acting against the national industrial policies
+or the environmental protection and safety production
+standards.
+Petrochemical industry: The Bank supports the green, low-
+carbon and recyclable development of the petrochemical
+industry and considers various factors like production
+safety, clean production, energy consumption level and
+carbon emission intensity to decide whether the client and
+project is eligible. Paying close attention to the impact of
+enterprise production and project construction on energy
+consumption, carbon emission, ecological environment
+and biodiversity, the Bank has exercised the "One-Vote
+Veto" policy over environmental and climate risks. Credits
+will not be approved to clients and programmes with
+significant environmental and climate risks, so as to avoid
+getting involved in new production capacity projects in
+key areas of air pollution prevention and control. The Bank
+also resolutely withdraws support for projects against the
+national industrial planning and environmental policies
+and enterprises that violate the requirements of green and
+low-carbon development.
+Steel: The Bank supports the green development and
+transformation and upgrading of the steel industry and
+considers various factors like energy efficiency, greenhouse
+gas emissions and pollutant discharge to decide whether
+the client and project is eligible. Paying close attention
+to the impact of project construction on the cap on total
+energy consumption and intensity, carbon emission,
+ecological environment and biodiversity, the Bank has
+exercised the "One-Vote Veto" policy over environmental
+and climate risks. Credits will not be approved for clients
+and programmes with significant environmental and
+climate risks. The Bank also resolutely withdraws support
+for projects against the national industrial planning and
+environmental policies and enterprises that are against
+the standards regarding environmental protection and
+production safety.
+Biodiversity protection: In October 2021, the Bank
+participated in the 15th Meeting of the Conference of
+Parties to the Convention on Biological Diversity ("COP
+15") in Kunming, Yunnan, and signed the Joint Pledge
+by Banking Financial Institutions to Support Biodiversity
+Protection, and promised to identify biodiversity
+preferences, increase investment and innovation in
+biodiversity, strengthen the risk control over biodiversity,
+improve biodiversity performance and promote
+biodiversity cooperation. The Bank has called for steadily
+increasing support in key areas and regions of ecological
+protection. The Bank actively supports major projects in
+biodiversity protection, and various ecological protection
+and restoration projects such as protection of animal and
+plant resources, protection and restoration of rivers, lakes
+and wetlands, restoration of ecological environment in
+mines, conservation and restoration of national ecological
+safety barriers, comprehensive improvement of key
+ecological areas. In the credit policies for related industries
+like wind power and photovoltaic power generation, the
+Bank has outlined requirements on raising the awareness
+of ecological protection, strictly sticking to the red line of
+ecological protection, the bottom line of environmental
+quality, the upper limit of resource utilisation and the
+ecological environment access list. The Bank closely
+oversees the impact of project construction on ecological
+environment and biodiversity.
+China Construction Bank Corporation
+Annual Report 2021
+121,003
+130
+661
+335,950.96
+299,247.57
+20,600,497.71
+23,171,202.67
+324,919.23
+23,790,030.70
+11,172.33
+Proportion of off-counter account transactions (%)
+Total paper consumption (tonnes)
+Financial transaction migration rate via electronic channels (%)
+12,635.51
+99.51
+11,746.87
+99.40
+96.57
+94.77
+1.
+The statistic standard of the above data can be referred to our 2021 Social Responsibility Report.
+Green procurement
+99.58
+97.34
+Energy consumption (tonnes of standard coal)
+Water consumption (tonnes)
+1,574,914.66
+The test results showed that the repayment capabilities of the
+clients in thermal power, steel, cement and aviation industries
+were reduced to varying degrees under stress scenarios, resulting
+in corresponding credit rating downgrades, yet the risks were
+generally controllable. Among them, the thermal power, steel and
+cement industries were greatly affected, with the Bank's capital
+adequacy ratios declining by 0.86, 1.15 and 1.35 percentage
+points, respectively, by 2030 under the three stress levels (i.e.
+mild, moderate, and severe). However, due to the low proportion
+of loan balances of each industry, the impact on the Bank was
+limited, and the declined capital adequacy ratios were all higher
+than the regulatory requirements.
+The Bank has carried out special training on environmental and
+climate risk stress testing across the Bank, invited internal and
+external experts to comprehensively educate the concept of
+environmental and climate risk, future development trends,
+domestic and foreign practices and stress testing mythology and
+tools. The Bank has comprehensively strengthened the training
+of relevant leading members of the Head Office, branches and
+subsidiaries, and provided team and capacity support for the
+orderly promotion for the Carbon peaking and Neutrality work.
+Green operations
+The Bank attaches great importance to green operations,
+including continuously improving the management systems
+for energy conservation and environmental protection,
+strengthening the implementation of energy conservation
+and emission reduction measures, perfecting the systems of
+monitoring and diagnosis, energy audit and maintenance, and
+establishing a categorised statistical ledger to regularly collect
+energy consumption data for analysing energy consumption
+indicators, and strengthening maintenance to deepen the
+energy conservation potential. By implementing green office
+by turning off lights and computers in time, it reduces standby
+consumption. Through accelerating intelligent operations by
+utilising technologies to promote paperless office, it reduces
+the use of disposable office supplies and increasing the use of
+video conferencing systems. The Bank encourages energy-saving
+China Construction Bank Corporation
+Annual Report 2021
+137
+138
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+technology renovation with efficient and eco-friendly equipment.
+It initiaties the Clean Your Plate campaign and promoting
+the applications of information management platforms like
+Smart Canteen. It implements a standardised waste recycling
+mechanism, procuring from professional recycling companies
+and carrying out the UPS battery recycling services across the
+Bank. Meanwhile, recycling mechanisms are introduced for
+various products such as Smart POS and QR scanning terminals.
+The Bank promotes concept of green environmental protection
+as well as knowledge on energy conservation, advocating a low-
+carbon lifestyle to enhance the employees' awareness of energy-
+saving, and encourage customers and the public to participant in
+low-carbon and environment-friendly activities like the CCB Low
+Carbon Living Month and Earth Hour.
+The Bank has set up a Carbon Footprint Management Group
+to comprehensively review the Bank's energy and resource
+consumption, including electricity, natural gas, diesel, gasoline,
+heat, LPG, coal, water and paper, from 2016 to 2021. Together
+with carbon emission experts, the Bank has studied and
+formulated statistical standards for energy consumption and
+continuously and steadily promoted the Zero-Carbon pilot
+projects to build a low-carbon bank. The Zhongshan Cuiheng
+New Zone Sub-branch of Guangdong Branch has become
+the first Zero-carbon Outlet in the industry and was awarded a
+carbon neutrality certificate by the China Emissions Exchange
+(Guangzhou). The Head Office of the Bank has been evaluated
+Excellence in the energy-saving target assessment in Xicheng
+District of Beijing for three consecutive years.
+The following table illustrates the environmental performance of the Bank's green operations during the reporting period.
+2021
+2020
+2019
+Total greenhouse gas emissions (tonnes)
+1,643,454.48
+1,481,223.32
+The Bank proactively incorporated green and environmental
+protection, energy-saving and emission reduction policies
+into the procurement system, which stipulated in the Supplier
+Management Regulation and Management Measures for
+Centralised Procurement that "priority shall be given to suppliers
+with energy-saving and environment-friendly products" and
+"energy-saving and environment-friendly products", respectively.
+For supplier selection, the Bank requests to strengthen the
+approval of environmental protection qualifications and prioritises
+suppliers with energy-saving and environmental protection or
+green qualifications. The Bank has also increased the weighting of
+energy-saving and environmental protection-related indicators in
+the model selection test and procurement evaluation. In terms of
+recycling and disposal, the Bank has encouraged the recycling of
+waste materials and taking the lead in regulating the recycling of
+waste batteries.
+The Bank attaches great importance to the green transition of
+vehicles and actively follows the development direction of new
+energy vehicles in the 14th Five-Year Plan. In 2021, the Bank took
+the lead in the banking industry to propose and implement
+centralised procurement, replacement and configuration of new
+energy vehicles, optimising the allocation ratio of new energy
+vehicles and fuel vehicles. The new energy vehicles purchased
+accounted for 50% of the year.
+Number of
+Training theme
+Person-times
+Number of
+training sessions
+Number of
+Person-times
+Number of
+training sessions
+Number of
+Number of
+Person-times
+training sessions
+Protection of consumers' rights and interests
+710,573
+288
+18,216
+373
+728,789
+Total
+Inclusive finance
+On-site training
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+China Construction Bank Corporation
+Annual Report 2021
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+SOCIAL DEVELOPMENT
+Consolidating and expanding the positive results
+in poverty elimination through targeted poverty
+alleviation
+Basic principle
+The Bank continues to innovate products and service
+models, further empowers through financial technologies.
+To continuously improve rural revitalisation services, and
+consolidating and expanding the positive results in poverty
+elimination through targeted poverty alleviation, the Bank
+outreaches deeply to the underserved demographics through
+coordination and group synergy.
+Overall target
+The Bank continues to improve the policy guidance, system
+construction and financial innovation in agriculture-related areas,
+to enhance the quality and effectiveness of financial services for
+rural revitalisation. It optimises the structure of CCB Yunongtong
+inclusive financial service sites, and enables more new outlets
+be accessible in county regions to further improve rural service
+channels. The Bank has established CCB product service system to
+fully support rural revitalisation and enriched the comprehensive
+services, improved risk control to be more initiative, prospective
+and refined, and further enhanced the compliance operation and
+risk prevention and control capabilities.
+Safety measures
+Improving organisational system and working mechanism. The
+"CCB Leading Group for Poverty Alleviation" was changed to
+the CCB Leading Group for Rural Revitalisation, pushing forward
+seamless convergence between consolidating and expanding
+the positive results in poverty elimination and rural revitalisation.
+Strengthening the resource allocation and consolidating the
+safety system. The Bank highly supports the construction of
+CCB Yunongtong service sites and improves the development
+quality of those service sites. Moreover, with differentiated credit
+policy management, the Bank allocates more credit resources to
+agriculture, forestry, animal husbandry, fishery and other key areas
+of rural revitalisation which are identified as priority industries.
+Optimising relevant policies and empowering the growth. The
+Bank implements differentiated credit policies, covering credit
+scale, guarantee means, project assessment, credit approval,
+due diligence and exemptions, risk tolerance, as well as internal
+transfer preferences, etc., for credit clients from former extreme
+poor regions, key counties for national rural revitalisation and pair
+assistance regions targeted by the Bank.
+Annual poverty alleviation
+Innovating assistance models. The Bank issued the Financial
+Service Solution for Serving Key Counties for National Rural
+Revitalisation, and formulated the "1+6" comprehensive financial
+assistance plan, focusing on six key areas, including social
+security, collaboration between the eastern and western regions,
+industrial development, new agricultural business entities,
+rural construction and rural governance to further support
+key counties for rural revitalisation. Pairing assistance between
+branches in the eastern and western regions was promoted to
+help key counties to develop their industries and consolidate the
+achievements made in poverty alleviation. The "Jianrongzhihe",
+a smart comprehensive services platform for enterprise
+matchmaking, launched the Financial Assistance Zone, helping
+key counties to release information on investment attraction and
+enterprise matchmaking. The training of financial talents in key
+counties for national rural revitalisation have also increased.
+Expanding assistance channels. Relying on the e.ccb.com,
+an e-commerce platform, the Bank launched a special sales
+area for key counties for national rural revitalisation, and
+established a public welfare platform for online showcase, sale
+and support services of agricultural and side-line products.
+The Bank gave full play to the advantages of the supply and
+procurement synergy services of Shanfutong, providing one-
+stop "e-commerce+finance" service solutions, covering payment
+and clearing, order management and information sharing, for
+upstream and lower-reaches agricultural business entities. The
+business transactions of agricultural industrial chain completed
+on the Shanfutong in 2021 exceeded RMB3 billion.
+China Construction Bank Corporation
+Annual Report 2021
+139
+Online training
+According to the classification of climate risks by TCFD, the Bank
+identified actual or potential acute and chronic physical risks, as
+well as transition risks due to policies, laws, technologies, markets
+and reputation. The Bank actively carried out quantitative analysis
+of climate risks and initiated the construction of a client ESG
+rating system throughout the Bank to support the healthy and
+sustainable development of green finance.
+In May 2021, the Bank became a supporter of the Task Force on
+Climate-Related Financial Disclosures ("TCFD") and promised
+to conduct climate change risk response and environmental
+information disclosure based on the TCFD framework.
+359.27
+Sulphur dioxide emission reduction (10,000 tonnes)
+87.23
+60.09
+Nitric oxides emission reduction (10,000 tonnes)
+457.03
+90.22
+30.65
+3.54
+Water saving (10,000 tonnes)
+11,333.87
+1.
+The data of 2021 followed the statistic standards of 2020 China Banking and Insurance Regulatory Commission Statistical System of Green Financing, and
+the data of 2019 and 2020 followed the original statistic standards of China Banking and Insurance Regulatory Commission.
+Case story
+Low-carbon living model
+To cope with pain points such as difficulties in measuring the carbon emission reduction in low-carbon scenarios
+and the lack of effective data support for green financial products on the consumer end, the Bank gave full play
+to financial technologies to create a low-carbon living model, innovated in individual carbon footprint products,
+providing personal financial services such as discounts on credit card consumption, payment discounts, and points
+redemption, in order to explore diversified carbon inclusive mechanisms and lead the green and low-carbon
+development. The Bank's case of Comprehensive Green Financial Services Based on Carbon Ledger was successfully
+selected by People's Bank of China as the pilot project for integrated application of financial data.
+In terms of application innovation, the project integrated and analysed low-carbon data from various ecological
+scenarios, such as travelling, retail and government administration through multi-party data learning and other
+technologies, to realise cross-entity application of the data with complete protection of user privacy and security.
+The project built a carbon emission reduction measurement model based on artificial intelligence, big data and
+other technologies to accurately measure consumers' low-carbon footprint and providing model support for
+the "Carbon Ledger". By adopting cloud computing and other technologies, the project built a SaaS (Software
+as a Service) platform covering carbon emission reduction measurement, "Carbon Ledger" operation and equity
+exchange to enhance comprehensive financial services for low-carbon scenarios.
+22,844.55
+4.80
+59.39
+Ammonia and nitrogen emission reduction (10,000 tonnes)
+In 2021, the stress tests mainly focused on the Bank's corporate
+clients in the thermal power, steel, cement and aviation industries
+with annual emissions of more than 26 thousand tonnes of
+carbon dioxide equivalent (according to the Ministry of Ecology
+and Environment's criteria for defining key greenhouse gas
+emitters). The Bank examined the potential impact on the
+repayment capability of the above enterprises assuming that
+they were required to pay a certain carbon dioxide emission
+expense. By carrying out stress tests over ten years, while setting
+end of 2020 as the base day, the Bank launched tests in three
+stress levels, namely mild, moderate, and severe, according
+to the changes in the carbon prices in the domestic carbon
+trading market and carbon price situations of the Central Banks
+and Supervisors Network for Greening the Financial System
+(NGFS). Assuming that the enterprises would not undertake low
+carbon transition during the test period and had no bargaining
+capability over upstream and downstream enterprises, the Bank
+adopted the international mainstream methodology to test
+each enterprise and quantitatively assesses the impact of climate
+transition risks on the financial costs and credit ratings of clients.
+In 2021, the Bank continued its exploration on climate transition
+risk stress testing. It participated in a climate risk stress test
+organised by the Central Bank of China, and completed three
+sectoral stress tests, including thermal power, steel and cement,
+to assess the potential impact of the transition of carbon peaking
+and neutrality target on the Bank's credit assets. The Bank has also
+conducted climate risk stress tests for the aviation industry.
+Standard coal equivalent emission reduction (10,000 tonnes)
+1,963,129
+1,342,707
+1,175,802
+12,427.57
+3,506.48
+3,196.96
+Carbon dioxide equivalent emission reduction (10,000 tonnes)
+12,509.58
+7,388.66
+7,233.31
+COD emission reduction (10,000 tonnes)
+394.93
+99.37
+33.44
+In terms of risk prevention and control, the project accessed a wider range of hot data through the digital
+management method of building an ecosystem, setting up scenarios and expanding the user bases. The Bank
+diversified the data support dimension for rich low-carbon level measurement and optimised the carbon emission
+reduction measurement model to ensure the authenticity and validity of the "Carbon Ledger".
+In terms of the practice performance, as of the end of 2021, the project had been piloted in five cities, including
+Beijing, Shanghai, Shenzhen, Zhengzhou and Qingdao, and completed the carbon emission reduction
+measurements in eight low-carbon scenarios, such as travelling by underground or bus, ETC payment and utility
+bills payment.
+6,629.90
+Annual Report 2021
+TARK GABE STRE
+-ne
+81.39
+81.39
+LUXEMBOURG
+China Construction Bank Corporation
+Official website of CCB
+Wind Terminal
+Case story
+On May 20, 2021, CCB, together with Wind Information Co., Ltd.
+and International Institute of Green Finance of Central University
+of Finance and Economics ("CUFE"), released the CCB-Wind Green
+ESG Bond Issuance Index and Yield Curve Project simultaneously
+in Beijing and Luxembourg.
+CCB-Wind Green ESG Bond Issuance Yield Index evaluates
+and selects the benefits of carbon emission reduction, green
+development and sustainable development of newly issued
+bonds by extracting the primary market yield data of the newly
+issued bonds every week in the Inter-Bank Bond Market, Shanghai
+Stock Exchange and Shenzhen Stock Exchange. It classifies and
+averages the weighted sample data meeting the screening criteria
+to form an index. On the premise of sufficient sample size, sub-
+indexes such as the carbon-neutral bonds, green bonds and ESG
+bonds are calculated and formed in the same way, and the index
+curve is publicly displayed.
+The CCB-Wind Green ESG Bond Issuance Index combines the
+Bank's green bond underwriting and issuance experience with
+relevant green bond standards and ESG rating methodologies.
+It is the first cross-market green bond index after the release of
+the unified green bond standards in China as well as the first
+green bond issuance index in the Chinese primary market that
+integrates ESG and carbon neutrality, filling the gap of the lack
+of green ESG bond issuance index in the Chinese primary bond
+market.
+On December 4, 2021, CCB's innovation project CCB-Wind Green
+ESG Bond Issuance Index and Yield Curve won the IFF Global
+Green Finance Award, ranking first among the Top 10 Innovation
+Projects of IFF this year. The award aims to commend and reward
+global green finance and innovative solutions with great global
+authority and international influence.
+Official website of Luxembourg Exchange
+China Construction Bank Corporation
+Annual Report 2021
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+Climate change
+As one of the largest leading underwriters of credit debts in the
+Chinese interbank market, the Bank adheres to the New Finance
+concept and practises high-quality development. It utilises
+professional advantages and market influence to research and
+develop the CCB-Wind Green ESG Bond Issuance Index and
+Yield Curve, which provides market issuers and investors with an
+important reference for pricing trends and improves the green
+bond price discovery mechanism.
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+CCB-Wind Green ESG Bond Issuance Index and Yield Curve
+Chart
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+In exploring innovative and sustainable financial practices, the
+Bank focused on green business development in non-credit areas,
+formulated the Implementation Plan for the Expansion of Green
+Capital Market, and strengthened the issuance and investment
+of
+green bonds. In 2021, the Bank simultaneously issued multi-
+currency ESG-themed bonds abroad, including US$1.15 billion
+of sustainability-linked bonds and EUR0.8 billion of green bonds
+for water protection and environmental governance, and 2-year
+RMB2 billion offshore transformation bonds, attracting a variety
+of global socially responsible investment and sustainable finance
+investors. In December 2021, the Bank issued the world's first
+demonstrative green bond of US$0.5 billion abroad based on
+the EU-China Common Ground Taxonomy - Climate Change
+Mitigation, with the raised funds earmarked to support high-
+quality projects of clean transportation and clean energy in the
+Greater Bay Area. In 2021, the Bank underwrote 72 domestic
+and overseas green and sustainability-linked bonds totaling
+. . .
+RMB124,037 million, including the market's first batch of carbon-
+neutral bonds, sustainability-linked bonds, the first green REITs in
+the interbank market and the green bond dubbed as Lotus Bond.
+The Bank initiated more than 300 investment transactions in
+green bonds, boosting more than RMB130 billion of direct green
+financing.
+The Bank actively promoted the development of green
+investment and financing business of its subsidiaries. CCB
+Principal Asset Management has officially joined the UN Principles
+for Responsible Investment ("UN PRI") and issued multiple ESG-
+themed products. CCB Wealth Management issued ESG-specific
+wealth management products ("WMPS") to increase investment
+in green assets. CCB Life, CCB Futures and other subsidiaries
+continued to increase allocations of various green assets. By the
+end of 2021, CCB Financial Leasing was the first company in the
+industry to build a "green leasing" brand and has granted a total
+of over RMB100 billion in green leasing.
+The following table illustrates the honours related to green finance received by the Bank during the reporting period.
+Honourary awards
+2021 Model Case with Green Influence in China and 2021 Financial Service
+Innovation Model awarded for the "FITS® Lvxin" Green Investment and Financing
+Service Platform and the Vegetable Intelligent Management Service Platform of
+Shouguang, Shandong
+2021 Role Model of Low Carbon
+Issuer
+China News Service, National Development and Reform Commission,
+Ministry of Ecology and Environment, etc.
+Xinhua.net
+International Finance Forum
+China Construction Bank Corporation
+135
+Annual Report 2021
+136
+IFF Global Green Finance Innovation Award
+In order to strengthen the supervision of consumer information
+security protection, the Bank conducts internal audit of
+information technology regarding information security and
+other matters every year, and strives to achieve a full coverage
+of main information technology support institutions on a three-
+year basis, including the head office, tier-1 branches and the
+Group's subsidiary CCB Fintech. From 2020 to 2021, the Bank
+completed the corresponding information security audit on
+works of development, operation and maintenance, and security
+management for all branches. The 2021 financial technology
+audit of the head office data centre, CCB Fintech and other
+information technology support institutions or departments also
+included the audit on information security and relevant items.
+In accordance with the Personal Information Protection Law
+of the People's Republic of China, Data Security Law of the
+People's Republic of China, and the Regulations on Protecting
+the Security of Critical Information Infrastructure and other laws
+and regulations, the Bank formulated, revised and issued the
+Measures for the Administration of Personal Client Information,
+the Measures for the Security Management of Online Financial
+Business, the Measures for the Administration of External Data,
+the Grading Standards for Personal Financial Information Data
+Security, Data Security Grading Standards, the Implementation
+Rules for Network and Information Security Management and
+other regulations which covered all relevant business subsidiaries
+to further improve personal information security protection
+and data security protection management system. The Bank
+continued to standardise the conditions of personal clients'
+information queries in various business systems, developed
+an optimised privacy authorisation management tool, and
+strengthened the control of clients' notification and authorisation.
+To enhance the protection of personal clients' information
+and data security and rights of personal information, the Bank
+conducted data masking, avoided to display unnecessary
+information, strengthened the management of query
+authorisation, and effectively applied the principles of "legality,
+legitimacy, necessity and integrity" and relevant data security
+requirements in the use of personal client information. The Bank
+actively explored the application of artificial intelligence, big
+data and other technologies in client information protection,
+iteratively upgraded the client information query and monitoring
+model, strengthened the monitoring analysis and early warning
+Responding properly to client complaints
+of employees' abnormal behaviours, developed data security
+grading tools, and implemented data security grading system.
+The Bank strengthened the cultivation of data security culture,
+organised relevant data security courses, and enhanced
+employees' awareness of data security.
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+Annual Report 2021
+China Construction Bank Corporation
+Valuing the protection of information security
+The Bank strictly implemented the whole-process integration of
+consumer protection in designing its advertising and marketing
+activities with the oversight of Personal Finance Department
+(Consumer Rights Protection Department), revised and issued
+the Administrative Measures for Personal Client Advertising and
+Marketing to standardise marketing behaviours. Branches were
+required to draw up advertising and marketing management
+standards accordingly and conduct regular inspections to avoid
+non-compliant advertising and marketing behaviours such as
+false and exaggerated publicity. In terms of the arrangement of
+its advertising and marketing activities, the Bank made unified
+advertising and management requirements, and conducted
+trainings for employees according to the launch requirements of
+specific advertising and marketing activities. The Bank promptly
+dealt with the advertising and marketing problems complained
+by clients, and optimised the management of related advertising
+and marketing services accordingly.
+Strengthening employee trainings on consumer
+protection
+In debt collection, the Bank formulated the Operating Procedures
+for Disposal and Management of Corporate Non-performing
+Loans, the Operating Procedures for Collection and Disposal
+of Personal Non-performing Loans, the Operating Procedures
+for Outsourcing Collection of Written-off Corporate Debts, the
+Operating Procedures for Outsourcing Collection of Personal
+Non-performing Loans and other policies and measures, which
+clarified collection policies for corporate and personal non-
+performing loans, standardised collection methods, work
+requirements and frequency requirements, while stipulated that
+the management and disposal of corporate and personal non-
+performing loans should be implemented in compliance with
+relevant laws, regulations, rules, policies and work procedures.
+The Bank also implemented strict management of outsourcing
+collection agencies, established a whole-process management
+and control mechanism of pre-operational admission, operational
+monitoring and post-operational assessment for entrusted
+agencies. Post-operational evaluation management and annual
+assessment of entrusted agencies were strictly implemented,
+and the coverage of assessment are clarified as internal control,
+standardised operation, the protection of consumers' rights and
+interests and other aspects of entrusted agencies. Moreover,
+the Bank increased the proportion of information security in
+the assessment of outsourcing agencies to protect customers'
+information security and consumers' rights and interests.
+Standardising debt collection
+The Bank took the initiative to reshape the mode of post-loan
+services to meet customers' needs for modifications in loan-
+related elements and protect consumers' rights and interests.
+Upon mutual agreement, the Bank provided customers with
+escalation options, which allowed clients to change loan
+terms, instalment amount, repayment method, guarantee,
+entrusted debit account and other terms with income-based
+considerations. It is clearly defined by the Bank that the borrower
+can submit an application for early repayment or modifications in
+other contract elements, and the modification can be completed
+after approval.
+Providing loan modification plans
+The Bank always regards management of client complaints as
+the key point of its consumer protection work. In 2021, the Bank
+conducted a special campaign on complaint management for
+the whole bank, revised and issued the administrative measures
+for consumer complaints, and further improved and standardised
+the whole process of consumer complaint management
+and review by the Consumer Rights Protection Department,
+including the acceptance and handling procedures of consumer
+complaints, information management and information
+protection of complainants, and supervision management.
+The Bank formulated emergency management measures
+for serious consumer complaints, reviewed and revised the
+contingency plan for serious consumer complaints to further
+improve the emergency management for serious events to
+protect consumers' rights and interests in the whole bank. The
+Bank improved the accessibility of complaint channels, actively
+publicised its complaint channels and complaint handling
+procedures, and established complaint management, supervision
+by key institutions, regular notification and management
+mechanism for diversified complaint resolutions. The Bank also
+organised special trainings on complaints to standardise the
+complaint handling process, and to improve the complaint
+handling and management capability of employees. The Bank
+continued to promote the digital transformation of complaint
+management system and established the complaint data
+monitoring and analysis mechanism. For the business problems
+involving complaints, the root cause rectification was conducted,
+to facilitate the improvement of service capabilities and client
+experience. Moreover, the Bank closely inspected the problems
+from the complaints, and actively researched the improvement
+recommendations proposed by clients to improve the client
+experience and satisfaction.
+Implementing fair marketing policies
+The Bank highly values the education of employees on consumer
+protection and actively organised consumer protection
+trainings for employees. In 2021, the Bank provided trainings on
+consumer financial protection to all relevant customer-facing
+employees. Special training courses on consumer protection
+were completed at the head office level, and imbedded the
+content of consumer protection into the trainings of individuals,
+companies, institutions, private banks, housing finance, rural
+finance and other business lines. At the branch-level, 130 online
+and 176 offline training sessions on consumer protection were
+organised, and consumer protection was included in more than
+1,500 business department trainings, to cultivate the concept
+of consumer protection learning and education for employees
+in the whole bank. The Bank also cooperated with external
+educational institutions to conduct consumer protection
+trainings. 9 tier-1 branches collaborated with local universities
+to deliver consumer protection trainings, and 5 tier-1 branches
+invited experts from third-party consulting companies to give
+lectures on consumer protection for employees.
+In 2021, the Bank processed more than 244,900 consumer
+complaints. The involved business categories mainly include
+credit cards (accounting for 22.18%), debit cards (accounting
+for 20.47%), debt collection (accounting for 14.34%), and etc.
+Complaints were mainly from clients in Guangdong Province
+(accounting for 6.66%), Hebei Province (accounting for 6.03%)
+and Hubei Province (accounting for 4.71%). Complaint handling
+channels mainly involved the business sites (accounting for
+36.07%), middle and back office channels (accounting for 28.98%),
+electronic channels (accounting for 23.39%), and etc.
+Annual Report 2021
+Optimising the consumer protection assessment system
+The Bank revised and issued the Measures for Assessment
+of Consumers' Rights and Interests Protection, improved the
+consumer protection assessment system, strengthened the
+application of assessment results to navigate and manage further
+works, and to promote the in-depth integration of consumer
+protection with business development and service management,
+effectively protecting the legitimate rights and interests of
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+Annual Report 2021
+China Construction Bank Corporation
+The Bank took a leading role in building and opening more than 14,000 Workers' Harbours to the public, providing
+basic service facilities such as drinking water dispensers, tables and chairs for rest, Wi-Fi, mobile phone chargers,
+books and reading glasses, as well as emergency service facilities such as umbrella and first aid kits. To better
+serve special groups, qualified outlets supplied the public with bathrooms, and provided wheelchairs, barrier-free
+ramps and other accessible facilities, as well as mother-infant rooms, baby carriages, microwave ovens, and etc. for
+humanistic care. Meanwhile, the Bank also promoted the construction of barrier-free hardware facilities in outlets,
+increased the number of accessible facilities such as barrier-free ramps, wheelchairs, cards for the blind, and braille
+business guide, as well as upgraded the accessible toilets, accessible parking spaces and other service facilities in
+qualified outlets. In addition, the Bank provided remote (online) translation equipment for sign language service in
+some outlets, improved the trainings on barrier-free service skills for outlet employees, and continued to design and
+organise diversified public welfare activities for the people with disabilities and the elderly, significantly improving the
+barrier-free service capability of business outlets.
+Warmly Building Workers' Harbour
+Under the careful guidance and strong support of China Banking Association and China Disabled Persons' Federation,
+the Bank has successively built barrier-free service demonstration outlets in Shanghai, Xiong'an, Beijing and other
+regions in accordance with the Standards for Banking Accessible Environment Construction. Among them, Xiongxian
+Sub-branch Outlet was highly recommended as the demonstration outlet for barrier-free service in the Press
+conference on Bank Barrier-free Environments Construction Standards.
+Building demonstration outlets with barrier-free service
+Cases of service measures for special client groups
+(2)
+(小小孩斑
+自助银行服务
+24
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+144
+143
+China Construction Bank Corporation
+Annual Report 2021
+consumers.
+Promoting the education of financial knowledge
+The Bank revised and issued the Administrative Measures for
+Improving Public Awareness of Consumers' Rights and Interests,
+and established a "centralised+scenario-based" education
+matrix by building a "standardised+featured" content library to
+deepen digital publicity and education, so as to comprehensively
+enhance the consumer education and publicity of CCB both
+online and offline. In addition to general clients, the Bank
+organised special education activities to promote the awareness
+of consumer protection among the elderly, teenagers, school
+students, rural residents and migrant workers, ethnic minorities,
+people with disabilities and other client groups. For example,
+the Bank released the Consumer Protection Class for the Elderly
+section on the Financial Literacy Promotion channel of CCB
+Learning Centre, prepared large print financial knowledge
+booklets for the elderly, provided the Smart Bank consumer
+protection voice service, and organised employees of all branches
+to visit communities, nursing homes, and universities for the
+aged, so as to empower key targeted groups, expand the access
+of financial knowledge education, and improve the effect of
+financial knowledge education among specific groups.
+142
+China Construction Bank Corporation
+China Construction Bank Corporation
+Annual Report 2021
+The Bank implemented the Notice on Promoting the
+Demonstrative Projects of Financial Technology Empowering
+Rural Revitalisation of the PBOC and Seven Other Ministries,
+formulated policies such as the 2021 Guidance on New Financial
+Services for Rural Revitalisation, Implementation Plan for Vigorous
+Development of Green Finance in Rural Revitalisation, and
+Financial Service Solution for Serving Key Counties for National
+Rural Revitalisation, highly supporting the comprehensive
+improvement of rural living environment, land remediation and
+restoration, ecological and recycling agriculture development,
+green resource development and utilisation, and ecosystem
+restoration and protection. All these promoted effective credit
+allocation of financial services, reaching deeper to improve
+effective rural governance in rural revitalisation.
+Financial services for rural revitalisation
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+Annual Report 2021
+China Construction Bank Corporation
+In 2021, the Bank underwrote and issued RMB6,700 million
+of rural revitalisation bonds, successfully launched several
+rural revitalisation-themed financial products with a scale of
+RMB13,647 million, actively supported the financial leasing
+needs of counties and villages, releasing leasing projects with
+RMB12,186 million. The Bank established the CCB Charity
+Trust for Joint Targeted Assistance, promoted the “capital
+management+insurance+futures" business to provide
+production protection for farmers in key counties for national
+rural revitalisation. Moreover, the Bank cooperated with China
+Charity Federation to initiate the CCB Building a Better Homeland
+public welfare project for rural revitalisation, organised a total
+of 52 thousand training sessions with 4.5 million person-times
+through online and offline channels on the Financial Literacy
+Promotion inclusive education and training platform.
+The Bank continued to carry out a series of Benevolent Caring
+for Agricultural Development marketing activities, and held 226
+various comprehensive marketing activities, driving the total
+volume of transactions over RMB1 billion. The Bank improved
+the Assistance Purchase Zone to provide clients with assistance
+purchase service solutions. As at the end of 2021, the Bank
+helped to sell RMB2,157 million and purchased RMB155 million of
+agricultural products from areas lifted out of poverty.
+The Bank formulated a plan based on four dimensions including
+inclusive financial services helping rural residents, empowering
+agricultural industry modernisation, promoting convenient rural
+public services, and facilitating digitisation of rural construction,
+to establish the CCB agriculture-related service system, to
+implement and achieve the digital operation and platform
+economics in the rural areas. The Bank also provided rural clients
+with efficient and convenient financial and non-financial services
+based on the stable coverage of the CCB Yunongtong inclusive
+financial service sites.
+As of the end of 2021, the loan balance of areas lifted out of
+poverty in the Bank was RMB746,420 million, an increase of
+RMB99,207 million or 15.32% over the previous year. Loan balance
+of key counties for national rural revitalisation was RMB90,926
+million, an increase of RMB14,860 million or 19.53% over the
+previous year, exceeding the growth rate of the Bank's loans by
+6.85 percentage points.
+Expanding the assistance scope. The Bank actively and steadily
+allocated channel construction resources in prefecture areas,
+and improved the coverage rate of key prefecture outlets. 510
+thousand Yunongtong inclusive financial service sites had been
+established in those areas, covering 80% of townships and
+administrative villages nationwide, providing affordable and
+convenient financial services to farmers in rural areas where CCB
+physical channels are not accessible, ensuring to include more
+underserved demographic of the "last mile".
+Increasing supports for rural infrastructure. The Bank supported
+producer infrastructure improvement projects and product
+innovation for the construction concerning water, electric power,
+network, roads and housing, mainly served regional and cross-
+regional major infrastructure construction projects such as
+highway and rural power grids renovation. The establishment of
+rural industry and tourism businesses, development of farmland
+irrigation and water conservancy program, construction of
+delivery system, cold chain logistics facilities for the storage and
+preservation of agriculture production, construction of power
+grids, rural electrification expansion project, as well as rural
+facilities construction, are all vigorously supported.
+Differentiating assistance for all types of entities. The Bank
+enhanced financial services for new agricultural business entities
+in the counties for rural revitalisation, explored innovative
+and comprehensive financial service solutions, and increased
+agriculture-related credit loans. The Bank continued to issue petit
+credit for people lifted out of poverty and those on the verge of
+poverty with steady credit, quality monitoring, as well as renewal
+and extension management, to deliver smooth transition of
+petit credit for people lifted out of poverty. Based on effective
+communication with local governments, the Bank initiated the
+construction of information storage, assisted to build credit
+systems for key counties, and increased the development and
+delivery of credit loan products for the farmers in key counties.
+Innovating credit products. With the online Yunong Quick Loan
+and offline Rural Revitalisation Loan product packages, the Bank
+increased credit allocation. Moreover, the Bank established
+livestock mortgages, explored important agricultural stockpiling,
+innovated Land Reclamation Loan and other products, improved
+and promoted the innovation and application of products such
+as online supply chain, Mingonghui (for migrant workers), Quick
+Loan for SMEs, Community Factory Loan, and Cloud Enterprise
+Loan to drive the deep integration of agriculture with agricultural
+production processing, culture and tourism, leisure, and
+healthcare industries, increasing farmers' income.
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+140
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+Related achievements
+As at the end of 2021, the Bank's agricultural-related loan balance
+was RMB2.47 trillion, an increase of RMB376,962 million or 18.05%
+over the previous year. The balance of inclusive agriculture-
+related loans (excluding discounted bills) was RMB295,427
+million, an increase of RMB70,170 million or 31.15% over the
+previous year. The balance of agriculture-related green loans was
+RMB406,988 million, an increase of RMB138,820 million or 51.77%
+over the previous year.
+The following table illustrates the honours related to rural revitalisation received by the Bank during the reporting period.
+Honourary awards
+The Bank implemented in-depth review and inspection of
+products and services of financial institutions, revised and
+issued the Administrative Measures for Protection and Review
+of Consumers' Rights and Interests to further improve relevant
+systems to ensure that products and services are reviewed
+for consumer protection before launching. The Bank regularly
+reported relevant review works to the Related Party Transaction,
+Social Responsibility and Consumer Protection Committee
+under the Board of Directors, to ensure the current and new
+products and services be overseen by the board level committee.
+The Bank clarified the subject, scope, key points, procedure
+and other operational contents of consumer protection
+review and inspection, required the consumer protection
+review and inspection to follow the principles of "adherence
+to review according to requirements, compliance with laws,
+prevention in advance, independence and prudence, fairness
+and objectiveness, and classified and graded management", to
+implement consumer protection review of the products and
+services provided to financial consumers, so as to effectively
+safeguard the legitimate rights and interests of consumers.
+Improving the consumer protection review of products
+and services
+The Bank fully implemented the Measures of the People's
+Bank of China for the Protecting Financial Consumer's Rights
+and Interests, the Guiding Opinions of the China Banking and
+Insurance Regulatory Commission on Banking and Insurance
+Institutions Strengthening the Building of Working Systems and
+Mechanisms for Protection of Consumer Rights and Interests
+and other regulatory requirements. As the lead management
+department for consumer protection, the Personal Finance
+Department (Consumer Rights Protection Department)
+continuously constructs and improves consumer protection
+regimes, mechanisms, processes and systems, etc., and promotes
+the deep integration of consumer protection with business
+development and service management, effectively protected
+consumers' legitimate rights and interests.
+Protection of consumers' rights and interests
+The Asian Banker
+China International Fair for Trade in Services
+China E-Commerce Poverty Alleviation Alliance
+China Network Finance Alliance
+The People's Bank of China
+National Development and Reform Commission
+Issuer
+China's Best Digital Ecosystem Project in 2021 awarded for Yunongtong online
+service platform
+Model Case of Green Development Services awarded for e.ccb.com's efforts in
+poverty alleviation and rural revitalisation
+Advanced Group of China E-Commerce Poverty Alleviation Alliance in Eradicating
+Poverty, the top group award, awarded for e.ccb.com
+Best Inclusive Financial Services Award awarded for E-Commerce for Poverty
+Alleviation through e.ccb.com
+Third prize of 2020 Financial Technology Development awarded for Yunongtong
+online service platform
+2021 National Typical Case of Rural Revitalisation through Consumption Assistance
+awarded for the case of e.ccb.com's Financial Support to Rural Areas, Poverty
+Alleviation through e.ccb.com
+141
+Collaborating with China Disabled Persons' Federation
+local committees of the Communist
+Youth League of China of all branches
+.
+"Build a Good Home" Rural
+Revitalisation Public Welfare
+Project
+"Donation of Bonus Points to
+Make Dreams Come True.
+Micro Charity"
+China Youth Development Foundation, RMB9.4 million
+China Literature and Art Foundation,
+2012 present
+Chinese Young Volunteers Association,
+Young Volunteers Action Guidance
+Centre of the Central Committee of the
+Communist Youth League of China
+"Kindness and Wisdom" Student CCB Youth Volunteers Association and
+Aid Action
+2021-2022
+CCB Qianxinan Branch in Guizhou Province provides health consultation services to the public.
+2016 present
+"Workers' Station (Oasis)" Public China Worker Development Foundation RMB5 million
+Welfare Action
+2021-2022
+As of the end of 2021
+Donated RMB158 million and funded
+96,200 person-times of high school
+students
+Purchased 462 vehicles under the
+programme and put them into use in
+towns and villages in 24 provinces and
+autonomous regions, including Xinjiang,
+Tibet, Gansu and Qinghai
+Provided support in building 46 Hope
+Primary Schools with libraries, computer
+rooms and sports grounds; assisted
+trainings for more than 800 person-times
+of teachers and organised summer camps
+in Beijing for 250 students and teachers
+Donated RMB3.22 million and funded
+1540 person-times of students with
+difficult backgrounds in Tibet
+Carried out the plan to light up green rural
+solar street lights and the training of rural
+revitalisation leaders in 10 provinces and
+districts in the central and western regions
+Donated to build 148 "Happy Music
+Classrooms", trained music and art
+teachers in the rural, and built the "Home
+of Youth" for Chinese Young Volunteers
+Association and Young Volunteers
+Action Guidance Centre of the Central
+Committee of the Communist Youth
+League of China
+RMB6 million
+China Construction Bank Corporation
+Annual Report 2021
+RMB5 million
+2007 present
+Implementation of major public welfare programmes
+Programme
+Building the Future - CCB
+Sponsorship Programme for
+High School Students
+CCB Sponsorship Plan of
+"Mother's Health Express"
+Cooperative institution
+China Education Development
+Foundation
+Accumulated
+donation
+RMB158 million
+Duration
+2007 - present
+China Charity Federation
+China Women's Development
+Foundation
+2011 present
+Support CCB Hope Primary
+Schools
+China Youth Development Foundation
+RMB15.06 million
+1996-present
+Tibet in Our Hearts - CCB and
+Jianyin Investment Scholarship
+(Bursary)
+China Foundation for Poverty Alleviation RMB3.5 million
+RMB69 million
+147
+148
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+At the end of 2021, the balance of the Bank's loans to support construction and SDG 9 and 11
+operation of urban and rural public transportation systems was RMB275,865
+million.
+At the end of 2021, the balance of the Bank's loans to support the construction
+and operation of green energy facilities was RMB307,891 million.
+At the end of 2021, the balance of the Bank's loans to support environmental
+sanitation, such as sewage treatment and domestic waste treatment, was
+RMB90,583 million.
+At the end of 2021, the balance of the Bank's loans to the information and
+communication technology industry was RMB321,124 million.
+As at the end of 2021, the Bank's loans granted to support programmes
+included in the affordable rental housing plan in various regions exceeded
+RMB100 billion.
+In 2021, the Bank granted loans of RMB58,475 million to medical and health
+institutions to fully support the prevention and control of the COVID-19
+pandemic.
+At the end of 2021, the balance of the Bank's loans to medical and sanitation
+manufacturing was RMB55,388 million.
+Goals
+SDG 7, 13 and 14
+SDG 9 and 11
+SDG 1, 2, 10 and 11
+SDG 3 and 10
+SDG 3, 9 and 10
+4.1 Education
+to build Workers' Harbour Accessible Home
+4
+SDG 6, 9, 13, 14 and
+15
+Investment
+3.3 Medical and sanitation
+manufacturing
+Hygiene and
+health services
+PROGRESS IN SUSTAINABLE FINANCE AND INVESTMENTS
+The Bank has formulated and implemented the Three Major Strategies of House rental, inclusive finance and FinTech, actively promoted
+the development of green finance, and strived to achieve sustainable development goals in New Finance initiatives and solve the
+development problems in three dimensions, namely society, economy and environment. The Bank's financing activities for sustainable
+development are highly aligned with the 2030 Sustainable Development Goals of the United Nations.
+Level I
+Level II
+1.1 Transportation:
+Affordable and accessible
+transportation
+1.4 Energy system
+1
+Basic
+infrastructure
+1.5 Environmental sanitation
+1.7 Information and
+2
+Affordable
+housing
+communication technology
+2.4 Indemnificatory housing
+3.1 Medical and health services
+3
+The Bank regarded charity as an important way to fulfil corporate social responsibility, actively built a new public welfare ecology of
+"finance+charity", and encouraged employees, clients and relevant institutions to participate in social welfare collaboratively, so as to
+promote the integration of public welfare and businesses. The Bank formulated the whole-process management measures for public
+welfare donations, and specified the feasibility, implementation and publicity standards, supervision and audit requirements of public
+welfare programmes, ensuring that all donations are utilised effectively and positively impact the society. In 2021, the Bank's charitable
+donations totalled RMB119 million, focusing on consolidating the achievements of poverty alleviation and rural revitalisation, long-term
+public welfare programmes, and emergency donations.
+Charity
+Made donations to more than
+16,000 teachers and students from
+underdeveloped areas and organised
+more than 150 teachers and students
+from poverty-stricken areas to participate
+in summer (winter) camp activities
+According to the statistics of China Worker
+Development Foundation, 360,000
+person-times of outdoor workers were
+served based on the public welfare
+programme in 2021
+Education,
+technology and
+IFCIRER
+500
+The Xinxiang Branch of the Bank opened the workers' harbour to help the trapped people under
+the backdrop of the severe rainstorm in Henan Province in 2021.
+Annual Report 2021
+149
+China Construction Bank Corporation
+During the reporting period, the Bank was not subject to any investigations in accordance with laws for any suspected crimes. Neither the
+controlling shareholder, actual controller, directors, supervisors nor the senior executives of the Bank were subject to coercive measures in
+accordance with the law for any suspected crimes or were detained by disciplinary inspection and supervision authorities for suspected
+serious violations of disciplines and laws or for duty-related crimes and were unable to fulfil duties due to such reasons. Neither the
+Bank, the controlling shareholder, actual controller, directors, supervisors nor the senior executives of the Bank were subject to criminal
+penalties, investigations or administrative penalties by the CSRC for suspected violations of laws and regulations, material administrative
+punishments by other relevant authorities, or administrative supervision measures by the CSRC or disciplinary actions by the stock
+exchanges. Neither the directors, the supervisors nor senior executives of the Bank were subject to coercive measures by other relevant
+authorities for suspected violations of laws and regulations and were unable to fulfil duties due to such reason.
+The Bank and China Disabled Persons' Federation jointly
+developed the brand Workers' Harbour Accessible
+Home and presented it at major conferences, including
+the National Accessible Environment Construction
+Achievements Release, Promotion and Application and
+Information Accessibility Forum and the China International
+Welfare Expo from 2019 to 2021 to demonstrate the
+relevant achievements in accessibility construction and
+Workers' Harbour.
+5.63
+140.96
+10.90
+12.71
+140.96
+2019
+2020
+2021
+During the reporting period, the Bank was not subject to any material litigation or arbitration.
+PENALTIES
+140.96
+CARING STATION
+劳动者港灣
+The Bank continued to carry out employee care, implemented
+the Care Plan, improved the employees' mutual assistance
+mechanism, and built the (Small) Home of Employees and
+Workers' Book House, to care for employees in various aspects
+and channels. In addition, the Bank allocated more than RMB2
+million of special labour union funds to promote the construction
+of the Caring Room for Female Workers and assist female workers
+in difficulties. The Bank implemented a comprehensive physical
+and mental health management plan for all employees, and
+provided supplementary medical insurance including critical
+illness insurance and accident insurance, as well as services
+such as physical examination, green medical channel and
+psychological counselling to employees.
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+Based on relevant internal and external regulations and
+actual needs of special client, the Bank formulated and
+issued the Guidelines for Special Customer Services in
+Business Outlets, further refined the guidance service
+mechanism for special clients in outlets, standardised the
+service procedures for special clients, instructed outlets to
+equip themselves with accessible facilities, enhanced the
+sign language service capability of employees, and specified
+the visiting service standards for outlet employees, to
+enable special client groups enjoy convenient, high-quality,
+safe and dignified service experiences in its outlets.
+Case story
+RORM
+政务服务区
+Go
+Mobile banking embraces elderly-oriented modification
+The Bank strives to solve the difficulties encountered by the elderly through smart technology. Based on the usage
+habits of the elderly, the Bank has launched the mobile banking care mode in which the elderly finds words on
+pages bigger and easier to recognise, and the display of information more visible. The mobile banking care mode
+provides common financial services including account inquiry, transfer, utility bill payment, credit card repayment
+and phone bill value recharge, as well as non-financial services including e-social security card, provident fund and
+medical insurance card. The mobile banking is also upgraded with smart voice function to enable elderly clients
+to deal with their businesses through voice calls, optimises smart search function to achieve one-stop search of
+functions and product information, and provides One-click Help service to allow elderly clients to easily and directly
+contact manual customer service to solve problems, so that the elderly can enjoy a stronger sense of satisfaction,
+happiness and security amid the information-based development.
+China Construction Bank Corporation
+145
+Annual Report 2021
+146
+ENVIRONMENTAL AND SOCIAL RESPONSIBILITY (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
+Protection of employees' rights and interests and
+employee care
+The Bank has run under a democratic management system
+through the employees' congresses, and improved the proposal
+collection and handling system for employee representatives
+visiting grass-roots outlets, the employee representative
+inspection system, and other systems and mechanisms for
+employee opinion and suggestion collection and demands
+expression. The Labour Union of the Bank actively participated
+in the mediation of labour disputes to safeguard the legitimate
+rights and interests of employees. In 2021, the Bank held the
+second meeting of the fifth Employee Congress, reviewed and
+approved the Measures for Handling Employee Violations, and
+confirmed the recension of the Enterprise Annuity Plan and the
+Articles of Association of the Enterprise Annuity Management
+Committee and other proposals.
+The Bank fully launched the initiative of employee representatives
+visiting grass-roots outlets on all fronts to extensively collect
+and acknowledge the opinions, recommendations and report
+grievance from grass-roots employees. Institutions at all levels
+collected employee opinions in various ways to comprehensively
+improve employee satisfaction, such as opening a cloud mailbox
+for employee opinions, setting up the Home of Love, Harbour
+of Heart platform with a column for collecting opinions and
+recommendations, and to ensure effective communication and
+improving the interactive feedback mechanism.
+The Bank adhered to fully improving employee satisfaction, and
+deeply implemented the work for employee care at grass-roots
+outlets. Since 2019, the Bank has formulated and released the key
+points of the employee care project at grass-roots outlets on an
+annual basis and implemented a series of important measures
+to care for employees. In 2021, the employee satisfaction
+assessment was conducted, covering 125,068 employees
+from business outlets, which resulted in a 15.5% higher overall
+satisfaction of employees at grass-roots outlets in employee care
+work as compared with 2019.
+MATERIAL LITIGATIONS AND ARBITRATIONS
+Other service fees
+因爱停靠。健康同行
+4.2 Technology
+1.
+6 Financial services
+SDG 2
+At the end of 2021, the balance of the Bank's loans to agriculture and
+agricultural machinery and equipment manufacturing was RMB36,756 million,
+with an increase of RMB4,514 million over the previous year.
+5.2 Agricultural inputs and
+facilities
+Food security
+5
+6.1 Savings and settlement
+account financial services
+6.2 Credit financial services
+SDG 2
+5.1. Agricultural production
+SDG 8, 9, 11 and 12
+At the end of 2021, the balance of loans to sci-tech enterprises including
+national high-tech enterprises and small and medium-sized sci-tech enterprises
+was RMB865,370 million
+SDG 4, 5 and 10
+In the past five years, the Bank had granted loans of RMB156,406 million to
+education sector, maintaining a leading market share in the industry.
+culture
+Fees for the audit of financial statements
+At the end of 2021, the balance of the Bank's loans to agriculture, forestry,
+animal husbandry and fishery was RMB111,116 million, with an increase of
+RMB17,224 million over the previous year.
+At the end of 2021, the balance of the Bank's inclusive finance loans was
+RMB1.87 trillion, with 1.937 million loan clients.
+Formulating and issuing special client service guidelines
+for business outlets
+At the end of 2021, the Bank's domestic personal deposits exceeded RMB11
+trillion, with an increase of RMB1.1 trillion over the previous year.
+The above table was prepared by the Bank with reference to SDG Finance Taxonomy (China) (2020).
+The fees for the audit of financial statements (including the audit of internal control) of the Group and other services paid to Ernst &
+Young Hua Ming LLP, Ernst & Young and its other member firms by the Group for the year ended 31 December 2021 are set out as
+follows.
+Ernst & Young Hua Ming LLP was appointed as the domestic auditor of the Bank and its domestic subsidiaries for the year of 2021 and
+Ernst & Young was appointed as the international auditor of the Bank and its overseas subsidiaries for the year of 2021. Ernst & Young Hua
+Ming LLP was appointed as the auditor of internal control of the Bank for the year of 2021. This is the third year for Ernst & Young Hua
+Ming LLP and Ernst & Young to provide audit service to the Bank.
+AUDITORS' REMUNERATION
+During the reporting period, the Bank had not entered into any
+guarantee contract in violation of relevant regulations.
+ILLEGAL GUARANTEES
+During the reporting period, there was no misappropriation of
+the Bank's fund by the controlling shareholder or other related
+parties for non-operational purpose.
+OPERATIONAL PURPOSE
+(In millions of RMB)
+As at 31 December 2021, Huijin had not breached any of the
+above undertakings.
+On 6 April 2016, in accordance with relevant rules of the CSRC,
+in order to ensure the effective fulfilment of the measures to
+make up for the immediate return diluted by the issuance of
+preference shares of the Bank, Huijin undertook not to intervene
+with the operation and management of the Bank and not to
+misappropriate the interests of the Bank.
+In September 2004, Huijin made a commitment of "non-
+competition within the industry", i.e., as long as Huijin continues
+to hold any shares of the Bank, or is deemed as a controlling
+shareholder or a related party of a controlling shareholder of the
+Bank in accordance with related laws of the People's Republic of
+China or listing rules of the Bank's listing venues, Huijin would not
+engage in or participate in any competing commercial banking
+businesses, including but not limited to granting loans, taking
+deposits, providing settlement, fund custody, bank card and
+currency exchange services. However, Huijin may still engage in
+or participate in competing businesses through investing in other
+commercial banks. Accordingly, Huijin committed that it would:
+(1) fairly treat its investments in commercial banks, and would
+not abuse its shareholder position in the Bank or the information
+it obtained through its shareholder position in the Bank to
+make decisions detrimental to the Bank but beneficial to other
+commercial banks; and (2) exercise its shareholder's rights for the
+best interests of the Bank.
+PERFORMANCE OF UNDERTAKINGS
+MAJOR ISSUES
+China Construction Bank Corporation
+Annual Report 2021
+SDG 1, 5, 8 and 9
+MISAPPROPRIATION OF FUNDS FOR NON-
+SDG 1, 8, 9 and 10
+0.34
+856,000,000 (H-shares)
+State-owned legal person
+0.26
++8,303,730
+657,296,730 (H-shares)
+Foreign legal person
+State-owned legal person
++66,992,068
+562,502,829 (A-shares)
+0.20
+496,639,800 (A-shares)
+State-owned legal person
+0.13
+Foreign legal person
+0.22
+1,611,413,730 (H-shares)
+Foreign legal person
+State-owned legal person
+Baowu Steel Group
+Nature of shareholder
+Shareholding
+percentage
+(%)
+Changes during
+the reporting
+period
+57.03
+Total number of
+shares held
+142,590,494,651 (H-shares)
+0.64
+State
+37.54
+-14,322,693
+195,941,976 (A-shares)
+93,848,861,469 (H-shares)
+State-owned legal person
+0.88
+-96
+2,189,259,672 (A-shares)
+0.08
+Central Huijin Asset Management Ltd.
+9
+Taiping Life Insurance Co., Ltd.-Traditional - Ordinary
+insurance product-022L-CT001SH
+China Development Bank
+2
+3
+Industrial and Commercial Bank of China Limited 1,2
+Agricultural Bank of China Limited 1,2
+4
+Bank of China Limited 1,2
+1
+5
+6
+China Everbright Group Ltd.
+7
+Evergrowing Bank Co., Limited
+8
+China Export & Credit Insurance Corporation
+Hong Kong Securities Clearing Company Ltd.
+China Construction Bank Corporation 1,2,3
+Name of the Institution
+No.
+As at 31 December 2021, information on the enterprises directly held by Huijin is as follows.
+Others
+0.07
+168,783,482(A-shares)
+1.
+2.
+3.
+4.
+5.
+It includes H-shares of the Bank held by Temasek Holdings (Private) Limited. As at 31 December 2021, State Grid and Yangtze Power held 1,611,413,730
+H-shares and 657,296,730 H-shares of the Bank respectively, all of which were held under the name of HKSCC Nominees Limited. Save the aforesaid
+H-shares of the Bank held by State Grid and Yangtze Power, 93,848,861,469 H-shares of the Bank were held under the name of HKSCC Nominees Limited.
+As at 31 December 2021, the holding of H-shares of the Bank by State Grid through its subsidiaries was as follows: State Grid International Development
+Co., Ltd. held 296,131,000 shares, State Grid International Development Limited held 1,315,282,730 shares.
+As at 31 December 2021, Yangtze Power directly held 648,993,000 H-shares of the Bank, and held 8,303,730 H-shares of the Bank through its subsidiary
+China Yangtze Power International (Hong Kong) Co., Limited.
+Central Huijin Asset Management Ltd. is a wholly-owned subsidiary of Huijin. HKSCC Nominees Limited is a wholly-owned subsidiary of Hong
+Kong Securities Clearing Company Ltd. Apart from these, the Bank is not aware of any connected relation or concerted action among the aforesaid
+shareholders.
+None of the shares held by the aforesaid shareholders were subject to selling restrictions. None of the aforesaid shares were pledged, labelled or frozen
+except that the status of the shares held under the name of HKSCC Nominees Limited was unknown.
+China Construction Bank Corporation
+Annual Report 2021
+CHANGES IN SHARE CAPITAL AND PARTICULARS OF SHAREHOLDERS
+SUBSTANTIAL SHAREHOLDERS OF THE BANK
+Huijin is the controlling shareholder of the Bank, holding 57.11% of the shares of the Bank at the end of the reporting period, and
+indirectly held 0.20% of the shares of the Bank through its subsidiary, Central Huijin Asset Management Ltd. Huijin is a wholly state-owned
+company established in accordance with the PRC Company Law on 16 December 2003 with the approval of the State Council. Both its
+registered capital and paid-in capital is RMB828,209 million. Its legal representative is Mr. Peng Chun. Huijin makes equity investment
+in key state-owned financial institutions as authorised by the State Council, and exercises the contributor's rights and obligations in key
+state-owned financial institutions up to its contribution amount on behalf of the State to achieve preservation and appreciation of state-
+owned financial assets. Huijin does not engage in any other commercial business activities, nor does it interfere with daily operations of
+the key state-owned financial institutions of which it is the controlling shareholder.
+335,000,000 (H-shares)
+Yangtze Power³
+MAJOR ISSUES
+State Grid²
+Unit: share
+1 January 2021
+Change during the reporting period +/(-)
+31 December2021
+Issuance of
+Number of Percentage
+shares
+(%)
+CHANGES IN ORDINARY SHARES
+additional
+shares
+Shares
+converted
+from capital
+reserve
+Others
+Sub-total
+Numbers of Percentage
+shares
+(%)
+1. Shares subject to selling
+Bonus
+issue
+CHANGES IN SHARE CAPITAL AND PARTICULARS OF SHAREHOLDERS
+China Construction Bank Corporation
+Annual Report 2021
+For other major events during the reporting period, please refer
+to announcements disclosed by the Bank on the websites of
+Shanghai Stock Exchange, Hong Kong Stock Exchange and the
+Bank.
+150
+China Reinsurance (Group) Corporation 2
+INTEGRITY
+During the reporting period, the Bank and its controlling
+shareholder had no unperformed obligations rendered by valid
+legal documents of the courts, or significant outstanding matured
+debts.
+MATERIAL RELATED PARTY TRANSACTIONS
+During the reporting period, the Bank had no material related
+party transactions. All related party transactions of the Bank were
+conducted on the basis of commercial principles at arm's length
+in a fair and open manner, and at prices no more favourable than
+those offered to independent third parties in similar transactions.
+MATERIAL CONTRACTS AND THEIR
+PERFORMANCE
+During the reporting period, the Bank did not enter into any
+material arrangement for custody, contracting or leasing of
+other companies' assets, or allow its assets to be subject to such
+arrangements by other companies.
+The guarantee business is an off-balance sheet service in the
+ordinary course of the Bank's business. The Bank did not have any
+material guarantee that is required to be disclosed except for the
+financial guarantee services within its business scope as approved
+by the regulators. During the reporting period, the Bank did
+not enter into any other material contract that is required to be
+disclosed.
+OTHER SHAREHOLDING OR SHARE
+PARTICIPATIONS
+In May 2021, the Bank made the fourth capital contribution of
+RMB750 million to the National Financing Guarantee Fund Co.,
+Ltd., completing all four instalments of capital contribution with
+total amount of RMB3 billion. Please refer to the announcement
+published by the Bank on 31 July 2018 for more information.
+In April 2021, upon approval of the CBIRC, the Bank intended
+to contribute RMB8 billion to the National Green Development
+Fund Co., Ltd. In May 2021, the Bank completed the first
+capital contribution of RMB800 million. Please refer to the
+announcement published by the Bank on 29 April 2021 for more
+information.
+In March 2021, CCB Investment was made capital injection of
+RMB15 billion by the Bank, and its registered capital increased
+from RMB12 billion to RMB27 billion. Please refer to the
+announcement published by the Bank on 2 December 2020 for
+more information.
+MAJOR EVENTS
+In December 2021, the Bank issued a three-year bond of US$500
+million overseas, the world's first and exemplary green bond
+based on the Common Ground Taxonomy: Climate Change
+Mitigation for sustainable finance released by China and the EU.
+In April 2021, the Bank simultaneously issued multi-currency
+ESG-themed bonds overseas, including three-year and five-year
+sustainability-linked bonds of US$1.15 billion, a three-year green
+bond of EUR800 million, and a two-year offshore RMB transition
+bond of RMB2 billion.
+In January 2021, upon approvals of the CBIRC and PBC, the Bank
+issued a three-year special financial bond for small and micro
+business loans with a fixed interest rate of 3.30% and a total face
+value of RMB20 billion in the domestic interbank bond market.
+The proceeds were specifically used for financing small and micro
+business loans. Please refer to the announcement published by
+the Bank on 27 January 2021 for details.
+restrictions
+Reca Investment Limited
+II. Shares not subject to
+selling restrictions
+9,593,657,606
+During the reporting period, the Bank did not issue any ordinary shares, convertible bonds or preference shares.
+According to the resolution of the 2020 first extraordinary general meeting of the Bank and upon approvals from the CBIRC and PBC, in
+August 2021, the Bank issued fixed-rate Tier 2 capital bonds of RMB65 billion with a term of ten years and RMB15 billion with a term of
+15 years in the domestic market, and the Bank has a conditional right to redeem the bonds at the end of the fifth year and the tenth year
+respectively; the coupon rates are 3.45% and 3.80% respectively. In November, the Bank issued fixed-rate Tier 2 capital bonds of RMB35
+billion with a term of ten years and RMB10 billion with a term of 15 years in the domestic market, the Bank has a conditional right to
+redeem the bonds at the end of the fifth year and the tenth year respectively, and the coupon rates are 3.60% and 3.80% respectively.
+In December, the Bank issued fixed-rate Tier 2 capital bonds of RMB12 billion with a term of ten years and RMB8 billion with a term of
+15 years in the domestic market, the Bank has a conditional right to redeem the bonds at the end of the fifth year and the tenth year
+respectively, and the coupon rates are 3.48% and 3.74% respectively. All proceeds are used to replenish the Bank's Tier 2 capital. For details
+of the issuance of other debt securities, please refer to Note "Debt securities issued" to the financial statements.
+China Construction Bank Corporation
+Annual Report 2021
+151
+151
+152
+CHANGES IN SHARE CAPITAL AND PARTICULARS OF SHAREHOLDERS
+ORDINARY SHAREHOLDERS
+SECURITIES ISSUANCE AND LISTING
+At the end of the reporting period, the Bank had a total of 409,698 ordinary shareholders, of whom 39,854 were holders of H-shares and
+369,844 were holders of A-shares. As at 28 February 2022, the Bank had 383,366 ordinary shareholders, of whom 39,727 were holders of
+H-shares and 343,639 were holders of A-shares.
+Total number of ordinary shareholders
+Particulars of shareholding of top ten ordinary shareholders
+409,698 (Total number of registered holders of A-shares and H-shares as at 31 December 2021)
+Name of ordinary shareholder
+Huijin
+HKSCC Nominees Limited'
+China Securities Finance Corporation Limited
+Unit: share
+H-shares of the Bank free from selling restrictions held by the promoters of the Bank, i.e. Huijin, Baowu Steel Group, State Grid and Yangtze Power.
+1.
+100.00
+3.84
+2. Overseas listed foreign
+investment shares
+95,231,418,499
+38.09
+3. Others¹
+145,185,901,381
+58.07
+III. Total number of shares
+250,010,977,486
+100.00
+9,593,657,606
+3.84
+-8,303,730
++8,303,730
+-8,303,730 95,223,114,769
++8,303,730 145,194,205,111
+250,010,977,486
+38.09
+58.07
+1. RMB ordinary shares
+10
+China Construction Bank Corporation
+Annual Report 2021
+11
+According to article 26(2) of the Law on Enterprise Income Tax,
+dividends and other equity investment income between qualified
+resident enterprises are tax-free income.
+According to article 83 of the Regulations for the Implementation
+of the Law on Enterprise Income Tax, the "dividends and
+other equity investment income between qualified resident
+enterprises" as prescribed in article 26(2) of the Law on Enterprise
+Income Tax refer to investment income obtained by a resident
+enterprise from the direct investment in other resident
+enterprises. The "stock equity and other equity investment
+income" as prescribed in article 26(2) of the Law on Enterprise
+Income Tax exclude investment income from outstanding stocks
+publicly issued by a resident enterprise on stock exchanges that
+are held less than 12 months.
+According to the Law on Enterprise Income Tax and the
+regulations for its implementation, the enterprise income
+tax on dividend income obtained by non-resident enterprise
+shareholders shall be levied at the reduced rate of 10%.
+China Construction Bank Corporation
+Annual Report 2021
+REPORT OF THE BOARD OF DIRECTORS
+Holders of H-share
+According to PRC tax laws and regulations, withholding agents
+shall withhold and pay individual income tax on income of
+dividends for Hong Kong-listed shares of domestic non-foreign-
+invested enterprises obtained by a non-resident individual.
+However, an offshore resident individual shareholder holding
+Hong Kong-listed shares of domestic non-foreign-invested
+enterprises may enjoy relevant tax preferences under the tax
+treaties between China and the state where such shareholder
+possesses resident status, or the indirect tax arrangements
+between the mainland of China and Hong Kong or Macau.
+Generally, as for individual holders of H-shares, individual income
+tax shall be withheld and paid at the rate of 10%, unless it is
+otherwise provided by tax laws and regulations and relevant tax
+treaties.
+According to Notice on the Issues Concerning Withholding
+the Enterprise Income Tax on the Dividends Paid by Chinese
+Resident Enterprises to Holders of H-shares Which Are Overseas
+Non-resident Enterprises (Guo Shui [2008] No.897) published by
+the State Administration of Taxation, where a Chinese resident
+enterprise pays dividends for the year of 2008 or any year
+thereafter to its holders of H-shares which are overseas non-
+resident enterprises, it shall withhold the enterprise income tax
+thereon at a uniform rate of 10%.
+According to current practice of the Inland Revenue Department,
+the Bank bears no tax for distribution of H-share dividends.
+Issues about taxation of Shanghai-Hong Kong Stock Connect
+shall follow the Notice on Taxation Policies Concerning the Pilot
+Programme of an Interconnection Mechanism for Transactions
+in the Shanghai and Hong Kong Stock Markets (Cai Shui [2014]
+No.81) issued by the MOF, the State Administration of Taxation
+and the CSRC.
+Issues about taxation of Shenzhen-Hong Kong Stock Connect
+shall follow the Notice on Taxation Policies Concerning the Pilot
+Programme of an Interconnection Mechanism for Transactions
+in the Shenzhen and Hong Kong Stock Markets (Cai Shui [2016]
+No.127) issued by the MOF, the State Administration of Taxation
+and the CSRC.
+According to the Circular Concerning the Implementation of
+Differentiated Individual Income Tax Policies on Dividends from
+Listed Companies (CaiShui [2012] No.85) and Circular Concerning
+the Differentiated Individual Income Tax Policies on Dividends
+from Listed Companies (CaiShui [2015] No.101) issued by the
+MOF, the State Administration of Taxation and the CSRC, for the
+stocks held for more than one year, the income from dividends
+shall be temporarily exempted from individual income tax; for
+the stocks held for more than one month but not more than one
+year (inclusive), the income from dividends shall be temporarily
+included in the taxable income at the reduced rate of 50%; for
+stocks held for not more than one month (inclusive), the income
+from dividends shall be included in the taxable income in full
+amount. Individual income taxes on the aforesaid income shall
+be collected at a uniform rate of 20%. Individual income taxes on
+dividends from listed companies for securities investment funds
+shall be collected according to the rules aforesaid as well.
+Preference shareholders
+As prescribed by the Law on Enterprise Income Tax and the
+Regulations for the Implementation of the Law on Enterprise
+Income Tax, dividends of domestic preference shares between
+qualified resident enterprises are tax-free income. Enterprise
+income tax on dividends of domestic preference shares obtained
+by non-resident enterprises, in general, shall be collected at the
+preferential rate of 10%.
+SUMMARY OF FINANCIAL INFORMATION
+Please refer to "Financial Highlights" of this annual report for the
+summary of the operating results, assets and liabilities of the
+Group for the years 2017-2021.
+RESERVES
+Please refer to "Consolidated Statement of Changes in Equity" of
+this annual report for details of the movements in the reserves of
+the Group for the year 2021.
+DONATIONS
+Charitable donations made by the Group for the year 2021 were
+RMB119 million.
+FIXED ASSETS
+Please refer to Note "Fixed Assets" in the "Financial Statements" of
+this annual report for details of movements in fixed assets of the
+Group for the year 2021.
+RETIREMENT BENEFITS
+Please refer to Note "Accrued Staff Costs" in the "Financial
+Statements" of this annual report for details of the retirement
+benefits provided to employees of the Group.
+MAJOR CUSTOMERS
+Issues about payment of individual income tax relating to
+dividends of non-public domestic preference shares obtained by
+individuals shall follow the relevant PRC tax laws and regulations.
+For the year 2021, the aggregate amount of interest income and
+other business income generated from the five largest customers
+of the Group accounted for less than 30% of the total interest
+income and other business income of the Group.
+Holders of A-share
+TAXATION AND TAX REDUCTION AND
+EXEMPTION
+Offshore preference shares¹
+4.65%
+1,030
+4.65%
+1,112
+1.
+The Bank redeemed its offshore preference shares in December 2020.
+In accordance with Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instruments, Accounting
+Standards for Enterprise No. 37 - Presentation of Financial Instruments and Rules on Distinguishing Financial Liabilities and Equity
+Instruments and Relevant Accounting Treatments promulgated by the MOF of the PRC, as well as International Financial Reporting
+Standard No. 9 - Financial Instruments and International Accounting Standard No. 32 - Financial Instruments: Presentation formulated
+by the International Accounting Standards Board, the existing preference shares issued by the Bank meet the requirements of equity
+instruments in their terms and conditions, and are treated as equity instruments.
+The Bank had not issued preference shares in the past three years. During the reporting period, the Bank had no redemption or
+conversion of preference shares.
+China Construction Bank Corporation
+Annual Report 2021
+155
+156
+Shareholders of the Bank pay relevant taxes according to tax laws
+and regulations and enjoy potential tax reduction and exemption
+in line with actual situations and should seek advice from tax
+professionals and legal consultants for specific taxation matters.
+As at the end of 2021, the relevant tax laws and regulations are as
+follows:
+REPORT OF THE BOARD OF DIRECTORS
+PRINCIPAL ACTIVITIES
+year
+ended 31
+The Group is engaged in a range of banking services and related
+financial services.
+BUSINESS REVIEW
+The business review of the Group for the year 2021 is set out in
+the "Management Discussion and Analysis" of this annual report.
+PROFIT AND DIVIDENDS
+The profit of the Group for the year 2021 and the Group's
+financial position at the end of 2021 are set out in the "Financial
+Statements" of this annual report. The analysis on operating
+results, financial position as well as related changes during the
+reporting period are set out in the "Management Discussion and
+Analysis" of this annual report.
+In accordance with the resolutions of the 2020 annual general
+meeting, the Bank paid a cash dividend of RMB0.326 per share
+(including tax) for 2020, totalling approximately RMB81,504
+million, to all of its shareholders whose names appeared on the
+register of members after the closing of the stock market on 14
+July 2021.
+The board of directors proposes a cash dividend of RMB0.364 per
+share (including tax) for 2021, totalling RMB91,004 million, subject
+to deliberation and approval of the 2021 annual general meeting.
+Subject to approval of the annual general meeting, the dividend
+will be distributed to the shareholders whose names appeared on
+the register of members of the Bank after the closing of the stock
+market on 7 July 2022. The expected payment date of A-share
+annual cash dividend for 2021 is 8 July 2022, and the expected
+payment date of H-share annual cash dividend is 29 July 2022.
+FORMULATION AND IMPLEMENTATION OF
+PROFIT DISTRIBUTION POLICY
+Please refer to "Corporate Governance Report-Shareholders'
+rights" of this annual report for details of formulation and
+implementation of the Group's profit distribution policy.
+The Board of the Bank is pleased to present its report together
+with the financial statements of the Group for the
+December 2021.
+Dividend
+distribution
+(including tax)
+2,850
+ULTIMATE PARENT COMPANY AND ITS
+SUBSIDIARIES
+Please refer to "Changes in Share Capital and Particulars of
+Shareholders Substantial Shareholders of the Bank" of this
+annual report and Note "Long-term Equity Investments" in the
+"Financial Statements" for details of the Bank's ultimate parent
+company and its subsidiaries respectively as at the end of 2021.
+Nature of rights
+and interests
+Long position
+% of issued
+A-share
+% of issued
+H-share
+7.22
+% of total
+ordinary
+shares issued
+0.28
+Long position
+59.31
+Huijin 2
+1.
+2.
+57.03
+On 29 December 2015, Huijin declared interests on the website of Hong Kong Stock Exchange. It disclosed that it held the interests of 692,581,776
+A-shares of the Bank, accounting for 7.22% and 0.28% of the A-shares issued (9,593,657,606 shares) and the ordinary shares issued (250,010,977,486
+shares) respectively. In which, 195,941,976 A-shares were directly held by Huijin, and 496,639,800 A-shares were held by Central Huijin Asset Management
+Ltd., a wholly-owned subsidiary of Huijin. As at 31 December 2021, according to the A-share register of shareholders of the Bank, Huijin directly held
+195,941,976 A-shares of the Bank, Central Huijin Asset Management Ltd., a wholly-owned subsidiary of Huijin, directly held 496,639,800 A-shares of the
+Bank.
+Number of
+shares
+692,581,776
+133,262,144,534
+On 26 May 2009, Huijin declared its interests on the website of Hong Kong Stock Exchange. It disclosed that it held the interests of 133,262,144,534
+H-shares of the Bank, accounting for 59.31% and 57.03% of the H-shares issued (224,689,084,000 shares) and the ordinary shares issued (233,689,084,000
+shares) at that time respectively. As at 31 December 2021, according to the H-share register of shareholders of the Bank, Huijin directly held
+142,590,494,651 H-shares of the Bank, accounting for 59.31% and 57.03% of the H-shares issued (240,417,319,880 shares) and the ordinary shares issued
+(250,010,977,486 shares) respectively.
+Some of the Bank's directors and supervisors indirectly held
+H-shares of the Bank by participating in the employee stock
+incentive plan of the Bank before they assumed current positions.
+As at 31 December 2021, the number of shares held is as follows:
+Mr. Wang Jiang held 15,417 H-shares, Mr. Yang Fenglai held
+16,789 H-shares, Mr. Lin Hong held 15,555 H-shares, Mr. Wang Yi
+held 13,023 H-shares, Mr. Liu Jun held 12,447 H-shares, Mr. Deng
+Aibing held 17,009 H-shares of the Bank respectively. Mr. Wu
+Jianhang and Mr. Lu Kegui, the resigned supervisors, held 20,966
+H-shares and 18,989 H-shares respectively. Save as disclosed
+above, none of the directors and supervisors of the Bank had any
+interests or short positions in the shares, underlying shares and
+debentures of the Bank or its associated corporations (within the
+meaning of Part XV of the SFO) which have to be notified to the
+Bank and Hong Kong Stock Exchange under Divisions 7 and 8 of
+Part XV of the SFO (including interests or short positions therein
+that they shall be deemed to have pursuant to such provisions of
+the SFO), or as recorded in the register required to be kept under
+Section 352 of the SFO or as otherwise notified to the Bank and
+Hong Kong Stock Exchange pursuant to Appendix 10 Model
+Code for Securities Transactions by Directors of Listed Issuers, to
+the Listing Rules of Hong Kong Stock Exchange.
+As of 31 December 2021, except for the employee stock incentive
+plan, the Bank had not granted its directors or supervisors, or their
+respective spouses or children under the age of 18, any other
+rights to subscribe for the shares or debentures of the Bank or any
+of its associated corporations.
+DIRECTORS' FINANCIAL, BUSINESS AND FAMILY
+RELATIONSHIPS
+There are no financial, business, family or other material
+relationships among the directors of the Bank.
+DIRECTORS' AND SUPERVISORS' INTERESTS
+IN CONTRACTS, SERVICE CONTRACTS AND
+LIABILITY INSURANCE
+During the reporting period, no director or supervisor of the
+Bank or entities connected with the directors or supervisors had
+any interest, whether directly or indirectly, in any transaction,
+arrangement or contract of significance in relation to the Group's
+business with the Bank or any of its holding companies or
+subsidiaries or subsidiaries of the Bank's holding companies, apart
+from their respective service contracts.
+None of the directors and supervisors of the Bank has entered
+into service contracts with the Bank that cannot be terminated
+by the Bank within one year without payment of remuneration
+(other than statutory remuneration).
+The Bank effected the liability insurance for all directors and
+supervisors in 2021.
+DIRECTORS' AND SUPERVISORS' INTERESTS IN
+COMPETING BUSINESSES
+Save as disclosed in the biographical details of the directors and
+supervisors of the Bank, none of the directors or supervisors of the
+Bank directly or indirectly has any interest that constitutes or may
+constitute a competing business of the Bank.
+China Construction Bank Corporation
+Annual Report 2021
+159
+DIRECTORS' AND SUPERVISORS' INTERESTS AND
+SHORT POSITIONS IN SHARES, UNDERLYING
+SHARES AND DEBENTURES OF THE BANK OR ITS
+ASSOCIATED CORPORATIONS
+-
+Type of shares
+A-share
+H-share
+As at 31 December 2021, the interests and short positions of substantial shareholders and other persons in the shares of the Bank as
+recorded in the register required to be kept under section 336 of the Securities and Futures Ordinance (SFO) of Hong Kong were as
+follows.
+China Construction Bank Corporation
+Annual Report 2021
+157
+158
+REPORT OF THE BOARD OF DIRECTORS
+TOP TEN SHAREHOLDERS AND THEIR
+SHAREHOLDINGS
+Please refer to "Changes in Share Capital and Particulars of
+Shareholders" of this annual report for details of the top ten
+shareholders of the Bank and their shareholdings as at the end of
+2021.
+ISSUANCE OF SHARES
+During the reporting period, the Bank had not issued any ordinary
+shares, convertible bonds or preference shares.
+ISSUANCE OF DEBTS SECURITIES
+Please refer to "Changes in Share Capital and Particulars of
+Shareholders - Details of Securities Issuance and Listing" of this
+annual report for details of the issuance of Tier 2 capital bonds of
+the Bank.
+EQUITY-LINKED AGREEMENTS
+The Bank made a non-public issuance of domestic preference
+shares of RMB60 billion in total in the domestic market on 21
+December 2017. During the reporting period, other than above
+preference shares, the Bank had not entered into or maintained
+any other equity-linked agreement.
+Name
+Huijin¹
+Pursuant to regulations including the Capital Rules for
+Commercial Banks (Provisional) and the Administrative Measures
+for the Pilot Programme for Preference Shares, a commercial bank
+shall set up the provisions of coercive conversion of preference
+shares into ordinary shares, under which the commercial bank
+shall convert the preference shares into ordinary shares as
+contractually agreed in case of a trigger event. Such a trigger
+event would happen when the common equity Tier 1 ratio
+decreases to 5.125% or below and when the CBIRC determines
+that the Bank will not be able to operate if shares of the Bank
+are not transferred or written down, or when relevant regulators
+determine that the Bank will not be able to operate if there is
+no capital injection from public sectors or equivalent supports.
+The Bank, according to relevant regulations, has formulated
+provisions of trigger events under which preference shares shall
+be coercively converted into ordinary shares. If such trigger
+events happen to the Bank and all preference shares need
+to be coercively converted into ordinary shares at their initial
+conversion price, the total amount of the domestic preference
+shares which are converted into ordinary A-shares will not exceed
+11,538,461,538 shares. During the reporting period, the Bank did
+not experience any trigger event in which the preference shares
+need to be coercively converted into ordinary shares.
+At the end of reporting period, the Bank issued 250,010,977,486
+ordinary shares in total (including 240,417,319,880 H-shares and
+9,593,657,606 A-shares) and had 409,698 registered ordinary
+shareholders. The Bank complied with the relevant requirements
+regarding public float under relevant laws and regulations as well
+as the listing rules of its listing venues.
+PURCHASE, SALE AND REDEMPTION OF SHARES
+During the reporting period, there was no purchase, sale or
+redemption by the Bank or any of its subsidiaries of the shares of
+the Bank.
+PRE-EMPTIVE RIGHTS
+The Articles of Association of the Bank does not contain such
+provisions under which the Bank's shareholders have pre-emptive
+rights. The Articles of Association provides that if the Bank wishes
+to increase its capital, it may issue new shares to investors,
+may issue new shares to or by way of distribution to existing
+shareholders, may transfer its capital reserve to share capital, or by
+other means permitted by laws and regulations.
+PROFILES OF DIRECTORS, SUPERVISORS AND
+SENIOR MANAGEMENT AND REMUNERATION
+POLICY
+Please refer to "Corporate Governance Report - Profiles of
+Directors, Supervisors and Senior Management" of this annual
+report for the detail of profiles of directors, supervisors and senior
+management and remuneration policy.
+INDEPENDENCE OF THE INDEPENDENT NON-
+EXECUTIVE DIRECTORS
+The Bank has received the annual confirmation on independence
+from each independent non-executive director in compliance
+with the Rule 3.13 of the Listing Rules of Hong Kong Stock
+Exchange. The Bank considered that all the independent non-
+executive directors of the Bank were independent, and their
+independence was in compliance with the independence
+guidelines set out in Rule 3.13 of the Listing Rules of Hong Kong
+Stock Exchange.
+China Construction Bank Corporation
+Annual Report 2021
+REPORT OF THE BOARD OF DIRECTORS
+INTERESTS AND SHORT POSITIONS OF SUBSTANTIAL SHAREHOLDERS AND OTHER PERSONS
+SHARE CAPITAL AND PUBLIC FLOAT
+Dividend
+rate
+4.75%
+Dividend
+distribution
+(including tax)
+2,850
+2,850
+20.05
+40.11
+30.76
+13.30
+14.54
+Besides the enterprises above controlled or held by Huijin, Huijin has a wholly-owned subsidiary Central Huijin Asset Management Ltd., which was
+established in November 2015 in Beijing with a registered capital of RMB5 billion, and engages in assets management business.
+Please refer to the Announcement on Matters related to the Incorporation of China Investment Corporation published by the Bank on 9
+October 2007 for details of China Investment Corporation.
+At the end of the reporting period, there were no other corporate shareholders holding 10% or more of shares of the Bank except for
+HKSCC Nominees Limited, nor were there any internal employee shares.
+153
+154
+CHANGES IN SHARE CAPITAL AND PARTICULARS OF SHAREHOLDERS
+DETAILS OF PREFERENCE SHARES
+69.07
+At the end of the reporting period, the Bank had 21 preference shareholders, all of which were domestic preference shareholders. As at 28
+February 2022, the Bank had 22 preference shareholders, all of which were domestic preference shareholders.
+Unit: share
+Name of preference shareholder
+Shanghai Branch of Bank of China Limited
+Hwabao Trust Co., Ltd.
+Bosera Asset Management Co., Limited
+China Life Insurance Company Limited
+Nature of
+shareholder
+Shareholding
+percentage
+Change during
+the reporting
+Total number
+(%)
+period
+of shares held
+At the end of 2021, the particulars of shareholding of the top ten domestic preference shareholders of the Bank were as follows.
+Others
+100.00
+71.56
+China Jianyin Investment Limited
+12
+China Galaxy Financial Holding Co., Ltd.
+13
+Shenwan Hongyuan Group Co., Ltd. 1,2
+14
+China International Capital Corporation Limited 1,2
+15
+China Securities Co., Ltd. 1,2
+16
+China Galaxy Asset Management Co., Ltd.
+17
+31.34
+Guotai Junan Investment Management Co., Ltd.
+2.
+A-share listed companies held by Huijin, the controlling shareholder of the Bank, as at 31 December 2021.
+H-share listed companies held by Huijin, the controlling shareholder of the Bank, as at 31 December 2021.
+3.
+Shareholding of Huijin (%)
+34.68
+34.71
+40.03
+64.02
+57.11
+63.16
+53.95
+73.63
+1.
+15.00
+90,000,000
+Others
+Others
+4.50
+27,000,000
+Postal Savings Bank of China Co., Ltd.
+Others
+4.50
+27,000,000
+1.
+Particulars of shareholding of the preference shareholders were based on the information in the Bank's register of preference shareholders. None of the
+aforesaid shares had restoration of voting rights of the preference shares, or were pledged, labelled or frozen.
+2.
+The Bank is not aware of any connected relation or concerted action among the aforesaid preference shareholders, or between the aforesaid preference
+shareholders and the top ten ordinary shareholders.
+According to the resolution and authorisation of the shareholders' general meeting, the meeting of the board of directors of the Bank
+held on 29 October 2021 considered and approved the dividend distribution plan of domestic preference shares of the Bank. Dividends
+of preference shares are paid in cash by the Bank to preference shareholders on an annual basis. Dividends not fully distributed to
+preference shareholders are not accumulated to the next year. After the preference shareholders receive dividends at the agreed dividend
+rate, they are not entitled to the distribution of any remaining profit with ordinary shareholders.
+GF Securities Asset Management (Guangdong) Co., Ltd.
+According to the terms of issuance of domestic preference shares, the Bank distributed dividends of RMB2,850 million (including
+tax) to the holders of the domestic preference shares. Such dividends were paid in cash on 27 December 2021. Please refer to the
+announcement published on the websites of the Shanghai Stock Exchange, Hong Kong Stock Exchange and the Bank for information on
+dividend distribution for preference shares.
+Annual Report 2021
+CHANGES IN SHARE CAPITAL AND PARTICULARS OF SHAREHOLDERS
+Distributions of dividends for preference shares of the Bank in the past three years were as follows.
+2021
+2020
+2019
+Dividend
+Dividend
+distribution
+Dividend
+(In millions of RMB, except percentages)
+Domestic preference shares
+rate (including tax)
+4.75%
+China Construction Bank Corporation
+27,022,000
+-12,978,000
+4.50
+14.36
++86,140,000
+86,140,000
+Others
+10.17
+-68,320,000
+61,000,000
+Others
+8.33
+50,000,000
+China Mobile Communications Group Co., Ltd.
+State-owned
+legal person
+8.33
+50,000,000
+Jiangsu International Trust Corporation Limited
+Others
+7.64
++45,860,000
+45,860,000
+CITIC Securities Co., Ltd.
+Others
+6.27
++35,370,000
+37,620,000
+Truvalue Asset Management Co., Limited
+Others
+New China Life Insurance Company Limited 1,2
+rate
+4.75%
+Facsimile: 0081-6-62439080
+Strategy and Policy Coordination Department
+Internal control
+During the reporting period, the Bank continuously strengthened
+and refined its internal control. The board of supervisors had no
+objection to the Internal Control Assessment Report 2021.
+Performance of social responsibilities
+During the reporting period, the Bank performed its social
+responsibilities earnestly. The board of supervisors had no
+objection to the Social Responsibility Report 2021.
+Implementation of information disclosure management
+system
+During the reporting period, the Bank earnestly implemented the
+information disclosure management rules, fulfilled its information
+disclosure obligations, and the board of supervisors was not
+aware of any violations of laws or regulations in information
+disclosure.
+Assessment of the performance of directors, supervisors
+and senior management
+All directors, supervisors and senior management participated in
+the performance assessment for the year 2021 were evaluated as
+qualified.
+By order of the board of Supervisors
+Wang Yongqing
+During the reporting period, the board of supervisors was not
+aware of any related party transactions that were detrimental to
+the interests of the Bank.
+Chairman of the board of supervisors
+29 March 2022
+Board of Directors
+Board of Directors Office
+Strategy Development
+Committee
+Risk Management
+Audit Committee
+Committee
+Shareholders' General Meeting
+Board of Supervisors Office
+Board of Supervisors
+Nomination and
+Remuneration
+Committee
+China Construction Bank Corporation
+Annual Report 2021
+Related Party Transaction,
+Social Responsibility and
+Consumer Protection
+Committee
+Related party transactions
+Acquisition and sale of assets
+In 2021, pursuant to the provisions of laws, regulations, regulatory
+requirements and the Articles of Association of the Bank, the
+board of supervisors earnestly performed its supervision duties.
+It adhered to the problem-oriented approach, constantly refined
+its working mechanisms, effectively performed supervision and
+improved the effectiveness of supervision so as to improve
+corporate governance and boost sound development of the
+Bank.
+PARTICULARS OF MAJOR WORK
+Convening meetings of the board of supervisors pursuant
+to laws and regulations. During the year, five meetings of the
+board of supervisors were convened, at which 16 resolutions
+were reviewed and deliberated, including periodic reports of the
+Bank, reports on performance assessment and nomination of the
+candidates for supervisors. The performance and due diligence
+supervision committee held four meetings. The finance and
+internal control supervision committee held five meetings. The
+board of supervisors also held 13 meetings for panel discussion,
+and special topic communications with management and
+external auditors. The board of supervisors focused on important
+aspects of the Bank including implementing major national
+decisions and deployments, supporting economic and social
+development, deepening efforts in the New Finance initiatives,
+preventing and mitigating material risks and listened to 28
+special reports, including but not limited to the implementation
+of FinTech strategy, supporting the strategy of rural revitalisation
+and business development of "Yunongtong", and supporting
+services to innovative technology enterprises. The board of
+supervisors reviewed 23 written reports, such as the quality
+of credit assets and the progress of the work on consumer
+rights and interests protection, focused on focal points of
+supervision work, conducted in-depth studies and discussions,
+and produced opinions and suggestions on deepening strategy
+implementation, promoting business development, improving
+management and mechanism.
+Carrying out performance and due diligence supervision
+in an orderly manner. Members of the board of supervisors
+conscientiously attended shareholders' general meetings and
+major events of the Bank, and actively attended important
+meetings such as meetings of the Board and the special
+committees under the Board, the Bank's work conferences,
+meetings on business operation analysis, and the presidents'
+executive meetings as non-voting attendees. The board of
+supervisors reviewed the meeting documents and agenda
+arrangements, supervised the compliance with laws and
+regulations regarding the procedures of meetings, decision-
+making process and results, and information disclosure, etc.,
+to promote all parties related to corporate governance for
+diligent performance of duties and compliant operation.
+Through investigation and studies, panel discussions, interviews,
+information review and other methods, the board of supervisors
+gained an in-depth understanding of the operation and
+management conditions, supervised the implementation
+of resolutions of the shareholders' general meeting and the
+Board meetings, and continuously deepened supervision on
+the performance and due diligence. The board of supervisors
+earnestly implemented the regulatory requirements, further
+improved the supervision and appraisal working mechanisms,
+formed the assessment opinion of the annual performance of
+the Board of Directors and its members, senior management
+and its members based on routine supervision, and reported to
+the shareholders' general meeting and regulators pursuant to
+relevant provisions.
+Continuously strengthening financial supervision. The board
+of supervisors strengthened the supervision on truthfulness
+of information disclosure in financial statements, paid equal
+attention to process and results in supervision, strengthened
+key audit and targeted audit in terms of reviewing reports, and
+gave forward-looking opinions and suggestions. The board
+of supervisors attached great importance to standardised
+management of finance, regularly listened to reports on
+financial inspections. The board of supervisors focused on
+the implementation of policy systems, suggested that further
+monitoring and guidance should be put in place and the
+awareness of implementating systems should be improved. The
+board of supervisors adhered to prudent and compliant concept
+of supervision, further improved the supervision mechanism of
+external auditors' work quality. The board of supervisors focused
+on the construction of management system of related party
+transactions, suggested to improve relevant work by reference
+to regulatory requirements. The board of supervisors regularly
+learned about Group capital management, paid attention to the
+impact of changes in internal and external environment, and
+actively promoted the capital-intensive operations and refined
+capital management. The board of supervisors followed up the
+progress of the consolidated management in accordance with
+the regulatory requirements and the Group's development
+goals, continuously enhanced the integration of the Group,
+the coordination of strategies and risks, and promoted the
+improvement of the Group's comprehensive operation ability.
+China Construction Bank Corporation
+Annual Report 2021
+REPORT OF THE BOARD OF SUPERVISORS
+Continuously deepening risk management supervision.
+The board of supervisors learnt the major risk management
+profile and core indicator performance in a timely manner,
+focused on strengthening the supervision of the reassessment
+of risk appetites, stress testing, liquidity risk management and
+information technology risk management, made pertinent
+recommendations of supervision and promoted the Bank to
+strengthen the development of comprehensive risk management
+system. The board of supervisors strengthened multi-dimensional
+supervision over the credit risk, regularly communicated with
+the management over the quality of credit assets, and carried
+out on-site supervision and guidance at certain branches. The
+board of supervisors attached great importance to the Bank's
+support for achieving carbon peak and neutrality goals, held
+special meetings to listen to the reports on the development of
+green credit, and put forward suggestions on how to assist in
+green development and effectively deal with risks and challenges.
+The board of supervisors continuously followed up the overseas
+entities' risk management, and put forward suggestions on
+further strengthening the prevention and control of risks and
+improvement of international competitiveness. The board of
+supervisors focused on improving the forward-looking nature
+of supervision work by making in-depth analysis of changes in
+macro situation and policies, and urged the Bank to strengthen
+studies and control of potential risks in industries such as real
+estate and rectification of existing WMPs.
+Effectively perform the internal control and compliance
+supervision. The board of supervisors continuously strengthened
+the supervision in key areas of internal control and compliance,
+and promoted the Bank to strengthen the construction of long-
+term management solutions. The board of supervisors fulfilled
+the responsibility for supervising internal control evaluation,
+put forward suggestions on paying attention to the impact of
+digital operation and FinTech on internal control management,
+strengthening the top-level design, and enhancing coordination
+between different departments. The board of supervisors
+continuously followed up anti-money laundering management,
+suggested sorting out and timely improving weak links, further
+improved relevant management mechanisms. The board of
+supervisors listened to the report on the building of employee
+behaviour management system, and suggested strengthening
+the application of FinTech, thoroughly summarised experience
+of case prevention, and enhancing the intelligence of employee
+During the reporting period, the board of supervisors was not
+aware of any insider trading or any acts detrimental to the
+interests of shareholders or leading to a drain on the Bank's assets
+in the acquisition or sale of assets.
+behaviour management continuously. The board of supervisors
+focused on internal and external problems found during
+inspection and rectifications, regularly listened to reports on
+relevant events, followed up compliance governance of grass-
+roots institutions and anti-fraud management, the special task
+for solution of reoccuring problems, and urged complete and
+systematic rectifications by taking out the roots of problems, so
+as to continuously improve the Bank's standard of internal control
+and compliance management.
+China Construction Bank Corporation
+Annual Report 2021
+163
+164
+REPORT OF THE BOARD OF SUPERVISORS
+INDEPENDENT OPINIONS ON RELEVANT MATTERS
+Operations in compliance with laws and regulations
+During the reporting period, the Bank carried out its operation
+pursuant to laws and regulations, and the decision-making
+procedure was in compliance with the provisions of laws,
+regulations and the Articles of Association of the Bank. The
+directors and senior management fulfilled their duties diligently.
+The board of supervisors was not aware of any of their acts
+in breach of applicable laws, regulations or the Articles of
+Association of the Bank, or detrimental to the Bank's interests in
+performance of their duties.
+Financial reporting
+The financial statements of the Bank for 2021 truly and fairly
+reflected the financial position and operating results of the Bank.
+Use of proceeds
+During the reporting period, the Bank issued RMB145 billion Tier 2
+capital bonds. The proceeds were all used to replenish the Bank's
+Tier 2 capital. The Bank issued RMB20 billion special financial
+bonds for small and micro business loans. The proceeds were all
+used to grant loans for small and micro businesses and support
+the development of small and micro businesses. The use of
+proceeds was consistent with the Bank's commitments.
+Fully exerting the efficacy of supervision. The board of
+supervisors closely centred on implementation of "Three Major
+Tasks" and improvement of the "Three Capabilities" to carry
+out supervision work, led the Bank to constantly deepen the
+New Finance practices. The board of supervisors adhered to its
+problem-oriented approach with focus on important aspects
+including systems and mechanisms, strengthened supervision
+over major issues in strategic development, and improved the
+overall governance efficiency of the Bank, so as to facilitate
+development. It also carried out in-depth investigations and
+researches, organised special researches on operation platform
+and disposal of non-performing assets, and put forward
+suggestions including properly carrying out top-level design,
+strengthening whole-process risk management and improving
+systems and mechanisms. Considering both the current
+and long-term situations, it conducted thematic analysis on
+trading banking business, online business development and
+risk control and and provided useful suggestions for operation
+and management. The board of supervisors regulated meeting
+operation, convened meetings in a pragmatic and efficient
+manner, focused on key supervisory aspects, deepened studies
+and discussions, and continuously improved the quality and
+efficiency of the meetings. The board of supervisors further
+improved the mechanism of collaboration with all parties
+involved in governance, paid attention to strengthening
+communication and discussion with the Board and senior
+management, actively integrated into business and operation
+development, and provided constructive opinions and
+suggestions. The board of supervisors also improved the
+supervisory opinion transmission and implementation
+mechanism continuously to enhance the effectiveness of
+supervision. It attached importance to strengthening self-
+development, completed selection and appointment of
+supervisors, paid attention to strengthening learning and training,
+and continuously enhanced the capacity to perform duties. All
+supervisors were devoted to their duties, diligent and responsible,
+and properly completed the tasks of the board of supervisors.
+REPORT OF THE BOARD OF SUPERVISORS
+Performance and Due
+Diligence Supervision
+Finance and Internal
+Control Supervision
+Committee
+up Assets Management Department
+Financial Market Department
+and Management Department e-CNY Promotion Office)
+Digitalisation Promotion Office (Product Innovation
+E-finance Department
+edit Card Centre
+busing Finance & Personal Lending Department
+Wealth Management and Private Banking Department
+Personal Finance Department
+(Consumer Rights Protection Department)
+ettlement and Cash Management Department
+vestment Banking Department
+ncial Institution Business Centre
+itutional Banking Department
+ic Clients Department
+orporate Banking Department
+nal Control & Compliance Department
+dit Department
+edit Approval Department
+dit Management Department
+Special Assets Resolution Department
+sk Management Department
+Equity & Investment Management Department
+clusive Financial Development Department
+ral Revitalisation Finance Department
+banking Department)
+Committee
+rnational Business Department
+Data Management Department
+President
+Asset and Liability and
+Risk Management and
+Internal Control
+Cost Control Committee
+Assets Management
+Business Committee
+Talent, Remuneration and
+Organisation Planning
+Management Committee
+Committee
+China Construction Bank Corporation 165
+Annual Report 2021
+Channel and Operation Management Department
+Inclusive Financial
+Development Committee
+Promotion Committee
+Consumer Rights
+Comprehensive Operation
+Management Committee
+Protection Committee
+Party Affairs Department (Labour Union)
+etired Staff Management Department
+rity Department
+ic Relations & Corporate Culture Department
+Legal Department
+FinTech Department
+Fintech and Digitalisation
+162
+161
+Annual Report 2021
+Perth Branch
+Facsimile: 0061-2-92522779
+Level 40, 525 Collins Street, Melbourne VIC 3000, Australia
+Telephone: 0061-3-94528500
+Melbourne Branch
+Facsimile: 0061-2-92522779
+Level 9. 123 Eagle Street, Brisbane, QLD 4000, Australia
+Telephone: 0061-7-30691900
+Brisbane Branch
+Facsimile: 0061-2-92522779
+Level 31,88 Phillip Street, Sydney, NSW 2000, Australia
+Telephone: 0061-2-80316100
+Sydney Branch
+Hong Kong Branch
+Facsimile: 00886-2-27236633
+Taipei Branch
+Annual Report 2021
+China Construction Bank Corporation
+Facsimile: 0041-43-5558898
+Telephone: 0041-43-5558800
+Beethovenstrasse 33, 8002 Zurich, Switzerland
+Zurich Branch
+Facsimile: 0082-2-67303601
+China Construction Bank Tower, 24 Myeongdong 11-gil, Jung-gu, Seoul 04538, Korea
+Telephone: 0082-2-67303600
+Facsimile: 001-212-2078288
+1/F, No.108, Sec.5, Xinyi Road, Xinyi Dist., Taipei 11047, Taiwan
+Telephone: 00886-2-87298088
+Toronto Branch
+Level 9, 32 St Georges Terrace, Perth, WA 6000, Australia
+Telephone
+Facsimile 0061-2-92522779
+169
+China Construction Bank Corporation
+Annual Report 2021
+BRANCHES AND SUBSIDIARIES
+Telephone: 0056-2-27289100
+Postcode: 7550000
+Isidora Goyenechea 2800, 30th Floor, Santiago, Chile
+Chile Branch
+Facsimile: 0027-21-4433671
+15th Floor, Portside Building, 4 Bree Street, Cape Town, South Africa
+Telephone: 0027-21-4197300
+Cape Town Branch
+0061-8-62463300
+Facsimile: 0027-11-5209411
+Facsimile: 0064-9-3744275
+Level 29, Vero Centre, 48 Shortland Street, Auckland 1010, New Zealand
+Telephone: 0064-9-3388200
+Facsimile: 0065-65356533
+9 Raffles Place, #39-01/02, Republic Plaza, Singapore 048619
+Telephone: 0065-65358133
+Johannesburg Branch
+New Zealand Branch
+Singapore Branch
+Facsimile: 00852-39186001
+Telephone: 00852-39186939
+28/F, CCB Tower, 3 Connaught Road Central, Central, Hong Kong
+95 Grayston Drive, Morningside, Sandton, South Africa 2196
+Telephone: 0027-11-5209400
+Telephone: 001-646-7812400
+Seoul Branch
+33rd Floor, 1095 Avenue of the Americas, New York, USA NY 10036
+AMENDMENTS TO THE ARTICLES OF
+ASSOCIATION
+In 2021, the Bank did not revise its Articles of Association.
+CONNECTED TRANSACTIONS
+In 2021, the Bank engaged in a series of connected transactions
+with the connected persons of the Bank as defined by the
+Listing Rules of Hong Kong Stock Exchange in its ordinary
+course of business. Such transactions complied with the criteria
+for exemption under Rule 14A.73 of the Listing Rules of Hong
+Kong Stock Exchange, and they were fully exempted from the
+shareholders' approval, annual review and all the disclosure
+requirements.
+Please refer to Note "Related Party Relationships and Transactions"
+to the financial statements of this annual report for details of
+the related party transactions as defined by domestic laws and
+regulations and accounting standards.
+SIGNIFICANT INVESTMENTS
+As of 31 December 2021, the Group did not have any significant
+investment as required to be disclosed in accordance with Rule
+32(4A) under the Appendix 16 to the Listing Rules of Hong Kong
+Stock Exchange.
+ENVIRONMENTAL POLICIES AND PERFORMANCE
+For details of the Bank's environmental policies and performance,
+please refer to the "Corporate Social Responsibilities
+(Environmental, Social and Governance)" of this annual report and
+the Bank's Social Responsibility Report 2021.
+RELATIONSHIPS WITH EMPLOYEES, SUPPLIERS
+AND CUSTOMERS
+Employees are the valuable assets to the Bank. The Bank ensures
+the rights of employees according to laws and regulations
+and is committed to building a broad development platform
+for its employees. Furthermore, the Bank constantly provides
+safeguarding measures for the career development of
+employees in terms of their remunerations, benefits, training, and
+promotions. The Bank attaches great importance to the selection
+of suppliers, encourages fair and open competition, adheres to
+the "mutual benefit, win-win cooperation", and treats suppliers
+as equals. Adhering to the "customer-centric" concept, the
+Bank practises New Finance initiatives and vigorously promotes
+service function innovation, allowing customers to obtain
+services anytime and anywhere. The Bank is trying to offer smart,
+convenient and excellent customer service experience, and meet
+the financial service demands of its customers.
+The Bank timely and comprehensively implemented the
+requirements of the CSRC on listed companies to conduct self-
+examination in accordance with the Self-Examination Checklist
+of Corporate Governance, to identify matters and summarise
+experience, and to take this opportunity to further improve the
+corporate governance of the Bank. The Bank set up a working
+group for the self-examination on corporate governance,
+discussed and formulated a plan for the self-examination,
+carried out the self-examination accordingly after the review of
+all directors, and prepared a self-examination report which was
+submitted to the board of directors for deliberation and approval
+on 26 March 2021.
+For details of the Bank's relationships with employees,
+suppliers and customers, please refer to the "Corporate Social
+Responsibilities (Environmental, Social and Governance)" of this
+annual report and the Bank's Social Responsibility Report 2021.
+REPORT OF THE BOARD OF DIRECTORS
+INFORMATION DISCLOSURE
+In 2021, the Bank strictly abided by relevant laws, regulations and
+regulatory requirements for information disclosure, strengthened
+its information disclosure system, and revised the Bank's measures
+for information disclosure. The revisions incorporated the latest
+regulatory requirements, adjusted the interim and periodic
+reports requirements, standardised the information disclosure
+process and publication channels, and added measures on
+voluntary information disclosure in compliance with laws and
+regulations. The Bank actively fulfilled its information disclosure
+obligations, continued to conduct relevant training, ensured
+the truthfulness, accuracy, completeness and timeliness of
+the information disclosure, and continuously improved its
+information disclosure level.
+MANAGEMENT OF INSIDER INFORMATION
+The Bank managed inside information strictly in accordance
+with laws, regulations, regulatory requirements, and rules of
+the Bank. The Bank formulated the Management Measures on
+Personnel with Inside Information, and strictly implemented the
+confidentiality requirements regarding inside information, timely
+collected the contents of confidential information, standardised
+information transmission process, controlled the scope of insiders,
+and prepared and disclosed related information in accordance
+with laws and regulations. The Bank was not aware of any insider
+trading of the shares of the Bank by taking the advantage of
+inside information during the reporting period.
+EVENTS AFTER THE REPORTING PERIOD
+In January 2022, the Bank completed its overseas issuance of
+fixed-rate Tier 2 capital bonds of US$2 billion with a term of ten
+years, a coupon rate of 2.85% that mature in 2032 and the Bank
+has a conditional right to redeem the bonds at the end of the fifth
+year. All proceeds raised are used to replenish the Bank's tier-2
+capital.
+By order of the board of directors
+Tian Guoli
+Chairman
+29 March 2022
+China Construction Bank Corporation
+China Construction Bank Corporation
+Annual Report 2021
+PROGRESS OF SPECIAL EVENTS OF CORPORATE
+GOVERNANCE
+The Bank continuously improved its corporate governance and
+the quality and efficiency of its governance. Please refer to the
+"Corporate Governance Report" of this annual report for details
+of corporate governance practice adopted by the Bank and its
+compliance with the Corporate Governance Code and Corporate
+Governance Report.
+CORPORATE GOVERNANCE
+New York Branch
+Facsimile: 006087-451188
+Level 13(E), Main Office Tower, Financial Park, Jalan Merdeka Labuan, Malaysia
+Telephone: 006087-582018
+Labuan Branch
+Facsimile: 0044-20-70386001
+Telephone: 0044-20-70386000
+111 Old Broad Street, London, EC2N 1AP, U.K.
+London Branch
+Facsimile: 00352-28668801
+Telephone: 00352-28668800
+1 Boulevard Royal, L-2449 Luxembourg, Luxembourg
+Facsimile: 0084-28-38275533
+Telephone: 0084-28-38295533
+Luxembourg Branch
+Ho Chi Minh City Branch 11th Floor Sailing Tower, 111A Pasteur Street, District 1, Ho Chi Minh City, Vietnam
+Facsimile: 0049-69-97149588, 97149577
+Bockenheimer Landstrasse 75,60325 Frankfurt am Main, Germany
+Telephone: 0049-69-9714950
+Facsimile: 001-647-7777739
+Telephone: 001-647-7777700
+Frankfurt Branch
+181 Bay Street, Suite 3650, Toronto ON, Canada, M5J 2T3
+160
+REPORT OF THE BOARD OF DIRECTORS
+uman Resources Department
+Finance & Accounting Department
+sset Custody Services Department
+Executive office
+No. 59, West Street, Xining
+Postcode: 810000
+(0971) 8261244
+(0971) 8261287
+Shandong Branch
+No. 168, North Long'ao Road, Jinan
+Postcode: 250099
+(0531) 82088007
+(0531) 86169108
+Shaanxi Branch
+No. 38, South Guangji Street, Xi'an
+Postcode: 710002
+(029) 87606007
+Qinghai Branch
+(029) 87606014
+No. 126, Yingze Street, Taiyuan
+Postcode: 030001
+(0351) 4957800
+(0351) 4957871
+Shanghai Branch
+No. 900, Lujiazui Ring Road, Shanghai
+(021) 58880000
+(021) 58781818
+Postcode: 200120
+Shenzhen Branch
+Shenzhen CCB Building, No.8 Pengcheng 1st Road, Futian Central (0755) 81686666
+District, Shenzhen
+Shanxi Branch
+(0532) 82670157
+(0532) 68670056
+No. 222, Shenzhen Road, Laoshan District, Qingdao
+Postcode: 266061
+(024) 22787600
+(024) 22857427
+Inner Mongolia Branch
+No. 6, Daxue East Street, Saihan District, Huhhot
+Postcode: 010010
+166
+China Construction Bank Corporation
+Annual Report 2021
+(0471) 4593751
+(0471) 4593890
+Branches
+Ningbo Branch
+Address
+Asset & Liability Management Department
+Telephone
+BRANCHES AND SUBSIDIARIES
+Facsimile
+(0574) 87328212
+(0574) 87325019
+Ningxia Branch
+No. 98, Nanxun West Street, Xingqing District, Yinchuan
+Postcode: 750001
+(0951) 4126266
+(0951) 4106165
+Qingdao Branch
+(0755) 81683333
+No. 40, Naner Road, Taiyuan Street, Heping District, Shenyang
+Postcode: 110002
+Postcode: 518038
+Sichuan CCB Building, No. 86, Tidu Street, Chengdu
+Postcode: 610016
+No. 33, Jiefang East Road, Hangzhou
+Postcode: 310016
+(0571) 85313263
+(0571) 85313001
+China Construction Bank Corporation
+Annual Report 2021
+167
+168
+BRANCHES AND SUBSIDIARIES
+BRANCHES OUTSIDE THE MAINLAND OF CHINA
+Astana Branch
+26th Floor, Talan Towers, 16 Dostyk street, Esil district, Nur-Sultan City, The Republic of Kazakhstan
+Telephone: 007-7172738888
+Zhejiang Branch
+Facsimile: 007-7172736666
+5th Floor, Circle Square, 61 Avenida de Almeida Ribeiro, Macau
+Telephone: 00853-82911880
+Facsimile: 00853-82911804
+DIFC Branch
+31th Floor, Tower 2, Al Fattan Currency House, DIFC, P.O.Box: 128220, Dubai, UAE
+Telephone:00971-4-5674888
+Tokyo Branch
+Osaka Branch
+Facsimile:00971-4-5674777
+13F/1F, West Tower, Otemachi First Square, 5-1, Otemachi 1-chome Chiyoda-ku, Tokyo 100-0004, Japan
+Telephone: 0081-3-52935218
+Facsimile: 0081-3-32145157
+1/F, Itoh Building, 3-6-14 Minamihonmachi, Chuo-ku, Osaka-shi, Osaka, 541-0054, Japan
+Telephone: 0081-6-61209080
+Macau Branch
+(0871) 63060333
+(0871) 63060858
+CCB Plaza, Jinbi Road, Kunming
+Postcode: 650021
+(028) 86767161
+(028) 86767187
+Suzhou Branch
+No. 18, Suzhou Avenue West, Suzhou Industrial Park, Suzhou
+Postcode: 215021
+(0512) 62788786
+(0512) 62788783
+Tianjin Branch
+Plus 1 No.19, Nanjing Road, Hexi District, Tianjin
+Postcode: 300203
+Tibet Branch
+Xiamen Branch
+No. 21, Beijing West Road, Lhasa
+Postcode: 850008
+No. 98, Lujiang Road, Xiamen
+Postcode: 361001
+(022) 58751166
+(022) 58751811
+(0891) 6838792
+(0891) 6834852
+(0592) 2158668
+(0592) 2158862
+Xinjiang Branch
+No. 99, Minzhu Road, Urumqi
+Postcode: 830002
+(0991) 2848666
+(0991) 2819160
+Yunnan Branch
+Sichuan Branch
+Liaoning Branch
+No. 255, Baohua Street, Ningbo
+Postcode: 315040
+(0791) 86848200
+Address
+No. 2358, Yungu Road, Hefei
+Postcode: 230001
+Telephone
+Facsimile
+(0551) 62874100
+(0551) 62872014
+Beijing Branch
+(0791) 86848318
+(010) 63603682
+Anhui Branch
+(010) 63603656
+No. 123, Minzu Road, Yuzhong District, Chongqing
+Postcode: 400010
+(023) 63771855
+(023) 63771835
+Dalian Branch
+No. 1, Jiefang Street, Zhongshan District, Dalian
+Postcode: 116001
+(0411) 88066666
+(0411) 82804560
+Fujian Branch
+No.298, Jiangbin Middle Avenue, Taijiang District, Fuzhou
+Postcode: 350009
+(0591) 87838467
+Chongqing Branch
+(0591) 87856865
+Branches
+BRANCHES AND SUBSIDIARIES
+Branches at Province, Autonomous Region and
+Municipality Level, Branches under
+Direct Management of Head Office
+Branches and Sub-branches at Urban District/County Level,
+Sub-operating Offices, Deposit-taking Outlets
+Overseas Branches
+Overseas Subsidiary Banks
+Main Integrated Operation Subsidiaries
+China Construction Bank (Asia) Corporation Limited
+China Construction Bank (London) Limited
+China Construction Bank (Russia) Limited
+China Construction Bank (Europe) S.A.
+China Construction Bank (New Zealand) Limited
+China Construction Bank (Brasil) Banco Múltiplo S/A
+China Construction Bank (Malaysia) Berhad
+TIER-ONE BRANCHES IN THE MAINLAND OF CHINA
+PT Bank China Construction Bank Indonesia Tbk
+CCB Financial Leasing Co., Ltd.
+CCB Trust Co., Ltd.
+CCB Life Insurance Co., Ltd.
+Sino-German Bausparkasse Co., Ltd.
+CCB Futures Co., Ltd.
+CCB Pension Management Co., Ltd.
+CCB Property & Casualty Insurance Co., Ltd.
+CCB Financial Asset Investment Co., Ltd.
+CCB Wealth Management Co., Ltd.
+CCB International (Holdings) Limited
+ORGANISATIONAL STRUCTURE
+CCB Principal Asset Management Co., Ltd.
+Gansu Branch
+Entry.4, Building 28, Xuanwumen West Street, Beijing
+Postcode: 100053
+(0931) 4891555
+Heilongjiang Branch
+No. 67, Hongjun Street, Nan'gang District, Harbin
+Postcode: 150001
+(0451) 58683565
+(0451) 53625552
+Hubei Branch
+No. 709, Jianshe Street, Wuhan
+Postcode: 430015
+(027) 65775888
+(027) 65775881
+Hunan Branch
+No. 2, Baisha Road, Changsha
+Postcode: 410005
+(0371) 65556688
+(0731) 84419910
+Jilin Branch
+No. 810, Xi'an Road, Changchun
+Postcode: 130061
+(0431) 80835310
+(0431) 88988748
+Jiangsu Branch
+No. 188, Hongwu Road, Nanjing
+Postcode: 210002
+(025) 84200545
+(025) 84209316
+Jiangxi Branch
+No. 366, Bayi Street, Nanchang
+Postcode: 330006
+No. 77, Qin'an Road, Lanzhou
+(0371) 65556677
+(0731)84419141
+(0311) 88601010
+(0311) 88601001
+(0931) 4891862
+Postcode: 730030
+Guangdong Branch
+No. 509, Dongfengzhong Road, Guangzhou
+Postcode: 510045
+(020) 83018888
+(020) 83013950
+No. 90, Minzu Avenue, Nanning
+Postcode: 530022
+(0771) 5513110
+(0771) 5513012
+Guizhou Branch
+No. 148, North Zhonghua Road, Guiyang
+Postcode: 550001
+Guangxi Branch
+(0851) 86696371
+Hainan Branch
+CCB Plaza, No. 8, Guomao Road, Haikou
+Postcode: 570125
+(0898) 68587268
+(0898) 68587569
+Hebei Branch
+No. 40, Ziqiang Road, Shijiazhuang
+Postcode: 050000
+Henan Branch
+(0851) 86696000
+No. 80, Huayuan Road, Zhengzhou
+Postcode: 450003
+Design and operating effectiveness of key controls:
+Consolidation assessment and disclosures of structured entities
+Key audit matter
+KEY AUDIT MATTERS (CONTINUED)
+INDEPENDENT AUDITOR'S REPORT
+Annual Report 2021
+With the support of our IT audit specialists, we evaluated and
+tested the data and processes used to determine expected
+credit loss, including loan business data, internal credit rating
+data, macroeconomic data, as well as the computational logic,
+inputs and system interfaces of the impairment assessment
+system;
+174
+We evaluated and tested the design and operating effectiveness of internal
+controls related to disclosures of credit risk exposures and expected credit
+losses.
+We evaluated and tested key controls over the expected credit
+loss model, including approval of model changes, ongoing
+monitoring of model performance, model validation and
+parameter calibration.
+We assessed the reasonableness of management's
+determination of credit impairment. For credit-impaired loans
+and advances, we analysed the amount, timing and probability
+of management's estimated future cash flows, especially the
+recoverable cash flows from collateral.
+The Group holds interests in many different structured entities as a result of its
+business activities in financial investment, asset management and credit asset
+transfer. Such interests in structured entities include wealth management
+products("WMPS"), funds, asset management plans, trust plans, and asset-
+backed securities. As at 31 December 2021, within unconsolidated structured
+entities, the balance of non-principal guaranteed WMPs issued by the Group
+totalled RMB2,372,279 million, and the balance of trust plans, funds and asset
+management plans established by the Group totalled RMB3,182,800 million.
+The Group needs to comprehensively consider the power it possesses, its
+exposure to variable returns, and its ability to use its power to affect returns to
+determine whether it has control over such structured entities, and therefore
+whether it should include them in the scope of consolidation.
+China Construction Bank Corporation
+The assessment of the Group's control over structured entities involves
+significant judgements on factors such as the purpose and design of
+structured entities, the Group's ability to direct relevant activities, direct
+and indirect beneficial interests and returns, performance fees, and benefits
+received or losses incurred from providing credit enhancement or liquidity
+support. Comprehensive analysis of these factors and concluding on whether
+the Group has control involve significant management judgements and
+estimates. In view of the materiality and the complexity of management
+judgements, we consider consolidation assessment and disclosures of
+structured entities a key audit matter.
+We selected samples and evaluated the valuation techniques, inputs and
+assumptions applied by the Group, including comparison with valuation
+techniques commonly used in the market and industry peers, validation of
+observable inputs using external market data, and comparison with valuation
+outcomes obtained from various pricing sources.
+Valuation of financial instruments
+The fair values of the Group's financial instruments measured at fair value are
+determined either by active market quotes or valuation techniques. Valuation
+techniques are used to determine the fair value of financial instruments
+that do not have quoted prices in active markets, such as investments in
+unlisted equity, private fund investments and certain debt investments. These
+techniques may involve the use of significant unobservable inputs requiring
+assumptions and estimates based on management's subjective judgements.
+Valuation results can vary significantly under different valuation techniques or
+assumptions.
+As at 31 December 2021, the carrying amount of the Group's financial assets
+measured at fair value totalled RMB2,901,531 million, accounting for 9.59%
+of total assets. Given the higher uncertainty in valuation results, financial
+instruments whose fair value measurement involves significant unobservable
+inputs are categorised as level 3 within the fair value hierarchy. As at 31
+December 2021, RMB172,792 million or 5.96% of financial assets measured
+at fair value were categorised as Level 3. Given the materiality of the balance
+and the significant judgements involved in fair value measurement of Level
+3 financial instruments, we consider valuation of financial instruments a key
+audit matter.
+Relevant disclosures are included in Note 4(3), Note 4(26)c, Note 23, Note 25,
+Note 26 and Note 61(5) to the consolidated financial statements.
+How our audit addressed the key audit matter
+We evaluated and tested the design and operating effectiveness of key
+controls over the Group's assessment of whether it controls a structured
+entity.
+We assessed the Group's analysis and conclusions on whether it controls
+structured entities based on the Group's analysis on its power over these
+structured entities, and the magnitude and variability of the variable returns
+from its involvement with structured entities.
+We assessed whether the Group has legal or constructive obligations to
+ultimately absorb losses from structured entities through review of contracts,
+which included examining, on a sampling basis, whether the Group has
+provided liquidity support or credit enhancement to structured entities.
+We evaluated and tested the design and operating effectiveness of internal
+controls related to disclosures of unconsolidated structured entities.
+We evaluated and tested the design and operating effectiveness of key
+controls over the valuation of financial instruments.
+For financial instruments whose valuations were calculated using significant
+unobservable inputs, as in the case of investments in unlisted equity, private
+fund investments and certain debt investments, we involved our valuation
+specialists to assess the valuation model for such financial instruments,
+performed independent valuations on selected samples and compared the
+valuation results with those of the Group.
+We evaluated and tested the design and operating effectiveness of internal
+controls related to disclosures of fair value.
+We assessed the forward-looking information used by
+management to determine expected credit losses,
+including the forecasts of macroeconomic variables and the
+assumptions and weightings of multiple macroeconomic
+scenarios;
+1 Tim Mei Avenue
+Central, Hong Kong
+Relevant disclosures are included in Note 4(1), Note 4(26)f and Note 28 to the
+financial statements.
+Taking into account the impact of COVID-19 outbreak,
+macroeconomic changes, industry risk factors, and results of
+management's review and optimization of ECL model, we
+assessed the reasonableness of ECL model methodology
+and related parameters, including probability of default, loss
+given default, risk exposure, and whether there had been a
+significant increase in credit risk;
+China Construction Bank Corporation
+Annual Report 2021
+(2)
+22/F, CITIC Tower
+To the Shareholders of China Construction Bank Corporation
+(Established in the People's Republic of China with limited liability)
+OPINION
+We have audited the consolidated financial statements of China Construction Bank Corporation (the "Bank") and its subsidiaries (the "Group")
+set out on pages 178 to 309, which comprise the consolidated statement of financial position as at 31 December 2021, and the consolidated
+statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year
+then ended, and relevant notes to the consolidated financial statements, including a summary of significant accounting policies.
+In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31
+December 2021, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with
+International Financial Reporting Standards ("IFRSS") issued by the International Accounting Standards Board ("IASB") and have been properly
+prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance.
+BASIS FOR OPINION
+We conducted our audit in accordance with Hong Kong Standards on Auditing ("HKSAS") issued by the Hong Kong Institute of Certified Public
+Accountants ("HKICPA"). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the
+consolidated financial statements section of our report. We are independent of the Group in accordance with the HKICPA's Code of Ethics for
+Professional Accountants (the "Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the
+audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
+China Construction Bank Corporation
+Annual Report 2021
+173
+INDEPENDENT AUDITOR'S REPORT
+KEY AUDIT MATTERS
+Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial
+statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole,
+and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how
+our audit addressed the matter is provided in that context.
+We have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of the consolidated financial statements section
+of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to
+our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including
+the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated financial
+statements.
+Key audit matter
+Expected credit losses for loans and advances to customers measured at
+amortised cost
+The Group determines and measures expected credit losses for loans and
+advances to customers measured at amortised cost, in accordance with IFRS 9
+"Financial Instruments". Significant judgements and assumptions are involved
+in the measurement of expected credit losses, for example:
+Significant increase in credit risk - Criteria for determining whether
+significant increase in credit risk has occurred are highly judgemental,
+and may have a significant impact on expected credit losses for loans
+and advances to customers measured at amortised cost with longer
+outstanding maturities;
+Models and parameters - Complex models, numerous inputs and
+parameters are used to measure expected credit losses, involving
+plenty of management judgements and assumptions;
+Forward-looking information - Macroeconomic forecasts are
+developed, and impacts on expected credit losses are considered for
+probability weighted multiple economic scenarios;
+Whether financial assets are credit-impaired - The determination of
+credit impairment requires consideration of multiple factors, and
+measurement of expected credit losses depends on estimates of
+future cash flows.
+As at 31 December 2021, loans and advances to customers measured at
+amortised cost amounted to RMB18,380,916 million, accounting for 60.76%
+of total assets. Allowances for impairment losses of such loans and advances
+totalled RMB637,338 million. As expected credit losses measurement involves
+many significant judgements and assumptions, we consider expected credit
+losses for loans and advances to customers measured at amortised cost a key
+audit matter.
+Relevant disclosures are included in Note 4(3), Note 4(26)b, Note 25 and Note
+61(1) to the financial statements.
+How our audit addressed the key audit matter
+We evaluated and tested the design and operating effectiveness of key
+controls over credit granting, post approval credit management, loan credit
+rating system, collateral management, loan principal repayment and interest
+payment deferrals and loan impairment assessment, including relevant data
+quality and information systems.
+We adopted a risk-based sampling approach in our loan review procedures,
+focusing on loans to real estate sector with bond defaults and negative news
+coverage. We assessed the debtors' repayment capacity and evaluated the
+Group's loan grading, taking into consideration post-lending inspection
+reports, debtors' financial information, collateral valuation reports and other
+available information.
+With the support of our modelling specialists, we evaluated and tested the
+expected credit loss model, key parameters, and management's significant
+judgements and assumptions, mainly focusing on the following aspects:
+(1)
+Expected credit loss model:
+INDEPENDENT AUDITOR'S REPORT
+安永
+EY**
+Annual Report 2021
+China Construction Bank Corporation
+29 March 2022
+Hong Kong
+Certified Public Accountants
+Ernst & Young
+The engagement partner on the audit resulting in this independent auditor's report is Choi Kam Cheong, Geoffrey.
+From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the
+consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report
+unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
+should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the
+public interest benefits of such communication.
+We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence,
+and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where
+applicable, actions taken to eliminate threats or safeguards applied.
+AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
+(CONTINUED)
+INDEPENDENT AUDITOR'S REPORT
+Annual Report 2021
+177
+China Construction Bank Corporation
+Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to
+express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the
+group audit. We remain solely responsible for our audit opinion.
+Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether
+the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
+Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence
+obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to
+continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report
+to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
+conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
+cause the Group to cease to continue as a going concern.
+Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
+the directors.
+Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
+circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
+Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and
+perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
+opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
+involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
+Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
+misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Our report is made solely to you, as a body,
+and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.
+Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a
+material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
+they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
+As part of an audit in accordance with HKSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We
+also:
+AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
+The directors of the Bank are assisted by the Audit Committee in discharging their responsibilities for overseeing the Group's financial reporting
+process.
+In preparing the consolidated financial statements, the directors of the Bank are responsible for assessing the Group's ability to continue as a
+going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors of
+the Bank either intend to liquidate the Group or to cease operations or have no realistic alternative but to do so.
+The directors of the Bank are responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance
+with IFRSS issued by the IASB and the disclosure requirements of the Hong Kong Companies Ordinance, and for such internal control as the
+directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether
+due to fraud or error.
+RESPONSIBILITIES OF THE DIRECTORS FOR THE CONSOLIDATED FINANCIAL STATEMENTS
+We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit
+findings, including any significant deficiencies in internal control that we identify during our audit.
+INDEPENDENT AUDITOR'S REPORT
+178
+FOR THE YEAR ENDED 31 DECEMBER 2021 (EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+4,313
+7,816
+8
+Net trading gain
+114,582
+121,492
+7
+(16,930)
+(17,145)
+131,512
+138,637
+575,909
+CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
+605,420
+989,509
+(413,600)
+(451,914)
+1,057,334
+2020
+2021
+Note
+Net fee and commission income
+Fee and commission expense
+Fee and commission income
+Net interest income
+Interest expense
+Interest income
+6
+Dividend income
+176
+175
+Telephone: 010-56731294
+Facsimile: 010-56731203
+Website: www.ccbpension.com
+12/F, CCB Tower, 3 Connaught Road Central, Central, Hong Kong
+Telephone: 00852-39118000
+Facsimile: 00852-25301496
+Website: www.ccbintl.com.hk
+No.19, Guizhou Road, Heping District, Tianjin
+Postcode: 300051
+Telephone: 022-58086699
+170
+China Construction Bank Corporation
+11/F, A Section, Zhizhen Building, 7 Zhichun Road, Haidian District, Beijing
+Postcode:100191
+Annual Report 2021
+Website: www.sgb.cn
+BRANCHES AND SUBSIDIARIES
+China Construction Bank (Brasil)
+Banco Múltiplo S/A
+China Construction Bank (Russia) Limited
+Avenida Brigadeiro Faria Lima, 4440, 2 and 5F, Itaim Bibi - São Paulo - SP - 04538 - 132
+Telephone: 0055-11-21739000
+Facsimile: 0055-11-21739101
+Lubyanskiy proezd, 11/1, building 1, 101000 Moscow, Russia
+Telephone: 007-495-6759800-140
+Facsimile: 007-495-6759810
+China Construction Bank (London) Limited
+111 Old Broad Street, London, EC2N 1AP, U.K.
+Telephone: 0044-20-70386000
+Facsimile: 0044-20-70386001
+China Construction Bank (Malaysia) Berhad
+Facsimile: 022-58086808
+Annual Report 2021
+Website: www.ccbtrust.com.cn
+Telephone: 010-67596584
+China Construction Bank Corporation
+In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider
+whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or
+otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
+other information, we are required to report that fact. We have nothing to report in this regard.
+Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance
+conclusion thereon.
+The directors of the Bank are responsible for the other information. The other information comprises the information included in the Annual
+Report, other than the consolidated financial statements and our auditor's report thereon.
+OTHER INFORMATION INCLUDED IN THE ANNUAL REPORT
+6/F, Building 4, ChangAnXing Rong Centre, No. 1, Naoshikou Street, Xicheng District, Beijing
+Postcode: 100031
+Telephone: 010-67594013
+Facsimile: 010-66275808
+Website: www.ccbleasing.com
+89-92/F, Shenzhen Ping An Financial Centre, No.5033, Yitian Road, Futian District, Shenzhen
+Postcode: 518000
+Telephone 0755-88338101
+Facsimile 0755-88338085
+Facsimile: 010-67596590
+5/F, No. 99 (CCB Shanghai Tower), Yincheng Road, Pudong New District, Shanghai
+Postcode: 200120
+Facsimile: 021-60635520
+Website:www.ccbfutures.com
+CCB Life Insurance Co., Ltd.
+CCB Trust Co., Ltd.
+CCB Pension Management Co., Ltd.
+CCB International (Holdings) Limited
+Sino-German Bausparkasse Co., Ltd.
+29/F-33F, CCB Tower, No. 99, Yincheng Road, Pudong New District, Shanghai
+Postcode:200120
+Telephone: 021-60638288
+Facsimile: 021-60638204
+Website: www.ccb-life.com.cn
+10/F, Chang'an Xingrong Centre, Block 4, No. 1, Naoshikou Street, Xicheng District, Beijing
+Postcode: 100031
+Telephone: 021-60635551
+9
+5,921
+3,182
+(6,720)
+(6,445)
+(61)
+320
+(491)
+(423)
+(762)
+556
+Exchange difference on translating foreign operations
+Net gain/(loss) on cash flow hedges
+Reclassification adjustments included in profit or loss due to disposals
+at fair value through other comprehensive income
+Subtotal
+Allowances for credit losses of debt instruments measured
+12,943
+other comprehensive income
+Other comprehensive income that may be reclassified subsequently to profit or loss
+Fair value changes of debt instruments measured at fair value through
+(2)
+224
+(373)
+24
+115
+(279)
+(463)
+479
+(25)
+(9,108)
+2020
+6,951
+Other comprehensive income for the year, net of tax
+1.06
+1.19
+19
+256,661
+310,506
+2,549
+254,112
+308,803
+1,703
+273,579
+303,928
+2,529
+271,050
+(17,142)
+302,513
+1,415
+310,506
+(16,918)
+6,578
+The notes on pages 185 to 309 form part of these financial statements.
+Basic and diluted earnings per share (in RMB Yuan)
+Non-controlling interests
+Equity shareholders of the Bank
+Total comprehensive income attributable to:
+Non-controlling interests
+Equity shareholders of the Bank
+Net profit attributable to:
+Total comprehensive income for the year
+256,661
+2021
+Note
+Subtotal
+(42,050)
+47,874
+68,025
+(59,100)
+Annual Report 2021
+China Construction Bank Corporation
+The notes on pages 185 to 309 form part of these financial statements.
+Net profit
+Income tax expense
+Profit before tax
+Share of profits of associates and joint ventures
+Other impairment losses
+Credit impairment losses
+12
+Operating expenses
+Other operating income, net
+- Other operating expense
+- Other operating income
+Other operating income, net:
+4,649
+4,634
+11
+Net gain on derecognition of financial assets measured at amortised cost
+5,765
+10,498
+10
+Net gain arising from investment securities
+Operating income
+8,925
+5,824
+764,706
+Others
+Fair value changes of equity instruments designated as measured at fair value through
+other comprehensive income
+(1) Other comprehensive income that will not be reclassified to profit or loss
+Remeasurements of post-employment benefit obligations
+Other comprehensive income:
+FOR THE YEAR ENDED 31 DECEMBER 2021 (EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
+273,579
+303,928
+(63,037)
+(74,484)
+18
+336,616
+378,412
+895
+1,603
+3,562
+(766)
+15
+(193,491)
+(167,949)
+14
+525,650
+545,524
+(188,574)
+(219,182)
+13
+714,224
+China Construction Bank (Europe) S.A.
+179
+Amsterdam Branch
+Telephone: 00603-21601888
+249
+15. Other impairment losses
+208
+47. Share capital
+250
+16. Directors' and supervisors' emoluments
+209
+48. Other equity instruments
+250
+17. Individuals with highest emoluments
+211
+49. Capital reserve
+Other liabilities
+253
+212
+50. Other comprehensive income
+254
+19. Earnings per share
+213
+51. Surplus reserve
+255
+20. Cash and deposits with central banks
+213
+52. General reserve
+255
+21. Deposits with banks and non-bank financial
+18. Income tax expense
+214
+46.
+14. Credit impairment losses
+Dividend income
+207
+40.
+Financial assets sold under repurchase agreements
+241
+10. Net gain arising from investment securities
+41.
+Deposits from customers
+241
+11. Net gain on derecognition of financial assets
+207
+42.
+208
+Accrued staff costs
+measured at amortised cost
+43. Taxes payable
+244
+12. Other operating income, net
+207
+44.
+Provisions
+245
+13. Operating expenses
+208
+45. Debt securities issued
+246
+242
+9.
+53. Profit distribution
+institutions
+29. Fixed assets
+30. Land use rights
+232
+62. Statement of financial position and Statement of
+304
+233
+changes in equity of the Bank
+234
+63. Events after the reporting period
+307
+31. Intangible assets
+32. Goodwill
+28. Structured entities
+33. Deferred tax
+64.
+Comparative figures
+307
+235
+65. Ultimate parent
+307
+236
+66. Possible impact of amendments, new standards and
+interpretations issued but not yet effective
+307
+172
+China Construction Bank Corporation
+Annual Report 2021
+234
+255
+271
+229
+54. Notes to the statement of cash flows
+256
+22. Placements with banks and non-bank financial
+214
+55. Transferred financial assets
+256
+institutions
+56. Operating segments
+257
+23. Derivatives and hedge accounting
+215
+57. Entrusted lending business
+61. Risk Management
+263
+217
+58. Pledged assets
+263
+25. Loans and advances to customers
+217
+59. Commitments and contingent liabilities
+263
+26. Financial investments
+222
+60. Related party relationships and transactions
+265
+27. Long-term equity investments
+24. Financial assets held under resale agreements
+profit or loss
+206
+BRANCHES AND SUBSIDIARIES
+28/F, CCB Tower, 3 Connaught Road Central, Central, Hong Kong
+Telephone: 00852-39186939
+Facsimile: 00852-39186001
+Sahid Sudirman Centre 15th Floor, Jl. Jend. Sudirman Kav. 86, Jakarta
+Postcode: 10220
+Telephone: 0062-2150821000
+Facsmile: 0062-2150821010
+Website: www.idn.ccb.com
+China Construction Bank Corporation
+Annual Report 2021
+171
+APPENDIXI INDEPENDENT AUDITOR'S REPORT AND FINANCIAL STATEMENTS
+CONTENTS
+INDEPENDENT AUDITOR'S REPORT
+FINANCIAL STATEMENTS
+Facsimile: 0064-9-3744275
+CONSOLIDATED STATEMENT OF
+COMPREHENSIVE INCOME
+CONSOLIDATED STATEMENT OF
+180
+FINANCIAL POSITION
+CONSOLIDATED STATEMENT OF
+182
+CHANGES IN EQUITY
+CONSOLIDATED STATEMENT OF
+183
+CASH FLOWS
+NOTES TO THE FINANCIAL STATEMENTS
+185
+178
+1.
+Level 29, Vero Centre, 48 Shortland Street, Auckland 1010, New Zealand
+Telephone: 0064-9-3388200
+Telephone: 0036-1-336688
+Facsimile: 00603-27121819
+1 Boulevard Royal, L-2449 Luxembourg, Luxembourg
+Telephone: 00352-28668800
+Facsimile: 00352-28668801
+Claude Debussylaan 32, 1082MD Amsterdam, the Netherlands
+Telephone: 0031-0-205047899
+Facsimile: 0031-0-205047898
+Paris Branch
+86-88 bd Haussmann 75008 Paris, France
+Telephone: 0033-155309999
+Facsimile: 0033-155309998
+Barcelona Branch
+Facsimile: 0036-1-3366801
+Avenida Diagonal, 640 5a planta D, 08017, Barcelona, Spain
+Telephone: 0034-935225000
+Warsaw Branch
+Warsaw Financial Centre, ul. Emilii Plater 53, 00-113 Warsaw, Poland
+Telephone: 0048-22-1666666
+Facsimile: 0048-22-1666600
+Milan Branch
+Hungary Branch
+China Construction Bank (New Zealand)
+Limited
+China Construction Bank (Asia)
+Corporation Limited
+PT Bank China Construction Bank
+Indonesia Tbk
+Via Mike Bongiorno 13, 20124 Milan, Italy
+Telephone: 0039-02-32163000
+Facsimile: 0039-02-32163092
+Szabadság tér 7, 1054 Budapest, Hungary
+Facsimile: 0034-935225078
+Company information
+185
+34. Other assets
+Facsimile: 010-67590601
+Net fee and commission income
+206
+39. Financial liabilities measured at fair value through
+241
+8.
+Net trading gain
+Telephone: 010-67590600
+Postcode: 100033
+Unit 1601-01, 16/F, No.9A, Financial Street, Xicheng District, Beijing
+CCB Futures Co., Ltd.
+CCB Wealth Management Co., Ltd.
+7.
+CCB Financial Leasing Co., Ltd.
+Website: www.ccbfund.cn
+Facsimile: 010-66228889
+Telephone: 010-66228888
+16/F, Winland International Finance Centre, No. 7, Financial Street, Xicheng District, Beijing
+Postcode: 100033
+Website: www.ccbpi.com.cn
+Facsimile: 010-85098007
+Telephone: 010-85098000
+Postcode: 100026
+20/F, Borui Building, Jia 26, Dongsanhuanbei Road, Chaoyang District, Beijing
+CCB Principal Asset Management Co., Ltd.
+CCB Property & Casualty Insurance Co., Ltd.
+SUBSIDIARIES
+CCB Financial Asset Investment Co., Ltd.
+institutions
+205
+Net interest income
+237
+2.
+Basis of preparation
+185
+35.
+Movements of allowances for impairment losses
+239
+3.
+Statement of compliance
+186
+36.
+Borrowings from central banks
+239
+4.
+Significant accounting policies and accounting
+186
+37.
+Deposits from banks and non-bank financial
+240
+estimates
+institutions
+5.
+Taxation
+205
+38. Placements from banks and non-bank financial
+240
+6.
+Ground Floor, South Block, Wisma Golden Eagle Realty, 142A Jalan Ampang, Kuala Lumpur, Malaysia
+Postcode: 50450
+207
+189
+Share capital
+275,995
+15,048
+134,263
+39,991
+59,977
+250,011
+reserve
+General Retained controlling
+reserve earnings
+350,228 1,239,295
+Surplus
+Other
+comprehensive
+income
+Perpetual Capital
+bonds reserve
+shares
+capital
+Preference
+Share
+Other equity instruments
+Non-
+Total
+interests
+equity
+31,393
+29,576
+6,290
+662
+As at 31 December 2020
+v Dividends to non-controlling interests holders
+iv Dividends to other equity instruments holders
+iii Dividends to ordinary shareholders
+ii Appropriation to general reserve
+i Appropriation to surplus reserve
+(3) Profit distribution
+iv Change in shareholdings in subsidiaries
+holders
+ii Capital deduction by other equity instruments
+i Capital injection by other shareholders
+2,389,353
+24,545
+Attributable to equity shareholders of the Bank
+(2) Changes in share capital
+(1) Total comprehensive income for the year
+Movements during the year
+21
+155,107
+453,233
+121,493
+101,671
+Financial investments
+22222
+188,162
+368,404
+23
+31,550
+69,029
+24
+549,078
+602,239
+25
+18,170,492
+2,816,164
+155,502
+2,763,892
+22
+China Construction Bank Corporation
+Annual Report 2021
+180
+CONSOLIDATED STATEMENT OF FINANCIAL POSITION
+AS AT 31 DECEMBER 2021 (EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Assets:
+31 December
+Note
+2021
+31 December
+2020
+Cash and deposits with central banks
+Deposits with banks and non-bank financial institutions
+Precious metals
+Placements with banks and non-bank financial institutions
+Positive fair value of derivatives
+Financial assets held under resale agreements
+Loans and advances to customers
+20
+1,346
+224,769
+662
+(19,659)
+ི། །
+(19,659)
+2,235,127
+18,870
+1,116,529
+314,389
+249,178
+31,986
+134,537
+39,991
+79,636
+250,011
+equity
+interests
+Total
+Non-
+controlling
+(274)
+Retained
+earnings
+(16,938)
+35,839
+26,817
+46
+46
+...(15) (15)
+(19,933)
+15
+3,607
+3,607
+1
+256,661
+2,549
+271,050
+(16,938)
+(274)
+154,226
+5,675
+122,766
+26,817
+16,231,369
+reserve
+income
+250,011
+(466)
+(466)
+(4,538)
+(4,538)
+(81,504)
+(81,504)
+(31,393)
+--- 31,393
+(29,576)
+29,576
+771
+109
+310,506
+1,703
+302,513
+6,290
+59,977
+reserve
+39,991 134,925
+381,621
+reserve
+bonds
+shares
+capital
+General
+Surplus
+comprehensive
+Capital
+Perpetual
+Preference
+Share
+Other
+Other equity instruments
+Attributable to equity shareholders of the Bank
+2,614,122
+25,891
+1,394,797
+21,338 305,571
+(26,817)
+26
+Financial assets measured at amortised cost
+Other comprehensive income
+Capital reserve
+Perpetual bonds
+Preference shares
+Other equity instruments
+Liabilities:
+Equity:
+Surplus reserve
+25,742,901
+Annual Report 2021
+China Construction Bank Corporation
+The notes on pages 185 to 309 form part of these financial statements.
+Total liabilities
+1,551
+545,240
+1,395
+551,549
+46
+27,639,857
+General reserve
+Retained earnings
+Total equity attributable to equity shareholders of the Bank
+59,977
+48
+250,011
+250,011
+47
+2020
+31 December
+31 December
+2021
+Note
+Non-executive director
+Xu Jiandong
+Approved and authorised for issue by the Board of Directors on 29 March 2022.
+AS AT 31 DECEMBER 2021 (EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+CONSOLIDATED STATEMENT OF FINANCIAL POSITION
+Total liabilities and equity
+Total equity
+Non-controlling interests
+940,197
+1,323,377
+54,114
+45,903
+36
+37
+38
+685,033
+1,932,926
+299,275
+781,170
+1,943,634
+349,638
+39
+229,022
+254,079
+23
+31,323
+81,956
+40
+Deposits from customers
+Accrued staff costs
+Taxes payable
+33333
+59,977
+Financial assets sold under repurchase agreements
+Borrowings from central banks
+84,161
+86,342
+35,460
+40,998
+23 133 g
+45
+44
+43
+42
+20,614,976
+56,725
+33,900
+22,378,814
+41
+Other liabilities
+Deferred tax liabilities
+Debt securities issued
+Provisions
+Deposits from banks and non-bank financial institutions
+Placements from banks and non-bank financial institutions
+Financial liabilities measured at fair value through profit or loss
+Negative fair value of derivatives
+39,991
+39,991
+26523
+30
+13,630
+14,118
+5,858
+5,279
+32
+2,141
+2,210
+92,343
+92,950
+34
+331,113
+238,728
+Total assets
+30,253,979
+28,132,254
+As at 1 January 2020
+172,505
+As at 31 December 2021
+168,326
+18,875
+Financial assets measured at fair value through other comprehensive income
+545,273
+5,155,168
+1,941,478
+577,952
+4,505,243
+1,867,458
+Long-term equity investments
+27
+Fixed assets
+29
+Land use rights
+Intangible assets
+31
+Goodwill
+Deferred tax assets
+Other assets
+33
+223
+13,702
+Financial assets measured at fair value through profit or loss
+v Dividends to non-controlling interests holders
+iii Dividends to ordinary shareholders
+2,364,808
+24,545
+2,588,231
+25,891
+1,239,295
+1,394,797
+53
+350,228
+381,621
+52
+275,995
+305,571
+51
+15,048
+21,338
+50
+134,263
+134,925
+49
+2,614,122
+iv Dividends to other equity instruments holders
+2,389,353
+28,132,254
+ii Appropriation to general reserve
+i Appropriation to surplus reserve
+Profit distribution
+(3)
+i Change in shareholdings in subsidiaries
+(2) Changes in share capital
+(1) Total comprehensive income for the year
+Movements during the year
+As at 1 January 2021
+FOR THE YEAR ENDED 31 DECEMBER 2021 (EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
+181
+Annual Report 2021
+China Construction Bank Corporation
+The notes on pages 185 to 309 form part of these financial statements.
+Michel Madelain
+Independent non-executive director
+Kenneth Patrick Chung
+Independent non-executive director
+30,253,979
+35,839
+iii Disposal of subsidiaries
+(80,004)
+The principal activities of the Bank and its subsidiaries (collectively the "Group") are the provision of corporate and personal banking
+services, conducting treasury business, the provision of asset management, trustee, finance leasing, investment banking, insurance and
+other financial services. The Group mainly operates in Mainland China and also has a number of overseas branches and subsidiaries. For the
+purpose of these financial statements, Mainland China refers to the PRC excluding the Hong Kong Special Administrative Region of the PRC
+("Hong Kong"), the Macau Special Administrative Region of the PRC ("Macau") and Taiwan. Overseas refers to countries and regions other
+than Mainland China.
+The Bank obtained its finance permit No.B0004H111000001 from the China Banking Regulatory Commission ("CBRC") (In 2018, it was
+renamed as China Banking and Insurance Regulatory Commission, hereinafter referred to as the "CBIRC") of the PRC. The Bank obtained its
+unified social credit code No.911100001000044477 from the Beijing Administration for Industry and Commerce. The registered office of the
+Bank is located at No.25, Finance Street, Xicheng District, Beijing, the PRC.
+The history of China Construction Bank Corporation (the "Bank") dates back to 1954, which was previously known as the People's
+Construction Bank of China when it was established. It was responsible for the management and distribution of government funds for
+construction and infrastructure related projects under the state economic plan. The People's Construction Bank of China gradually evolved
+into a comprehensive commercial bank following the takeover of the function of granting policy loans by China Development Bank in
+1994. In 1996, the People's Construction Bank of China changed its name to China Construction Bank ("CCB"). On 17 September 2004,
+China Construction Bank Corporation was established in the People's Republic of China (the "PRC") as a result of a separation procedure
+undertaken by its predecessor, China Construction Bank. In October 2005 and September 2007, the Bank's H shares and A shares were
+listed on the Hong Kong Stock Exchange (Stock Code: 939) and the Shanghai Stock Exchange (Stock Code: 601939), successively. As at 31
+December 2021, the Bank issued the total ordinary share capital of RMB250,011 million, with a par value of RMB1.00 per share.
+COMPANY INFORMATION
+1
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+(325,900)
+(360,694)
+The Bank is under the supervision of the banking regulatory bodies empowered by the State Council of the PRC (the "State Council"). The
+overseas financial institutions of the Bank are required to comply with the regulatory requirements of their respective local jurisdictions.
+Central Huijin Investment Ltd. ("Huijin"), a wholly-owned subsidiary of China Investment Corporation ("CIC"), exercises its rights and
+obligations as an investor in accordance with laws on behalf of the PRC government.
+770,747
+878,931
+805,600
+54
+Annual Report 2021
+China Construction Bank Corporation
+The notes on pages 185 to 309 form part of these financial statements.
+Interest paid, excluding interest expense on bonds issued
+Interest received, excluding interest income from investment securities
+Cash flows from operating activities include:
+823,053
+Cash and cash equivalents as at 31 December
+These financial statements were authorised for issue by the board of directors of the Bank on 29 March 2022.
+BASIS OF PREPARATION
+These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRSS") as issued by the
+International Accounting Standards Board ("IASB"). These financial statements also comply with the disclosure requirements of the Hong
+Kong Companies Ordinance (Cap. 622), and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The
+Stock Exchange of Hong Kong Limited.
+STATEMENT OF COMPLIANCE
+3
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+Annual Report 2021
+185
+China Construction Bank Corporation
+Judgements that have a significant effect on the financial statements and estimates with a significant risk of material adjustments in
+the subsequent period are discussed in Note 4(26).
+2
+The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
+the period in which the estimates are revised and in any future periods affected.
+Use of estimates and judgements
+(3)
+These financial statements are presented in RMB, unless otherwise stated, rounded to the nearest million, which is the functional
+currency of the domestic operations of the Group. The functional currencies of overseas branches and subsidiaries are determined
+in accordance with the primary economic environment in which they operate, and are translated into RMB for the preparation of
+these financial statements according to Note 4(2)(b).
+Functional and presentation currency
+These financial statements have been prepared on the historical cost basis except that: (i) financial instruments at fair value through
+profit or loss are measured at fair value; (ii) derivative financial instruments are measured at fair value; (iii) financial assets measured
+at fair value through other comprehensive income are measured at fair value; and (iv) certain non-financial assets are measured at
+revalued amount. The measurement basis of major assets and liabilities is further explained in Note 4.
+(2)
+(1)
+These financial statements comprise the Bank and its subsidiaries and the Group's interests in associates and joint ventures.
+Basis of measurement
+The Group uses the calendar year as the accounting year, which is from 1 January to 31 December.
+The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the
+application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ
+from these estimates.
+The Group has adopted the following amendments for the first time for the current year.
+Cash and cash equivalents as at 1 January
+878,931
+676
+118,103
+210,676
+771
+Cash received from subsidiaries' capital injection by non-controlling interests holders
+Dividends paid
+Issue of bonds
+Cash flows from financing activities
+(642,158)
+(518,548)
+(35,839)
+(86,364)
+(4,995)
+(2,982,229)
+1,630
+2,160,828
+208,372
+1,891,859
+236,568
+2,953
+(2,623,732)
+(21,235)
+(4,961)
+2020
+2021
+Note
+Net cash used in investing activities
+Acquisition of subsidiaries, associates and joint ventures
+Cash payment for other investing activities
+(25,743)
+1,052,340
+(86,140)
+(81,899)
+54
+(173,409)
+(73,331)
+Net decrease in cash and cash equivalents
+(21,976)
+(7,624)
+Effect of exchange rate changes on cash and cash equivalents
+(89,960)
+16,123
+Repayment of borrowings
+Net cash from/(used in) financing activities
+(9,256)
+Cash payment for other financing activities
+(15,888)
+(17,805)
+(44)
+Cash paid by subsidiaries for purchase of non-controlling interests holders' equity
+Interest paid on bonds issued
+(19,933)
+Cash payment for redemption of other equity instruments
+(79,240)
+(7,494)
+Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
+Amendment to IFRS 16
+Interest Rate Benchmark Reform-Phase 2
+COVID-19-Related Rent Concessions beyond 30 June 2021
+NOTES TO THE FINANCIAL STATEMENTS
+Annual Report 2021
+China Construction Bank Corporation
+Financial liabilities are designated as measured at FVPL upon initial recognition when: (i) the designation can eliminate
+or significantly reduce accounting mismatch; or (ii) the formal written file of the Group's risk management or investment
+strategy have clearly stated that the financial liability portfolio, or the portfolio of financial assets and financial liabilities, are
+managed, evaluated and reported to key management personnel on the basis of fair value. Once the designation is made, it
+cannot be revoked.
+At initial inception, the Group may designate financial assets as financial assets measured at FVPL if the designation can
+eliminate or significantly reduce accounting mismatch. Once the designation is made, it cannot be revoked.
+Financial liabilities measured at FVPL include negative fair value of derivatives, and those designated as measured at FVPL.
+Financial assets or financial liabilities are classified as held for trading if they are: (i) acquired or incurred principally for the
+purpose of selling or repurchasing it in the near term; (ii) part of a portfolio of identified financial instruments that are
+managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or (iii) a derivative
+(except for a derivative that is a designated and effective hedging instruments or a financial guarantee contract).
+Financial assets measured at FVPL include those held for trading purposes, those designated as measured at FVPL, those
+could not pass the solely payment of principal and interests ("SPPI") testing and the remaining equity investments which are
+not designated as measured at FVOCI.
+The Group classifies the financial assets other than financial assets measured at amortised cost and FVOCI as financial assets
+measured at FVPL.
+Financial assets and liabilities measured at fair value through profit or loss (FVPL)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+At inception, the Group may designate non-trading equity instruments as financial assets measured at FVOCI, and recognise
+dividend income in accordance with the relevant policies specified in Note 4(20)(c). Once the designation is made, it cannot
+be revoked.
+Financial assets measured at FVOCI include debt instruments measured at FVOCI and equity instrument designated as
+measured at FVOCI.
+Financial assets measured at fair value through other comprehensive income (FVOCI)
+Financial assets are classified as financial assets measured at amortised cost if both of the following conditions and is not
+designated as at FVPL are met: (i) the assets are managed within a business model whose objective is to hold assets in order
+to collect contractual cash flows; (ii) the contractual terms of the financial assets give rise on specified dates to cash flows that
+are solely payments of principal and interest on the principal amount outstanding.
+Financial assets measured at amortised cost
+The characteristics of the contractual cash flow of financial assets refer to the cash flow attributes agreed in the contract of
+financial instruments that reflect the economic characteristics of the relevant financial assets, that is, the contractual cash
+flows generated by the relevant financial assets on a specific date are only for payment of the principal and the interest based
+on the amount of principal outstanding. Of which, principal refers to the fair value of financial assets at initial recognition. The
+payment of the underlying interest, where the principal is the fair value of the financial asset at the time of initial recognition,
+and its amount may change during the lifetime of the financial asset due to prepayment and other reasons; interest includes
+the time value of money, the credit risk associated with the outstanding principal amount for a specific period, and the
+consideration of other basic borrowing risks, costs and profits.
+The Group classifies financial instruments into different categories based on the business model used to manage financial
+assets and contractual cash flow characteristics or the purposes for which the liabilities were incurred. The categories are:
+financial assets measured at amortised cost, financial assets measured at fair value through other comprehensive income
+("FVOCI"), financial assets and liabilities measured at fair value through profit or loss ("FVPL"), and other financial liabilities.
+The business model of the Group's management of financial assets refers to how the Group manages financial assets to
+generate cash flows. The business model determines whether the cash flow of financial assets managed by the Group is
+derived from contractual cash flows, sales of financial assets or both. Factors considered by the Group in determining the
+business model for a group of financial assets include past experience on how the cash flows for these assets were collected,
+how the asset's performance is evaluated and reported to key management personnel, how risks are assessed and managed
+and how managers are compensated.
+Classification
+(a)
+Financial instruments
+Financial assets are classified as financial assets measured at FVOCI if both of the following conditions and is not designated
+as at FVPL are met: (i) the assets are managed within a business model whose objective is achieved by collecting contractual
+cash flows and selling financial assets; (ii) the contractual terms of the financial assets give rise on specified dates to cash flows
+that are solely payments of principal and interest on the principal amount outstanding.
+(3)
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+4
+When a hedging instrument expires or is sold, or the hedge designation is revoked or when a hedge no longer
+meets the criteria for hedge accounting, any cumulative gain or loss on the hedging instrument existing in other
+comprehensive income at that time remains in other comprehensive income and is reclassified to the profit or loss
+when the forecast transaction ultimately occurs. When a forecast transaction is no longer expected to occur, the
+cumulative gain or loss existing in other comprehensive income is immediately transferred to the profit or loss.
+Amounts accumulated in other comprehensive income are reclassified to the profit or loss in the same periods when
+the hedged item affects the profit or loss.
+The effective portion of changes in the fair value of hedging instruments that are designated and qualify as cash flow
+hedges is recognised in other comprehensive income. The ineffective portion is recognised immediately in the profit
+or loss.
+Cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated
+with a recognised asset or liability (such as all or some future interest payments on variable rate debt) or a highly
+probable forecast transaction that could ultimately affect the profit or loss.
+Cash flow hedge
+(ii)
+If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged
+item for which the effective interest method is used is amortised to profit or loss over the period to maturity. If the
+hedged item is de-recognised, the unamortised carrying value adjustment is recognised immediately in the profit or
+loss.
+The changes in fair value of hedging instruments that are designated and qualify as fair value hedges are recorded
+in profit or loss, together with the changes in fair value of the hedged item attributable to the hedged risk. The net
+difference is recognised as ineffectiveness in the profit or loss.
+Fair value hedge is a hedge of the exposure to changes in fair value of a recognised asset or liability or an
+unrecognised firm commitment, or an identified portion of such an asset, liability or firm commitment, that is
+attributable to a particular risk and could affect profit or loss.
+Financial instruments (continued)
+(i)
+The method of recognising the resulting fair value gain or loss depends on whether the derivative is designated and qualified
+as a hedging instrument, and if so, the nature of the item being hedged. For derivatives not designated or qualified as
+hedging instruments, including those that are intended to provide effective economic hedges of specific interest rate and
+foreign exchange risks, but not qualified for hedge accounting, changes in the fair value of these derivatives are recognised in
+the consolidated statement of comprehensive income.
+The Group uses derivatives to hedge its exposure to foreign exchange and interest rate risks. Derivatives are recognised at fair
+value at the trade date upon initial recognition, and subsequently measured at fair value. The positive fair value is recognised
+as an asset while the negative fair value is recognised as a liability.
+Derivatives and hedge accounting
+Other financial liabilities are financial liabilities other than those measured at FVPL and mainly comprise borrowings from
+central banks, deposits and placements from banks and non-bank financial institutions, financial assets sold under repurchase
+agreements, deposits from customers and debt securities issued.
+Other financial liabilities
+(b)
+Classification (continued)
+(a)
+(3)
+The Group documents, at inception, the relationship between hedging instruments and hedged items, as well as its risk
+management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment
+of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or
+cash flows of hedged items. The Group assess the hedge effectiveness both at hedge inception and on an ongoing basis.
+Fair value hedge
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+4
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+China Construction Bank Corporation
+186
+The portion of a subsidiary's net assets that is attributable to equity interests that are not owned by the Bank, whether directly
+or indirectly through subsidiaries, is treated as non-controlling interests and presented as "non-controlling interests" in the
+consolidated statement of financial position within total equity. The portion of net profit or loss and other comprehensive
+income of subsidiaries for the year attributable to non-controlling interests is separately presented in the consolidated
+statement of comprehensive income as a component of the Group's net profit and other comprehensive income.
+Intragroup balances and transactions, and any profits or losses arising from intragroup transactions are eliminated in full in
+preparing the consolidated financial statements.
+The financial results and performance of subsidiaries are included in the consolidated financial statements from the date
+that control commences until the date that control ceases. When preparing the consolidated financial statements, the Bank
+makes necessary adjustments on the accounting period and accounting policies of subsidiaries to comply with those of the
+Bank.
+For the separate financial statements of the Bank, investments in subsidiaries are accounted for at cost. At initial recognition,
+investment in subsidiaries is measured at the cost of acquisition determined at the acquisition date when the subsidiaries are
+acquired through business combination or the capital injected into the subsidiaries set up by the Group. Impairment losses
+on investments in subsidiaries are accounted for in accordance with the accounting policies as set out in Note 4(12).
+A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding
+who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are
+directed by means of contractual arrangements.
+Subsidiaries are all entities (including structured entities) over which the Bank has control. The Bank controls an entity when
+the Bank has the power over the entity, and is exposed to, or has the rights to the variable returns from its involvement with
+the entity, and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from
+the date on which control is transferred to the Bank. They are deconsolidated from the date that control ceases.
+Subsidiaries and non-controlling interests
+Annual Report 2021
+The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-
+date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is
+recorded as goodwill in accordance with the accounting policies set out in Note 4(10). If this is less than the fair value of the
+identifiable net assets of the acquiree in the case of a bargain purchase, the difference is recognised in profit or loss.
+Acquisition date mentioned above is the date that the Group effectively obtains control of the acquiree.
+Business combinations
+(b)
+(a)
+Consolidated financial statements
+(1)
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
+4
+Except for those described above, the significant accounting policies adopted by the Group for the annual financial statements are
+consistent with those applied in the preparation of the Group's annual financial statements for the year ended 31 December 2020.
+The Group's businesses affected by the Interest Rate Benchmark Reform consisted mainly of loans linked to the London Interbank Offered
+Rate (LIBOR), bond investments, derivative transactions, and debt instruments issued. At 31 December 2021, USD LIBOR based financial
+instruments held by the Group which will mature after 30 June 2023 as a proportion of financial assets or financial liabilities were minimal.
+The adoption of the above amendments does not have a significant impact on the Group's consolidated financial statements.
+The consideration transferred by the acquirer for the acquisition and the identifiable assets acquired, liabilities and contingent
+liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an
+acquisition by acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the
+non-controlling interest's proportionate share of the acquiree's net assets.
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+NOTES TO THE FINANCIAL STATEMENTS
+188
+Annual Report 2021
+187
+China Construction Bank Corporation
+Foreign currency financial statements of overseas branches and subsidiaries are translated into RMB for the preparation of
+consolidated financial statements. At the end of each reporting period, the assets and liabilities in the financial statements
+denominated in foreign currencies are translated into RMB at the spot exchange rates ruling at that date. All items within
+equity except for retained earnings are translated at the exchange rates ruling at the dates of the initial transactions. Income
+and expenses in the statement of comprehensive income are translated at the weighted average exchange rates for the
+year. Foreign exchange differences arising from foreign operations are recognised in "other comprehensive income" in
+the shareholders' equity in the statement of financial position. The effect of exchange rate changes on cash is presented
+separately in the statement of cash flows.
+Translation of financial statements denominated in foreign currencies
+Foreign currency transactions are, on initial recognition, translated into the functional currency at the spot exchange rates
+at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies
+are translated into the functional currency at the spot exchange rates at that date. The resulting exchange differences are
+recognised in profit or loss. Non-monetary items denominated in foreign currencies that are measured at historical cost are
+translated into functional currency using the spot exchange rates at the transaction dates. Non-monetary items denominated
+in foreign currencies that are measured at fair value are translated using the spot exchange rates at the dates the fair values
+are determined; exchange differences are recognised in profit or loss, except for the differences arising from the translation
+of equity instruments designated at fair value through other comprehensive income, which are recognised in other
+comprehensive income.
+Translation of foreign currency transactions
+(b)
+(a)
+Translation of foreign currencies
+The Group discontinues recognising its share of net losses of the associates or joint ventures after the carrying amount of
+investments in associates and joint ventures together with any long-term interests that in substance form part of the Group's
+net investment in the associates or joint ventures are reduced to zero, except to the extent that the Group has incurred legal
+or constructive obligations to assume additional losses. Where the associates or joint ventures make net profits subsequently,
+the Group resumes recognising its share of those profits only after its share of the profits equals the share of losses not
+recognised.
+Profits and losses resulting from transactions between the Group and its associates or joint ventures are eliminated to the
+extent of the Group's interest in the associates or joint ventures.
+An associate is an enterprise in which the Group has significant influence. Significant influence is the power to participate in
+the financial and operating policy decisions of the investee but is not control or joint control over those policy decisions.
+Joint arrangement is an arrangement of which two or more parties have joint control. The classification of a joint
+arrangement as a joint operation or a joint venture depends upon the rights and obligations of the parties to the
+arrangement. Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the
+strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing the
+control. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.
+Investments in associates or joint ventures are accounted for using the equity method in the consolidated financial
+statements and are initially recorded at acquisition cost, and adjusted thereafter for the post acquisition change in the
+Group's share of net assets of the associates or joint ventures. The Group's share of the post-acquisition, post-tax results of the
+associates or joint ventures for the year is recognised in the consolidated statement of comprehensive income. The Group's
+interest in associates or joint ventures is included from the date that significant influence or joint control commences until
+the date that significant influence or joint control ceases.
+Associates and joint arrangements
+(2)
+(c)
+(1)
+4
+Consolidated financial statements (continued)
+Purchase of fixed assets and other long-term assets
+Purchase of investment securities
+(21)
+47,290
+(105,043)
+2,448,813
+1,774,159
+The notes on pages 185 to 309 form part of these financial statements.
+Net cash from operating activities
+174,691
+66,461
+(82,457)
+(77,540)
+(156,782)
+265,824
+436,718
+(56,949)
+Net increase in other operating liabilities
+Income tax paid
+Net increase/(decrease) in certificates of deposit issued
+Net decrease in financial assets sold under repurchase agreements
+(26,382)
+766
+(24,632)
+Net decrease in financial liabilities measured at fair value through profit or loss
+(152,997)
+(45,999)
+(22,366)
+580,685
+China Construction Bank Corporation
+Annual Report 2021
+- Other impairment losses
+CONSOLIDATED STATEMENT OF CASH FLOWS
+FOR THE YEAR ENDED 31 DECEMBER 2021 (EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Note
+2021
+2020
+378,412
+336,616
+14
+15
+- Depreciation and amortisation
+13
+153
+167,949
+193,491
+Proceeds from disposal of fixed assets and other long-term assets
+Interest and dividends received
+Proceeds from sales and redemption of financial investments
+Cash flows from investing activities
+FOR THE YEAR ENDED 31 DECEMBER 2021 (EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+CONSOLIDATED STATEMENT OF CASH FLOWS
+184
+183
+Net decrease in placements from banks and non-bank financial institutions
+- Credit impairment losses
+2,519,121
+Net increase in deposits from customers and from banks and non-bank financial institutions
+(215,482)
+(236,164)
+16,669
+19,405
+14,133
+(348)
+(3,182)
+(5,921)
+9
+- Interest income from investment securities and net income from disposal
+- Net (gain)/loss on disposal of fixed assets and other long-term assets
+- Interest expense on bonds issued
+- Dividend income
+(895)
+(1,603)
+- Share of profits of associates and joint ventures
+640
+(6,551)
+- Revaluation (gain)/loss on financial instruments measured at fair value through profit or loss
+(3,924)
+(4,810)
+- Interest income from impaired financial assets
+- Unrealised foreign exchange (gain)/loss
+(251)
+319
+338,179
+230,568
+(93,844)
+Net (decrease)/increase in borrowings from central banks
+Changes in operating liabilities:
+(2,229,133)
+(1,675,620)
+58,482
+(77,590)
+(3,562)
+Net increase in other operating assets
+Net decrease in financial assets held for trading purposes
+(1,917,020)
+(2,125,561)
+Net increase in loans and advances to customers
+(45,096)
+52,784
+Net decrease/(increase) in financial assets held under resale agreements
+144,967
+86,583
+(392,876)
+368,327
+Net decrease/(increase) in deposits with central banks and with banks and non-bank financial institutions
+Net decrease in placements with banks and non-bank financial institutions
+Changes in operating assets:
+361,005
+1,706,255
+Adjustments for:
+Profit before tax
+Cash flows from operating activities
+26,182
+(80,004)
+(5,624)
+(5,624)
+(512)
+(512)
+250,011
+59,977
+39,991
+27,295
+15,048 275,995
+Annual Report 2021
+China Construction Bank Corporation
+182
+134,263
+2,389,353
+24,545
+350,228 1,239,295
+The notes on pages 185 to 309 form part of these financial statements.
+2.11
+Net interest spread
+2.22
+2.16
+(0.10)
+2.04
+1.94
+14.80
+12.12
+13.18
+0.43
+Net interest margin
+12.55
+Return on average equity
+1.13
+1.13
+1.11
+14.04
+2.13
+2.32
+(0.06)
+Common Equity Tier 1 ratio³
+Capital adequacy indicators (%)
+27.15
+26.61
+26.75
+2.26
+25.38
+27.64
+Cost-to-income ratio²
+17.02
+15.85
+16.36
+(0.15)
+16.04
+15.89
+Net fee and commission income to operating income
+2.23
+2.36
+0.02
+2.19
+1.02
+2018
+Return on average assets'
+3,252,282
+Total capital after regulatory adjustments¹
+379,536
+427,896
+633,772
+594,031
+(219,182)
+(188,574)
+2,832,681
+16.23
+(174,764)
+(167,043)
+Credit impairment losses
+(167,949)
+(193,491)
+(13.20)
+(163,000)
+(151,109)
+(188,132)
+1.04
+14.81
+2,348,646
+2017
+2019
+Change +/(-)
+2020
+2021
+FINANCIAL HIGHLIGHTS
+Annual Report 2021
+China Construction Bank Corporation
+2,637,588
+Calculated in accordance with the relevant regulations of the Capital Rules for Commercial Banks (Provisional), the advanced capital measurement
+approaches, and applicable rules for the transitional period.
+12,919,980
+13,659,497
+15,053,291
+9.70
+16,604,591
+18,215,893
+Risk-weighted assets¹
+231,952
+2,003,072
+1.
+Profitability indicators (%)
+20,328,556
+Tier 1 ratio³
+79,788
+Tier 2 capital after regulatory adjustments'
+676,754
+471,164
+43.63
+714,224
+764,706
+Operating expenses
+Operating income
+33,305
+24,459
+30,037
+59.25
+23,733
+101,119
+100,471
+110,898
+6.03
+114,582
+459,607
+508,842
+537,066
+5.12
+575,909
+Other net non-interest income
+23,201,134
+Net interest income
+1,691,332
+1,889,390
+79,720
+2,089,976
+119,716
+100,068
+Total equity
+2,614,122
+2,389,353
+9.41
+2,235,127
+1,991,594
+1,795,827
+Total equity attributable to equity shareholders of
+the Bank
+2,588,231
+2,364,808
+9.45
+2,216,257
+7.37
+1,976,463
+Share capital
+250,011
+250,011
+250,011
+250,011
+250,011
+Common Equity Tier 1 capital after
+regulatory adjustments¹
+2,475,462
+2,261,449
+9.46
+Additional Tier 1 capital after regulatory adjustments'
+100,066
+1,779,760
+21,231,099
+25,742,901
+Total liabilities
+11.61
+271,050
+302,513
+the Bank
+Net profit attributable to equity shareholders of
+243,615
+255,626
+269,222
+11.09
+273,579
+303,928
+Net profit
+299,787
+308,160
+326,597
+12.42
+336,616
+378,412
+Profit before tax
+N/A
+121
+(521)
+N/A
+3,562
+(766)
+Other impairment losses
+N/A
+266,733
+254,655
+242,264
+Net profit attributable to common shareholders of
+the Bank
+16,363,754
+17,108,678
+18,366,293
+8.56
+20,614,976
+22,378,814
+Deposits from customers
+22,124,383
+23,222,693
+25,436,261
+7.54
+28,132,254
+30,253,979
+27,639,857
+Total assets
+13,366,492
+14,542,001
+11.95
+16,231,369
+18,170,492
+Net loans and advances to customers
+As at 31 December
+241,219
+250,719
+262,771
+12.26
+265,426
+297,975
+12,574,473
+Total capital ratio³
+Net fee and commission income
+13.62
+STATEMENTS
+ANALYSIS ON CASH FLOW
+Off-balance sheet items
+• Shareholder's equity
+•
+⚫ Liabilities
+Assets
+•
+ANALYSIS
+FINANCIAL POSITION
+STATEMENT OF
+Income tax expense
+•
+• Impairment losses
+Operating expenses
+35
+19
+27
+35
+STATEMENT OF COMPREHENSIVE INCOME ANALYSIS
+MANAGEMENT DISCUSSION AND ANALYSIS
+Annual Report 2021
+China Construction Bank Corporation
+UNDER IFRS
+AND THOSE PREPARED
+PREPARED UNDER PRC GAAP
+•
+FINANCIAL STATEMENTS
+35
+ESTIMATES
+POLICIES AND ACCOUNTING
+SIGNIFICANT ACCOUNTING
+In 2021, the Group enhanced the quality and efficiency in
+serving the real economy and made new progress in its high-
+quality development. The Group's total assets and liabilities
+steadily increased. Total assets reached RMB30.25 trillion, an
+increase of 7.54%, of which net loans and advances to customers
+were RMB18.17 trillion, an increase of 11.95%. Total liabilities
+amounted to RMB27.64 trillion, an increase of 7.37%, of which
+deposits from customers totalled RMB22.38 trillion, an increase
+of 8.56%. Net interest income increased by 5.12%, and net fee
+and commission income rose by 6.03%. Operating income rose
+by 7.07% over 2020 to RMB764,706 million. The Group's NPL ratio
+was 1.42%, down 0.14 percentage points from 2020. The Group's
+net profit was RMB303,928 million, up 11.09% over 2020. Return
+on average assets was 1.04%, return on average equity was
+12.55%, and total capital ratio was 17.85%.
+China's financial markets were overall stable in 2021. Transactions
+in money market were active, with stable market interest rates.
+Bond issuance increased, with a lower interest rate in general.
+The stock market index rose, with transaction volume and
+proceeds increasing year on year. Domestic regulators attached
+more importance to the improvement in the quality and
+efficiency of financial services for the real economy, continued
+to deepen financial reforms, increased financial support in key
+areas, improved corporate governance of banking institutions,
+consolidated the foundation for FinTech development, advanced
+the transformation of wealth management business, and
+innovated systems and mechanisms to drive the high-quality
+development of the financial industry. The banking industry
+resumed a good development momentum, with stable pickup
+of operating income, refined credit structure, steady growth of
+assets, higher asset quality, and overall adequate capitals, so as
+to play a better role in supporting the real economy. Affected
+by efforts in surrendering profits to support the real economy,
+the reduction of LPR, and the high cost of liabilities, interest
+spread of the banking sector narrowed, and income from interest
+margin declined, bringing pressure on profitability. The wealth
+management business continued to grow, and the proportion of
+non-interest income rose, improving the stability of profitability.
+The situation of risk prevention and control improved, but the
+real estate and certain industries were still under pressure.
+In 2021, COVID-19 staged a comeback, disrupting the global
+economic recovery. Major developed economies accelerated
+their monetary policy shifts, released signals of tightened
+monetary policies to varying degrees, while certain emerging
+economies repeatedly raised interest rates in response to
+pressures such as inflation, capital outflows and currency
+depreciation. China continued to see steady recovery of its
+economy, made new achievements in high-quality development
+and witnessed a good start on its 14th Five-Year Plan, with
+constant improvement in investment and consumption, rapid
+growth in imports and exports, basically balanced international
+payments, overall stable employment, moderate increase in
+consumer prices, and lower growth of production prices from
+high levels. China's GDP and consumer price index increased by
+8.1% and 0.9% year on year respectively.
+DIFFERENCES BETWEEN THE
+Net non-interest income
+•
+Net interest income
+15
+13.59
+Annual Report 2021
+China Construction Bank Corporation
+The board of supervisors has always been committed
+to returning to the essence of finance and urging the
+Bank to better serve the real economy. Focusing on the
+effectiveness of the Bank's support to innovative technology
+enterprises and the building of relevant capabilities, the board
+of supervisors suggested establishing an enterprise-wide work
+system, attaching greater importance to industry research and
+enriching product supply, in order to help achieve a virtuous
+circulation between technology, finance and industry. Through
+studying and discussing about the development of supply
+chain finance, the board of supervisors proposed to build a
+decentralised and chain-oriented credit model, and enhance the
+operation and maintenance of the service platform. The board
+of supervisors promoted the Bank to continuously increase its
+support for the real economy, guided the Bank to change the
+traditional development path, raised the tolerance of private
+enterprises and strengthened the financing support for small and
+micro businesses so as to build a co-existence relationship which
+allows banks and enterprises to flourish together in the new era.
+The year 2021 was a milestone year in the history of
+our country. Faced with the challenging and complex
+operating environment, the Bank adhered to new
+development concept and thoroughly implemented
+the decisions and arrangements of the Central
+Committee of the CPC, promoted New Finance
+initiatives in depth and continuously enhanced
+the ability, quality and efficiency of serving the real
+economy. During 2021, the board of supervisors,
+in accordance with the laws, regulations, and the
+Articles of Association of the Bank, duly performed its
+duties and took proactive actions. Further focusing
+on serving national strategies, deepening internal
+reforms, and preventing and controlling systemic risks
+of the Bank, the board of supervisors strengthened
+supervision over strategic and comprehensive
+matters relating to the development of the Bank,
+continuously fulfilled the duties of supervision,
+improved the effectiveness of supervision, and jointly
+promoted the high-quality development of the Bank
+with all parties related to corporate governance to
+form concerted forces and achieve a good start of the
+14th Five-Year Plan.
+Dear shareholders,
+16
+Wang Yongqing Chairman of the board of supervisors
+Annual Report 2021
+China Construction Bank Corporation
+29 March 2022
+Chairman
+Tian Guoli
+Fortunate to be in this gorgeous time, individuals and the whole
+generation share the same impulse. Although there may be
+toughness ahead, nothing could change our determination. We,
+go where the heart goes!
+The pandemic nowadays has accelerated the evolution of the
+century, accompanied with changing international and geo-
+political relations. China's economy faced with three-folded
+pressure, whereas uncertainties and risk challenges in the financial
+market further intensified. Nevertheless, the long term prospect of
+China's economy remains unchanged, technology improvement,
+digitalisation and green-low-carbon transformation integrated
+with traditional economic development, ushering into a new
+era for modern finance. Among all these complicated situations,
+stability is the top priority. We will consolidate resources alongside
+the new finance roadmap, continue to innovate and self-reform
+through technology and data, and by means of digital operations.
+Consistent endeavors will be made in strategic areas such as
+house leasing, inclusive finance and rural rejuvenation, and also
+in emerging fields of green finance, science and technology
+innovation and wealth management. We constantly respect and
+respond to market concerns in a candid manner, forget about
+being "banking smart", yet being even "silly" instead, to do more
+in customer experience and consumer rights protection, to better
+balance the relationship between development and security, and
+safeguard the bottom line against systematic financial risk, living
+up to the support from our shareholders and society of all sectors.
+REPORT OF CHAIRMAN OF THE BOARD OF SUPERVISORS
+In 2021, the Group continued to improve the quality and efficiency of operation and development. The profitability of the Group
+achieved steady growth with profit before tax of RMB378,412 million, an increase of 12.42% over 2020. Net profit was RMB303,928 million,
+an increase of 11.09% over 2020. Key factors affecting the Group's profitability are as follows. Firstly, net interest income increased by
+RMB29,511 million, or 5.12% over 2020, mainly due to increase in interest-earning assets. Secondly, net fee and commission income
+increased by RMB6,910 million, or 6.03% over 2020. Thirdly, operating expenses increased by 16.23% over 2020, mainly due to the lower
+base last year in the wake of COVID-19. Cost-to-income ratio was 27.64%, 2.26 percentage points higher than that in 2020, staying at a
+sound level. Fourthly, provision for losses was made based on substantive risk judgement, with total impairment losses of RMB168,715
+million, a decrease of 11.17% over 2020.
+REPORT OF CHAIRMAN OF THE BOARD OF SUPERVISORS
+The board of supervisors adhered to the bottom line
+of risk compliance and promoted the improvement of
+the ability to prevent and mitigate financial risks. With
+respect to the construction of long-term risk management
+and internal control mechanism, it strengthened supervision
+on the formulation and review of risk appetite, liquidity risk
+management, technology risk management, stress tests,
+employee behaviour and case prevention. The board of
+supervisors promoted the Bank to enhance the forward-looking
+capability of risk management and control, suggested the Bank to
+strengthen the active analysis, management and control over the
+real estate market, hidden local government debts, key industries
+involved in achieving carbon peak and neutrality goals, and
+rectification of existing WMPs, and continuously improved the
+Banks' capability of risk management. The board of supervisors
+paid close attention to the impact of changes in internal and
+external environment, and followed up on key areas such as
+management and control of risks of overseas institutions and anti-
+money laundering.
+•
+INCOME ANALYSIS
+STATEMENT OF
+COMPREHENSIVE
+FINANCIAL REVIEW
+18
+In Hebei Province, we collectively provided funds of RMB28.5 billion for
+nearly 3,000 enterprises of 63 industries in 8 major sectors, including
+low-carbon environmental protection, infrastructure and strategic
+emerging industries, in Xiong'an New Area in 2021.
+Xiong'an New Area under construction in Hebei Province.
+Implementing the new development philosophy,
+the board of supervisors focused on promoting New
+Finance initiatives in depth. It focused on the exploration of a
+sustainable business model for house rental and suggested that
+experience should be distilled in a timely manner and relevant
+systems and mechanisms should be constantly improved so
+as to promote the sustainable and healthy development of the
+strategy. With continuous attention to the implementation and
+promotion of the Fintech strategy, the board of supervisors
+stated that the "people-centred" development philosophy shall
+be adhered to and more IT support shall be given to financial
+services for customers, empowering the front line branches
+and risks prevention. The board of supervisors attached great
+importance to the development of green finance. It proposed
+to plan ahead proactively, actively follow up on the changes
+in external environment and policies, and duly make relevant
+development plans. To support rural revitalisation with financial
+services, it suggested that the Bank should develop relevant
+businesses with focus on technologies and industries, and
+improve the "precision" and "depth" of financial services.
+The Bank provided targeted services to
+the development of key national fields,
+industries, and areas. The balance of loans
+to infrastructure sector exceeded RMB5
+trillion, and the balance of loans to strategic
+emerging industries was RMB921,979 million.
+The increase of RMB corporate loans in three
+key areas, Beijing-Tianjin-Hebei region, the
+Guangdong-Hong Kong-Macao Greater Bay
+Area, and the Yangtze River Delta, accounted
+for more than half of the total increase in
+RMB corporate loans of the Bank. The Bank
+cumulatively supported 212 major "going
+global" projects.
+29 March 2022
+Chairman of the board of supervisors
+Wang Yongqing
+Seek challenging opportunities and overcome obstacles firmly
+can one progress and achieve success. Looking forward to 2022,
+the board of supervisors will apply itself to the overall strategic
+situations, keep the nation's development priorities in mind,
+and take on bigger responsibilities as needed. It would strive
+to implement the new development concept completely,
+accurately and comprehensively, better grasp key supervisory
+areas, and focus on important aspects including top-level design,
+system and mechanism, implementation of strategies and risk
+prevention. The board of supervisors would further improve its
+supervisory effectiveness, work together with all parties related to
+corporate governance, and create more magnificent chapters for
+New Finance.
+The board of supervisors strengthened self-
+improvement and strived to promote the quality and
+efficiency of corporate governance. Capitalising on the
+procedures of the meetings, it focused on supervisory priorities,
+deepened researches and discussions, improved the efficiency of
+operation, and put forward targeted and operational suggestions
+to promote problem solving. The board of supervisors constantly
+improved the coordination mechanism with all parties related
+to corporate governance and enhanced communication,
+proactively integrated itself into business and operation practice,
+and adopted various methods to enhance coordination, form
+concerted forces and improve the efficiency of work. Based
+on the reality of China and the nature of finance, the board
+of supervisors paid attention to the linkage with internal and
+external supervision bodies, to better play an effective role in
+terms of its duties of supervision and continuously improve the
+overall efficiency.
+platform, and suggested the Bank to focus on the construction
+of the platform system and the reform of management, and to
+promote the integration of online and offline operations, carry
+out comprehensive process reinvention and reshape offline
+organisations based on the internal functions of the platform. The
+board of supervisors strengthened supervision over the whole
+process of the credit business, promoted the Bank to achieve
+effectiveness from risk management. It carried out researches
+on the operation and disposal of non-performing assets, and
+gave suggestions from the aspects of promoting fundamental
+management capabilities, improving operation and disposal
+mechanism, and strengthening the refined management of
+written-off assets, to continuously improve its ability of value-
+creation.
+The board of supervisors firmly established a systematic
+concept, promoted and improved the development
+of systems and mechanisms. The board of supervisors
+focused on important aspects including the top-level design
+and fundamental management, carried out investigation and
+research on the key matters related to the transformation and
+development of the Bank. It actively adapted to the development
+trend of the digital economy and the digital transformation of
+commercial banks, carried out researches on the operation of the
+China Construction Bank Corporation
+Annual Report 2021
+There is no fixed model for New Finance. It would be boundless
+but not mysterious, by everywhere and anywhere around the
+people. We are keeping a patient and inclusive mind, focusing
+on the mid-and-long term, systematic and sustainable issues in
+economic and social development, aiming to find solutions by
+jumping out of the financial perspective, ensuring a fairer and
+more justice financial resource allocation.
+The following table sets forth the composition of the Group's statement of comprehensive income and the changes during the
+respective periods.
+2021
+303,928
+Net profit
+(57,375)
+18.16
+(63,037)
+(74,484)
+Income tax expense
+326,597
+12.42
+336,616
+378,412
+Profit before tax
+249
+79.11
+895
+273,579
+11.09
+269,222
+China Construction Bank Corporation
+For the year
+2017
+2018
+2019
+Change (%)
+2020
+2021
+1,603
+(Expressed in millions of RMB unless otherwise stated)
+121,492
+605,420
+The financial information set forth in this annual report is prepared on a consolidated basis in accordance with the IFRS and expressed in
+RMB unless otherwise stated.
+FINANCIAL HIGHLIGHTS
+10
+19
+Annual Report 2021
+37,794
+Share of profits of associates and joint ventures
+(521)
+N/A
+114,582
+121,492
+-Net fee and commission income
+140,935
+15.16
+138,315
+159,286
+6.03
+Net non-interest income
+5.12
+575,909
+605,420
+Net interest income
+2019
+Change (%)
+2020
+537,066
+(In millions of RMB, except percentages)
+110,898
+764,706
+3,562
+(766)
+Other impairment losses
+(163,000)
+(13.20)
+(193,491)
+(167,949)
+Operating income
+Credit impairment losses
+16.23
+(188,574)
+(219,182)
+Operating expenses
+678,001
+7.07
+714,224
+(188,132)
+The wonderful cause carried forward with a hopeful
+future
+7.07
+One of the most important things of operating a bank is to
+prevent risks as resolute as ever. Through deploying strategic
+transformation, we have guided more financial resources flowing
+to the general public, green and low carbon industries, high-
+end scientific and technological enterprises as well as rural
+revitalisation, and effectively avoided long-term risks. We further
+perfected top-level design and realised a leap towards precise,
+automatic and intelligent risk management. We conducted
+multi-dimensional stress tests and proactively combating crises
+in real-estate sector and implicit local government debt while
+we successfully completed rectification of wealth management
+business. We attach great importance to the prevention and
+control of emerging risks in relation to environment, climate,
+technology and data. We also keep a close eye on anti-money
+laundering and risks brought by sanctions. All these approaches
+have strengthened a moderate and compliant risk culture
+cultivation.
+Second
+Third
+Fourth
+(In millions of RMB)
+quarter
+quarter
+quarter
+quarter
+quarter
+678,001
+Looking back into 2021, we were blessed to have many
+touching moments. In Heilongjiang Province, "Yunong Quick
+Loan" enabled farmers not to worry about spring ploughing
+preparation; in Henan Province, "Workers' Harbour" provided
+shelter for people trapped in the heavy storm; in Shanghai, our
+sharing banking outlets handled government administrative
+affairs, facilitating New Citizens' certificate procedures away
+from travelling afar; in Yunnan Province, we rendered financing
+support for the trail building in Xishuangbanna wild elephant
+valley, restoring a lyric home for those lovely animals... Our efforts
+brought warmth to the society, and meanwhile, lighted up our
+path, making our steps more affirm and determined.
+Operating income
+195,350
+185,557
+191,632
+First
+Fourth
+Third
+Second
+9.06
+9.82
+8.39
+7.59
+6.80
+1.
+2.
+192,167
+Adjusted by dividing net profit by the average of total assets at the beginning and end of the year.
+Operating expenses (after deduction of taxes and surcharges) divided by operating income.
+4.
+Calculated in accordance with the relevant regulations of the Capital Rules for Commercial Banks (Provisional), the advanced capital measurement
+approaches, and applicable rules for the transitional period.
+Allowances for impairment losses on loans include the allowances for impairment losses on discounted bills measured at fair value through other
+comprehensive income, and both total loans and NPLs do not include the accrued interest.
+The following table sets forth the main quarterly financial indicators of the Group during the respective periods.
+2021
+2020
+First
+3.
+186,405
+173,519
+quarter
+176,030
+547,978
+(29,993)
+China Construction Bank Corporation
+Annual Report 2021
+11
+12
+CHAIRMAN'S STATEMENT
+(432,318)
+CHAIRMAN'S STATEMENT
+Dear shareholders,
+2021 marked a milestone in China's new march of
+modernisation drive. CCB remained committed
+to the new development philosophy, applying
+new way of financial thinking to guiding more
+financial resources towards key areas and weak
+links in economic and social development. By
+doing this, CCB contributed to the building of new
+development pattern, and the promotion of high-
+quality development and common prosperity of
+the country, while also made a good start for itself
+in the "14th Five-Year Plan" period. At the end
+of 2021, the Group recorded total assets of more
+than RMB30 trillion and a net profit of RMB303,928
+million, representing an increase of 7.54% and
+11.09% over 2020 respectively. Return on average
+assets and return on average equity were 1.04% and
+12.55% respectively, and both indicators ranked
+top among peers. The NPL ratio was 1.42%, down
+0.14 percentage points over 2020. We delivered
+remarkable results to our shareholders and
+stakeholders across different parts of the society.
+The Board proposed to distribute an annual cash
+dividend of RMB0.364 per share (including tax),
+subject to the consideration and approval of the
+shareholders at the Annual General Meeting.
+In this year, we calmly responded to intricate
+domestic and international situations and
+challenges. Sticking to the "people-centric" concept,
+we continuously furthered New Finance practices
+together with our hundreds of millions of customers,
+forging ahead with the undertaking for a better
+society.
+"Three Major Strategies" continuously lead vibrant New Finance practices.
+We adhered to promote the idea of "settling a home on long-term rental" by implementing the
+house rental strategy, getting houses to return to their original function of living. To fully support
+the construction of subsidised rental houses, we created "CCB Home" and new homes for "villages
+in cities" by rejuvenating unoccupied house resources along with urban upgrade, providing decent
+and comfortable living conditions for new residents. In Guangzhou, we cooperated with the team
+of academician Zhong Nanshan, to help researchers solve housing problems, which strengthened
+our belief in facilitating house rental. Moreover, we actively integrated resources to jointly build the
+industry alliance, connecting house rental with external scenarios such as home lifestyles, housekeeping
+and community services. We accelerated the implementation of public REITs and expanded multiple
+financing channels, making efforts to transform house rental into a rein to pull up the "grey rhino" of
+property market.
+China Construction Bank Corporation
+Annual Report 2021
+Tian Guoli Chairman
+9.95
+495,018
+301,066
+quarter
+178,270
+Net profit attributable to
+equity shareholders of
+the Bank
+83,115
+70,185
+78,853
+(36,507)
+70,360
+56,771
+68,206
+65,218
+Net cash received from
+operating activities
+253,365
+(81,206)
+80,855
+ordinary shareholders of the Bank
+quarter
+0.291
+14.22
+(0.08)
+14.68
+14.42
+13.71
+17.85
+17.06
+14.14
+0.79
+17.19
+15.50
+8.64
+8.49
+0.15
+8.79
+8.58
+17.52
+8.12
+13.09
+13.88
+Integrated green development concept in corporate governance
+and business operation, we continued to extend our green
+finance eco maps and promote resolution on climate change and
+biodiversity protection in synergy. Our MSCI ESG ratings remained
+A level for two consecutive years. Our "Workers' Harbour"
+persisted to operate in an open and sharing manner, providing
+elderly-oriented service, anti-fraud promotion, judicial assistance
+and others, revitalising over 14,000 CCB outlets.
+We adapt to the normalisation of COVID-19 epidemic prevention
+and control, continuously implemented tax cuts and refunds
+so as to reduce comprehensive funding cost of medium, small
+and micro enterprises to shore up extensive fundamentals of
+the real economy. Integrated financial facilitation solutions were
+tailored for key prefectures to improve rural governance and
+credit ecology and to lay a more solid foundation for poverty
+alleviation. We donated money and resources at utmost urgency
+to Henan Province which was severely stricken by huge flood. We
+developed and granted special loan product for emergent flood
+rescue and relief in this region to offer timely help and support to
+customers against such natural disasters.
+Upholding justice while pursuing interests, taking
+responsivities and overcoming difficulties.
+CHAIRMAN'S STATEMENT
+Net assets per share attributable to
+13
+China Construction Bank Corporation
+Annual Report 2021
+13.83
+We explored to apply platform thinking and launched a scenario-
+based App called "CCB Lifestyle", providing services including
+house rental and inclusive finance. We strived to expand
+accessibility to Key Opinion Customers within deeply interwoven
+financial and non-financial scenarios so as to serve our customers
+a brand-new digital lifestyle in an all-round way. Since the
+pilot program of "CCB Lifestyle" was fully launched in Zhejiang
+Province, registered users of the App exceeded 34 million and
+MAU (Monthly Active Users) exceeded 15 million, seeing an
+exponential growth in six months. Together with our Mobile
+Banking App, it formed a "Gemini" service model, with exciting
+value creation abilities. We expect they will become our new
+value generators and CCB storytellers.
+We were geared to the needs of the "specialised, refined, peculiar
+and new" SMEs, took the lead in building a "technology oriented"
+credit assessment and evaluation system that values patents
+more than fixed assets, and served 277 thousand new and hi-tech
+enterprises across the country. Through "CCB Start-up Station",
+we did our part in the integration and innovation of intelligent
+services and financing with over RMB30 billion loans provided to
+9 thousand enterprises that have joined the "Station". We gave
+full play to the advantage of the group's full-coverage financial
+licenses, and coordinated multiple resources to support the
+industrial clusters of sci-tech innovation SMEs to stabilise the
+foundation for economic recovery.
+to corporate customers in the Beijing-Tianjin-Hebei region, the
+Yangtze River Delta, and the Guangdong-Hong Kong-Macao
+Greater Bay Area accounted for more than half of the total
+increase of the bank. We played an active role in serving the
+Belt and Road and the RCEP regional integration, supported 212
+major "going global" projects cumulatively, built the "logistics
+digitalisation platform" for the CHINA RAILWAY Express, and
+expanded the functions of our cross-border matchmaking
+platform. With financial cooperation as the bridge, we have
+exerted ourselves with our actual work in elucidating the
+profound connotation of building a community with a shared
+future for mankind.
+We brought into play our traditional edges, focused on our main
+business and responsibility, firmly implemented the national
+strategies, and adopted dedicated measures to support key
+sectors and regions. The balance of our loans to the infrastructure
+sector reached over RMB5 trillion, loans to strategic emerging
+industries increased over RMB300 billion or an increase of 50%,
+the growth rates of green loans and loans to manufacturing
+industry, private enterprises and industrial chains, etc. were
+higher than the average growth rate. The increase of RMB loans
+The "First Curve" and the "Second Curve" advanced
+together and integrated with services to the society
+and people's livelihood
+Finance and technology are inseparable, as we become
+increasingly proficient in empowering our own business, our
+customers and the communities at large with technology and
+data. Internally, we reshaped the operational model, relocating
+the business from the counters up to the cloud, and projecting
+the financial resources to the places most in need. Meanwhile,
+many frontline staff were liberated from the vicious cycle of
+involution, and were empowered to serve the customers, attend
+to customers' pain points and expand the business with new
+methodologies and tools. We accelerated the process of Fintech
+self-reliance, being the first to realise full-stack group-wide single-
+track operation of the domestic office automation system.
+Externally, Fintech was employed to assist social governance. We
+established cooperation with 29 provincial governments, and
+built the "cross-provincial government service platforms" that
+carried more than 1,000 government service functions, boosting
+transparency and convenience. Meanwhile, we continued to
+export banking systems and risk management capabilities to
+other financial institutions and made progress in co-developing of
+service scenarios, sharing of technology and R&D results.
+We reinforced our lead in inclusive finance and continued to
+prioritise small and micro businesses and private businesses,
+warming the dream-catchers with the flowing water of finance.
+With the upgraded "Huidongni" App and the acceleration of
+integration of the three advantageous service tools, the service
+effectiveness and risk control capabilities were further enhanced.
+The ever-growing number of financial products under the brand
+name "Yunongtong" significantly expanded the service scope of
+inclusive finance. Innovations in technology enabled "livestock"
+to be used as collateral and being converted into digital
+assets, enhancing the credit of farmers. Meanwhile, more than
+2,500 "Yunong Classrooms" were rooted in villages, providing
+professional training for village officials and rural entrepreneurs.
+More than 30,000 young students' trips to the countryside were
+sponsored, sowing the seeds of hope in the fields.
+(0.03)
+We held the perspective of mega wealth, continuously expanded
+our services boundary, improved the service efficacy, and
+accompanied and helped more customers in wealth planning
+and wealth growth. We increased support to quick loans for
+consumption, strengthened the development of the credit
+card business, and successfully made breakthroughs in mega
+retail services and mega wealth management. As of the end
+of 2021, the assets managed by CCB Wealth Management was
+near RMB2.2 trillion, private banking customers' assets under
+management exceeded RMB2 trillion, and the profits from retail
+banking accounted for over 50% of the total profits.
+Total equity to total assets
+14
+Non-performing loan (NPL) ratio
+Per share (In RMB)
+Change (%)
+Basic and diluted earnings per share
+1.19
+1.06
+12.26
+1.05
+2.55
+1.00
+Final cash dividend proposed after
+the reporting period
+0.364
+0.326
+0.320
+0.306
+Asset quality indicators (%)
+0.96
+3.04
+11.66
+0.07
+3.23
+(0.14)
+1.42
+1.46
+1.49
+Allowances to NPLs4
+239.96
+1.56
+26.37
+3.33
+213.59
+3.40
+1.42
+171.08
+208.37
+Allowances to total loans
+227.69
+An impairment loss in respect of goodwill is not reversed.
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+4
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+(12) Allowances for impairment losses on assets (continued)
+(a)
+Testing CGU with goodwill for impairment
+For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the CGU or group of
+CGUS that is expected to benefit from the synergies of the combination.
+A CGU or group of CGUS to which goodwill has been allocated is tested for impairment by the Group semi-annually, or
+whenever there is an indication that the CGU or group of CGUS are impaired, by comparing the carrying amount of the
+CGU or group of CGUS, including the goodwill, with the recoverable amount of the CGU or group of CGUs. At the time
+of impairment testing of a CGU or group of CGUS to which goodwill has been allocated, there may be an indication of
+an impairment of an asset within the CGU containing the goodwill. In such circumstances, the Group tests the asset for
+impairment first, and recognises any impairment loss for that asset before testing for impairment on the CGU or group of
+CGUS containing the goodwill. Similarly, there may be an indication of an impairment of a CGU within a group of CGUS
+containing the goodwill. In such circumstances, the entity tests the CGU for impairment first, and recognises any impairment
+loss for that CGU, before testing for impairment the group of CGUS to which the goodwill is allocated.
+(c)
+For a CGU or a group of CGUs, the amount of impairment loss firstly reduces the carrying amount of any goodwill allocated
+to the CGU or group of CGUs, and then reduces the carrying amount of other assets (other than goodwill) within the CGU or
+group of CGUs, pro rata on the basis of the carrying amount of each asset.
+Reversing an impairment loss
+If, in a subsequent period, the amount of impairment loss of the non-financial asset except for goodwill decreases and the
+decrease can be linked objectively to an event occurring after the impairment was recognised, the previously recognised
+impairment loss is reversed through the profit or loss. A reversal of impairment loss is limited to the asset's carrying amount
+that would have been determined had no impairment loss been recognised in prior periods.
+NOTES TO THE FINANCIAL STATEMENTS
+(b) Impairment loss
+If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its
+recoverable amount. That reduction is recognised as an impairment loss and charged to the profit or loss.
+The Group determines the impairment of assets, other than the impairment of deferred tax assets and financial assets, using the
+following methods:
+197
+China Construction Bank Corporation
+Annual Report 2021
+The recoverable amount of an asset (or CGU, group of CGUS) is the higher of its fair value less costs to sell and the present value of
+the expected future cash flows. The Group considers all relevant factors in estimating the present value of future cash flows, such as
+the expected future cash flows, the useful life and the discount rate.
+CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash flows from other
+assets or groups of assets.
+If there is any indication that an asset may be impaired and it is not possible to estimate the recoverable amount of an individual
+asset, the Group determines the recoverable amount of the CGU to which the asset belongs.
+The Group assesses at the balance sheet date whether there is any indication that assets may be impaired. If any indication exists
+that an asset may be impaired, the Group estimates the recoverable amount of the asset.
+(12) Allowances for impairment losses on assets
+Repossessed assets that are not financial assets are recognized at book value less allowances for impairment losses measured in
+accordance with the accounting policies as set out in Note 4(12).
+When using repossessed assets as compensation for losses on loans and advances to customers and interest receivable, the Group
+recognizes repossessed assets in the form of financial assets at fair value, and records any taxes payable, advance payment for
+litigation fees, tax arrears and other transaction costs incurred to obtain repossessed assets in profit or loss or into the initial book
+value, respectively, depending on the type of financial assets. Repossessed assets that are not financial assets are initially recognized
+at the fair value of the rights given up by creditors, and the Group records any taxes payable, advance payment for litigation fees, tax
+arrears and other transaction costs incurred to obtain the repossessed assets into the book value of repossessed assets.
+In the recovery of impaired loans and advances, the Group may take possession of assets held as collateral through court
+proceedings or voluntary delivery of possession by the borrowers. Repossessed assets in the form of financial assets are recognised
+and presented as the appropriate class of financial assets based on the business models and contractual cash flow characteristics,
+and repossessed assets that are not financial assets are recognised and reported in "other assets" in the balance sheet when the
+Group intends to achieve an orderly realisation of the impaired assets and the Group is no longer seeking repayment from the
+borrower.
+(11) Repossessed assets
+Impairment loss on goodwill is accounted for in accordance with the accounting policies as set out in Note 4(12).
+On disposal of the related CGU or group of CGUs, any attributable amount of goodwill net of allowances for impairment losses, if
+any, is included in the calculation of the profit or loss on disposal.
+(13) Employee benefits
+198
+Employee benefits are all forms of consideration given and compensations incurred by the Group in exchange for services
+rendered by employees or the termination of the employment relationship. Except for termination benefits, employee benefits are
+recognised as a liability in the period in which the associated services are rendered by its employees, with a corresponding increase
+in cost of relevant assets or the expenses in profit or loss. Where payment or settlement is deferred and the effect of discount would
+be material, these amounts are stated at their present values in the statement of financial position.
+Supplementary retirement benefits
+Post-employment benefits
+199
+China Construction Bank Corporation
+Annual Report 2021
+After the commencement date, the Group remeasures the lease liability by discounting the revised lease payments using a revised
+discount rate if either: (i) there is a change in the in-substance fixed lease payments; (ii) there is a change in the amounts expected to
+be payable under a residual value guarantee; (iii) there is a change in future lease payments resulting from a change in an index or a
+rate used to determine those payments; (iv) there is a change in the assessment of an option to purchase, extend or terminate the
+underlying asset, assessed in the context of a purchase option.
+At the commencement date of the lease, the Group measures the lease liability at the present value of the lease payments that
+are not paid at that date, except for short-term leases and leases of low-value assets. In calculating the present value of the lease
+payments, the Group uses the interest rate implicit in the lease as the discount rate. If that rate cannot be readily determined, the
+Group uses the lessee's incremental borrowing rate. The Group calculates the interest expenses of the lease liability in each period
+during the lease term using the constant periodic rate of interest, and recognises such interest expenses in profit or loss, except
+those in the costs of the related asset as required. Variable lease payments that are not included in the measurement of the lease
+liabilities are recognised in profit or loss as incurred, except those in the costs of the related asset as required.
+(14) Lease liabilities
+As approved by the board of directors, for the purposes of providing incentives and rewards to eligible employees for their
+past services, the Group awards a specified amount of staff compensation to the staff incentive plan independently managed
+by a designated staff committee for those eligible participating employees. The Group recognises its contribution to the plan
+when it has a present legal or constructive obligation to make such payment and a reliable estimate of the obligation can be
+made.
+Staff incentive plan
+(d)
+The Group recognises the present value of all its liabilities to employees who voluntarily agreed to retire early. The early
+retirement benefit payments are made by the Group from the date of early retirement to the regulated retirement date.
+Differences arising from changes in assumptions and estimates of the present value of the liabilities are recognised in profit or
+loss when incurred.
+Early retirement expenses
+Where the Group terminates the employment relationship with employees before the end of the employment contracts or
+provides compensation as an offer to encourage employees to accept voluntary redundancy, a provision is recognised for
+the compensation arising from termination of employment relationship, with a corresponding charge to the profit or loss
+for the current period. An entity is required to recognise termination benefits at the earlier of when the entity can no longer
+withdraw an offer of those benefits and when it recognises any related restructuring costs.
+Termination benefits
+The liability recognised in the statement of financial position in respect of supplementary retirement benefits is the present
+value of supplementary retirement benefit obligations at the end of the reporting period less the fair value of plan assets.
+The Group's obligations in respect of supplementary retirement benefits are calculated by estimating the amount of
+obligations that the Group is committed to pay to the employees after their retirement using actuarial techniques. At the
+end of each reporting period, such obligations are discounted with interest yield of government bonds with similar duration.
+The service cost and net interest from the supplementary retirement benefits are recognised in profit or loss, and the
+remeasurements are recognised in other comprehensive income.
+The Group pays supplementary retirement benefits for its employees in Mainland China who retired on or before 31
+December 2003 in addition to the contributions made to statutory insurance schemes. Such supplementary retirement
+benefits are defined benefit plans.
+Post-employment benefits (continued)
+(c)
+The Group divides post-employment benefit plans into defined contribution plans and defined benefit plans. Defined
+contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate
+entity (a fund) and will have no legal or constructive obligation to pay further contributions. Defined benefit plans are
+post-employment benefit plans other than defined contribution plans. For defined contribution plans, the Group pays
+contributions to basic retirement insurance, annuity scheme and unemployment insurance for the employees during the
+reporting period, while defined benefit plans are mainly supplementary retirement benefits.
+Defined contribution retirement schemes
+Pursuant to the relevant laws and regulations in the PRC, employees in Mainland China have joined defined contribution
+retirement schemes for the employees arranged by local government labour and security authorities. The Group makes
+contributions to the retirement schemes at the applicable rates based on the amounts stipulated by the local government
+organizations. The contributions are charged to the profit or loss on an accrual basis. When employees retire, the local
+government labour and security authorities are responsible for the payment of the basic retirement benefits to the retired
+employees.
+Annuity contributions
+In addition to the statutory provision contributions, the Bank's employees have joined the annuity scheme set up by the
+Bank under "CCBC Annuity Scheme" (the "scheme") in accordance with state enterprise annuity regulations. The Bank has
+made annuity contributions in proportion to its employees' gross wages, which are expensed in profit or loss when the
+contributions are made.
+China Construction Bank Corporation
+(a)
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+(13) Employee benefits (continued)
+(a)
+(b)
+4
+Goodwill represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the
+acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets. Goodwill
+is not amortised. Goodwill arising from a business combination is allocated to each cash-generating unit ("CGU") or group of CGUS,
+that is expected to benefit from the synergies of the combination. The Group performs an impairment test on goodwill semi-
+annually.
+Any excess of the Group's interest in the net fair value of the acquiree's identifiable net assets over the consideration transferred,
+the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the
+acquiree is recognised immediately in profit or loss.
+Impairment losses on intangible assets are accounted for in accordance with the accounting policies as set out in Note 4(12).
+(k)
+(j)
+(i) Fair value measurement
+Financial instruments (continued)
+(4)
+(3)
+4
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+Annual Report 2021
+If there is an active market for financial instruments, the fair value of financial instruments is based on the prices within the
+bid-ask spread that is most representative of fair value in the circumstances, and without any deduction for transaction costs
+that may occur on sales or disposals. A quoted price is from an active market where price information is readily and regularly
+available from an exchange, dealer, industry group or pricing service agency and that price information represents actual and
+regularly occurring orderly transactions.
+China Construction Bank Corporation
+Modification of contracts
+When the Group determines that a loan has no reasonable prospect of recovery after the Group has completed all the
+necessary legal or other proceedings, the loan is written off against its allowance for impairment losses. If in a subsequent
+period the loan written off is recovered, the amount recovered will be recognised in profit or loss through credit impairment
+losses.
+Write off
+For financial assets that have been purchased or sourced for credit impairment, the Group only recognises cumulative
+changes in lifetime expected credit losses after initial recognition at the end of the reporting period as loss provision. At
+the end of each reporting period, the Group recognises the amount of the change in lifetime expected credit losses as an
+impairment loss or gain in current profit or loss.
+For loss provision measured at the amount equivalent to the lifetime expected credit loss of the financial instrument
+previously, if, at the end of the current reporting period, the financial instrument is no longer having significant increase in
+credit risk since the initial recognition, the Group measures its loss provision based on the amount of its expected credit
+losses for the next 12 months, and the reversal of the loss provision arising from it is recognised as an impairment gain in
+profit or loss for the current reporting period.
+For debt instruments measured at FVOCI, the Group recognises the allowance of impairment in other comprehensive
+income and impairment losses or gains in profit or loss, which should not change the book value of the financial assets set
+out in the statement of financial position.
+At the end of each reporting period, the Group measures the expected credit losses ("ECL") of financial instruments at
+different stages and recognises its loss provision and its changes in the following cases: the financial instrument is in Stage 1 if
+the credit risk of the financial instrument has not increased significantly since the initial recognition, and the Group measures
+its loss provision based on the amount of expected credit loss of the financial instrument in the next 12 months; the financial
+instrument is in Stage 2 if the credit risk of the financial instrument has increased significantly since the initial recognition
+but are not yet credit-impaired is considered to be credit-impaired and the Group measures its loss provision based on
+the amount of lifetime expected credit loss of the financial instrument; the financial instrument is in Stage 3 if the financial
+instrument has credit impaired, and the Group measures its loss provision based on the amount of lifetime expected credit
+loss of the financial instrument. Regardless of whether the Group's assessment of credit losses is based on a single financial
+instrument or a combination of financial instruments, the increase or reversal of the loss provision resulting therefrom should
+be included in the current profit or loss as an impairment loss or gain.
+The Group's method of measuring expected credit losses of financial instruments reflects the following elements: (i) unbiased
+weighted average probability determined by the results of evaluating a range of possible outcomes; (ii) time value of money;
+(iii) reasonable and evidence-based information about past events, current conditions, and future economic forecasts that are
+available at no additional cost or effort at the end of the reporting period.
+The expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted by
+the risk of default. Credit loss refers to the difference between all contractual cash flows receivable from the contract and all
+cash flows expected to be received discounted at the original real interest rate by the Group, that is, the present value of all
+cash shortages. Among them, financial assets that have been purchased or sourced by the Group and have suffered credit
+impairment shall be discounted according to the effective interest rate of the financial assets after credit adjustments.
+At the end of the reporting period, the Group performs impairment assessment and recognised loss provisions based on
+expected credit loss on financial assets measured at amortised cost and FVOCI, as well as loan commitments and financial
+guarantee contracts.
+Impairment
+If the renegotiation or modification of a contract between the Group and a counterparty does not result in derecognition of
+the financial assets, but lead to changes in contractual cash flows, the Group assesses whether a significant increase in credit
+risk has occurred, based on comparing the risk of a default occurring under the revised terms as at the end of the reporting
+period with that as at the date of initial recognition under original terms. The gross carrying amount of the financial asset is
+recalculated and the related gain or loss is recognised in profit or loss. The recalculated gross carrying amount of the financial
+asset is determined based on the present value of the renegotiated or modified contractual cash flows discounted at the
+financial asset's original effective interest rate.
+If a quoted market price is not available, the fair value of the financial instruments is estimated using valuation techniques.
+Valuation techniques applied include the price used by market participants in an orderly transaction, reference to the fair
+value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. The
+Group selects valuation techniques that are commonly accepted by market participants for pricing the instruments and
+these techniques have been demonstrated to provide reliable estimates of prices obtained in actual market transactions.
+Periodically, the Group reviews the valuation techniques and tests them for validity.
+Offsetting
+Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position
+when the Group has a legally enforceable right to offset the recognised amounts and the transactions are intended to be
+settled on a net basis, or by realising the asset and settling the liability simultaneously. The legally enforceable right must
+not be contingent on future events and must be enforceable in the normal course of business and in the event of default,
+insolvency or bankruptcy of the company or the counterparty.
+Depreciation is calculated to write off to the profit or loss the cost of items of fixed assets, less their estimated residual value, if
+any, using the straight line method over their estimated useful lives. Impaired fixed assets are depreciated net of accumulated
+impairment losses. No depreciation is provided on construction in progress.
+(b) Depreciation and impairment
+Subsequent costs, including the cost of replacing part of an item of fixed assets, are recognised in the carrying amount of
+the item if the recognition criteria are satisfied, and the carrying amount of the replaced part is derecognised. Expenditures
+relating to ordinary maintenance of fixed assets are recognised in profit or loss.
+Where the individual components of an item of fixed asset have different useful lives or provide benefits to the Group in
+different patterns thus necessitating use of different depreciation rates or methods, they are recognised as separate fixed
+assets.
+Fixed assets are initially recognised at cost, except for the fixed assets and construction in progress obtained from CCB by
+the Bank which were recognised at the revalued amount as cost on the date of restructuring. The cost of a purchased fixed
+asset comprises the purchase price, related taxes, and any directly attributable expenditure for bringing the asset to working
+condition for its intended use. The cost of a self-constructed fixed asset comprises those expenditures necessarily incurred for
+bringing the asset to working condition for its intended use.
+Cost
+(a)
+Fixed assets are assets held by the Group for the conduct of business and are expected to be used for more than one year.
+Construction in progress is the property and equipment under construction, which is transferred to fixed assets when ready for its
+intended use.
+Fixed assets
+(5)
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+4
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+194
+193
+China Construction Bank Corporation
+Annual Report 2021
+Precious metals comprise gold and other precious metals. Precious metals that are acquired by the Group principally for trading
+purpose are initially recognised at fair value and re-measured at fair value less cost to sell. The changes in fair value less cost to sell
+are recognised in profit or loss. Precious metals that are not acquired by the Group principally for trading purpose are carried at
+lower of cost and net realisable value.
+Precious metals
+The difference between the purchase and resale consideration, and that between the sale and repurchase consideration, is
+amortised over the period of the respective transaction using the effective interest method and is included in interest income
+and interest expenses respectively.
+The cash advanced or received is recognised as amounts held under resale or sold under repurchase agreements in the
+statement of financial position. Assets held under resale agreements are not recognised. Assets sold under repurchase
+agreements continue to be recognised in the statement of financial position.
+Financial assets held under resale agreements are transactions where the Group acquires financial assets which will be resold
+at a predetermined price at a future date under resale agreements. Financial assets sold under repurchase agreements are
+transactions where the Group sells financial assets which will be repurchased at a predetermined price at a future date under
+repurchase agreements.
+Financial assets held under resale agreements and financial assets sold under repurchase agreements
+The Group securitises certain loans, which generally involves the sale of these assets to structured entities, which in turn
+issue securities to investors. Interests in the securitised financial assets may be retained in the form of credit enhancement
+or subordinated tranches, or other residual interests ("retained interests"). Gains or losses on securitisation are the difference
+between the carrying amount of the transferred financial assets and the consideration received (including retained interest)
+which is recognised in profit or loss.
+Securitisations
+(h)
+The estimated useful lives, residual value rates and annual depreciation rates of respective fixed assets are as follows:
+(g)
+Financial instruments (continued)
+Gains and losses from changes in the fair value of financial assets measured at fair value through profit or loss are recognised
+in profit or loss.
+Subsequent to initial recognition, the Group measures different categories of financial assets at amortised cost, fair value
+through other comprehensive income or fair value through profit or loss respectively. Financial liabilities other than those
+measured at fair value through profit or loss are measured at amortised cost using the effective interest method.
+Financial assets measured at fair value through profit or loss
+Financial instruments are measured initially at fair value plus, in the case of a financial instrument not measured at fair value
+through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the instrument. Transaction
+costs for financial instruments measured at fair value through profit or loss are expensed immediately.
+Measurement
+The difference between the carrying amount of the financial liability derecognised and the consideration paid is recognised
+in profit or loss.
+The financial liability is derecognised only when: (i) the underlying present obligation specified in the contracts is discharged,
+cancelled or expired, or (ii) an agreement between the Group and an existing lender to replace the original financial liability
+with a new financial liability with substantially different terms, or a substantial modification of the terms of an existing
+financial liability is accounted for as an extinguishment of the original financial liability and recognition of a new financial
+liability.
+When a financial asset is transferred, and if the Group neither transfers nor retains substantially all the risks and rewards of
+ownership of the financial asset, but retains control, the Group continues to recognise the financial asset to the extent of its
+continuing involvement in the financial asset.
+When a financial asset is derecognised, the difference between the carrying amount of the financial asset derecognised and
+the consideration received, as well as the cumulative changes in fair value previously recognised in equity, is recognised in
+other comprehensive income.
+The Group derecognises a financial asset if the part being considered for derecognition meets one of the following
+conditions: (i) the contractual rights to receive the cash flows from the financial asset expire; (ii) the contractual rights to
+receive the cash flows of the financial asset have been transferred and the Group transfers substantially all the risks and
+rewards of ownership of the financial asset; or the Group has neither transferred nor retained substantially all the risks and
+rewards of ownership of the transferred credit asset, but has given up control of the credit asset or (iii) the Group retains the
+contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows
+to the eventual recipient in an agreement that meets all the conditions of transfer of cash flows and transfers substantially all
+the risks and rewards of ownership of the financial asset or the Group has neither transferred nor retained substantially all the
+risks and rewards of ownership of the transferred credit assets, but has given up control of the credit asset.
+All financial assets and financial liabilities are recognised in the statement of financial position, when and only when, the
+Group becomes a party to the contractual provisions of the instrument.
+Recognition and derecognition
+China Construction Bank Corporation
+If a hybrid contract contains a host that is not an financial asset, an embedded derivative shall be separated from the host
+and accounted for as a derivative if, and only if: (i) the economic characteristics and risks of the embedded derivative are not
+closely related to the economic characteristics and risks of the host; (ii) a separate instrument with the same terms as the
+embedded derivative would meet the definition of a derivative; and (iii) the hybrid contract is not measured at fair value with
+changes in fair value recognised in profit or loss. The Group could choose to measure the separated derivative at FVPL, or
+designate the entire hybrid contract as at FVPL.
+Embedded derivatives
+(e)
+(d)
+(c)
+Financial instruments (continued)
+(3)
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+4
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+190
+An embedded derivative is a component of a hybrid contract that also includes a non-derivative host. If a hybrid contract
+contains a host that is an financial asset, the embedded derivative shall not be separated from the host and shall be classified
+and measured as a whole.
+Annual Report 2021
+4
+NOTES TO THE FINANCIAL STATEMENTS
+(3)
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+4
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+192
+191
+China Construction Bank Corporation
+Annual Report 2021
+Credit-adjusted effective interest rate is the rate that exactly discounts the estimated future cash payments or receipts
+through the expected life of the financial asset to the amortised cost of a financial asset that is a purchased or originated
+credit-impaired financial asset. When calculating the credit-adjusted effective interest rate, an entity shall estimate the
+expected cash flows by considering all contractual terms of the financial asset (for example, prepayment, extension, call and
+similar options) and initial expected credit losses.
+The Group determines interest income based on the gross carrying amount of financial assets multiplied by the effective
+interest rate, except (i) for purchased or sourced financial assets that have suffered credit impairment, from the initial
+recognition, interest income is calculated using the financial assets' amortised cost and credit-adjusted effective interest
+rate; (ii) for a purchased or sourced financial asset that has not suffered credit impairment but has become credit impaired
+in subsequent periods, interest income is determined using the financial asset's amortised cost and the effective interest
+rate. If the financial instrument no longer has credit impairment due to the improvement of its credit risk in the subsequent
+period, and this improvement can be objectively related to an event that occurs after the application of the above provisions,
+interest income should be recalculated using the effective interest rate multiplied by the gross carrying amount of the
+financial assets.
+The effective interest rate is the rate that exactly discount estimated future cash payments or receipts through the expected
+lifetime of the financial asset to the carrying amount of a financial asset (i.e. its amortised cost before any impairment
+allowance). The calculation does not consider expected credit losses but includes transaction costs, premiums or discounts
+and fees and points paid or received that are integral to the effective interest rate.
+Effective interest rate
+For financial assets measured at amortised cost, a gain or loss is recognised in profit or loss when the financial asset is
+derecognised or impaired, and through the amortisation process.
+The amortised cost of a financial asset should be measured with the initial recognition after the following adjustments: (i)
+deducting the repaid principal; (ii) adding or subtracting the cumulative amortisation using the effective interest method of
+any difference between that initial amount and the maturity amount; (iii) the loss provision for the accumulated accrual.
+When the debt instruments measured at FVOCI are sold, gains or losses on disposal are recognised in profit or loss. Gains
+or losses on disposal include those previously recognised in other comprehensive income being transferred to the profit or
+loss. For equity instrument investments designated as measured at FVOCI, once the designation is made, fair value gains and
+losses are recognised in other comprehensive income and are not subsequently reclassified to profit or loss (the changes
+in fair value are recognised in retained earnings on disposal). Dividends, when representing a return on such investments,
+continue to be recognised in profit or loss as other income when the Group's right to receive payments is established.
+Financial assets measured at amortised cost
+The impairment losses, foreign exchange gains and losses and interest income calculated using effective interest method of
+financial assets measured at FVOCI are recognised in profit or loss. Besides, other changes of carrying amount are recognised
+in other comprehensive income.
+Financial assets measured at FVOCI
+Financial liabilities measured at FVPL are measured at fair value, where the gain or loss arose are recognised in profit or
+loss. For the financial liabilities designated as measured at FVPL, they are accounted for in accordance with the following
+requirements: (i) the amount of changes in the fair value of the financial liability arising from changes in the Group's own
+credit risk should be included in other comprehensive income; (ii) other changes in fair value of the financial liabilities are
+recognised in current profit or loss. If the treatment of the impact of changes in the financial liabilities' own credit risk will
+create or enlarge the accounting mismatch in profit or loss in accordance with (i), the Group shall recognise the entire gain
+or loss of the financial liabilities (including the amount of the impact of changes in its own credit risk) in profit or loss. When
+the financial liabilities designated as at fair value through profit or loss is derecognised, the cumulative gain or loss previously
+recognised in other comprehensive income is reclassified from other comprehensive income to retained earnings.
+Financial liabilities measured at fair value through profit or loss
+Measurement (continued)
+(e)
+Financial instruments (continued)
+(3)
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+(f)
+(c)
+Types of assets
+Estimated
+useful lives
+(a)
+The Group accounts for a modification to a finance lease as a separate lease if both:
+The Group recognises finance income over the lease term, based on a pattern reflecting a constant periodic rate of return on the
+its net investment in the lease. Variable lease payments received by the Group that are not included in the measurement of the net
+investment in the lease are recognised in profit or loss as incurred.
+At the commencement date of the lease, the Group recognises finance lease receivable and derecognises finance lease assets.
+The Group presents lease receivable at an amount equal to the net investment in the lease for the initial measurement. The net
+investment in the lease is the sum of any unguaranteed residual value accruing to the lessor and at the commencement date of the
+lease the lease payments receivable by a lessor under a finance lease discounted at the interest rate implicit in the lease.
+As lessor of a finance lease
+Lease (continued)
+(6)
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+4
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+the modification increases the scope of the lease by adding the right to use one or more underlying assets; and
+196
+China Construction Bank Corporation
+Annual Report 2021
+A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying
+asset, except that a lease is classified as an operating lease at the inception date. The Group, as an intermediate lessor, classifies the
+sublease by reference to the right-of-use asset arising from the head lease.
+As lessor
+If the Group subleases an asset, or expects to sublease an asset, the head lease does not qualify as a lease of a low-value asset. The
+Group recognises lease payments on short-term leases and leases of low-value assets in the costs of the related asset or profit or loss
+on a straight-line basis over the lease term.
+Short-term leases and leases of low-value assets
+If the interest rate implicit in the lease cannot be readily determined, the Group measures the lease liability at the present value of
+the lease payments discounted using the lessee's incremental borrowing rate. According to the economic environment, the Group
+takes the observable interest rate as the reference basis for determining the incremental borrowing rate, then adjusts the observable
+interest rate based on its own circumstances, underlying assets, lease terms and amounts of lease liabilities to determine the
+applicable incremental borrowing rate.
+Lessee's incremental borrowing rate
+making a corresponding adjustment to the right-of-use asset for all other lease modifications.
+decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease for lease
+modifications that decrease the scope or term of the lease, and recognising the gain or loss relating to the partial or full
+termination of the lease in profit or loss; or
+(b)
+(a)
+195
+(7)
+(b)
+the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope
+and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract.
+Software and other intangible assets are initially recognised at cost. The cost less estimated residual values, if any, of the intangible
+assets is amortised on a straight-line basis over their useful lives, and charged to the profit or loss. Impaired intangible assets are
+amortised net of accumulated impairment losses.
+Intangible assets
+Land use rights are initially recognised at cost. The land use rights obtained from CCB by the Bank on the date of restructuring were
+recorded at the revalued amount. The cost of the land use rights is amortised on a straight-line basis over their authorised useful
+lives, and charged to the profit or loss. Impaired land use rights are amortised net of accumulated impairment losses.
+Impairment losses on land use rights are accounted for in accordance with the accounting policies as set out in Note 4(12).
+Land use rights
+(8)
+4
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+Annual Report 2021
+China Construction Bank Corporation
+The Group remeasures the lease liability at the present value of the changed lease payments and adjusts the carrying amount of
+the right-of-use assets accordingly, when the carrying amount of the right-of-use asset is reduced to zero, and there is a further
+reduction in the measurement of the lease liability, the Group recognises the remaining amount of the remeasurement in profit or
+loss.
+At the commencement date of the lease, the Group recognises a right-of-use asset. The cost of the right-of-use asset comprises:
+(i) the amount of the initial measurement of the lease liability; (ii) any lease payments made at or before the commencement
+date of the lease less any lease incentives received; (iii) any initial direct cost incurred; and (iv) an estimate of costs incurred by the
+lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset
+to the condition required by the terms and conditions of the lease. The right-of-use assets are depreciated on a straight-line basis
+subsequently by the Group. If the Group is reasonably certain that the ownership of the underlying asset will be transferred to the
+Group at the end of the lease term, the Group depreciates the asset from the commencement date to the end of the useful life of
+the asset. Otherwise, the Group depreciates the assets from the commencement date to the earlier of the end of the useful life of
+the asset or the end of the lease term.
+The right-of-use assets of the Group mainly include right to use buildings and other equipment.
+If the transfer of an asset satisfies the requirements to be accounted for as a sale of the asset, the Group, as a lessor, accounts for the
+purchase of the asset and for the lease applying the accounting requirements set forth; and if the transfer of an asset does not satisfy
+the requirements to be accounted for as a sale of the asset, the Group, as a lessor, does not recognise the transferred asset and
+recognises a financial asset equal to the transfer proceeds. The Group accounts for the financial asset applying Note 4(3).
+Right-of-use assets
+As lessor
+The Group applies the requirements in Note 4(20) to assess and determine whether the transfer of an asset is accounted for as a sale
+of that asset.
+Sale and leaseback transactions
+Rent income under an operating lease is recognised on a straight-line basis over the lease term, through profit or loss. Variable
+lease payments that are not included in the measurement of lease receivables are charged to profit or loss as incurred. The Group
+accounts for a modification to an operating lease as a new lease from the effective date of the modification, considering any prepaid
+or accrued lease payments relating to the original lease as part of the lease payments for the new lease.
+As lessor of an operating lease
+if the lease would have been classified as a finance lease had the modification been in effect at the inception date, the Group
+accounts for the lease modification in accordance with the requirements in Note 4(3) on the contract modifications or re-
+negotiation.
+if the lease would have been classified as an operating lease had the modification been in effect at the inception date, the
+Group accounts for the lease modification as a new lease from the effective date of the modification, and measures the
+carrying amount of the underlying asset as the net investment in the lease immediately before the effective date of the lease
+modification; or
+(b)
+(a)
+For a modification to a finance lease that is not accounted for as a separate lease, the Group accounts for the modification as follows:
+For a lease modification that is not accounted for as a separate lease, the Group accounts for the remeasurement of the lease liability
+by:
+For a lease modification that is not accounted for as a separate lease, at the effective date of the lease modification the Group
+remeasures the lease liability by discounting the revised lease payments using a revised discount rate. The revised discount rate is
+determined as the interest rate implicit in the lease for the remainder of the lease term, or the lessee's incremental borrowing rate at
+the effective date of the modification, if the interest rate implicit in the lease cannot be readily determined.
+the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope
+and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract.
+(b)
+4
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+Annual Report 2021
+Gains or losses arising from the retirement or disposal of a fixed asset are determined as the difference between the net
+disposal proceeds and the carrying amount of the fixed asset and are recognised in profit or loss on the date of retirement or
+disposal.
+Impairment losses on fixed assets are accounted for in accordance with the accounting policies as set out in Note 4(12).
+Disposal
+The Group reviews the estimated useful life and estimated residual value rates of a fixed asset and the depreciation method
+applied at least once a financial year.
+Aircraft and vessels are used for the Group's operating lease business, depreciated using straight-line method over the
+expected useful life of 20 to 30 years (less the years in service at the time of purchase) with the estimated residual value rate
+varying from 2.9% to 4.8%.
+8.8%-24.3%
+(6)
+3%
+2.8%-3.2%
+12.1%-32.3%
+3%
+3-8 years
+3%
+30-35 years
+Others
+Equipment
+Bank premises
+Annual
+depreciation rates
+Estimated net
+residual value
+rates
+4-11 years
+(10) Goodwill
+China Construction Bank Corporation
+the modification increases the scope of the lease by adding the right to use one or more underlying assets; and
+(a)
+The Group accounts for a lease modification as a separate lease if both:
+Lease modification is a change in the scope of a lease, or the consideration for a lease, that was not part of the original terms
+and conditions of the lease, for example, adding or terminating the right to use one or more underlying assets, or extending or
+shortening the contractual lease term.
+Lease modifications
+For the accounting treatment of the Group as a lessee, see Note 4(7) and(14).
+As lessee
+The lease term is the non-cancellable period of a lease for which the Group has the right to use an underlying asset. If the Group has
+an option to extend the lease, that is, the Group has the right to extend the lease, and is reasonably certain to exercise that option,
+the lease term also includes periods covered by an option to extend the lease. If the Group has an option to terminate the lease,
+that is, the Group has the right to terminate the lease, but is reasonably certain not to exercise that option, the lease term includes
+periods covered by an option to terminate the lease. The Group reassesses whether it is reasonably certain to exercise an extension
+option, purchase option, or not to exercise a termination option, upon the occurrence of either a significant event or a significant
+change in the circumstances that is within the control of the Group and affects whether the Group is reasonably certain to exercise
+an option not previously included in its determination of the lease term.
+Assessment of the lease term
+At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the
+contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess
+whether a contract conveys the right to control the use of an identified asset for a period of time, the Group assesses whether,
+throughout the period of use, the customer has both of the right to obtain substantially all of the economic benefits from use of the
+identified asset and the right to direct the use of the identified asset.
+Identification of leases
+Lease
+688
+209
+Lu Kegui (Note (ii) & (iv))
+China Construction Bank Corporation
+Annual Report 2021
+827
+236
+3,708
+3,334
+13
+13
+Cheng Yuanguo (Notes (ii) & (iv))
+50
+Former supervisors
+Wu Jianhang (Notes (ii) & (vi))
+557
+50
+106
+8,105
+25
+1,810
+195
+365,833
+339,230
+6,424
+9,930
+Total
+Interest expense arising from:
+1,057,334
+989,509
+Borrowings from central banks
+(20,384)
+(19,406)
+Deposits from banks and non-bank financial institutions
+(36,052)
+(40,026)
+Placements from banks and non-bank financial institutions
+(4,937)
+(8,551)
+Total
+(170,565)
+(202,709)
+(143,287)
+(155,532)
+- Personal deposits
+361,371
+- Corporate deposits
+(30,827)
+(31,483)
+Debt securities issued
+(938)
+(817)
+Financial assets sold under repurchase agreements
+Deposits from customers
+(451,914)
+394,804
+225,706
+Pursuant to the 'Circular on the Comprehensive Plan for Levying VAT in place of Business Tax' (Cai Shui [2016] No.36) jointly issued by the
+Ministry of Finance ("MOF") and the State Administration of Taxation, business tax that used to be levied on taxable income of the Bank and
+its subsidiaries in Mainland China was replaced by VAT from 1 May 2016, and the main VAT taxation rate is 6%.
+City construction tax
+City construction tax is calculated as 1% to 7% of VAT.
+Education surcharge
+Education surcharge is calculated as 3% of VAT.
+Local education surcharge
+Local education surcharge is calculated as 2% of VAT.
+Income tax
+The income tax rate that is applicable to the Bank and its subsidiaries in Mainland China is 25%. Taxation on overseas operations is charged
+at the relevant local rates. Tax paid on overseas operations is set off to the extent allowed under the relevant income tax laws of the PRC.
+6
+NET INTEREST INCOME
+2021
+2020
+Interest income arising from:
+Deposits with central banks
+36,775
+35,537
+- Discounted bills
+- Personal loans and advances
+- Corporate loans and advances
+Loans and advances to customers
+Investment securities
+11,966
+209,803
+12,894
+9,366
+5,245
+Placements with banks and non-bank financial institutions
+12,306
+9,653
+Deposits with banks and non-bank financial institutions
+Financial assets held under resale agreements
+Value added tax ("VAT")
+(413,600)
+605,420
+18,550
+15,574
+Commission on trust and fiduciary activities
+17,284
+15,593
+Settlement and clearing fees
+13,220
+12,542
+Consultancy and advisory fees
+11,658
+11,577
+Guarantee fees
+Credit commitment fees
+Others
+3,981
+3,917
+1,358
+(1,148)
+(1,277)
+(6,037)
+(5,976)
+131,512
+138,637
+Wealth management service fees
+Total
+Bank card transaction fees
+Fee and commission expense
+Total
+3,253
+3,213
+1,309
+Inter-bank transaction fees
+Others
+Net interest income
+17,366
+Agency service fees
+575,909
+China Construction Bank Corporation
+Annual Report 2021
+205
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+6
+NET INTEREST INCOME (CONTINUED)
+(1) Interest income from impaired financial assets is listed as follows:
+Impaired loans and advances
+2021
+4,770
+2020
+3,838
+Other impaired financial assets
+40
+86
+4,810
+3,924
+21,374
+21,148
+Bank card fees
+29,007
+28,942
+Electronic banking service fees
+19,283
+Fee and commission income
+2021
+NET FEE AND COMMISSION INCOME
+7
+Interest expense on financial liabilities with maturity over five years mainly represented the interest expense on debt securities
+issued.
+(2)
+Total
+2020
+(9,892)
+The Group's main applicable taxes and tax rates are as follows:
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+(19) Fiduciary activities
+The Group's fiduciary business refers to the management of assets for customers in accordance with custody agreements signed
+by the Group and securities investment funds, insurance companies, annuity plans and other organisations. The Group fulfils its
+fiduciary duty and receives relevant fees in accordance with these agreements, and does not take up any risks and rewards related
+to the assets under custody, which are recorded as off-balance sheet items.
+The Group conducts entrusted lending business, whereby it enters into entrusted loan agreements with customers. Under the
+terms of these agreements, the customers provide funding (the "entrusted funds") to the Group, and the Group grants loans to third
+parties (the "entrusted loans") according to the instructions of the customers. As the Group does not assume the risks and rewards
+of the entrusted loans and the corresponding entrusted funds, entrusted loans and funds are recorded as off-balance sheet items at
+their principal amounts and no impairment assessments are made for these entrusted loans.
+(20) Income recognition
+(a) Interest income
+Interest income for interest bearing debt instruments measured at amortized cost and fair value through other
+comprehensive income is recognised in profit or loss based on effective interest method. Interest income includes the
+amortisation of any discount or premium or other differences between the initial carrying amount of an interest-bearing
+instrument and its amount at maturity calculated on an effective interest basis. The effective interest method is a method
+of calculating the amortised cost of financial assets and liabilities and of allocating the interest income and interest expense
+over the relevant period.
+(b) Fee and commission income
+(c)
+Fee and commission income is recognised when the performance obligation is satisfied. For those services that are provided
+over a period of time, fee and commission income is accrued in accordance with the terms and conditions of the service
+agreement. For other services, fee and commission income is recognised when the transactions are completed.
+Dividend income
+Dividend income from equity investments is recognised in profit or loss on the date when the Group's right to receive
+payment is established.
+China Construction Bank Corporation
+Annual Report 2021
+201
+202
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+4
+the Bank's subsidiaries;
+220
+the Bank's parents;
+(a)
+If the Group has the power, directly or indirectly, to control, jointly control or exercise significant influence over another party, or
+vice versa, or where the Group and one or more parties are subject to common control or joint control from another party, they are
+considered to be related parties. Related parties may be individuals or enterprises. The Group's related parties include but are not
+limited to the following:
+(24) Related parties
+For loan commitments and financial guarantee contracts, the loss allowance is recognised as a provision. However, for contracts that
+include both a loan and an undrawn commitment and the Group cannot separately identify the ECL on the undrawn commitment
+component from those on the loan component, the ECL on the undrawn commitment are recognised together with the loss
+allowance for the loan. To the extent that the combined ECL exceed the gross carrying amount of the loan, the ECL are recognised
+as a provision.
+Proposed dividends which are declared and approved after the end of each reporting period are not recognised as a liability in the
+statement of financial position and are instead disclosed as a subsequent event after the end of each reporting period in the note to
+the financial statements. Dividends payable are recognised as liabilities in the period in which they are approved.
+Cash equivalents are short-term, highly liquid investments that are readily convertible into known amounts of cash and which are
+subject to an insignificant risk of changes in value, having been within three months of maturity at acquisition.
+(22) Cash equivalents
+At the end of each reporting period, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected
+to apply to the period when the asset is realised or the liability is settled according to the requirements of tax laws. The Group also
+considers the possibility of realisation and the settlement of deferred tax assets and deferred tax liabilities in the calculation.
+Current tax assets are offset against current tax liabilities, and deferred tax assets against deferred tax liabilities if the Group has the
+legally enforceable right to offset current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to
+income taxes levied by the same taxation authority on the same taxable entity. Otherwise, the balances of deferred tax assets and
+deferred tax liabilities, and movements therein, are presented separately from each other and are not offset.
+Current income tax and movements in deferred tax balances are recognised in profit or loss except to the extent that they relate to
+items recognised in other comprehensive income or directly in equity, in which case the relevant amounts of tax are recognised in
+other comprehensive income or directly in equity, respectively.
+Current income tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantially
+enacted at the end of each reporting period, and any adjustment to tax payable in respect of previous periods. Deferred tax assets
+and liabilities arise from deductible and taxable temporary differences respectively, being the differences between the carrying
+amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax also arises from unused tax losses
+and unused tax credits. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against
+which the deductible temporary differences, the carryforward of unused tax losses and unused tax credits can be utilised.
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+(21) Income tax
+(23) Profit distribution
+(c)
+The impairment allowance of loan commitments provided by the Group is measured by ECL. The Group has not provided any
+commitment to provide loans at a below-market interest rate, or that can be settled net in cash or by delivering or issuing another
+financial instrument.
+A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it
+incurs because a specified debtor fails to make payment when due, in accordance with the terms of a debt instrument.
+200
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+4
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+(15) Insurance contracts
+Insurance contracts classification
+Under the contract the insurer signed with the policyholder, the insurer may undertake insurance risk or other risks, or both
+insurance risk and other risks.
+Where the Group undertakes both the insurance risk and other risks, and the insurance risk and other risks can be distinguished
+and separately measured, the insurance risk shall be separately accounted for as insurance contracts while the other risks shall be
+accounted for as either investment contracts or service contracts. Where the insurance risk and other risks cannot be distinguished
+from each other, or can be distinguished but cannot be separately measured, significant insurance risk test shall be performed at the
+contract's initial recognition date. If the insurance risk is significant, the contract is classified as an insurance contract; otherwise, it is
+classified as an investment contract or service contract.
+Insurance income recognition
+Insurance premium income is recognised when all of the following criteria are met:
+(a)
+The insurance contract is issued, and related insurance risk is undertaken by the Group;
+(b)
+The related economic benefits are likely to flow to the Group; and
+(c) Related income can be reliably measured.
+Insurance contract liabilities
+(18) Financial guarantees and loan commitments
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+4
+Annual Report 2021
+Financial guarantees are initially recognised at fair value on the date the guarantee was given. Subsequent to initial recognition, the
+Group's liabilities under such guarantees are measured at the higher of the initial amount, less amortisation of guarantee fees, and
+the best estimate of the loss provisions required to settle the guarantee. Any increase in the liability relating to guarantees is taken to
+the consolidated statement of profit or loss.
+China Construction Bank Corporation
+(17) Equity instruments
+A potential obligation arising from a past transaction or event whose existence can only be confirmed by the occurrence or non-
+occurrence of future uncertain events; or a present obligation that arises from past transactions or events where it is not probable
+that an outflow of economic benefits is required to settle the obligation or the amount of the obligation cannot be measured
+reliably, is disclosed as a contingent liability unless the probability of outflow of economic benefit is remote.
+A provision is recognised in the statement of financial position if, as the result of a past event, the Group has a present legal or
+constructive obligation that can be reliably estimated and it is probable that an outflow of economic benefits will be required to
+settle the obligation. A provision is initially measured at the best estimate of the expenditure required to settle the related present
+obligation. Factors pertaining to a contingency such as the risks, uncertainties and time value of money are taken into account as
+a whole in reaching the best estimate. Where the effect of the time value of money is material, the best estimate is determined by
+discounting the related future cash outflows.
+(16) Provisions and contingent liabilities
+The Group performs liability adequacy test at the end of each reporting period. If the insurance contract liabilities re-calculated with
+the insurance actuarial method exceed their carrying amounts on the date of the liability adequacy test, an additional provision
+shall be made for the respective insurance contract liabilities based on the differences. Otherwise, no adjustment is made to the
+respective insurance contract liabilities.
+When measuring insurance contract liabilities, the Group identifies insurance contracts where insurance risks are of similar nature
+as a measurement unit. Insurance contract liabilities are measured based on a reasonably estimated amount of payments that the
+Group is obliged to pay in order to fulfil relevant obligations under the insurance contract. Structured product that cannot be sold
+separately is classified as one measurement unit.
+An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.
+A financial instrument issued is an equity instrument if, and only if, both conditions (i) and (ii) below are met: (i) The financial
+instrument includes no contractual obligation to deliver cash or another financial asset to another entity, or to exchange financial
+assets or financial liabilities with another entity under conditions that are potentially unfavorable to the Group; and (ii) If the
+financial instrument will or may be settled in the Group's own equity instruments, it is a non-derivative instrument that includes no
+contractual obligations for the Group to deliver a variable number of its own equity instruments; or a derivative that will be settled
+only by the Group exchanging a fixed amount of cash or another financial asset for a fixed number of its own equity instruments.
+Equity instruments issued by the Group are recorded at the fair value of proceeds received, net of direct issuance expenses.
+TAXATION
+other entities which are controlled by the Bank's parents;
+an investor who has joint control over the Group;
+A number of significant judgements are required in applying the accounting requirements for measuring expected credit
+losses, such as:
+Determining criteria for significant increase in credit risk;
+Choosing appropriate models and assumptions for the measurement of expected credit losses;
+Determining the forward-looking information and weightings for different types of products/markets when
+measuring expected credit losses; and
+Establishing groups of financial instruments with similar risk characteristics for the purpose of measuring expected
+credit losses.
+Detailed information about the judgements and estimates made by the Group in the above areas is set out in Note 61(1)
+credit risk.
+China Construction Bank Corporation
+203
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+4
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+(26) Significant accounting estimates and judgements (continued)
+(c) Fair value of financial instruments
+(d)
+(e)
+NOTES TO THE FINANCIAL STATEMENTS
+5
+Annual Report 2021
+China Construction Bank Corporation
+204
+The Group has taken into consideration all facts and circumstances in the assessment of whether the Group, as an investor,
+controls the investee. The principle of control includes three elements: (i) power over the investee; (ii) exposure, or rights, to
+variable returns from involvement with the investee; and (iii) the ability to use power over the investee to affect the amount
+of the investor's returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that
+there are changes to one or more of the three elements of control listed above.
+The measurement of the expected credit loss allowance for the investment in financial assets measured at amortised cost
+and debt instruments measured at FVOCI is an area that requires the use of complex models and significant assumptions
+about future economic conditions and credit behaviour (e.g. the likelihood of customers defaulting and the resulting losses).
+Explanation of the inputs, assumptions and estimation techniques used in measuring expected credit losses is further
+detailed in Note 61(1).
+Scope of consolidation
+The Group has established liabilities in connection with benefits paid to certain retired employees. The amounts of employee
+benefit expense and liabilities are dependent on assumptions used in calculating such amounts. These assumptions include
+discount rates, pension benefit inflation rates, medical benefit inflation rates, and other factors. While management believes
+that its assumptions are appropriate, differences in actual experience or changes in assumptions may affect the Group's other
+comprehensive income and liability related to its employee retirement benefit obligations.
+Employee retirement benefit obligations
+Determining income tax provisions involves judgement on the future tax treatment of certain transactions. The Group
+carefully evaluates the tax implications of transactions and tax provisions are set up accordingly. The tax treatment of such
+transactions is reconsidered periodically to take into account all changes in tax legislations. Deferred tax assets are recognised
+for tax losses not yet used and temporary deductible differences. As those deferred tax assets can only be recognised to the
+extent that it is probable that future taxable profits will be available against which the unused tax credits can be utilised,
+management's judgement is required to assess the probability of future taxable profits. Management's assessment is
+constantly reviewed and additional deferred tax assets are recognised if it becomes probable that future taxable profits will
+allow the deferred tax assets to be recovered.
+The objective of valuation techniques is to arrive at a fair value determination that reflects the price of the financial
+instrument at the reporting date that would have been determined by market participants in an orderly transaction.
+Income taxes
+For all other financial instruments, the Group determines fair values using valuation techniques which include discounted
+cash flow models, as well as other types of valuation model. Assumptions and inputs used in valuation techniques include
+risk-free and benchmark interest rates, foreign currency exchange rates, credit spreads and the liquidity premium. Where
+discounted cash flow techniques are used, estimated cash flows are based on management's best estimates and the
+discount rate used is a market rate at the end of each reporting period applicable for an instrument with similar terms and
+conditions. Where other pricing models are used, inputs are based on the maximising observable market data at the end of
+each reporting period. However, where market data is not available, the Group needs to make the best estimates on such
+unobservable market inputs.
+The fair value of financial instruments that are traded in an active market is based on their quoted market prices in an active
+market at the valuation date. A quoted market price is a price from an active market where price information is readily and
+regularly available from an exchange or from a dealer quotation and where this price information represents actual and
+recurring orderly transactions.
+(f)
+(d)
+Expected credit losses
+The Group's significant judgments in determining the classification of financial assets include the analysis of business models
+and contractual cash flow characteristics.
+(e)
+an investor who can exercise significant influence over the Group;
+(f)
+an associate of the Group;
+(g)
+(h)
+(i)
+(j)
+(k)
+a joint venture entity of the Group;
+principal individual investors of the Group, and close family members of such individuals (principal individual investors are
+the individual investors who have the power, directly or indirectly, to control, jointly control or exercise significant influence
+over another party);
+key management personnel of the Group and close family members of such individuals (key management personnel
+represent those persons having authority and responsibility for planning, directing and controlling the activities of the entity,
+directly or indirectly, including any director of that entity);
+key management personnel of the Bank's parents and close family members of such individuals;
+other entities that are controlled or jointly controlled by the Group's principal individual investors, key management
+personnel, or close family members of such individuals;
+China Construction Bank Corporation
+Annual Report 2021
+4
+Classification of financial assets
+(b)
+(a)
+(26) Significant accounting estimates and judgements
+The amount reported for each operating segment item is the measure reported to the chief operating decision makers for the
+purposes of allocating resources to the segment and assessing its performance. Segment information is prepared in conformity with
+the accounting policies adopted for preparing and presenting the financial statements of the Group.
+The identification of operating segments of the Group is on the basis of internal reports that are regularly reviewed by the Group's
+chief operating decision makers in order to allocate resources to the segment and assess its performance. On the basis of the
+operating segments, the Group identifies the reportable segments, using a combination of factors including products and services,
+geographical areas, regulatory environments etc., which the management has chosen for organization. The operating segments
+that meet the specified criteria have been aggregated, and the operating segments that meet quantitative thresholds have been
+reported separately.
+The Group determines the business model for the management of financial assets at the level of portfolios and considers the
+factors such as how the asset's performance is evaluated and reported to key management personnel, the risks affecting the
+performance of financial assets and the way in which financial assets are managed, and how managers are compensated.
+In assessing whether the contractual cash flow of financial assets is consistent with the basic lending arrangement, the Group
+uses the following key judgements: whether the principals may change because of the changes of time distribution or
+amount during the life period due to the reasons such as prepayment; whether the interest includes only the time value of
+money, credit risk, other basic borrowing risks and the consideration of costs and profits. For example, whether the amount
+prepaid reflects only the principal that has not yet been paid and the interest based on the outstanding principal, as well as
+reasonable compensation paid for the early termination of the contract.
+(25) Operating segments
+a post-employment benefit plan for the benefit of employees of the Group, or of any entity that is a related party of the
+Group; and
+(1)
+(24) Related parties (continued)
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+(m) joint ventures and their subsidiaries, or associates and their subsidiaries, of other member units (including parent companies
+and subsidiaries) of the Bank's corporate group, joint ventures and their subsidiaries, or associates and their subsidiaries,
+of companies that exercise joint control of the Bank, joint ventures and their subsidiaries of the companies that have a
+significant influence on the Bank, subsidiaries of joint ventures, and subsidiaries of associates.
+(9,745)
+(b)
+(16,930)
+167,949
+193,491
+2021
+2020
+766
+(3,562)
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+16
+DIRECTORS' AND SUPERVISORS' EMOLUMENTS
+The aggregate of the emoluments before individual income tax of directors and supervisors who held office during the year is as follows:
+2021
+Contributions
+Executive directors
+Tian Guoli (Note (vi))
+22,278
+Non-executive directors
+Zhang Qi (Note (iii))
+Tian Bo (Note (iii))
+Xia Yang (Note (iii))
+Shao Min (Notes (ii) & (iii))
+Remuneration
+Fees
+RMB'000
+paid
+RMB'000
+Liu Fang (Notes (ii) & (iii))
+Independent non-executive directors
+Malcolm Christopher McCarthy
+Kenneth Patrick Chung
+410
+440
+Graeme Wheeler
+Xu Jiandong (Notes (iii))
+(11,377)
+(3,601)
+2,704
+Other impairment losses
+China Construction Bank Corporation
+Annual Report 2021
+118,238
+104,353
+24,055
+23,381
+4,164
+4,299
+3,205
+3,424
+1,657
+2,308
+2,168
+35,542
+34,929
+7,791
+(244)
+468
+7,919
+15,830
+2020
+167,139
+160,324
+440
+2021
+219,182
+39,166
+54,371
+2,801
+3,240
+7,325
+188,574
+Michel Madelain
+410
+William Coen (Note (ii))
+53
+154
+826
+1,112
+36
+217
+1,365
+50
+290
+270
+250
+Ben Shenglin
+Former executive directors
+Wang Jiang (Notes (ii) & Note(vi))
+Lyu Jiajin (Notes (ii) & (vi))
+20
+568
+(17,145)
+III
+195
+220
+Carl Walter (Notes (ii))
+Anita Fung Yuen Mei (Notes (ii))
+Feng Bing (Notes (ii) & (iii))
+619
+Former non-executive directors
+53
+21
+233
+759
+143
+48
+307
+OTHER IMPAIRMENT LOSSES
+101
+440
+195
+Leung Kam Chung (Note (ii))
+101
+Supervisors
+Wang Yongqing (Note (vi))
+Yang Fenglai (Note (vi))
+Lin Hong (Note (ii))
+Wang Yi (Note (iv))
+50
+Liu Jun (Note (ii))
+Deng Aibing (Note (ii))
+Zhao Xijun
+290
+Liu Huan
+270
+250
+619
+440
+410
+||||
+826
+154
+53
+410
+Total
+(Note (i))
+RMB'000
+schemes
+RMB'000
+in kind
+retirement
+Other
+benefits
+contribution
+to defined
+(Note (v))
+RMB'000
+15
+195
+Others
+17
+Total
+10
+NET GAIN ARISING FROM INVESTMENT SECURITIES
+11
+Net gain related to financial assets designated as measured at fair value through profit or loss
+Net loss related to financial liabilities designated as measured at fair value through profit or loss
+Net gain related to other financial assets and liabilities measured at fair value through profit or loss
+Net gain related to financial assets measured at fair value through other comprehensive income
+Others
+Total
+5,921
+3,182
+2021
+2020
+2,579
+5,121
+(11,815)
+(10,300)
+18,246
+9,825
+2021
+Others
+Rental income
+Foreign exchange gains
+Insurance related income
+Other operating income
+17
+12 OTHER OPERATING INCOME, NET
+5,765
+10,498
+296
+39
+823
+1,449
+NET GAIN ON DERECOGNITION OF FINANCIAL ASSETS MEASURED AT AMORTISED COST
+For the year ended 31 December 2021, a net gain on derecognition of financial assets measured at amortised cost mainly attributes to the
+Group's issuance of asset-backed securities, which led to net gains of RMB4,533 million arising from derecognition of loans and advances to
+customers (for the year ended 31 December 2020: net gains of RMB4,338 million).
+2020
+3,165
+Dividend income from equity investments measured at fair value through profit or loss
+Dividend income from equity investments measured at fair value through other comprehensive income
+121,492
+Total
+114,582
+Net fee and commission income
+8
+NET TRADING GAIN
+Debt securities
+Derivatives
+Equity investments
+Others
+Total
+206
+China Construction Bank Corporation
+Annual Report 2021
+2021
+2020
+4,132
+2020
+2021
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+DIVIDEND INCOME
+9
+5,904
+4,313
+391
+1,026
+12
+(251)
+(345)
+4,255
+7,816
+44,148
+2,909
+7,333
+12,261
+7,273
+6,809
+- Union running costs and employee education costs
+3,463
+2,624
+- Early retirement expenses
+1
+17
+- Compensation to employees for termination of employment relationship
+5
+5
+- Others
+13,159
+11,281
+Premises and equipment expenses
+- Depreciation charges
+- Financial assets measured at amortised cost
+- Financial assets measured at fair value through other comprehensive income
+Off-balance sheet credit business
+31,406
+Financial investments
+Loans and advances to customers
+CREDIT IMPAIRMENT LOSSES
+14,664
+14
+Other general and administrative expenses
+Amortisation expenses
+Taxes and surcharges
+- Utilities
+-Maintenance
+-Rent and property management expenses
+Total
+71,356
+- Others
+Total
+3,488
+12,865
+7,718
+68,025
+47,874
+3,679
+Foreign exchange gains or losses includes gains and losses in connection with the translation of foreign currency denominated monetary
+assets and liabilities, and net realised and unrealised gains and losses on foreign exchange derivatives (including those foreign exchange
+swaps, foreign exchange options and cross currency swaps entered into in order to economically hedge positions in foreign currency
+assets).
+Other operating expense
+Insurance related costs
+Others
+79,673
+2021
+2020
+46,972
+12,128
+32,766
+Total
+9,284
+- Housing funds
+-Defined contribution plans
+- Salaries, bonuses, allowances and subsidies
+Staff costs
+2021
+13 OPERATING EXPENSES
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+2020
+5,262
+208
+207
+China Construction Bank Corporation
+Annual Report 2021
+42,050
+59,100
+NOTES TO THE FINANCIAL STATEMENTS
+336,616
+378,412
+Profit before tax
+2020
+(2)
+Note
+63,037
+The provisions for income taxes for Mainland China and Hong Kong are calculated at 25% and 16.5% of the estimated taxable
+income from Mainland China and Hong Kong operations for the reporting period, respectively. Taxation for other overseas
+operations is charged at the appropriate current rates of taxation ruling in the relevant tax jurisdictions.
+2021
+Reconciliation between income tax expense and accounting profit
+12INII│I
+94,603
+84,154
+Effects of different applicable rates of tax prevailing in other countries/regions
+Non-deductible expenses
+(a)
+(89)
+28,519
+(116)
+21,454
+Non-taxable income
+(b)
+(47,840)
+Adjustments on income tax for prior years which affect profit or loss
+Income tax calculated at the 25% statutory tax rate
+74,484
+Total
+(4,035)
+None of these individuals received any inducements or compensation for loss of office, or waived any emoluments during the years ended
+31 December 2021 and 2020.
+18
+(709)
+INCOME TAX EXPENSE
+(1)
+Income tax expense
+Current tax
+- Mainland China
+– Hong Kong
+- Other countries and regions
+Adjustments for prior years
+Deferred tax
+2021
+2020
+79,228
+78,345
+77,135
+75,721
+1,231
+1,252
+862
+1,372
+(709)
+906
+(16,214)
+(43,361)
+906
+302,513
+74,484
+2021
+2020
+271,050
+(4,538)
+(5,624)
+297,975
+265,426
+250,011
+250,011
+1.19
+1.06
+1.19
+1.06
+Note
+31 December
+2021
+48,613
+31 December
+2020
+49,068
+ea
+(1)
+(2)
+2,285,486
+| | | -31-|||
+2,160,485
+520,700
+33,032
+(1)
+Income tax expense
+Total
+- Fiscal deposits and others
+63,037
+(a)
+Non-deductible expenses primarily include non-deductible losses resulting from write-offs, impairment losses, and items that are in excess of
+deductible amount under the relevant PRC tax regulations such as staff costs and entertainment expenses.
+(b)
+Non-taxable income primarily includes interest income from PRC government bonds and local government bonds.
+212
+China Construction Bank Corporation
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+19
+EARNINGS PER SHARE
+Basic earnings per share for the years ended 31 December 2021 and 2020 have been computed by dividing the net profit attributable to
+ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the years.
+For the purpose of calculating basic earnings per share, dividends on non-cumulative preference shares declared in respect of the period
+and the perpetual bond interest paid in the period should be deducted from the amount attributable to equity shareholders of the Bank.
+The conversion feature of preference shares are considered to be contingently issuable ordinary shares. The triggering events of conversion
+did not occur for the years ended 31 December 2021 and 2020, therefore the conversion feature of preference shares has no effect on the
+basic and diluted earnings per share calculations.
+Net profit attributable to equity shareholders of the Bank
+Less: Profit for the year attributable to other equity instruments holders of the Bank
+Net profit attributable to ordinary shareholders of the Bank
+Weighted average number of ordinary shares (in millions of shares)
+Basic earnings per share attributable to ordinary shareholders of the Bank (in RMB Yuan)
+Diluted earnings per share attributable to ordinary shareholders of the Bank (in RMB Yuan)
+20 CASH AND DEPOSITS WITH CENTRAL BANKS
+Cash
+Deposits with central banks
+- Statutory deposit reserves
+- Surplus deposit reserves
+Accrued interest
+RMB8,000,001 - RMB8,500,000
+RMB8,500,001 - RMB9,000,000
+RMB9,000,001 - RMB9,500,000
+RMB9,500,001 - RMB10,000,000
+RMB10,000,001 - RMB10,500,000
+RMB10,500,001 - RMB11,000,000
+RMB11,000,001 - RMB11,500,000
+RMB11,500,001 - RMB12,000,000
+||||
+RMB6,500,001 - RMB7,000,000
+RMB7,000,001 - RMB7,500,000
+Former supervisors
+Fang Qiuyue (Notes (vi))
+210
+China Construction Bank Corporation
+Annual Report 2021
+|||||
+||||
+|||
+||||
+༄༄,,,,।।
+713
+111
+348
+||||
+3
+790
+148
+389
+452
+83
+550
+667
+58
+Zhu Hailin (Notes (iii))
+10,219
+Former non-executive directors
+Liu Guiping (Notes (vi))
+440
+434,199
+46,323
+390
+Supervisors
+Wang Yongqing (Note (vi))
+Wu Jianhang (Notes (ii) & (vi))
+Yang Fenglai (Notes (vi))
+861
+2,000
+1,000
+Lu Kegui (Notes (ii) & (iv))
+50
+Cheng Yuanguo (Notes (ii) & (iv))
+50
+Wang Yi (Notes (iv))
+50
+Zhao Xijun
+Liu Huan
+Ben Shenglin
+290
+125
+125
+Former executive directors
+Zhang Gengsheng (Notes (vi))
+RMB7,500,001 - RMB8,000,000
+1,062
+NOTES TO THE FINANCIAL STATEMENTS
+Other benefit in kind
+2021
+RMB'000
+2020
+RMB'000
+12,329
+25,142
+12,514
+29,881
+758
+628
+574
+581
+38,803
+43,604
+China Construction Bank Corporation
+211
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+17
+INDIVIDUALS WITH HIGHEST EMOLUMENTS (CONTINUED)
+The numbers of these individuals whose emoluments before individual income tax are within the following bands is set out below.
+2021
+2020
+Contributions to defined contribution retirement schemes
+2,111
+Variable compensation
+None of the five individuals with the highest emoluments are directors or supervisors whose emoluments are disclosed in Note 16. The
+aggregate of the emoluments before individual income tax of the five highest paid individuals during the year is as follows:
+16
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+DIRECTORS' AND SUPERVISORS' EMOLUMENTS (CONTINUED)
+Notes:
+(i) The amounts of emoluments for the year ended 31 December 2021 in respect of the services rendered by the directors and supervisors are subject to
+the approval of the Annual General Meeting.
+(ii)
+(iii)
+(iv)
+(v)
+(vi)
+(vii)
+(viii)
+Upon election at the 2021 first extraordinary general meeting of the Bank and approval of the Board of the Bank, Mr. Wang Jiang commenced his
+position as vice chairman and the executive director of the Bank from March 2021. Upon election at the 2020 first extraordinary general meeting of
+the Bank and approval of the CBIRC, Ms. Shao Min and Ms. Liu Fang commenced their positions as non-executive directors of the Bank from January
+2021. Upon election at the 2020 annual general meeting of the Bank and approval of the CBIRC, Mr. Leung Kam Chung, Antony commenced his
+position as independent non-executive director of the Bank from October 2021. Upon election at the 2020 first extraordinary general meeting of the
+Bank and approval of the CBIRC, Mr. William Coen commenced his position as independent non-executive director of the Bank from June 2021.
+Due to change of job, Mr. Wang Jiang ceased to serve as vice chairman and executive director of the Bank from March 2022. Due to the expiration of
+their term of office, Ms. Anita Fung Yuen Mei and Mr. Carl Walter ceased to serve as independent non-executive director of the Bank from June 2021.
+Due to change of job, Mr. Lyu Jiajin ceased to serve as executive director of the Bank from May 2021. Due to change of work, Ms. Feng Bing ceased to
+serve as non-executive director of the Bank from January 2021.
+Upon election at the 2021 second extraordinary general meeting of the Bank, Mr. Lin Hong commenced his position as shareholder representative
+supervisors of the Bank from December 2021. Upon election at the second session of the fifth employee representatives' meeting of the Bank, Mr. Liu
+Jun and Mr. Deng Aibing commenced their positions as employee representative supervisors of the Bank from December 2021.
+Due to the expiration of his term of office, Mr. Lu Kegui ceased to serve as employee representative supervisor of the Bank from December 2021. Due
+to the expiration of his term of office, Mr. Wu Jianhang ceased to serve as shareholder representative supervisors of the Bank from June 2021. Due to
+change of work, Mr. Cheng Yuanguo ceased to serve as employee representative supervisor of the Bank from March 2021. Upon appointment of the
+Board of the Bank and approval of the CBIRC, Mr. Cheng Yuanguo commenced his position as chief risk officer of the Bank from April 2021.
+The Bank did not need to pay the emoluments of non-executive directors appointed by Huijin for the services rendered in 2021 and 2020.
+The amounts only included fees for their services as supervisors.
+The compensation of Mr. Cheng Yuanguo who serve as chief risk officer during the year is disclosed in Note 60.
+Other benefits in kind included the Bank's contributions to medical fund, housing fund and other social insurances, which are payable to labour and
+security authorities based on the lower of certain percentage of the salaries and allowance or the prescribed upper limits as required by the relevant
+regulations issued by the government authorities. Other benefits also included the Bank's contribution to its own corporate annuity plan (which was
+set up in accordance with the relevant policies issued by the government authorities) and supplementary medical insurance.
+The total compensation package for these directors and supervisors for the year ended 31 December 2021 has not yet been finalised in accordance
+with regulations of the PRC relevant authorities. The amount of the compensation not provided for is not expected to have a significant impact on
+the Group's financial statements for the year ended 31 December 2021. The final compensation will be disclosed in a separate announcement when
+determined.
+The total compensation package for certain directors and supervisors for the year ended 31 December 2020 had not been finalised in accordance
+with regulations of the PRC relevant authorities as at the date that the 2020 financial statements were announced. The aforesaid total compensation
+package for the directors and supervisors for the year ended 31 December 2020 was the final amount.
+From 2015 onwards, remuneration of the Bank's leaders administered by central authorities has been paid in accordance with relevant policies
+relating to the central remuneration reform.
+None of the directors and supervisors received any inducements or compensation for loss of office, or waived any emoluments during the years
+ended 31 December 2021 and 2020.
+17
+INDIVIDUALS WITH HIGHEST EMOLUMENTS
+Salaries and allowance
+1,062
+4,168
+2,763,892
+Exchange rate contracts
+3,183,567
+27,578
+Other contracts
+(a)
+130,138
+2,102
+27,772
+1,255
+3,461,021
+63,881
+1,802
+73,376
+3,346
+4,412
+Total
+(2)
+3,897,807
+Analysed by counterparty credit risk-weighted assets
+Counterparty credit default risk-weighted assets
+- Interest rate contracts
+- Exchange rate contracts
+- Other contracts
+126,071
+650,225
+2,296
+1,870
+1,004
+1,525
+188,576
+(414)
+368,714
+(310)
+188,162
+368,404
+As at 31 December 2021, the Group's placements with banks and non-bank financial institutions with a total principal of RMB16,250
+million (as at 31 December 2020: nil) had been designated as Stage 2, with corresponding impairment loss allowances of RMB67
+million (as at 31 December 2020: nil). All the remaining placements with banks and non-bank financial institutions were designated
+as Stage 1.
+23
+DERIVATIVES AND HEDGE ACCOUNTING
+(1)
+Analysed by type of contracts
+31 December 2021
+31 December 2020
+Note
+Notional
+amounts
+Notional
+Assets
+Liabilities
+amounts
+Assets
+Liabilities
+Interest rate contracts
+584,102
+Subtotal
+Risk-weighted assets for credit valuation adjustment
+Total
+31,550
+Annual
+remuneration
+Michel Madelain
+Graeme Wheeler
+Kenneth Patrick Chung
+Carl Walter (Note (ii))
+Malcolm Christopher McCarthy
+Anita Fung Yuen Mei (Note (ii))
+Independent non-executive directors
+Xia Yang (Note (iii))
+Tian Bo (Note (iii))
+Zhang Qi (Note (iii))
+Xu Jiandong (Notes (iii))
+Feng Bing (Notes (ii) & (iii))
+Non-executive directors
+Lyu Jiajin (Notes (ii) & (vi))
+Tian Guoli (Note (vi))
+Executive directors
+The aggregate of the emoluments before individual income tax of directors and supervisors who held office during the year is as follows
+(continued):
+DIRECTORS' AND SUPERVISORS' EMOLUMENTS (CONTINUED)
+16
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+440
+payable
+75,398
+(Allowances)
+2020
+31,323
+4,237,317
+69,029
+81,956
+410
+390
+||||│
+91
+388
+164
+861
+tenure
+RMB'000
+RMB'000
+monetary income
+income for
+2018-2020
+Other
+Incentive
+RMB'000
+and housing
+Provident fund
+medical insurance
+supplemental
+contribution to
+social insurances,
+enterprise annuity,
+Employer's
+RMB'000
+291,791
+115,485
+72,087
+2020
+Accrued interest
+Gross balances
+Allowances for impairment losses (Note 35)
+Net balances
+(2) Analysed by geographical sectors
+Mainland China
+Overseas
+Accrued interest
+Gross balances
+Allowances for impairment losses (Note 35)
+Net balances
+31 December
+31 December
+2021
+2020
+146,243
+8,003
+440,339
+11,602
+986
+1,590
+155,232
+(125)
+453,531
+(298)
+155,107
+453,233
+Non-bank financial institutions
+31 December
+2021
+Banks
+(1)
+2,816,164
+The Group places statutory deposit reserves with the People's Bank of China ("PBOC") and overseas central banks where it has operations. The
+statutory deposit reserves are not available for use in the Group's daily business.
+As at the end of the reporting period, the Bank's statutory deposit reserve rates in Mainland China were as follows:
+31 December
+31 December
+2021
+Reserve rate for RMB deposits
+10.00%
+9.00%
+5.00%
+2020
+11.00%
+Reserve rate for foreign currency deposits
+The statutory RMB deposit reserve rates applicable to domestic subsidiaries of the Group are determined by the PBOC.
+The amounts of statutory deposit reserves placed with the central banks of overseas countries are determined by local jurisdictions.
+(2)
+The surplus deposit reserve maintained with the PBOC is mainly for the purpose of clearing.
+China Construction Bank Corporation
+Annual Report 2021
+213
+214
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+21
+DEPOSITS WITH BANKS AND NON-BANK FINANCIAL INSTITUTIONS
+Analysed by type of counterparties
+1,088
+31 December
+122,172
+188,576
+Allowances for impairment losses (Note 35)
+(414)
+368,714
+(310)
+Net balances
+China Construction Bank Corporation
+Annual Report 2021
+188,162
+368,404
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+PLACEMENTS WITH BANKS AND NON-BANK FINANCIAL INSTITUTIONS (CONTINUED)
+22
+(2) Analysed by geographical sectors
+Mainland China
+Overseas
+Accrued interest
+Gross balances
+Allowances for impairment losses (Note 35)
+Net balances
+31 December
+31 December
+2021
+Gross balances
+2020
+1,525
+108,478
+405,588
+32,074
+46,353
+986
+1,590
+155,232
+(125)
+453,531
+(298)
+155,107
+453,233
+For the years ended 31 December 2021 and 2020, the book value of deposits with banks and non-bank financial institutions was in
+Stage 1. The book value and the impairment loss allowances do not involve the transfers between stages.
+22
+PLACEMENTS WITH BANKS AND NON-BANK FINANCIAL INSTITUTIONS
+(1) Analysed by type of counterparties
+Banks
+Non-bank financial institutions
+Accrued interest
+31 December
+31 December
+2021
+2020
+96,021
+258,711
+91,551
+1,004
+440
+24
+31 December
+2021
+Net loans and advances to customers measured at amortised cost
+(556,063)
+(637,338)
+(172,536)
+(172,666)
+(108,099)
+(154,465)
+(275,428)
+(310,207)
+Allowances for impairment losses (Note 35)
+Stage 3
+Stage 2
+Stage 1
+16,476,817
+18,380,916
+17,743,578
+Gross loans and advances to customers measured at amortised cost
+15,920,754
+Loans and advances to customers measured at fair value through other comprehensive income
+3,761
+Corporate loans and advances
+2020
+2021
+31 December
+31 December
+Loans and advances to customers measured at fair value through profit or loss
+(c)
+259,061
+379,469
+Discounted bills
+2020
+2021
+31 December
+31 December
+(b)
+7,311,183
+7,977,650
+184,102
+- Personal consumer loans
+- Residential mortgages
+Personal loans and advances
+- Finance leases
+- Loans
+Corporate loans and advances
+(a) Loans and advances to customers measured at amortised cost
+Analysed by measurement (continued)
+(1)
+LOANS AND ADVANCES TO CUSTOMERS (CONTINUED)
+25
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+218
+217
+- Personal business loans
+- Credit cards
+- Others
+31 December
+2021
+162,333
+828,943
+899,127
+138,481
+226,463
+274,635
+240,147
+9,890
+5,885,022
+9,165,634
+10,403,266
+136,849
+9,028,785
+2020
+31 December
+10,267,665
+135,601
+6,449,580
+China Construction Bank Corporation
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+15,920,754
+88,193
+425,491
+15,407,070
+Carrying amount of loans and advances to
+customers measured at amortised cost
+16,476,817
+(556,063)
+260,729
+(172,536)
+(108,099)
+(275,428)
+Less: allowances for impairment losses
+533,590
+15,682,498
+Gross loans and advances to customers measured
+at amortised cost
+Total
+Stage 3
+Provision percentage for loans and advances to
+customers measured at amortised cost
+1.76%
+20.26%
+66.17%
+Note
+Annual Report 2021
+219
+China Construction Bank Corporation
+The segmentation of the loans mentioned above is defined in Note 61(1).
+For loans and advances to customers designated as Stages 1 and Stage 2 as well as personal loans and advances designated as
+Stage 3, management assessed ECL using the risk parameter modelling approach that incorporated relevant parameters such as
+probability of default, loss given default, and exposure at default. For corporate loans and advances and discounted bills designated
+as Stage 3, management calculated ECL using the discounted cash flow method.
+(840)
+Stage 1
+(237)
+Allowances for impairment losses on loans and
+advances to customers measured at fair value
+through other comprehensive income
+259,061
+3,591
+255,470
+customers measured at fair value through
+other comprehensive income
+Carrying amount of loans and advances to
+3.37%
+(603)
+Annual Report 2021
+31 December 2020
+379,469
+(310,207)
+Less: allowances for impairment losses
+588,881
+17,525,964
+Gross loans and advances to customers measured
+at amortised cost
+Total
+Stage 3
+Stage 2
+Stage 1
+31 December 2021
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Analysed by assessment method of expected credit losses
+(2)
+25
+LOANS AND ADVANCES TO CUSTOMERS (CONTINUED)
+(154,465)
+266,071
+(172,666)
+18,380,916
+(637,338)
+Carrying amount of loans and advances to
+customers measured at amortised cost
+(216)
+(900)
+Allowances for impairment losses on loans and
+advances to customers measured at fair value
+through other comprehensive income
+3,114
+376,355
+customers measured at fair value through
+other comprehensive income
+Carrying amount of loans and advances to
+(1,116)
+3.47%
+26.23%
+1.77%
+Provision percentage for loans and advances to
+customers measured at amortised cost
+17,743,578
+93,405
+434,416
+17,215,757
+64.89%
+China Construction Bank Corporation
+Stage 2
+18,170,492
+7,082
+(55)
+49
+11,102
+Foreign exchange swaps
+Cash flow hedges
+(3)
+30
+29
+Cross currency swaps
+(1,131)
+62
+29,692
+(522)
+197
+273
+(82)
+Cross currency swaps
+636
+Total
+(1,471)
+335
+45,486
+(643)
+253
+62,356
+47,695
+(160)
+(18)
+7
+2,894
+Interest rate swaps
+(95)
+654
+(48)
+8,028
+(a)
+Interest rate swaps
+Liabilities
+72,123
+14,739
+13,618
+53,034
+58,505
+10,015
+16,082
+(a)
+38,946
+39,036
+4,073
+3,387
+2020
+31 December
+16,231,369
+67,773
+The notional amounts of derivatives only represent the unsettled transaction volume as at the end of the reporting period, instead
+of the amount of risk assets. Since 1 January 2013, the Group has adopted Capital Rules for Commercial Banks (Provisional) and other
+related policies. According to the rules set out by the CBIRC, the counterparty credit risk-weighted assets included risk-weighted
+assets for credit valuation adjustments with the considerations of counterparty status and maturity characteristic, and included back-
+to-back client-driven transactions. The risk-weighted assets for counterparty credit risk of derivatives of the Group were calculated in
+accordance with the Rules on Measuring Derivative Counterparty Default Risk Assets since 1 January 2019.
+(a)
+Other contracts mainly consist of precious metals and commodity contracts.
+Assets
+Notional
+amounts
+Liabilities
+Assets
+Notional
+amounts
+31 December 2020
+31 December 2021
+Fair value hedges
+The following designated hedging instruments are included in the derivative financial instruments disclosed above.
+(3)
+23
+DERIVATIVES AND HEDGE ACCOUNTING (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+Annual Report 2021
+215
+Hedge accounting
+Fair value hedges
+China Construction Bank Corporation
+Net gains/(losses) on fair value hedges are as follows:
+Note
+Loans and advances to customers measured at amortised cost
+Less: allowances for impairment losses
+Analysed by measurement
+(1)
+25
+LOANS AND ADVANCES TO CUSTOMERS
+For the year ended 31 December 2021 and 2020, the book value of financial assets held under resale agreements was in Stage 1. The book
+value and the impairment loss allowances do not involve the transfers between stages.
+602,239
+602,406
+(167)
+549,078
+549,170
+(92)
+350
+199
+112,458
+35,590
+31 December
+2021
+31 December
+2020
+18,380,916
+(637,338)
+16,476,817
+(556,063)
+41,664
+43,684
+The Group uses interest rate swaps and cross currency swaps to hedge against changes in fair value of financial assets
+measured at fair value through other comprehensive income, debt securities issued, and loans and advances to customers
+arising from changes in interest rates and exchange rates.
+Carrying amount of loans and advances to customers
+Accrued interest
+9,890
+3,761
+489,598
+(c)
+259,061
+379,469
+Carrying amount of loans and advances to customers measured at fair value
+through other comprehensive income
+15,920,754
+17,743,578
+(a)
+Carrying amount of loans and advances to customers measured at amortised cost
+Carrying amount of loans and advances to customers measured at fair value
+through profit or loss
+513,381
+(b)
+289,459
+NOTES TO THE FINANCIAL STATEMENTS
+Annual Report 2021
+China Construction Bank Corporation
+216
+The Group uses foreign exchange swaps, cross currency swaps and interest rate swaps to hedge against exposures to cash
+flow variability primarily from foreign exchange and interest rate risks of deposits from customers, loans and advances to
+customers, debt securities issued, placements from banks and non-bank financial institutions, and placements with banks
+and non-bank financial institutions. The maturities of hedging instruments and hedged items are both within five years.
+For the year ended 31 December 2021, the Group's net gain from the cash flow hedges of RMB320 million was recognised in
+other comprehensive income (for the year ended 31 December 2020: net loss from cash flow hedges of RMB61 million), and
+the gain and loss arising from the ineffective portion of cash flow hedges was immaterial.
+Cash flow hedges
+(b)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+The gain and loss arising from the ineffective portion of fair value hedges was immaterial for the year ended 31 December
+2021 and 2020.
+(837)
+686
+- hedging instruments
+- hedged items
+2021
+133
+Net gains/(losses) on
+2020
+(672)
+FINANCIAL ASSETS HELD UNDER RESALE AGREEMENTS
+824
+Financial assets held under resale agreements analysed by underlying assets are shown as follows:
+259,628
+253,753
+31 December
+2020
+31 December
+2021
+200,006
+Allowances for impairment losses (Note 35)
+Total
+Accrued interest
+Net balances
+Subtotal
+- Corporate bonds
+- Debt securities issued by policy banks, banks and non-bank financial institutions
+- Government bonds
+Debt securities
+Discounted bills
+1,934,061
+7,417
+2021
+31 December
+31 December
+1,867,458
+2020
+1,860,503
+6,955
+31 December
+(ii)
+130,324
+1,941,478
+2020
+Banks and non-bank financial institutions
+1,159,963
+Central banks
+Policy banks
+120,348
+Enterprises
+38,103
+34,295
+413,845
+400,032
+(i)
+99,382
+88,887
+1,200,061
+31 December
+2021
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Government
+5,039,270
+5,500
+115,898
+4,341,559
+4,505,243
+Accumulated change of fair value charged in other comprehensive income
+7,747
+163,684
+5,155,168
+4,505,243
+5,133,633
+4,371,059
+China Construction Bank Corporation 225
+Annual Report 2021
+226
+NOTES TO THE FINANCIAL STATEMENTS
+26
+FINANCIAL INVESTMENTS (CONTINUED)
+(1)
+Analysed by measurement (continued)
+(c)
+Financial assets measured at fair value through other comprehensive income
+Analysed by nature
+Debt securities
+Equity instruments
+Total
+Analysed by type of issuers
+(i)
+Debt securities
+Note
+36,527
+FINANCIAL INVESTMENTS (CONTINUED)
+Subtotal
+For the year ended 31 December 2021 and 2020, the Group neither sold any of the investments above nor transferred
+any cumulative profit or loss in equity.
+26
+(2)
+Movements of allowances for impairment losses
+Financial assets measured at amortised cost
+(a)
+As at 1 January 2021
+Transfers:
+Transfers in/(out) to Stage 1
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+2021
+Note
+Dividend income
+during the year
+16
+229
+The Group steadily pressed ahead with business integration of its London entities. As of 31 December 2021, CCB London's application
+for termination of business has been approved by domestic and overseas regulators, and subsequent work is still underway.
+(ii)
+In January 2021, the Bank increased capital of CCB Investment by RMB15,000 million with its own funds. CCB Investment has remained
+a wholly-owned subsidiary of the Bank.
+(i)
+70,892
+85,892
+Total
+79,002
+(8,110)
+94,002
+(8,110)
+5,155,168
+Less: Allowance for impairment losses
+Subtotal
+China Construction Bank Corporation
+Annual Report 2021
+Fair value
+6,955
+17
+Dividend income
+during the year
+Accrued interest
+Total
+Listed (Note)
+- of which in Hong Kong
+Unlisted
+Total
+Note: Debt securities traded on the China Domestic Interbank Bond Market are classified as "Listed".
+(ii)
+Equity instruments
+China Construction Bank Corporation
+Annual Report 2021
+Equity instruments
+1,908,266
+1,834,732
+25,795
+25,771
+1,934,061
+1,860,503
+1,865,916
+68,435
+68,145
+1,785,650
+57,198
+74,853
+1,934,061
+1,860,503
+31 December 2021
+31 December 2020
+Fair value
+7,417
+21,231
+(20,238)
+115,325
+(6,745)
+Note: Debt securities traded on the China Domestic Interbank Bond Market are classified as "Listed".
+(vi)
+Funds and others
+224
+China Construction Bank Corporation
+Annual Report 2021
+Banks and non-bank financial institutions
+Enterprises
+Total
+Listed
+- of which in Hong Kong
+Unlisted
+Total
+136,747
+25
+115,571
+246
+136,747
+115,571
+31 December
+2021
+31 December
+2020
+116,539
+86,628
+147,586
+128,591
+264,125
+215,219
+135,766
+265
+981
+51,408
+1,203
+128,045
+- of which in Hong Kong
+130
+Unlisted
+Total
+31 December
+31 December
+2021
+2020
+4,071
+663
+15,542
+13,539
+108,185
+19,613
+643
+198
+19,613
+13,559
+19,613
+14,202
+31 December
+31 December
+2021
+2020
+7,499
+7,361
+14,202
+74,164
+1,283
+212,717
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Note: Debt securities traded on the China Domestic Interbank Bond Market are classified as "Listed".
+31 December
+2021
+31 December
+2020
+4,417,350
+4,799
+3,799,421
+5,231
+293,199
+300,679
+141,458
+130,946
+214,569
+NOTES TO THE FINANCIAL STATEMENTS
+177,534
+49,200
+5,120,575
+4,463,011
+68,821
+62,470
+5,189,396
+4,525,481
+(17,737)
+(13,211)
+(1,427)
+(282)
+(15,064)
+49,200
+Market value of listed bonds
+Total
+- of which in Hong Kong
+Unlisted
+1,086
+141,055
+264,125
+There was no significant limitation on the ability of the Group to dispose of financial assets measured at FVPL.
+215,219
+26
+FINANCIAL INVESTMENTS (CONTINUED)
+(1)
+Analysed by measurement (continued)
+(b)
+Financial assets measured at amortised cost
+Analysed by type of issuers
+Government
+Central banks
+Policy banks
+Banks and non-bank financial institutions
+Enterprises
+Special government bond
+Subtotal
+Accrued interest
+Gross balances
+Allowances for impairment losses
+-Stage 1
+-Stage 2
+-Stage 3
+Subtotal
+Net balances
+Listed (Note)
+(34,228)
+130
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+676
+227
+China Construction Bank Corporation
+Annual Report 2021
+20,238
+6,745
+282
+13,211
+As at 31 December 2020
+(383)
+(299)
+(12)
+(72)
+other movements
+NOTES TO THE FINANCIAL STATEMENTS
+Foreign exchange and
+3,389
+219
+1,182
+(i)
+Remeasurements
+(1,574)
+(33)
+(48)
+(1,493)
+during the year
+Financial assets derecognised
+4,703
+4,790
+4,703
+Listed (Note)
+FINANCIAL INVESTMENTS (CONTINUED)
+Newly originated or purchased
+Transfers in/(out) to Stage 3
+1
+(1)
+9
+(9)
+66
+(11)
+11
+3,345
+11
+3,334
+26
+Total
+Stage 2
+Stage 1
+Note
+2021
+Transfers in/(out) to Stage 2
+Transfers in/(out) to Stage 1
+Transfers:
+As at 1 January 2021
+Financial assets measured at fair value through other comprehensive income
+(b)
+Movements of allowances for impairment losses (continued)
+(2)
+Stage 3
+financial assets
+Newly originated or purchased
+52
+429
+878
+(i)
+Remeasurements
+(2,229)
+(623)
+(112)
+(1,494)
+during the year
+13,353
+7,364
+916
+3,399
+5,073
+111
+(111)
+Financial assets derecognised
+financial assets
+Transfers in/(out) to Stage 3
+13
+(13)
+Transfers in/(out) to Stage 2
+20,238
+Total
+Stage 3
+6,745
+282
+Newly originated or purchased
+4,706
+Foreign exchange and
+other movements
+(14)
+(38)
+Transfers in/(out) to Stage 3
+3
+(3)
+Transfers in/(out) to Stage 2
+Transfers in/(out) to Stage 1
+Transfers:
+12,702
+Total
+Stage 3
+3,636
+134
+8,932
+As at 1 January 2020
+Stage 2
+Stage 1
+Note
+2020
+34,228
+15,064
+1,427
+17,737
+As at 31 December 2021
+(1,840)
+(1,932)
+10
+82
+financial assets
+Financial assets derecognised
+during the year
+Remeasurements
+11,163
+15,000
+15,000
+12,000
+27,000
+(i)
+CCB Life Insurance Co., Ltd. ("CCB Life")
+CCB Brazil Financial Holding - Investimentos e Participações Ltda.
+CCB Trust Co., Ltd. ("CCB Trust")
+CCB Wealth Management Co., Ltd.("CCB Wealth Management")
+CCB Financial Leasing Co., Ltd. ("CCB Financial Leasing")
+CCB Financial Asset Investment Co., Ltd. ("CCB Investment")
+2020
+31 December
+11,163
+31 December
+2021
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Investment balance
+(a)
+Investments in subsidiaries
+(1)
+LONG-TERM EQUITY INVESTMENTS
+27
+NOTES TO THE FINANCIAL STATEMENTS
+Annual Report 2021
+China Construction Bank Corporation
+228
+For the year ended 31 December 2021, the increase in the Group's Stage 1 financial assets due to newly originated or purchased
+financial assets amounted to RMB1,568,530 million (for the year ended 31 December 2020: RMB1,786,779 million), the decrease in
+Stage 1 financial assets due to derecognition amounted to RMB833,474 million (for the year ended 31 December 2020: RMB925,069
+million), and there were no significant changes in the balances of financial assets classified as Stage 2 and 3. Both the amounts of
+financial assets transferred between stages and the amounts of financial assets with modifications of contractual cash flows that did
+not result in a derecognition were not significant.
+Note
+9,542
+9,542
+7,429
+676
+851
+851
+China Construction Bank (Russia) Limited Liability Company ("CCB Russia")
+Golden Fountain Finance Limited ("Golden Fountain")
+976
+976
+China Construction Bank (New Zealand) Limited ("CCB New Zealand")
+1,334
+1,334
+1,502
+1,502
+Sino-German Bausparkasse Co., Ltd. ("Sino-German Bausparkasse")
+China Construction Bank (Malaysia) Berhad ("CCB Malaysia")
+1,955
+1,955
+2,215
+2,215
+PT Bank China Construction Bank Indonesia Tbk ("CCB Indonesia")
+CCB Pension Management Co., Ltd. ("CCB Pension")
+2,861
+2,861
+(ii)
+China Construction Bank (London) Limited ("CCB London")
+4,406
+4,406
+China Construction Bank (Europe) S.A. ("CCB Europe")
+6,962
+6,962
+7,429
+As at 31 December 2021, the Group's financial assets measured at amortised cost with carrying amount of RMB18,296 million (as at 31
+December 2020: RMB10,420 million) and financial assets measured at fair value through other comprehensive income with carrying
+amount of RMB74 million (as at 31 December 2020: Nil) were impaired and classified as Stage 3, financial assets measured at amortised
+cost with carrying amount of RMB5,241 million (as at 31 December 2020: RMB2,047 million) and financial assets measured at fair
+value through other comprehensive income with carrying amount of RMB1,469 million (as at 31 December 2020: 1,528 million) were
+classified as Stage 2, and the remaining financial assets measured at amortised cost and financial assets measured at fair value through
+other comprehensive income were classified as Stage 1.
+CCB Principal Asset Management Co., Ltd. ("CCB Principal Asset Management")
+CCB International Group Holdings Limited ("CCBIG")
+Remeasurements mainly comprise the impact of changes in PD, LGD, EAD, and credit loss changes due to stage-transfer.
+9
+Stage 2
+Stage 1
+Note
+2020
+3,811
+70
+70
+101
+3,640
+As at 31 December 2021
+(2)
+(35)
+Stage 3
+(70)
+other movements
+Foreign exchange and
+(856)
+680
+104
+50
+159
+417
+(i)
+(856)
+644
+3
+641
+103
+Total
+As at 1 January 2020
+3,580
+162
+(1,896)
+1,490
+11
+15
+3,334
+(i)
+As at 31 December 2020
+9
+other movements
+Foreign exchange and
+157
+(i)
+Remeasurements
+(1,896)
+during the year
+Financial assets derecognised
+1,490
+financial assets
+Newly originated or purchased
+199
+Transfers in/(out) to Stage 3
+(6)
+Transfers in/(out) to Stage 2
+Transfers in/(out) to Stage 1
+Transfers:
+3,580
+3,345
+Total
+Stage 1
+13,211
+Banks and non-bank financial institutions
+Other pledged loans
+1,698
+2,708
+1,657
+431
+6,494
+Total
+48,846
+55,149
+57,633
+14,833
+176,461
+66,578
+As a percentage of gross loans and
+0.26%
+0.29%
+0.31%
+0.08%
+0.94%
+Overdue
+within
+Overdue between
+three months and
+three months
+one year
+31 December 2020
+Overdue between
+one year and
+three years
+Overdue over
+three years
+advances to customers
+Total
+4,178
+19,086
+(5)
+(6)
+31 December 2021
+Overdue
+within
+three months
+Overdue between
+three months and
+one year
+Overdue between
+one year and
+three years
+Overdue over
+three years
+Total
+Unsecured loans
+20,726
+15,751
+8,068
+4,137
+47,248
+Guaranteed loans
+8,809
+14,063
+27,182
+6,087
+56,141
+Loans secured by property and
+other immovable assets
+22,588
+19,292
+Unsecured loans
+15,572
+20,264
+0.36%
+0.36%
+0.05%
+1.09%
+Overdue loans represent loans of which the whole or part of the principal or interest is overdue for 1 day or more.
+Packaged disposal of non-performing loans
+For the year ended 31 December 2021, the Group's total amount of non-performing loans sold through packaged disposal to
+external asset management companies was RMB5,985 million (for the year ended 31 December 2020: RMB24,830 million).
+Write-off
+According to the Group's write-off policy, it is required to continue to recover the bad debts that are written off. For the year
+ended 31 December 2021, the amount of loans and advances to customers that the Group has written off under litigation-related
+condition but still under enforcement was RMB21,081 million (for the year ended 31 December 2020: RMB28,575 million).
+China Construction Bank Corporation
+221
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+0.32%
+26
+(1)
+Analysed by measurement
+31 December
+31 December
+Note
+2021
+2020
+Financial assets measured at fair value through profit or loss
+(a)
+545,273
+577,952
+Financial assets measured at amortised cost
+FINANCIAL INVESTMENTS
+182,223
+7,571
+59,888
+6,769
+684
+43,289
+Guaranteed loans
+12,862
+18,439
+29,069
+2,300
+62,670
+Loans secured by property and
+other immovable assets
+25,531
+20,083
+19,350
+4,400
+69,364
+Other pledged loans
+334
+1,679
+4,700
+187
+6,900
+Total
+As a percentage of gross loans and
+advances to customers
+54,299
+60,465
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Overdue loans analysed by overdue period
+(4)
+25 LOANS AND ADVANCES TO CUSTOMERS (CONTINUED)
+As at 31 December 2020
+2021
+Note
+Stage 1
+275,428
+Stage 2
+Stage 3
+Total
+108,099
+172,536
+556,063
+9,277
+(8,793)
+written off
+(484)
+12,817
+(2,514)
+(2,551)
+(21,749)
+24,300
+153,274
+153,274
+(a)
+(107,775)
+(19,250)
+(47,119)
+(174,144)
+(10,303)
+Recoveries of loans and advances
+Write-off
+Remeasurements
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+25
+LOANS AND ADVANCES TO CUSTOMERS (CONTINUED)
+(3)
+Movements of allowances for impairment losses
+As at 1 January 2021
+Transfers:
+Transfers in/(out) to Stage 1
+Transfers in/(out) to Stage 2
+Transfers in/(out) to Stage 3
+Newly originated or purchased
+financial assets
+Transfer out/repayment
+Remeasurements
+Write-off
+Recoveries of loans and advances
+written off
+As at 31 December 2021
+As at 1 January 2020
+Transfers:
+Transfers in/(out) to Stage 1
+Transfers in/out) to Stage 2
+Transfers in/(out) to Stage 3
+Newly originated or purchased
+financial assets
+Transfer out/repayment
+(b)
+(b)
+(7,143)
+72,186
+(45,863)
+141,273
+(155,796)
+(b)
+(461)
+50,216
+85,229
+134,984
+(57,383)
+(57,383)
+10,827
+10,827
+275,428
+(15,131)
+108,099
+556,063
+220
+(a)
+(b)
+Transfer out/repayment refers to transfer of creditor's rights, securitisation of assets, debt-to-equity swaps and reversal of loss provisions due to
+repayment of debts in the form of other assets, as well as repayment of loans.
+Remeasurements comprise the impact of changes in Probability of Default ("PD"), Loss Given Default ("LGD") or Exposure at Default ("EAD");
+changes in model assumptions and methodologies; loss provisions change due to stage-transfer; unwinding of discount; and the impact of
+exchange rate changes, etc.
+The loss provisions disclosed above are for loans and advances to customers measured at amortised cost.
+For the year ended 31 December 2021, the changes of gross carrying amounts of loans and advances to customers with a
+significant impact on the Group's impairment allowance were mainly resulted from the credit business in Mainland China, including:
+For the year ended 31 December 2021, the gross carrying amount of domestic branches corporate loans and advances to
+customers transferred from Stage 1 to Stage 2 was RMB186,590 million (for the year ended 31 December 2020: RMB145,679 million).
+The gross carrying amount of loans transferred from Stage 2 to Stage 3 was RMB62,236 million (for the year ended 31 December
+2020: RMB84,321 million). The gross carrying amount of loans transferred from Stage 2 to Stage 1 was RMB27,972 million (for the
+year ended 31 December 2020: RMB16,182 million). The changes of impairment allowances resulting from loans transferred from
+Stage 1 to Stage 3, and Stage 3 to Stage 1 and Stage 2 was not significant (for the year ended 31 December 2020: not significant).
+For the year ended 31 December 2021, the changes of impairment allowances resulting from stage-transfer of domestic branch
+personal loans and advances to customers were not significant (for the year ended 31 December 2020: not significant).
+For the year ended 31 December 2021, the gross carrying amount of the loans of which impairment allowances were transferred
+from Stage 3 to Stage 2, and from Stage 3 or Stage 2 to Stage 1, due to the modification of contractual cash flows of domestic
+branches which did not result in derecognition was not significant (for the year ended 31 December 2020: not significant).
+China Construction Bank Corporation
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+172,536
+(94,802)
+(a)
+141,273
+148,384
+(59,999)
+(59,999)
+13,760
+13,760
+310,207
+154,465
+172,666
+637,338
+2020
+Note
+Stage 1
+Stage 2
+240,027
+92,880
+Stage 3
+149,251
+Total
+482,158
+4,187
+(3,944)
+(243)
+(10,992)
+11,901
+(909)
+(3,804)
+(27,823)
+31,627
+83,341
+Enterprises
+5,155,168
+Financial assets measured at fair value through other comprehensive income
+30
+526
+629
+91
+1,385
+405
+1,415
+931
+734
+356
+681
+575
+31 December
+2020
+2021
+31 December
+931
+1,415
+31 December
+2021
+31 December
+Financial assets measured at fair value through profit or loss (continued)
+(a)
+Analysed by measurement (continued)
+(1)
+FINANCIAL INVESTMENTS (CONTINUED)
+26
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Total
+NOTES TO THE FINANCIAL STATEMENTS
+Stage 2
+The amounts of changes in the fair value of these financial assets that were attributable to changes in credit risk were
+considered not significant during the year presented and cumulatively as at 31 December 2021 and 2020.
+Other debt instruments were mainly deposits with banks and non-bank financial institutions, debt securities and credit
+assets invested by principal guaranteed wealth management products.
+61,180
+29,030
+32,150
+2020
+China Construction Bank Corporation 223
+Annual Report 2021
+Banks and non-bank financial institutions
+Enterprises
+(iii)
+Financial assets designated as measured at fair value through profit or loss
+Other debt instruments
+170,365
+123,857
+712
+1,326
+396
+170,365
+123,461
+170,365
+NOTES TO THE FINANCIAL STATEMENTS
+123,857
+64,700
+43,639
+33,769
+16,936
+20,173
+211
+34,105
+Note: Debt securities traded on the China Domestic Interbank Bond Market are classified as "Listed".
+Analysed by type of issuers (continued)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+FINANCIAL INVESTMENTS (CONTINUED)
+Total
+4,505,243
+Unlisted
+- of which in Hong Kong
+Listed
+Total
+Enterprises
+26
+Banks and non-bank financial institutions
+(ii)
+Held-for-trading purposes (continued)
+Analysed by type of issuers (continued)
+Financial assets measured at fair value through profit or loss (continued)
+(a)
+Analysed by measurement (continued)
+(1)
+Equity instruments and funds
+51,723
+Others
+Credit investments
+222
+China Construction Bank Corporation
+Annual Report 2021
+Government
+Central banks
+Policy banks
+Banks and non-bank financial institutions
+Enterprises
+Total
+Listed (Note)
+- of which in Hong Kong
+Unlisted
+Total
+7,641,919
+6,950,653
+Policy banks
+Debt securities
+(i)
+Held-for-trading purposes
+Analysed by type of issuers
+(c)
+1,941,478
+1,867,458
+Total
+(a)
+Financial assets measured at fair value through profit or loss
+Analysed by nature
+Held-for-trading purposes
+Note
+- Debt securities
+Financial assets designated as measured at fair value through profit or loss
+- Other debt instruments
+Others
+- Credit investments
+- Debt securities
+- Funds and others
+Total
+- Equity instruments and funds
+31 December
+2021
+31 December
+2020
+420,485
+344,992
+545,273
+577,952
+31 December
+2021
+31 December
+2020
+215,219
+Debt securities
+Total
+Unlisted
+- of which in Hong Kong
+Listed
+Total
+Enterprises
+Banks and non-bank financial institutions
+(v)
+(iv)
+264,125
+115,571
+(i)
+(ii)
+123,857
+931
+170,365
+1,415
+(iii)
+124,788
+(vi)
+171,780
+61,180
+(iv)
+19,613
+14,202
+33
+(V)
+136,747
+61,180
+28,966
+Cost/Deemed cost
+2,032
+Accumulated depreciation
+297,043
+35,529
+56,232
+11,628
+146,606
+As at 31 December 2021
+(13,074)
+(4,545)
+(2,525)
+(4,537)
+(746)
+(721)
+Other movements
+2,679
+2,374
+(10,241)
+As at 1 January 2021
+5,188
+(47,755)
+(5,872)
+(7,082)
+(37,661)
+(52,501)
+As at 31 December 2021
+9,435
+(17,601)
+(5,016)
+4,540
+273
+4,421
+201
+Other movements
+(1,483)
+(6,155)
+(4,947)
+Charge for the year
+(119,761)
+(30,207)
+(35,927)
+Transfer in/(out)
+17,359
+2,080
+Annual Report 2021
+China Construction Bank Corporation
+Structured entities included in the Group's scope of consolidation consisted mainly of asset management plans and trust plans
+partially invested by the Group.
+Consolidated structured entities
+As at 31 December 2021, the balance of the non-principal guaranteed wealth management products set up by the Group
+amounted to RMB2,372,279 million (as at 31 December 2020: RMB2,167,886 million), and the balance of trust plans, funds and asset
+management plans issued or established by the Group amounted to RMB3,182,800 million (as at 31 December 2020: RMB3,068,334
+million). For the year ended 31 December 2021, the Group also entered into a small number of resale agreements with the above-
+mentioned non-principal guaranteed wealth management products. These resale agreements transactions were conducted in
+accordance with market price or general commercial terms and conditions, and the gains or losses from such transactions had no
+significant impact on the Group.
+21,293
+27,726
+660
+1,252
+2,955
+3,163
+1,050
+937
+(126)
+169
+14,722
+18,858
+29
+FIXED ASSETS
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+3,356
+5,645
+292,758
+46,834
+34,698
+52,750
+17,242
+5,373
+905
+3,347
+Additions
+As at 1 January 2021
+Total
+Others
+Aircraft
+and vessels
+Equipment
+in progress
+Construction
+Bank
+premises
+141,234
+47,048
+Bank (Asia)
+2021
+RMB2,300
+Company with
+Pension
+85%
+85%
+Establishment
+million
+Limited Liability
+Management
+Sino-German
+Tianjin, the PRC
+RMB2,000
+Company with
+House
+75.10%
+Establishment
+Bausparkasse
+million
+Limited Liability
+savings
+CCB Malaysia
+Beijing,
+the PRC
+Kuala Lumpur,
+CCB Pension
+Acquisition
+Establishment
+Limited Liability
+Banking
+CCB London
+London,
+United Kingdom
+US$200
+million
+RMB1,500
+million
+Company with
+Commercial
+100%
+100%
+Establishment
+Limited Liability
+Banking
+CCB Indonesia
+Jakarta,
+Indonesia
+IDR3,791,973
+million
+Company Limited
+by Shares
+Commercial
+60%
+60%
+Banking
+MYR823
+Company with
+Commercial
+Establishment
+million
+Limited Liability
+Banking
+Golden Fountain
+British
+US$50,000
+Company with
+Investment
+100%
+100%
+Acquisition
+Virgin Islands
+Limited Liability
+CCB Principal
+Beijing,
+RMB200
+Asset Management
+the PRC
+million
+Company with
+Limited Liability
+100%
+100%
+Commercial
+Company with
+100%
+100%
+Establishment
+Malaysia
+million
+Limited Liability
+Banking
+CCB New Zealand
+Auckland,
+NZD199
+100%
+Company with
+100%
+100%
+Establishment
+New Zealand
+million
+Limited Liability
+Banking
+CCB Russia
+Moscow,
+Russia
+RUB4,200
+Commercial
+Fund management
+100%
+by Shares
+Company with
+by the Bank
+the Bank
+investment
+CCB Investment
+Beijing,
+the PRC
+RMB27,000
+Company with
+Investment
+100%
+100%
+Establishment
+million
+Limited Liability
+CCB Wealth
+Management
+Shenzhen,
+the PRC
+RMB15,000
+Company with
+Wealth
+100%
+100%
+the Bank
+Establishment
+Principal activities
+Method of
+230
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+27
+LONG-TERM EQUITY INVESTMENTS (CONTINUED)
+(1)
+Investments in subsidiaries (continued)
+(b)
+Except for CCB Indonesia, the major subsidiaries of the Group are unlisted enterprises, details of the investments in
+subsidiaries are as follows:
+% of
+ownership
+Principal
+place of
+Particulars of
+directly
+% of
+ownership
+indirectly
+% of
+voting
+rights
+Name of company
+business
+issued and
+paid-up capital
+held by
+held
+held by
+Kind of legal entity
+million
+Limited Liability
+Management
+- Investimentos e
+Participações Ltda.
+CCB Trust
+Anhui,
+the PRC
+RMB10,500
+million
+Company with
+Trust business
+67%
+67%
+Acquisition
+Limited Liability
+CCB Life
+CCB Europe
+Shanghai,
+the PRC
+Luxembourg
+RMB7,120 million
+Company Limited
+Insurance
+51%
+51%
+Acquisition
+EUR550 million
+Limited Liability
+million
+Brasil
+Financial Holding
+CCB Financial Leasing
+Beijing,
+RMB11,000
+Company with
+Financial
+100%
+1
+100%
+Establishment
+the PRC
+Commercial
+million
+Leasing
+CCB Brazil
+Sao Paulo,
+R$4,281
+Company with
+Investment
+99.99%
+0.01%
+100%
+Acquisition
+Limited Liability
+65%
+65%
+Establishment
+Hong Kong, the PRC
+HK$10,000
+Property
+investment
+50.00%
+50.00%
+1,569
+1,474
+Shanxi State-owned Enterprises
+Xi'an, the PRC
+RMB1,004 million
+Reform Financial Asset
+Equity
+investment
+50.00%
+50.00%
+1,004
+Equity Investment Fund
+15
+215
+102
+72
+Partnership
+Diamond String Limited
+(Limited Partnership)
+(Limited Partnership)
+238
+Net profit
+for the year
+Equity
+50.00%
+50.00%
+10,236
+1
+872
+784
+investment
+(Chengdu) Partnership
+(Limited Partnership)
+CCB Gold Investment
+Infrastructure Equity
+Investment Fund
+Tianjin, the PRC
+RMB3,500 million
+Equity
+investment
+48.57%
+40.00%
+3,958
+98
+238
+38
+(Tianjin) Partnership
+Maotai CCBT Private
+Equity Fund
+Guiyang, the PRC
+RMB681 million
+121,693
+25,692
+93,206
+41,407
+Financial assets measured at fair value through other comprehensive income
+Long-term equity investments
+Other assets
+617
+703
+13,340
+9,028
+4,431
+2,840
+Total
+165,773
+147,184
+For the years ended 31 December 2021 and 2020, the income from these unconsolidated structured entities held by the Group
+presented in the line items in the consolidated statement of comprehensive income was as follows:
+Interest income
+Fee and commission income
+Net trading gain/(loss)
+Dividend income
+Net gain arising from investment securities
+Share of profits of associates and joint ventures
+Total
+Financial assets measured at amortised cost
+Financial assets measured at fair value through profit or loss
+2020
+2021
+(Limited Partnership)
+Investment
+management
+and consultancy
+38.11%
+40.00%
+1,188
+10
+(3)
+China Construction Bank Corporation
+Annual Report 2021
+231
+232
+Revenue
+for the year
+NOTES TO THE FINANCIAL STATEMENTS
+28
+STRUCTURED ENTITIES
+(1)
+Unconsolidated structured entities
+Unconsolidated structured entities of the Group include trust plans, asset management plans, funds, asset-backed securities and
+wealth management products held for investment purposes, and non-principal guaranteed wealth management products, trust
+plans and funds, etc., which are issued or established by the Group for providing wealth management services to customers and
+earning management fees, commission and custodian fees in return.
+As at 31 December 2021 and 2020, the assets recognised for the Group's interests in the unconsolidated structured entities above
+included related investment and management fee, commission and custodian fee receivables accrued. The related carrying amount
+presented in the line items in the consolidated statement of financial position and the maximum exposure were as follows:
+(2)
+Financial investments
+31 December
+31 December
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+at year end
+Total
+liabilities
+Total
+assets at
+year end
+China Construction
+Sao Paulo,
+Bank (Brasil)
+Brasil
+HK$6,511
+million
+RMB17,600
+million
+R$2,957
+million
+Company Limited
+by Shares
+Commercial
+100%
+100%
+Acquisition
+Banking
+Company Limited
+by Shares
+Commercial
+100%
+100%
+Acquisition
+Banking
+Banco Múltiplo S/A.
+("CCB Brasil")
+(c)
+As at 31 December 2021, the amount of the non-controlling interests of the subsidiaries was immaterial to the Group.
+("CCB Asia")
+Corporation Limited
+Hong Kong,
+the PRC
+(30,683)
+services
+CCBIG
+Hong Kong,
+HK$1
+the PRC
+Company with
+Limited Liability
+Investment
+100%
+100%
+Establishment
+China Construction Bank Corporation
+CCB International
+(Holdings) Limited
+("CCB International")
+the PRC
+US$601
+million
+Company with
+Investment
+100%
+100%
+Acquisition
+Limited Liability
+China Construction
+Hong Kong,
+2020
+Annual Report 2021
+LONG-TERM EQUITY INVESTMENTS (CONTINUED)
+(162)
+(89)
+(165)
+18,875
+13,702
+In April 2021, the Bank intended to contribute RMB8,000 million to the National Green Development Fund Co., Ltd. upon
+approval by the CBIRC; In May 2021, the Bank completed the first phase of investment of RMB800 million.
+(b)
+Details of the interests in major associates and joint ventures are as follows:
+Particulars of
+Principal place of
+Name of Company
+business
+Guoxin Jianxin Equity
+Investment Fund
+Chengdu, the PRC
+issued and
+paid-up capital
+RMB9,274 million
+% of
+ownership
+% of
+voting
+Principal activities
+held
+held
+(150)
+895
+1,603
+(3,214)
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+(2)
+Interests in associates and joint ventures
+(a)
+The movements of the Group's interests in associates and joint ventures are as follows:
+Note
+2021
+2020
+As at 1 January
+27
+Increase in capital during the year
+Share of profits
+Cash dividend receivable
+Effect of exchange difference and others
+As at 31 December
+13,702
+11,353
+(i)
+4,961
+4,995
+(1,152)
+Decrease in capital during the year
+(127,927)
+75.10%
+As at 1 January 2021
+-
+136
+30
+492
+(8)
+79
+421
+12
+29
+20,238
+(383)
+7,919
+12,702
+26(2)(a)
+556,063
+(57,383)
+(36,160)
+167,448
+482,158
+25
+167
+(1)
+104
+135
+7
+31 December
+583,533
+(59,766)
+(36,544)
+179,082
+500,761
+Total
+Accrued interest
+Overseas
+Mainland China
+BORROWINGS FROM CENTRAL BANKS
+5,435
+(2,374)
+3,016
+4,793
+34
+377
+377
+32
+9
+2
+31
+2021
+63
+310
+(19,743)
+180,335
+583,533
+Transfer (out)/in includes exchange differences.
+Total
+Other assets
+Goodwill
+Intangible assets
+Land use rights
+Fixed assets
+at amortised cost
+Financial assets measured
+Loans and advances to customers
+Financial assets held under resale agreements
+non-bank financial institutions
+Placements with banks and
+Precious metals
+non-bank financial institutions
+Deposits with banks and
+Total
+6,650
+(64,010)
+24
+680,115
+As at
+=
+86
+225
+22
+222
+9
+298
+31 December
+As at
+(29)
+38
+80
+218
+21
+and others
+(out)/in
+Write-off
+Transfer
+Charge/
+(reversal)
+for the year
+1 January
+Note
+2020
+(3,087)
+31 December
+2020
+740,904
+4,538
+(8,629)
+90,948
+As at 1 January 2020
+(9,503)
+82,330
+4,348
+(5,318)
+71,857
+Recognised in profit or loss
+192
+19,452
+(547)
+(2,883)
+16,214
+Recognised in other comprehensive income
+3,328
+3,328
+As at 31 December 2020
+(5,983)
+101,782
+107,959
+3,801
+(12,920)
+(4,486)
+(6,420)
+(1,395)
+(7,379)
+(1,551)
+Allowances
+for
+Fair value
+adjustments
+impairment
+losses
+Employee
+benefits
+Others
+Total
+(5,983)
+101,782
+3,801
+(8,201)
+91,399
+(2,451)
+6,177
+737
+(428)
+4,035
+(4,486)
+640,154
+37,992
+(8,201)
+The Group did not have significant unrecognised deferred tax as at the end of the reporting period.
+Right-of-use assets
+(2)
+26,416
+25,982
+Fee and commission receivables
+23,724
+22,405
+Policyholder account assets and accounts receivable of insurance business
+12,825
+10,435
+Leasehold improvements
+2,520
+2,632
+Annual Report 2021
+239
+China Construction Bank Corporation
+781,170
+685,033
+8,451
+6,887
+31,815
+23,004
+91,399
+83,268
+1,994
+236
+China Construction Bank Corporation
+Annual Report 2021
+34
+OTHER ASSETS
+Repossessed assets
+- Buildings
+- Land use rights
+- Others
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Note
+(1)
+31 December
+2021
+31 December
+2020
+1,336
+1,458
+64
+115
+248
+421
+1,648
+Clearing and settlement accounts
+(268)
+4,302
+34
+238
+237
+China Construction Bank Corporation
+Annual Report 2021
+26,416
+47
+26,369
+As at 31 December 2021
+25,982
+42
+25,940
+As at 1 January 2021
+Net carrying value
+(17,225)
+(51)
+(17,174)
+As at 31 December 2021
+3,593
+9
+3,584
+(8,035)
+(22)
+NOTES TO THE FINANCIAL STATEMENTS
+(8,013)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+34
+60
+38,685
+(2,580)
+(38)
+(2,542)
+10,631
+14
+10,617
+30,714
+104
+30,610
+Total
+Others
+Bank premises
+As at 31 December 2020
+Other movements
+Additions
+As at 1 January 2020
+Cost
+Right-of-use assets (continued)
+(2)
+OTHER ASSETS (CONTINUED)
+80
+(12,783)
+(12,745)
+For the year ended 31 December 2021, the original cost of repossessed assets disposed of by the Group amounted to RMB376 million (for the
+year ended 31 December 2020: RMB652 million). The Group intends to dispose of repossessed assets through various methods including auction,
+competitive bidding and transfer.
+238,728
+331,113
+(4,238)
+(1,197)
+(980)
+(5,670)
+244,163
+337,763
+(1)
+Net balance
+- Others
+- Repossessed assets
+Allowances for impairment losses (Note 35)
+Gross balance
+156,412
+185,793
+Others
+1,299
+1,569
+Deferred expenses
+Allowances for impairment losses (Note 35)
+(2)
+(38)
+Right-of-use assets
+As at 1 January 2021
+43,641
+98
+43,543
+(5,109)
+(12)
+(5,097)
+9,985
+30
+9,955
+38,765
+80
+38,685
+Total
+Others
+Bank premises
+Other movements
+As at 1 January 2021
+Charge for the year
+Accumulated depreciation
+As at 31 December 2021
+Other movements
+Additions
+Cost
+5,435
+38,765
+As at 1 January 2020
+92
+(75)
+167
+24
+414
+9
+95
+310
+22
+222
+Other assets
+Goodwill
+Intangible assets
+Land use rights
+Fixed assets
+at amortised cost
+Financial assets measured
+Loans and advances to customers
+Financial assets held under resale agreements
+non-bank financial institutions
+Placements with banks and
+556,063
+13
+160,048
+(59,999)
+321
+(56)
+377
+32
+9
+9
+31
+135
+135
+30
+790
+(6)
+34,228
+(927)
+(913)
+15,830
+304
+20,238
+492
+29
+(a)
+26(2)
+637,338
+(18,774)
+Accumulated depreciation
+- 125
+9
+24,460
+71
+24,389
+(12,783)
+(38)
+(12,745)
+As at 31 December 2020
+As at 1 January 2020
+Net carrying value
+As at 31 December 2020
+1,166
+21
+1,145
+(7,695)
+(26)
+(7,669)
+Other movements
+Charge for the year
+(6,254)
+(33)
+(6,221)
+25,940
+4
+The Group's right-of-use assets include the above assets and land use rights disclosed in note 30.
+Annual Report 2021
+Precious metals
+(173)
+298
+21
+financial institutions
+Deposits with banks and non-bank
+and others 31 December
+As at
+Write-off
+Transfer
+(out)/in
+(Reversal)/
+charge for
+the year
+1 January
+Note
+As at
+2021
+36
+35 MOVEMENTS OF ALLOWANCES FOR IMPAIRMENT LOSSES
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+25,982
+42
+China Construction Bank Corporation
+(1,469)
+25
+(1,283)
+93,087
+17,241
+16,823
+28,730
+16,624
+172,505
+Notes:
+(1)
+Other movements include disposals, retirements and exchange differences of fixed assets.
+(2)
+As at 31 December 2021, the ownership documentation for the Group's bank premises with a net carrying value of RMB11,997 million (as at 31
+December 2020: RMB12,002 million) was being finalised. However, management is of the view that the aforesaid matter would not affect the rights of
+the Group to these assets nor have any significant impact on the business operation of the Group.
+China Construction Bank Corporation
+Annual Report 2021
+233
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+30 LAND USE RIGHTS
+Cost/Deemed cost
+As at 1 January
+Additions
+Disposals
+As at 31 December
+170,740
+Amortisation
+16,053
+17,858
+Other movements
+As at 31 December 2020
+Net carrying value
+As at 1 January 2020
+As at 31 December 2020
+(393)
+(1)
+1
+(392)
+(1)
+(79)
+27
+(24)
+(3)
+(421)
+(79)
+8
+(96)
+(3)
+(492)
+93,843
+16,725
+26,261
+Charge for the year
+As at 1 January
+As at 31 December
+(135)
+(135)
+14,118
+14,738
+13,630
+The Group's right-of-use assets include the above fully prepaid land use rights and other right-of-use assets disclosed in note 34(2).
+31
+INTANGIBLE ASSETS
+Cost/Deemed cost
+As at 1 January 2021
+Additions
+Disposals
+As at 31 December 2021
+Amortisation
+As at 1 January 2021
+Charge for the year
+Disposals
+As at 31 December 2021
+Allowances for impairment losses (Note 35)
+As at 1 January 2021
+Additions
+1
+Charge for the year
+Disposals
+(136)
+(8,399)
+Allowances for impairment losses (Note 35)
+As at 1 January
+Disposals
+As at 31 December
+Net carrying value
+As at 1 January
+As at 31 December
+2021
+2020
+22,652
+145
+22,793
+2
+(105)
+(143)
+22,692
+22,652
+(8,399)
+(546)
+(7,919)
+(524)
+18
+44
+(8,927)
+(135)
+Disposals
+As at 1 January 2020
+(119,761)
+172,505
+As at 31 December 2021
+93,715
+11,628
+18,571
+28,050
+16,362
+168,326
+Bank
+premises
+Construction
+in progress
+Aircraft
+Equipment
+and vessels
+Others
+Total
+Cost/Deemed cost
+As at 1 January 2020
+137,641
+Additions
+2,299
+16,624
+16,726
+5,993
+28,730
+17,241
+Charge for the year
+(13)
+Other movements
+As at 31 December 2021
+Net carrying value
+As at 1 January 2021
+(392)
+(1)
+2
+1
+(390)
+(96)
+(304)
+(3)
+(492)
+(304)
+3
+6
+(397)
+(3)
+(790)
+93,087
+16,823
+Allowances for impairment losses (Note 35)
+57,893
+48,141
+As at 1 January 2020
+(43,405)
+(40,035)
+(4,525)
+(32,085)
+(120,050)
+Charge for the year
+(4,676)
+(6,444)
+(1,654)
+Other movements
+326
+307
+(4,578)
+6,456
+(17,352)
+17,641
+As at 31 December 2020
+(47,755)
+(35,927)
+(5,872)
+(30,207)
+Accumulated depreciation
+30,810
+292,758
+34,698
+291,211
+5,636
+5,604
+3,425
+22,957
+Transfer in/(out)
+2,749
+(5,281)
+48
+2,484
+Other movements
+(1,455)
+(196)
+(10,827)
+(1,716)
+(7,216)
+(21,410)
+As at 31 December 2020
+141,234
+17,242
+52,750
+46,834
+As at 31 December 2021
+10,552
+As at 1 January 2021
+235
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+33 DEFERRED TAX
+Deferred tax assets
+Deferred tax liabilities
+Total
+(1)
+Analysed by nature
+(2)
+31 December
+31 December
+2021
+2020
+92,343
+92,950
+(1,395)
+(1,551)
+90,948
+91,399
+China Construction Bank Corporation
+31 December 2021
+As at 31 December 2021, the Group's goodwill impairment provision amounted to RMB321 million (as at 31 December 2020:
+RMB377 million), mainly due to goodwill impairment of CCB Brasil CGU.
+2,210
+161
+3,627
+875
+4,502
+4,394
+885
+5,279
+The goodwill is mainly attributable to the expected synergies arising from the acquisition of CCB Asia, CCB Brasil and CCB Indonesia.
+The movements of the goodwill are as follows:
+As at 1 January
+Effect of exchange difference
+Allowances for impairment losses (Note 35)
+As at 31 December
+Impairment test for CGU containing goodwill
+2021
+2020
+2,210
+2,809
+(69)
+(222)
+(377)
+2,141
+The Group calculated the recoverable amounts of CGUS (including goodwill) in accordance with accounting policies. The Group
+estimated present values of future cash flows of CGUs using expected future cash flow projections based on financial forecasts
+approved by management. The average growth rates used by the Group were consistent with the forecasts in industry reports,
+while the discount rates reflected specific risks relating to relevant segments. The Group estimated net amounts of fair value less
+costs of disposal based on net assets within the CGUS.
+(9)
+31 December 2020
+Deductible/
+(8,616)
+(32,582)
+(7,933)
+Total
+Deferred tax liabilities
+- Fair value adjustments
+- Others
+Total
+Movements of deferred tax
+As at 1 January 2021
+Recognised in profit or loss
+Recognised in other comprehensive income
+As at 31 December 2021
+378,516
+92,343
+370,500
+92,950
+(6,059)
+(361)
+Net carrying value
+(1,382)
+(5,910)
+(26,222)
+Deductible/
+- Others
+15,331
+(taxable)
+(taxable)
+temporary
+differences
+tax assets/
+(liabilities)
+temporary
+differences
+Deferred
+tax assets/
+(liabilities)
+Deferred tax assets
+- Fair value adjustments
+(46,115)
+(11,538)
+(19,059)
+(4,700)
+- Allowances for impairment losses
+432,616
+107,959
+406,810
+101,782
+- Employee benefits
+18,237
+4,538
+3,801
+(9)
+Deferred
+(7)
+(1,976)
+79
+237
+316
+(10,904)
+(437)
+(11,341)
+(9)
+(9)
+(9)
+(9)
+4,394
+885
+5,279
+5,271
+587
+5,858
+NOTES TO THE FINANCIAL STATEMENTS
+31 INTANGIBLE ASSETS (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Cost/Deemed cost
+(1,883)
+As at 1 January 2020
+(9,681)
+(9,100)
+As at 31 December 2021
+234
+China Construction Bank Corporation
+Sa
+Annual Report 2021
+14,118
+Software
+Others
+Total
+13,494
+1,475
+14,969
+2,779
+129
+2,908
+(98)
+(571)
+(669)
+16,175
+1,033
+17,208
+(581)
+Additions
+(93)
+As at 31 December 2020
+131
+2,206
+(279)
+(79)
+(358)
+13,494
+1,475
+14,969
+(8,071)
+(8,612)
+2,075
+(1,277)
+(1,354)
+248
+37
+285
+(9,100)
+(581)
+Disposals
+(9,681)
+(7)
+21
+(77)
+(2)
+(541)
+13,121
+As at 1 January 2020
+Charge for the year
+Disposals
+As at 31 December 2020
+Allowances for impairment losses (Note 35)
+As at 1 January 2020
+Additions
+Disposals
+Amortisation
+Net carrying value
+As at 1 January 2020
+As at 31 December 2020
+32
+GOODWILL
+1,423
+(1)
+(2)
+Software
+Others
+Total
+As at 31 December 2020
+11,698
+RMB
+RMB
+Mainland China
+2,600
+26/01/2024
+26/01/2021
+2,600
+20,000
+3.30%
+02/02/2021
+3.55%
+3.65%
+Mainland China
+RMB
+2,240
+07/04/2021
+12/04/2024
+22/04/2023
+22/04/2021
+Mainland China
+RMB
+2,200
+Mainland China
+04/02/2024
+3.70%
+1.78%
+03/11/2020
+NZD
+652
+2.85%
+Auckland
+708
+28/09/2020
+28/09/2025
+Hong Kong
+USD
+1,272
+1,308
+28/09/2020
+28/09/2030
+2.55%
+Hong Kong
+USD
+636
+654
+27/10/2020
+29/10/2023
+3.50%
+Mainland China
+RMB
+20,000
+20,000
+05/11/2023
+Singapore
+1.50%
+1,997
+5,760
+22/07/2021
+22/07/2026
+1.80%
+Hong Kong
+USD
+2,690
+15/09/2021
+15/09/2026
+1.60%
+Hong Kong
+USD
+2,232
+29/09/2021
+29/09/2026
+Hong Kong
+USD
+4,453
+21/12/2021
+21/12/2024
+0.01%
+Hong Kong
+3,078
+0.954%
+USD
+EUR
+RMB
+Luxembourg
+28/06/2024
+22/04/2021
+22/04/2024
+0.043%
+Luxembourg
+EUR
+5,760
+22/04/2021
+22/04/2024
+0.86%
+Hong Kong
+USD
+3,817
+22/04/2021
+22/04/2026
+1.46%
+Hong Kong
+USD
+3,499
+27/05/2021
+01/06/2024
+3.33%
+Mainland China
+RMB
+1,950
+28/06/2021
+0.06%
+25/09/2023
+3.30%
+2,950
+3.50%
+Hong Kong
+USD
+1,908
+1,962
+12/09/2019
+12/08/2022
+3M LIBOR+0.68%
+Auckland
+USD
+637
+16/05/2024
+654
+22/10/2022
+0.05%
+Luxembourg
+EUR
+3,600
+4,022
+24/10/2019
+22/11/2019
+10/12/2019
+24/10/2024
+22/11/2024
+10/11/2022
+20/12/2019
+22/10/2019
+11/09/2019
+3,000
+3,000
+16/05/2029
+Total nominal value
+3.88%
+Hong Kong
+USD
+1,272
+1,308
+26/06/2019
+24/06/2022
+0.21%
+Japan
+JPY
+1,105
+1,268
+26/08/2019
+26/08/2022
+Mainland China
+RMB
+6,300
+6,300
+26/08/2019
+26/08/2024
+3.40%
+Mainland China
+RMB
+20/06/2022
+25/09/2020
+3M LIBOR+0.77%
+2.393%
+3-month
+New Zealand
+benchmark
+interest rate +0.88%
+3M LIBOR +0.63%
+USD
+Interest rate
+per annum
+2.68%
+2.75%
+2.95%
+Issue place
+Currency
+31 December
+2021
+31 December
+2020
+Mainland China
+RMB
+6,000
+6,000
+Mainland China
+19/03/2022
+RMB
+5,000
+Hong Kong
+RMB
+802
+802
+21/07/2020
+21/07/2025
+1.99%
+Hong Kong
+USD
+2,876
+5,000
+19/03/2020
+15/03/2025
+16/03/2020
+4,262
+4,383
+Auckland
+NZD
+370
+401
+Auckland
+NZD
+391
+425
+Luxembourg
+USD
+1,904
+1,967
+China Construction Bank Corporation
+Annual Report 2021
+45
+DEBT SECURITIES ISSUED (CONTINUED)
+(2) Bonds issued (continued)
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Issue date
+Maturity date
+16/03/2020
+15/03/2023
+Hong Kong
+Less: Unamortised
+31 December
+Carrying value as at year
+issuance cost
+Carrying value as at
+year end
+337,491
+193,181
+(133)
+(132)
+337,358
+193,049
+(a)
+(b)
+(c)
+Less: Unamortised
+(d)
+The Group has an option to redeem the bonds on 18 August 2024, subject to approval from the relevant authority. These eligible Tier 2 capital
+bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down the entire principal of the bonds when
+a regulatory triggering event occurs. Any accumulated unpaid interest will not be paid either.
+The Group has an option to redeem the bonds on 25 September 2023, subject to approval from the relevant authority. These eligible Tier
+2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down the entire principal of the
+bonds when a regulatory triggering event occurs. Any accumulated unpaid interest will not be paid either.
+The Group has an option to redeem the bonds on 29 October 2023, subject to approval from the relevant authority. These eligible Tier 2
+capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down the entire principal of the
+bonds when a regulatory triggering event occurs. Any accumulated unpaid interest will not be paid either.
+The Group has an option to redeem the bonds on 27 February 2024, subject to approval from the relevant authority. If they are not redeemed
+by the Group, the interest rate will be reset on 27 February 2024 and increase by 1.88% on the basis of the five-year USD treasury benchmark
+applicable on the interest reset date. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which
+allows the Bank to write down the entire principal of the bonds when a regulatory triggering event occurs. Any accumulated unpaid interest
+will not be paid either.
+The Group has an option to redeem the bonds on 24 June 2025, subject to approval from the relevant authority. If they are not redeemed
+by the Group, the interest rate will be reset on 24 June 2025 and increase by 2.15% on the basis of the five-year USD treasury benchmark
+applicable on the interest reset date. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which
+allows the Bank to write down the entire principal of the bonds when a regulatory triggering event occurs. Any accumulated unpaid interest
+will not be paid either.
+248
+China Construction Bank Corporation
+Annual Report 2021
+45
+DEBT SECURITIES ISSUED (CONTINUED)
+(4) Eligible Tier 2 capital bonds issued (continued)
+(f)
+(e)
+Total nominal value
+8,000
+(1)
+3.80%
+RMB
+15,000
+05/11/2021
+09/11/2031
+3.60%
+RMB
+(i)
+35,000
+05/11/2021
+09/11/2036
+3.80%
+RMB
+(j)
+10,000
+10/12/2021
+14/12/2031
+3.48%
+RMB
+(k)
+12,000
+10/12/2021
+14/12/2036
+3.74%
+RMB
+NOTES TO THE FINANCIAL STATEMENTS
+10/08/2036
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+(g)
+40,905
+47,169
+25,161
+93,031
+(1)
+23,749
+23,591
+17,492
+17,894
+8,178
+7,195
+172,327
+6,460
+6,068
+8,850
+5,804
+5,225
+209,021
+160,285
+551,549
+545,240
+China Construction Bank Corporation
+Annual Report 2021
+249
+16/05/2019
+9,673
+208,711
+2020
+2021
+(h)
+(i)
+(j)
+(k)
+(1)
+The Group has an option to redeem the bonds on 10 August 2026, subject to approval from the relevant authority. These eligible Tier 2 capital
+bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down the entire principal of the bonds when
+a regulatory triggering event occurs. Any accumulated unpaid interest will not be paid either.
+The Group has an option to redeem the bonds on 10 August 2031, subject to approval from the relevant authority. These eligible Tier 2 capital
+bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down the entire principal of the bonds when
+a regulatory triggering event occurs. Any accumulated unpaid interest will not be paid either.
+The Group has an option to redeem the bonds on 9 November 2026, subject to approval from the relevant authority. These eligible Tier 2
+capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down the entire principal of the
+bonds when a regulatory triggering event occurs. Any accumulated unpaid interest will not be paid either.
+The Group has an option to redeem the bonds on 9 November 2031, subject to approval from the relevant authority. These eligible Tier 2
+capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down the entire principal of the
+bonds when a regulatory triggering event occurs. Any accumulated unpaid interest will not be paid either.
+The Group has an option to redeem the bonds on 14 December 2026, subject to approval from the relevant authority. These eligible Tier
+2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down the entire principal of the
+bonds when a regulatory triggering event occurs. Any accumulated unpaid interest will not be paid either.
+The Group has an option to redeem the bonds on 14 December 2031, subject to approval from the relevant authority. These eligible Tier
+2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down the entire principal of the
+bonds when a regulatory triggering event occurs. Any accumulated unpaid interest will not be paid either.
+46 OTHER LIABILITIES
+Insurance related liabilities
+Payment and collection clearance accounts
+Clearing and settlement accounts
+Lease liabilities
+Deferred income
+Dormant accounts
+Capital expenditure payable
+Cash pledged and rental income received in advance
+Accrued expenses
+Others
+Total
+31 December
+Note
+The Group has an option to redeem the bonds on 14 September 2025, subject to approval from the relevant authority. These eligible Tier
+2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down the entire principal of the
+bonds when a regulatory triggering event occurs. Any accumulated unpaid interest will not be paid either.
+06/08/2021
+65,000
+RMB
+22/11/2027
+01/02/2031
+4.99%
+RMB
+(b)
+40,000
+40,000
+4.30%
+RMB
+(c)
+6,000
+46,000
+40,000
+80,000
+(14)
+45,996
+79,986
+(a)
+The Group has chosen to exercise the option to redeem all the bonds on 7 November 2021.
+(b)
+The Group has an option to redeem the bonds on 22 November 2022, subject to approval from the relevant authority.
+(c)
+The Group has an option to redeem part or all of the bonds on 1 February 2026, subject to registration from the PBOC and the CBIRC.
+China Construction Bank Corporation
+247
+(4)
+(a)
+RMB
+5.70%
+end
+141,997
+(133)
+125,895
+(24)
+141,864
+125,871
+(3)
+Subordinated bonds issued
+The carrying value of the Group's subordinated bonds issued upon the approval of the PBOC and the CBIRC is as follows:
+Issue date
+03/11/2011
+20/11/2012
+28/01/2021
+Total nominal value
+Less: Unamortised
+issuance cost
+Carrying value
+Maturity date
+Interest rate
+per annum
+Currency
+Note
+31 December
+2021
+31 December
+2020
+07/11/2026
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+45 DEBT SECURITIES ISSUED (CONTINUED)
+(4) Eligible Tier 2 capital bonds issued
+40,000
+40,000
+27/02/2019
+27/02/2029
+4.25%
+USD
+(d)
+11,768
+12,100
+24/06/2020
+24/06/2030
+2.45%
+USD
+(e)
+12,723
+13,081
+10/09/2020
+14/09/2030
+4.20%
+RMB
+65,000
+65,000
+06/08/2021
+10/08/2031
+3.45%
+(c)
+issuance costs
+RMB
+29/10/2028
+Interest rate
+31 December
+31 December
+Issue date
+Maturity date
+per annum
+Currency
+Note
+2021
+2020
+18/08/2014
+18/08/2029
+5.98%
+RMB
+(a)
+20,000
+20,000
+25/09/2018
+25/09/2028
+4.86%
+RMB
+(b)
+43,000
+43,000
+29/10/2018
+4.70%
+2,603
+08/06/2018
+USD
+2
+employment relationship
+Compensation to employees for termination of
+1,005
+(423)
+32
+1,396
+Early retirement benefits
+596
+(15,635)
+12,261
+3,970
+(1)
+Post-employment benefits
+5,764
+(1,843)
+2,624
+4,983
+Union running costs and employee education costs
+5
+Others
+(2)
+4,344
+Basic pension insurance
+Unemployment insurance
+Annuity contribution
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+(a) Defined contribution plans
+Post-employment benefits
+(1)
+ACCRUED STAFF COSTS (CONTINUED)
+42
+NOTES TO THE FINANCIAL STATEMENTS
+35,460
+251
+(107,983)
+Annual Report 2021
+China Construction Bank Corporation
+242
+The Group had no overdue balance of accrued staff costs as at the end of the reporting period.
+39,075
+Total
+4,614
+(7)
+(11,011)
+11,281
+104,368
+(6,913)
+6,809
+355
+5
+employment relationship
+Compensation to employees for termination of
+918
+(99)
+12
+1,005
+Early retirement benefits
+637
+Others
+(14,801)
+596
+2,536
+Post-employment benefits
+6,907
+(2,320)
+3,463
+5,764
+Union running costs and employee education costs
+27,716
+308
+14,842
+Total
+(2)
+13,159
+Housing funds
+23,230
+(72,151)
+71,356
+24,025
+Salaries, bonuses, allowances and subsidies
+31 December
+Decreased
+Increased
+4,614
+As at
+Note
+2020
+40,998
+(112,889)
+118,427
+35,460
+Total
+4,512
+(5)
+(13,261)
+As at
+1 January
+Basic pension insurance
+Unemployment insurance
+Annuity contribution
+Total
+2021
+(14)
+(30)
+183
+190
+169
+160
+- Interest costs
+Cost of the net defined
+benefit liability in profit
+or loss
+As at 1 January
+Remeasurements of the
+(363)
+6,139
+6,122
+5,776
+5,266
+2020
+2021
+2020
+2021
+2020
+(856)
+2021
+defined benefit liability
+in other comprehensive
+income
+178
+(856)
+(861)
+6,122
+5,944
+5,266
+5,083
+(574)
+(521)
+(574)
+- Actuarial losses/(gains)
+(521)
+- Benefits paid
+Other changes
+(105)
+(374)
+(153)
+374
+153
+- Returns on plan assets
+178
+(105)
+As at 31 December
+(7,216)
+Net assets of defined
+benefit plans
+Present value of defined
+benefit plan obligations
+1,498
+(14,618)
+14,664
+1,452
+721
+(5,518)
+5,365
+45
+732
+2020
+(8,778)
+(322)
+49
+874
+8,981
+529
+31 December
+Decreased
+Increased
+1 January
+As at
+As at
+318
+Fair value of plan assets
+As at
+1 January
+The Group's obligations in respect of the supplementary retirement benefits as at the end of the reporting period were
+calculated using the projected unit credit method and reviewed by an external independent actuary, Towers Watson
+Management Consulting (Shenzhen) Co., Ltd.
+Defined benefit plans - Supplementary retirement benefits
+(b)
+1,452
+(15,142)
+12,261
+4,333
+874
+(8,294)
+As at
+49
+(6,630)
+(218)
+225
+5,485
+3,683
+42
+6,551
+608
+31 December
+Decreased
+Increased
+529
+7,273
+251
+Housing funds
+NOTES TO THE FINANCIAL STATEMENTS
+349,638
+299,275
+1,276
+1,146
+177,238
+171,124
+156,883
+141,246
+31 December
+2020
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+31 December
+2021
+299,275
+1,276
+1,146
+331,259
+17,103
+22,294
+31 December
+2020
+2021
+275,835
+31 December
+1,943,634
+349,638
+1,932,926
+39 FINANCIAL LIABILITIES MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS
+Total
+Others
+Discounted bills
+Subtotal
+- Corporate bonds
+- Debt securities issued by policy banks, banks and non-bank financial institutions
+- Government bonds
+Debt securities
+FINANCIAL ASSETS SOLD UNDER REPURCHASE AGREEMENTS
+Financial assets sold under repurchase agreements by underlying assets are shown as follows:
+40
+Principal guaranteed wealth management products
+Financial liabilities related to precious metals
+Structured financial instruments
+The Group's financial liabilities measured at fair value through profit or loss are those designated as measured at fair value through profit or
+loss. As at the end of the reporting period, the difference between the fair value of these financial liabilities and the contractual payables at
+maturity was not material. The amounts of changes in the fair value of these financial liabilities that were attributable to changes in credit
+risk were considered not significant during the year presented and cumulatively as at 31 December 2021 and 2020.
+229,022
+165,665
+197,650
+31,453
+31,372
+56,961
+31 December
+2020
+2021
+31 December
+254,079
+Accrued interest
+5,697
+1,797,413
+140,524
+Banks
+(1) Analysed by type of counterparties
+PLACEMENTS FROM BANKS AND NON-BANK FINANCIAL INSTITUTIONS
+Total
+Accrued interest
+Overseas
+Mainland China
+Analysed by geographical sectors
+Total
+Non-bank financial institutions
+Accrued interest
+Banks
+38
+Analysed by type of counterparties
+(1)
+DEPOSITS FROM BANKS AND NON-BANK FINANCIAL INSTITUTIONS
+37
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+240
+Non-bank financial institutions
+10,336
+Accrued interest
+(2)
+1,773,838
+148,752
+31 December
+2020
+31 December
+2021
+1,943,634
+1,932,926
+5,697
+10,336
+248,404
+1,689,533
+219,393
+1,703,197
+Total
+2020
+31 December
+31 December
+Annual Report 2021
+China Construction Bank Corporation
+Total
+Accrued interest
+Overseas
+Mainland China
+Analysed by geographical sectors
+2021
+Interest cost was recognised in operating expenses.
+Total
+31 December
+2021
+31 December
+31 December
+2021
+42 ACCRUED STAFF COSTS
+(2) Outward remittance and remittance payables
+Total
+- Others
+- Deposits for letter of credit
+2020
+- Deposits for guarantee
+Pledged deposits
+(1)
+Deposits from customers include:
+41 DEPOSITS FROM CUSTOMERS (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+241
+Annual Report 2021
+China Construction Bank Corporation
+- Deposits for acceptance
+20,614,976
+79,552
+38,268
+(75,187)
+79,673
+23,230
+Salaries, bonuses, allowances and subsidies
+31 December
+Decreased
+Increased
+1 January
+Note
+63,427
+As at
+17,542
+12,824
+314,114
+327,466
+190,387
+191,702
+17,760
+17,944
+42,540
+As at
+31 December
+22,378,814
+350,191
+31 December
+DEPOSITS FROM CUSTOMERS
+41
+56,725
+33,900
+42
+25
+1,198
+1,408
+2021
+778
+33,097
+1,478
+2,764
+10,488
+9,565
+42,111
+20,768
+2020
+2021
+54,077
+276,348
+31 December
+2020
+- Corporate customers
+9,267,283
+10,491,113
+Total
+Accrued interest
+Subtotal
+5,670,385
+6,541,654
+- Personal customers
+3,596,898
+Demand deposits
+3,949,459
+Time deposits (including call deposits)
+11,071,345
+11,537,510
+Subtotal
+4,716,452
+4,920,726
+6,354,893
+6,616,784
+- Personal customers
+- Corporate customers
+China Construction Bank Corporation 243
+Annual Report 2021
+(1)
+NOTES TO THE FINANCIAL STATEMENTS
+RMB
+Mainland China
+3.05%
+09/11/2021
+09/11/2016
+4,579
+USD
+Hong Kong
+2.25%
+21/10/2021
+21/10/2016
+1,951
+USD
+Hong Kong
+2.75%
+31/05/2021
+31/05/2016
+3,500
+RMB
+800
+13/06/2017
+13/06/2022
+2.75%
+04/12/2022
+04/12/2017
+708
+652
+NZD
+Auckland
+3.93%
+09/11/2022
+09/11/2017
+Mainland China
+654
+USD
+Hong Kong
+3.15%
+25/10/2022
+25/10/2017
+3,925
+3,817
+USD
+Hong Kong
+636
+4.08%
+30/03/2021
+30/03/2016
+Maturity date
+Issue date
+Bonds issued
+(2)
+Certificates of deposit issued were mainly issued by the head office, overseas branches, CCB Europe, CCB New Zealand and CCB
+International.
+(1)
+940,197
+1,323,377
+4,241
+Interest rate
+per annum
+6,047
+337,358
+(4)
+79,986
+45,996
+(3)
+125,871
+141,864
+(2)
+537,050
+193,049
+3.00%
+31 December
+2021
+600
+600
+RMB
+Taiwan
+4.08%
+18/11/2024
+18/11/2014
+1,000
+RMB
+Issue place Currency
+Taiwan
+18/11/2021
+18/11/2014
+600
+RMB
+Taiwan
+4.00%
+05/09/2021
+05/09/2014
+31 December
+2020
+3.95%
+Hong Kong
+USD
+2,544
+165
+152
+NZD
+Auckland
+3,000
+RMB
+Mainland China
+4.48%
+4.005%
+4.25%
+23/08/2021
+Mainland China
+23/08/2018
+21/08/2018
+20/07/2021
+20/07/2018
+2,616
+2,545
+USD
+Hong Kong
+3M LIBOR+1.25%
+472
+19/06/2023
+435
+RMB
+24/09/2018
+Hong Kong
+3.50%
+16/05/2024
+16/05/2019
+654
+USD
+Auckland
+3M LIBOR+0.75%
+244
+2,500
+20/12/2018
+EUR
+Luxembourg
+6,541
+USD
+Hong Kong
+3M LIBOR+0.75%
+3M EURIBOR +0.60%
+24/09/2021
+24/09/2018
+24/09/2021
+4,022
+792,112
+NZD
+4.01%
+30/04/2018
+6,000
+RMB
+Mainland China
+4.88%
+18/04/2021
+18/04/2018
+523
+USD
+30/04/2021
+Hong Kong
+26/03/2021
+17/04/2018
+47
+NZD
+Auckland
+3.20%
+13/03/2021
+13/03/2018
+2,616
+3M LIBOR+0.75%
+Auckland
+3M LIBOR+0.75%
+USD
+3,925
+3,817
+USD
+Hong Kong
+5,887
+USD
+Hong Kong
+3M LIBOR+0.73%
+3M LIBOR+0.83%
+08/06/2023
+19/06/2023
+12/07/2023
+Hong Kong
+12/07/2018
+08/06/2018
+08/06/2021
+164
+USD
+Hong Kong
+3M LIBOR+0.80%
+04/05/2021
+04/05/2018
+131
+19/06/2018
+(1)
+20/12/2021
+2021
+10,665
+72,174
+73,128
+2020
+2021
+31 December
+31 December
+Annual Report 2021
+China Construction Bank Corporation
+9,701
+Total
+Value added tax
+Income tax
+43 TAXES PAYABLE
+Accrued staff costs - others mainly include employee welfare, medical insurance, maternity insurance and employment injury
+insurance.
+6,122
+5,944
+4,800
+4,531
+1,007
+Others
+823
+2,549
+86,342
+Transfers:
+As at 1 January 2020
+As at 31 December 2021
+Remeasurements
+Decreased
+Newly originated
+Transfers in/(out) to Stage 3
+Transfers in/(out) to Stage 2
+Transfers in/(out) to Stage 1
+2,286
+Transfers:
+Movements of loss provisions from off-balance sheet credit business:
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+(2)
+(1)
+Total
+Expected credit losses from the off-balance sheet credit business
+Expected losses from other businesses
+44 PROVISIONS
+84,161
+As at 1 January 2021
+Transfers in/(out) to Stage 1
+315
+31 December
+2020
+7.00%
+3.25%
+2.75%
+2020
+31 December
+31 December
+2021
+Average expected future lifetime of eligible employees
+Health care cost increase rate
+Discount rate
+7.00%
+(iii)
+Principal actuarial assumptions of the Group as at the end of the reporting period were as follows:
+(i)
+Defined benefit plans - Supplementary retirement benefits (continued)
+(b)
+(1)
+ACCRUED STAFF COSTS (CONTINUED)
+42
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+2020
+(ii)
+590
+11.0 years
+Mortality assumptions are based on China Life Insurance Mortality Table (2010-2013). The Table published historical
+statistics in China.
+2021
+31 December
+Total
+Debt instruments and others
+Equity instruments
+Cash and cash equivalents
+Plan assets of the Group are as follows:
+(iv)
+As at 31 December 2021, the weighted average duration of supplementary retirement benefit obligations of the
+Group was 8.0 years (as at 31 December 2020: 7.9 years).
+11.4 years
+(39)
+Decrease in
+assumption
+by 0.25%
+41
+Increase in
+assumption
+by 0.25%
+(100)
+retirement benefit obligations
+supplementary
+Impact on present value of
+Health care cost increase rate
+Discount rate
+The sensitivity of the present value of supplementary retirement benefit obligations to changes in the weighted
+principal assumption is:
+103
+Transfers in/(out) to Stage 2
+Post-employment benefits (continued)
+Newly originated
+(5,865)
+860
+3,005
+(3,539)
+(a)
+(3,586)
+(15,227)
+20,706
+56
+(46)
+20,706
+(24,678)
+(10)
+248
+(236)
+(13)
+13
+35,479
+Total
+Stage 3
+6,305
+4,401
+24,773
+(12)
+Stage 2
+326
+4,009
+Note
+Transfers in/(out) to Stage 3
+31 December
+Total
+Accrued interest
+Eligible Tier 2 capital bonds issued
+Subordinated bonds issued
+Bonds issued
+Certificates of deposit issued
+26,480
+45 DEBT SECURITIES ISSUED
+NOTES TO THE FINANCIAL STATEMENTS
+246
+245
+China Construction Bank Corporation
+Annual Report 2021
+Other businesses include off-balance sheet businesses other than the off-balance sheet credit business, outstanding litigations and
+the precious metal leasing business.
+Remeasurements comprise the impact of changes in PD, LGD or EAD; changes in model assumptions and methodologies;
+loss provision changes due to stage-transfer; and the impact of exchange rate changes.
+(a)
+31,833
+1,344
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Stage 1
+31 December
+2020
+26,480
+Stage 2
+Stage 1
+Note
+2021
+54,114
+45,903
+22,281
+11,388
+(2)
+31,833
+34,515
+(1)
+2020
+31 December
+Decreased
+31 December
+2021
+Note
+Note
+4,009
+Stage 3
+1,344
+As at 31 December 2020
+31,833
+34,515
+Total
+702
+5,620
+28,193
+3,590
+19,758
+(20,666)
+(728)
+77
+4,810
+(1,297)
+Remeasurements
+(3,247)
+(16,691)
+19,758
+(29)
+38
+(37)
+(1)
+141
+(112)
+(56)
+(a)
+56
+56 OPERATING SEGMENTS (CONTINUED)
+Geographical segments (continued)
+NOTES TO THE FINANCIAL STATEMENTS
+274,994
+China Construction Bank Corporation
+3,369,894
+152,793
+Annual Report 2021
+(1)
+Pearl
+Year ended 31 December 2020
+Yangtze
+River Delta
+River Delta
+Bohai Rim
+Central
+Western
+Northeastern
+Head Office
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+448,345
+Off-balance sheet credit
+commitments
+643,588
+39,410,709
+Overseas
+92,343
+(9,249,073)
+30,253,979
+Segment liabilities
+5,368,006
+4,213,453
+6,813,042
+4,717,418
+4,207,630
+1,525,839
+8,765,778
+Deferred tax liabilities
+Elimination
+Total liabilities
+1,395
+(9,249,073)
+27,639,857
+611,802
+582,097
+656,275
+1,276,369 36,887,535
+3,176
+External net interest income
+91,762
+25,354
+79,923
+13,892
+575,909
+Net fee and commission income
+16,620
+24,764
+18,337
+15,896
+11,799
+4,050
+20,056
+3,060
+114,582
+Net trading gain/(loss)
+96
+1,408,594
+204
+104,691
+Total
+83,623
+91,951
+64,500
+60,987
+36,662
+76,140
+62,290
+7,353
+257,261
+10,716
+575,909
+Internal net interest income/
+(expense)
+27,451
+23,726
+46,961
+28,551
+29,472
+18,001
+(177,338)
+Net interest income
+84,713
+1,530,966 10,691,168
+64,594
+4,808,874
+Other impairment losses
+(80)
+(16)
+(109)
+(9)
+(2)
+(12)
+(356)
+(167,949)
+(182)
+Share of profits/(losses) of
+associates and joint ventures
+27
+(27)
+673
+728
+202
+1,603
+(766)
+(3,641)
+(23,883)
+(13,610)
+174
+19,257
+764,706
+Operating expenses
+(33,108)
+(27,853)
+(33,808)
+(38,346)
+(34,315)
+(12,539)
+(22,372)
+(16,841)
+(219,182)
+Credit impairment losses
+(22,820)
+(30,808)
+(18,589)
+(29,423)
+(25,175)
+Profit before tax
+60,469
+59,231
+64,115
+2,432
+27,295
+Segment assets
+Long-term equity investments
+5,444,119
+1,546
+4,291,522
+374
+6,954,239
+6,314
+4,801,733
+7,141
+31 December 2021
+4,272,993
+1,530,966
+10,690,368
+800
+1,405,894
+2,700
+39,391,834
+18,875
+Deferred tax assets
+Elimination
+Total assets
+5,445,665
+4,291,896
+6,960,553
+3,823
+4,272,993
+1,675
+4,631
+59,008
+3,806
+68,394
+(1,205)
+378,412
+Capital expenditure
+2,346
+1,367
+2,403
+2,357
+1,790
+1,018
+4,951
+3,606
+19,838
+Depreciation and amortisation
+3,570
+3,059
+4,262
+3,843
+324
+59
+16
+3,230
+4,453
+4,921
+4,025
+1,806
+2,215
+1,870
+26,182
+3,662
+31 December 2020
+Long-term equity investments
+4,873,490
+604
+3,942,366
+6,667,011
+4,850
+4,416,305
+3,985,433
+1,451,185
+10,577,145
+Segment assets
+Depreciation and amortisation
+25,492
+7,363
+895
+Profit before tax
+57,613
+53,160
+49,667
+41,982
+55,709
+4,365
+74,704
+(584)
+336,616
+Capital expenditure
+3,280
+1,401
+2,638
+2,559
+1,899
+1,031
+5,321
+7,196
+1,433,729
+1,052
+37,346,664
+13,702
+Deferred tax assets
+35,062,412
+Deferred tax liabilities
+Elimination
+Total liabilities
+Off-balance sheet credit
+commitments
+1,551
+(9,321,062)
+25,742,901
+608,353
+588,398
+693,095
+648,284
+446,579
+162,120
+266,701
+3,413,530
+China Construction Bank Corporation
+Annual Report 2021
+259
+115,005
+1,313,100
+579
+8,585,097
+3,963,977
+Elimination
+Total assets
+4,874,094
+3,942,366
+6,671,861
+4,423,501
+3,985,433
+1,451,185
+10,577,145
+1,434,781
+37,360,366
+92,950
+(9,321,062)
+28,132,254
+Segment liabilities
+4,836,646
+3,915,742
+6,596,879
+4,397,877
+1,453,094
+260
+(3)
+associates and joint ventures
+1,100
+5,765
+Net (loss)/gain on derecognition
+of financial assets measured at
+amortised cost
+Other operating (expense)/
+13
+2
+(13)
+10
+29
+1
+4,612
+==
+11
+4,649
+income, net
+(3,576)
+377
+1,569
+3,200
+64
+CO
+(40)
+4,126
+(731)
+4,313
+Dividend income
+88
+7
+1,927
+650
+10
+89
+411
+3,182
+Net gain/(loss) arising from
+investment securities
+4,273
+(778)
+(787)
+781
+(586)
+(617)
+104
+1,585
+3,503
+(22,994)
+(31,459)
+(25,623)
+(45,476)
+(19,352)
+(12,688)
+(29,696)
+(6,203)
+(193,491)
+Other impairment losses
+6
+(54)
+(205)
+(6)
+(65)
+4,343
+(457)
+3,562
+Share of (losses)/profits of
+Credit impairment losses
+7
+(188,574)
+(15,452)
+2,295
+5,824
+Operating income
+109,439
+109,297
+104,872
+121,039
+105,220
+28,810
+115,509
+20,038
+714,224
+Operating expenses
+(28,835)
+(24,624)
+(29,637)
+(34,160)
+(30,153)
+(11,692)
+(14,021)
+29,967
+2020
+131,165
+2.
+dividends received
+2,264,840
+2,364,808
+2,588,231
+2,488,263
+31 December
+2020
+31 December
+2021
+(2)
+Equity attributable to ordinary equity holders of the Bank
+(1)
+Total equity attributable to equity holders of the Bank
+1.
+Items
+39,991
+400
+Interests attributable to the holders of equity instruments
+39,991
+Equity attributable to other equity holders of the Bank
+Of which: net profit
+400
+Total equity attributable to non-controlling interests
+99,968
+31 December
+31 December
+Share premium
+49 CAPITAL RESERVE
+3,453
+3,453
+21,092
+22,438
+Equity attributable to non-controlling interests of ordinary shares
+Equity attributable to non-controlling interests of other equity instruments
+(2)
+(1)
+24,545
+25,891
+5,624
+4,538
+5,624
+4,538
+99,968
+2021
+Total
+400
+Increase/(Decrease)
+1 January 2021
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Changes in perpetual bonds outstanding
+(c)
+Perpetual bonds (continued)
+(2)
+48
+OTHER EQUITY INSTRUMENTS (CONTINUED)
+NOTES TO THE FINANCIAL STATEMENTS
+Annual Report 2021
+China Construction Bank Corporation
+The Bank classifies the Bonds issued as an equity instrument and presented as an equity item on the statement of financial
+position. Capital raised from the issuance of the Bonds, after deduction of the expenses relating to the issuance, was wholly
+used to replenish the Bank's additional tier 1 capital and to increase its capital adequacy ratios.
+The claims in respect of the Bonds will be subordinated to the claims of depositors, general creditors, and subordinated
+indebtedness that ranks senior to the Bonds; will rank in priority to all classes of shares held by the Bank's shareholders and
+rank pari passu with the claims in respect of any other additional tier 1 capital instruments of the Bank that rank pari passu
+with the Bonds.
+Subordination
+Upon the occurrence of a Tier 2 Capital Trigger Event, the Bank has the right to write off in whole, without the need for
+the consent of the holders of the Bonds, the aggregate amount of the Bonds then issued and outstanding. A Tier 2 Capital
+Trigger Event refers to the earlier of the following events: (i) the CBIRC having decided that the Bank would become non-
+viable without a write-off; (ii) any relevant authority having decided that a public sector injection of capital or equivalent
+support is necessary, without which the Bank would become non-viable. Upon write-off of the bonds, such bonds are to be
+permanently cancelled and will not be restored under any circumstances.
+Upon the occurrence of an Additional Tier 1 Capital Trigger Event, namely, the Bank's Core Tier 1 Capital Adequacy Ratio
+having fallen to 5.125% (or below), the Bank has the right, subject to the approval of the CBIRC but without the need for the
+consent of the holders of the Bonds, to write down whole or part of the aggregate amount of the Bonds then issued and
+outstanding, in order to restore the Core Tier 1 Capital Adequacy Ratio to above 5.125%. In the case of a partial write-down,
+all of the Bonds then issued and outstanding shall be written down on a pro rata basis, according to the outstanding amount,
+with all other Additional Tier 1 Capital instruments with equivalent write-down clauses of the Bank.
+31 December 2021
+39,991
+Financial
+Amount
+39,991
+400
+1 Capital Bonds
+Undated Additional Tier
+Carrying
+value
+pieces)
+value
+pieces)
+value
+pieces)
+outstanding
+Amount
+(million
+Carrying
+(million
+Carrying
+(million
+instrument
+Amount
+Write-down/write-off clauses
+2020
+134,263
+16,372
+comprehensive income
+measured at fair value through other
+Fair value changes of debt instruments
+subsequently to profit or loss
+(2) Other comprehensive income that may be reclassified
+(463)
+115
+154
+ཝཱ།
+115
+719
+115
+604
+Others
+(617)
+301
+(463)
+12,233
+764
+28,605
+(564)
+(186)
+320
+20
+742
+ཐ
+320
+(300)
+Net loss on cash flow hedges
+3,695
+556
+3,139
+through other comprehensive income
+instruments measured at fair value
+Allowances for credit losses of debt
+287
+12,233
+(4,454)
+17,538
+134,925
+other comprehensive income
+Fair value changes of equity instruments
+31 December
+The amount
+to equity
+shareholders
+Less:
+Reclassification
+adjustments
+attributable
+Net-of-tax
+amount
+2021
+Other comprehensive income of the statement of comprehensive income
+Other comprehensive income of the statement of financial position
+(1) Other comprehensive income that will not be reclassified to
+profit or loss
+50 OTHER COMPREHENSIVE INCOME
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+254
+253
+Annual Report 2021
+China Construction Bank Corporation
+1 January 2021
+designated as measured at fair value through
+of the Bank
+before
+income taxes
+(25)
+251
+(25)
+247
+(25)
+272
+Remeasurements of post-employment benefit obligations
+interests
+amount
+attributable to
+non-controlling
+Net-of-tax
+Net-of-tax
+amount
+attributable
+of the Bank
+to equity
+shareholders
+taxes
+due to disposals
+Less: Income
+included in
+profit or loss
+2021
+The exercise of the Bank's redemption right shall be subject to the consent of the CBIRC and the satisfaction of the following
+preconditions: (i) the Bank shall use capital instruments of the same or better quality to replace the instruments to be
+redeemed, and such replacement shall only be carried out at conditions which are sustainable for the income capacity;
+(ii) or the capital position of the Bank after the redemption right is exercised will remain well above the regulatory capital
+requirements stipulated by the CBIRC.
+From the fifth anniversary since the issuance of the Bonds, the Bank may redeem whole or part of the Bonds on each
+distribution payment date (including the fifth distribution payment date since the issuance). If, after the issuance, the Bonds
+no longer qualify as Additional Tier 1 Capital as a result of an unforeseeable change or amendment to relevant provisions of
+supervisory regulations, the Bank may redeem the whole but not part of the Bonds.
+Conditional redemption rights of the Bank
+Preference Shares
+2017 Domestic
+conditions
+Maturity date
+(RMB)
+currency
+Currency
+conversion
+Original
+Quantity
+(million shares)
+Issuance price
+Initial
+interest rate
+Classification
+Issuance date
+Financial instrument
+outstanding
+Redemption/
+250,011
+21 December 2017
+Total amount
+Equity
+instruments
+RMB100 per share
+Annual Report 2021
+China Construction Bank Corporation
+250
+The dividends on the Domestic Preference Shares are distributed annually.
+The nominal dividend rate of the Domestic Preference Shares is adjusted on a phase-by-phase basis. It is the sum of the
+benchmark rate plus the fixed interest spread, and is adjusted every five years. The fixed interest spread is determined as
+the nominal dividend rate set for issuance less the benchmark rate at the time of issuance, and will not be subject to future
+adjustments. The dividends for domestic preference shares are non-cumulative. The Bank has the right to cancel dividend
+distribution on Domestic Preference Shares, and the cancellation does not constitute a default event. The Bank may, at its
+discretion, use the cancelled dividends to repay other indebtedness due and payable. If the Bank cancels all or part of the
+dividends on the Domestic Preference Shares, the Bank shall make no profit distribution to shareholders holding ordinary
+shares from the day after the cancellation proposal is adopted by the General Shareholders' Meeting to the day when full
+distribution of dividends is resumed. The cancellation of dividends on Domestic Preference Shares will not constitute other
+restrictions to the Bank except for the distribution of dividends to ordinary shareholders.
+Dividend
+(b) Key terms
+59,977
+(23)
+Carrying amount
+Less: Issuance fee
+None
+No maturity date
+60,000
+60,000
+RMB
+600
+4.75%
+NOTES TO THE FINANCIAL STATEMENTS
+Preference shares outstanding as at the end of the reporting period
+Preference shares
+31 December
+31 December
+Total
+Listed in Mainland China (A shares)
+Listed in Hong Kong (H shares)
+SHARE CAPITAL
+47
+Lease liabilities
+Total undiscounted lease liabilities
+More than five years
+Between one year and five years
+Within one year
+Maturity analysis - undiscounted analysis
+(1) Lease liabilities
+46 OTHER LIABILITIES (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+2021
+(a)
+2020
+7,037
+(1)
+OTHER EQUITY INSTRUMENTS
+48
+All H and A shares are ordinary shares, have a par value of RMB1 per share and rank pari passu with the same rights and benefits.
+250,011
+240,417
+9,594
+240,417
+9,594
+31 December
+31 December
+2021
+23,591
+23,749
+28,043
+28,111
+7,031
+8,941
+13,975
+10,220
+8,950
+48 OTHER EQUITY INSTRUMENTS (CONTINUED)
+(1)
+Preference shares (continued)
+100 per unit
+4.22%
+Equity instruments
+13 November 2019
+1 Capital Bonds
+Undated Additional Tier
+conditions
+Maturity date
+amount
+Currency
+pieces)
+Issuance price
+/write-down
+Total
+(million
+Initial
+interest rate
+Classification
+400
+Issuance date
+RMB
+No maturity date
+The Bank shall have the right to cancel, in whole or in part, distributions on the Bonds and any such cancellation shall not
+constitute an event of default. When exercising such right, the Bank will take into full consideration the interest of the holders
+of the Bonds. The Bank may, at its sole discretion, use the proceeds from the cancelled distributions to meet other obligations
+as they fall due. In the case of cancelling any distributions on the Bonds, no matter in whole or in part, the Bank shall not
+make any distribution to the ordinary shareholders from the next day following the resolution being approved by the general
+shareholders meeting, until its decision to resume the distribution payments in whole to the holders of the Bonds. The
+distributions on the Bonds are non-cumulative, namely, upon cancellation, any amount of distribution unpaid to the holders
+of the Bonds in the applicable period will not accumulate or compound to the subsequent distribution period thereafter.
+The distributions of the Bonds will be payable annually.
+The distribution rate of the Undated Additional Tier 1 Capital Bonds (or "the Bonds") will be adjusted at defined intervals,
+with a distribution rate adjustment period every 5 years since the payment settlement date. In any distribution rate adjusted
+period, the distribution payments on the Bonds will be made at a prescribed fixed distribution rate. The distribution rate is
+determined by a benchmark rate plus a fixed spread.
+Distribution rate and distribution payment
+(b) Key terms
+OTHER EQUITY INSTRUMENTS (CONTINUED)
+(2) Perpetual bonds (continued)
+48
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+252
+Annual Report 2021
+251
+China Construction Bank Corporation
+39,991
+Carrying amount
+(9)
+Less: Issuance fee
+None
+40,000
+outstanding
+instrument
+Redemption
+shares)
+instrument outstanding
+Carrying
+(million
+Financial
+Amount
+31 December 2021
+Increase/(Decrease)
+1 January 2021
+The Bank classifies preference shares issued as an equity instrument and presented as an equity item on the statement of
+financial position. Capital raised from the issuance of the above preference shares, after deduction of the expenses relating to
+the issuance, was wholly used to replenish the Bank's additional tier 1 capital and to increase its capital adequacy ratios.
+Changes in preference shares outstanding
+When a Tier 2 Capital Instrument Trigger Event occurs, the Bank has the right to, without prior consent of the shareholders
+of the Domestic Preference Shares and as agreed, convert all the Domestic Preference Shares issued and outstanding to
+ordinary A shares. Once Domestic Preference Shares are converted to ordinary A shares, they shall not be converted back
+to preference shares under any circumstances. A Tier 2 Capital Instrument Trigger Event is the earlier of the following two
+scenarios: (i) the CBIRC having decided that without a conversion or write-off of the Bank's capital, the Bank would become
+non-viable; and (ii) the relevant authorities having decided that a public sector injection of capital or equivalent support is
+necessary, without which the Bank would become non-viable. When the compulsory conversion of preference shares occurs,
+the Bank shall report to the CBIRC for approval and decision, and perform the announcement obligation according to the
+regulations of the Securities Law and China Securities Regulatory Commission ("CSRC").
+If an Additional Tier 1 Capital Instrument Trigger Event occurs, i.e., the Core Tier 1 Capital Adequacy Ratio of the Bank has
+fallen to 5.125% or below, the Bank has the right to, without prior consent from the shareholders of the Domestic Preference
+Shares and as agreed, convert all or part of the Domestic Preference Shares issued and outstanding to ordinary A shares, to
+restore the Bank's Core Tier 1 Capital Adequacy Ratio to above the trigger point (i.e., 5.125%). In the case of partial conversion,
+the Domestic Preference Shares shall be subject to the same proportion and conditions of conversion. Once Domestic
+Preference Shares are converted to ordinary A shares, they shall not be converted back to preference shares under any
+circumstances.
+Compulsory conversion of preference shares
+The Bank may, subject to CBIRC approval and compliance with the redemption preconditions, redeem in whole or in part of
+the Domestic Preference Shares after at least five years from the completion date of the issuance (i.e., 27 December 2017).
+The redemption period begins from the first day of the redemption and ends on the day when all Domestic Preference
+Shares are redeemed or converted. The redemption price of the Domestic Preference Shares shall be their issue price plus
+any dividends accrued but unpaid in the current period.
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+(c)
+(b) Key terms (continued)
+Redemption
+value
+Amount
+(million
+shares)
+Carrying
+value
+Amount
+(million
+shares)
+Quantity
+Financial
+Perpetual bonds outstanding at the end of the year
+Perpetual bonds
+(a)
+(2)
+59,977
+600
+556
+59,977
+Total
+59,977
+600
+59,977
+600
+Shares
+2017 Domestic Preference
+Carrying
+value
+600
+320
+118,500
+operations
+31 December
+31 December
+Note
+2020
+(1)
+372,509
+341,307
+(2)
+(3)
+23
+2,124
+2,124
+6,290
+6,104
+698
+(3)
+693
+(2)
+Total
+(16,938)
+20
+51
+52
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+SURPLUS RESERVE
+Surplus reserves consist of statutory surplus reserve fund and discretionary surplus reserve fund.
+The Bank is required to allocate 10% of its net profit, as determined under the Accounting Standards for Business Enterprises and other
+relevant requirements issued by the MOF on 15 February 2006. After making appropriations to the statutory surplus reserve fund, the Bank
+may also allocate its net profit to the discretionary surplus reserve fund upon approval by shareholders in Annual General Meetings.
+GENERAL RESERVE
+The general reserve of the Group is set up based upon the requirements of:
+MOF
+Hong Kong Banking Ordinance
+Other regulatory bodies in Mainland China.
+Other overseas regulatory bodies
+(1)
+381,621
+350,228
+Pursuant to relevant regulations issued by the MOF, the Bank has to appropriate a certain amount of its net profit as general reserve to cover potential
+losses against its assets. In accordance with the "Regulation on Management of Financial Institutions for Reserves" (Cai Jin [2012] No. 20) issued by
+the MOF on 30 March 2012, the general reserve balance for financial institutions should not be lower than 1.5% of the ending balance of gross risk-
+bearing assets.
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+54 NOTES TO THE STATEMENT OF CASH FLOWS
+Cash and cash equivalents
+Cash
+Surplus deposit reserves with central banks
+Demand deposits with banks and non-bank
+financial institutions
+31 December
+31 December
+2021
+2020
+48,613
+49,068
+520,700
+434,199
+62,698
+NOTES TO THE FINANCIAL STATEMENTS
+256
+Annual Report 2021
+255
+Pursuant to the requirements of the Hong Kong Banking Ordinance, the Group's banking operations in Hong Kong are required to set aside
+amounts in a regulatory reserve in respect of losses which it will, or may, incur on loans and advances to customers, in addition to impairment
+losses recognised in accordance with the accounting policies of the Group. Transfers to and from the regulatory reserve are made through retained
+earnings.
+Pursuant to the relevant regulatory requirements in Mainland China, the Bank's subsidiaries are required to appropriate a certain amount of its net
+profit as general reserve.
+53
+PROFIT DISTRIBUTION
+In the Annual General Meeting held on 25 June 2021, the shareholders approved the profit distribution for the year ended 31 December
+2020. The Bank appropriated cash dividend for the year ended 31 December 2020 in an aggregate amount of RMB81,504 million.
+In the Board of Directors' Meeting, held on 29 October 2021, the directors approved the payment of dividends to domestic preference
+shareholders. The dividends for domestic preference shares distributed were RMB2,850 million, calculated using the nominal dividend rate
+of 4.75% (including taxes) as set in the terms and conditions.
+On 15 November 2021, according to the initial annual interest rate of 4.22% before the first interest rate reset date determined by the terms
+of the Undated Additional Tier 1 Capital Bonds, the interest on perpetual bonds issued by the bank was RMB1,688 million.
+3,328
+On 29 March 2022, Board of Directors proposed the following profit distribution scheme for the year ended 31 December 2021:
+(2)
+(3)
+Appropriate statutory surplus reserve amounted to RMB29,576 million, based on 10% of the net profit of the Bank amounted to
+RMB295,764 million for the year ended 31 December 2021 (for the year ended 31 December 2020: RMB26,817 million). It has been
+recorded in "Surplus reserve" as at the balance sheet date.
+Appropriate general reserve amounted to RMB31,202 million, pursuant to relevant regulations issued by MOF (for the year ended 31
+December 2020: RMB35,482 million).
+Declare cash dividend RMB0.364 per share before tax and in aggregation amount of RMB91,004 million to all shareholders (for the
+year ended 31 December 2020: RMB0.326 per share and RMB81,504 million in aggregation). Proposed dividends as at the balance
+sheet date are not recognised as a liability.
+Above proposed profit distribution scheme is subject to the approval of the shareholders in the Annual General Meeting. Cash dividends
+will be distributed to all shareholders registered at the relevant date upon approval.
+China Construction Bank Corporation
+(1)
+(655)
+(19,591)
+15,048
+1,043
+(279)
+764
+(372)
+93
+Others
+580
+24
+604
+24
+(279)
+24
+(2) Other comprehensive income that may be
+reclassified subsequently to profit or loss
+Fair value changes of debt instruments measured
+at fair value through other comprehensive
+other comprehensive income
+designated as measured at fair value through
+Fair value changes of equity instruments
+479
+31 December
+2020
+The amount
+before
+income taxes
+included in
+profit or loss
+due to disposals
+Less: Income
+taxes
+of the Bank
+income
+to equity
+shareholders
+interests
+Remeasurements of post-employment benefit
+obligations
+(207)
+479
+272
+479
+attributable to
+non-controlling
+75,870
+25,974
+16,372
+986
+934
+(6,737)
+(5,803)
+(6,720)
+255
+(762)
+(61)
+(6,737)
+17
+Total
+China Construction Bank Corporation
+Annual Report 2021
+31,986
+(16,938)
+operations
+Exchange difference on translating foreign
+'
+(61)
+(11,924)
+(655)
+2,980
+(9,602)
+3
+Allowances for credit losses of debt instruments
+measured at fair value through other
+(9,602)
+comprehensive income
+(762)
+3,139
+(1,017)
+Net loss on cash flow hedges
+(239)
+(61)
+(300)
+3,901
+to equity
+shareholders
+of the Bank
+Time deposits with banks and non-bank
+58,458
+762
+287
+376
+279
+91
+18
+6,658
+(655)
+7,816
+Dividend income
+621
+6
+4,510
+188
+57
+Net trading gain/(loss)
+350
+121,492
+16,343
+92,031
+89,460
+113,791
+97,124
+26,105
+71,994
+12,897
+605,420
+Net fee and commission income
+19,900
+26,302
+20,522
+18,551
+13,097
+4,054
+2,723
+189
+5,921
+Net (loss)/gain arising from
+income, net
+(5,147)
+298
+1,544
+(112)
+1,602
+50
+5,248
+5,442
+8,925
+Operating income
+116,450
+117,935
+116,427
+Exchange difference on translating foreign
+Other operating (expense)/
+4,634
+4,638
+1
+investment securities
+(1,699)
+(989)
+686
+14
+(1,532)
+6,529
+102,018
+(260)
+(1,339)
+10,498
+Net (loss)/gain on derecognition
+of financial assets measured at
+amortised cost
+(5)
+1
+9,774
+Net interest income
+(358)
+(197,327)
+56 OPERATING SEGMENTS
+The Group has presented the operating segments in a manner consistent with the way in which information is reported internally to the
+Group's chief operating decision makers for the purposes of resource allocation and performance assessment. Measurement of segment
+assets and liabilities and segment income and results is based on the Group's accounting policies.
+Transactions between segments are conducted under normal commercial terms and conditions. Internal charges and transfer prices are
+determined with reference to market rates and have been reflected in the performance of each segment. Net interest income and expense
+arising from internal charges and transfer pricing adjustments are referred to as "internal net interest income/expense". Interest income and
+expense earned from third parties are referred to as "external net interest income/expense".
+Segment revenues, results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a
+reasonable basis. Segment income and results are determined before intra-group transactions are eliminated as part of the consolidation
+process. Segment capital expenditure is the total cost incurred during the period to acquire fixed assets, intangible assets and other long-
+term assets.
+(1)
+Geographical segments
+The Group operates principally in Mainland China with branches covering all provinces, autonomous regions and municipalities
+directly under the central government, and several subsidiaries located in Mainland China. The Group also has bank branch
+operations in Hong Kong, Macau, Taiwan, Singapore, Frankfurt, Johannesburg, Tokyo, Seoul, New York, Sydney, Ho Chi Minh City,
+Luxembourg, Toronto, London, Zurich, Dubai, Chile, Astana, Labuan, Auckland, etc., and certain subsidiaries operating in Hong Kong,
+London, Moscow, Luxembourg, British Virgin Islands, Auckland, Jakarta, San Paulo and Kuala Lumpur, etc.
+In presenting information on the basis of geographical segments, operating income is allocated based on the location of the
+branches and subsidiaries that generate the income. Segment assets, liabilities and capital expenditure are allocated based on their
+geographical location.
+Geographical segments of the Group, as defined for management reporting purposes, are defined as follows:
+"Yangtze River Delta" refers to the following areas where the tier-1 branches and the subsidiary of the Bank operate: Shanghai
+Municipality, Jiangsu Province, Zhejiang Province, City of Ningbo and City of Suzhou;
+"Pearl River Delta" refers to the following areas where the tier-1 branches and the subsidiary of the Bank operate: Guangdong
+Province, City of Shenzhen, Fujian Province and City of Xiamen;
+"Bohai Rim" refers to the following areas where the tier-1 branches and the subsidiaries of the Bank operate: Beijing
+Municipality, Shandong Province, Tianjin Municipality, Hebei Province and City of Qingdao;
+the "Central" region refers to the following areas where the tier-1 branches and the subsidiary of the Bank operate: Shanxi
+Province, Guangxi Autonomous Region, Hubei Province, Henan Province, Hunan Province, Jiangxi Province, Hainan Province
+and Anhui Province;
+the "Western" region refers to the following areas where the tier-1 branches of the Bank operate: Sichuan Province,
+Chongqing Municipality, Guizhou Province, Yunnan Province, Tibet Autonomous Region, Inner Mongolia Autonomous
+Region, Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Autonomous Region and Xinjiang Autonomous Region;
+and
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+Annual Report 2021
+China Construction Bank Corporation
+112,194
+Placements with banks and non-bank financial institutions with original maturity with or within three months
+115,131
+207,600
+Total
+805,600
+878,931
+the "Northeastern" region refers to the following areas where the tier-1 branches of the Bank operate: Liaoning Province, Jilin
+Province, Heilongjiang Province and City of Dalian.
+55
+The Group enters into transactions in the normal course of business by which it transfers recognised financial assets to third parties or to
+structured entities. In some cases where these transferred financial assets qualify for derecognition, the transfers may give rise to full or
+partial derecognition of the financial assets concerned. In other cases where the transferred assets do not qualify for derecognition as the
+Group has retained substantially all the risks and rewards of these assets, the Group continued to recognise the transferred assets.
+Securities lending transactions
+Counterparties are allowed to sell or repledge securities lent under securities lending agreements in the absence of any default by the
+Group, but at the same time, they have an obligation to return such securities upon the maturity of the securities lending agreements. The
+Group has determined that it retains substantially all the risks and rewards of these securities and therefore has not derecognised them. As
+at 31 December 2021, the carrying value of debt securities lent to counterparties was RMB6,444 million (as at 31 December 2020: RMB4,010
+million).
+Credit asset securitisation transactions
+The Group enters into securitisation transactions in its normal course of business by which it transfers credit assets to structured entities
+which issue asset-backed securities to investors. The Group may retain interests in the form of holding subordinated tranches which would
+give rise to the Group's continuing involvement in the transferred assets. Those financial assets are recognised on the statement of financial
+position to the extent of the Group's continuing involvement, otherwise the financial assets are derecognised.
+As at 31 December 2021, loans with an original carrying amount of RMB963,501 million (as at 31 December 2020: RMB829,400 million)
+have been securitised by the Group under arrangements in which the Group retained a continuing involvement in such assets. As at
+31 December 2021, the amount of assets that the Group continued to recognise was RMB100,036 million (as at 31 December 2020:
+RMB88,625 million). As at 31 December 2021, the carrying amount of assets and liabilities with continuing involvement that the Group
+continued to recognise was RMB100,036 million (as at 31 December 2020: RMB88,951 million).
+With respect to credit asset securitizations that did not qualify for derecognition as a whole, the Group continued to recognise credit assets
+that had been transferred, and recorded the consideration received as a financial liability. As at 31 December 2021, the carrying amount
+of transferred credit assets that the Group had continued to recognise was RMB8,262 million and the carrying amount of their associated
+financial liabilities was RMB9,191 million.
+As at 31 December 2021, the carrying amount of asset-backed securities held in the securitisation transaction derecognised by the Group
+was RMB3,548 million (as at 31 December 2020: RMB1,340 million), and its maximum loss exposure approximates to the carrying amount.
+TRANSFERRED FINANCIAL ASSETS
+financial institutions with original maturity with or within three months
+China Construction Bank Corporation
+Annual Report 2021
+258
+64,960
+38,437
+80,228
+64,601
+4,528
+269,321
+13,255
+605,420
+Internal net interest income/
+(expense)
+31,928
+27,071
+51,023
+33,563
+32,523
+21,577
+70,090
+External net interest income
+Total
+Overseas
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+56
+OPERATING SEGMENTS (CONTINUED)
+(1)
+Geographical segments (continued)
+Year ended 31 December 2021
+257
+Yangtze
+River Delta
+River Delta
+Bohai Rim
+Central
+Western
+Northeastern
+Head Office
+Pearl
+1 January 2020
+2021
+attributable
+Net-of-tax
+amount
+Net-of-tax
+amount
+adjustments
+Less:
+Reclassification
+amount
+attributable
+Net-of-tax
+Other comprehensive income of the statement of comprehensive income
+2020
+288
+6,290
+(4,486)
+(564)
+Other comprehensive income of the statement of financial position
+21,338
+6,290
+15,048
+(1) Other comprehensive income that will not be
+reclassified to profit or loss
+Total
+1
+(6,446)
+(6,445)
+(12,249)
+(6,446)
+11,628
+(5,803)
+7,409,563
+10,077,510
+Long-term equity investments
+1,472,784
+13,702
+Segment liabilities
+Deferred tax assets
+Elimination
+Total assets
+9,235,872
+28,195,729
+13,702
+Segment assets
+9,235,872
+26,182
+25,492
+9,826
+2,618
+762
+1,146
+8,725
+13,124
+9,294
+Depreciation and amortisation
+6,179
+Capital expenditure
+Deferred tax liabilities
+31 December 2020
+Elimination
+Former Chief Financial Officer
+Annual Report 2021
+Cheng Yuanguo
+890
+36
+139
+1,065
+Former Chief Risk Officer
+Jin Yanmin
+353
+17
+72
+269
+442
+Zhang Yi
+441
+18
+78
+537
+5,766
+337
+1,145
+7,248
+China Construction Bank Corporation
+336,616
+8,039
+Other impairment losses
+206,047
+327,136
+284,393
+5,824
+2,616
+2,308
+834
+66
+4,649
+37
+274
+66,292
+4,338
+Other operating income, net
+at amortised cost
+financial assets measured
+Net gain on derecognition of
+5,765
+8,294
+5,729
+(2,512)
+(5,746)
+investment securities
+Operating income
+55,915
+36,403
+Operating expenses
+66,615
+Profit before tax
+895
+895
+and joint ventures
+Share of profits of associates
+3,562
+(645)
+4,327
+(120)
+714,224
+Chief Risk Officer
+(11,925)
+(4,219)
+(30,887)
+(146,460)
+Credit impairment losses
+(188,574)
+(16,689)
+(10,485)
+(90,202)
+(71,198)
+(193,491)
+1,069
+55
+36
+2020
+17,791
+11,905
+32,988
+39,189
+109
+156
+12,328
+317
+7,399
+50
+31 December
+5,806
+(4)
+(5)
+As at 31 December 2021, the total maximum guarantee limit of guarantee letters issued by the Bank with its subsidiaries as
+beneficiary was RMB12,219 million (as at 31 December 2020: RMB16,455 million).
+As at 31 December 2021, the transactions between subsidiaries of the Group were mainly debt securities issued and deposits with
+banks and non-bank financial institutions, and the balances of the above transactions were RMB693 million and RMB1,265 million
+respectively (as at 31 December 2020, the transactions between subsidiaries of the Group were debt securities issued and deposits
+with banks and non-bank financial institutions, and the balances of the above transactions were RMB1,457 million and RMB1,022
+million, respectively).
+Transactions with other PRC state-owned entities
+State-owned entities refer to those entities directly or indirectly owned by the PRC government through its government authorities,
+agencies, affiliations and other organisations. Transactions with other state-owned entities include but are not limited to: lending
+and deposit taking; taking and placing of inter-bank balances; entrusted lending and other custody services; insurance and securities
+agency, and other intermediary services; purchase, sale, underwriting and redemption of bonds issued by other state-owned
+entities; purchase, sale and leases of property and other assets; and rendering and receiving of utilities and other services.
+These transactions are conducted in the ordinary course of the Group's banking business on terms similar to those that would have
+been entered into with non-state-owned entities. The Group's pricing strategy and approval processes for major products and
+services, such as loans, deposits and commission income, do not depend on whether the customers are state-owned entities or not.
+Having due regard to the substance of the relationships, the Group is of the opinion that none of these transactions are material
+related party transactions that require separate disclosure.
+Transactions with the Annuity Scheme and Plan Assets
+Apart from the obligations for defined contributions to the Annuity Scheme and regular banking transactions, there were no other
+transactions between the Group and the Annuity Scheme in 2021 and 2020.
+As at 31 December 2021, the fair value of the Group's supplementary retirement benefit plan assets managed by CCB Principal Asset
+Management and CCB Pension was RMB3,828 million (as at 31 December 2020: RMB3,918 million), and management fees payable
+to CCB Principal Asset Management and CCB Pension were RMB22.08 million (as at 31 December 2020: RMB28.05 million).
+China Construction Bank Corporation
+9,015
+Annual Report 2021
+31 December
+2021
+37,792
+Placements from banks and non-bank financial institutions
+Financial liabilities measured at fair value through profit or loss
+Negative fair value of derivatives
+Deposits from customers
+Debt securities issued
+Other liabilities
+31 December
+31 December
+2021
+2020
+2,728
+3,166
+37,967
+129,824
+216
+177
+8,244
+5,875
+1,374
+654
+1,273
+1,206
+22,301
+18,262
+119,347
+143
+60
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+53
+186
+18
+8 3 3 3
+53
+146
+756
+146
+756
+146
+557
+756
+259
+Secretary to the Board
+Hu Changmiao
+1,335
+53
+220
+1,608
+Chief Information Officer
+Jin Panshi
+890
+Net (loss)/gain arising from
+NOTES TO THE FINANCIAL STATEMENTS
+53
+557
+RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (CONTINUED)
+(6) Key management personnel
+Key management personnel are those persons having authorities and responsibilities for planning, directing and controlling the
+activities of the Group, directly or indirectly, including directors, supervisors and senior executives. The Group enters into banking
+transactions with key management personnel in the normal course of business. For the years ended 31 December 2021 and 2020,
+there were no material transactions and balances with key management personnel.
+The compensation of directors and supervisors is disclosed in Note 16. The senior executives' annual compensation before
+individual income tax during the year is as follows:
+Contributions
+to defined
+2021
+contribution
+Remuneration
+retirement
+557
+paid
+Other benefits
+in kind (Note (i))
+RMB'000
+RMB'000
+RMB'000
+Total (Note (ii))
+RMB'000
+Executive Vice Presidents
+Ji Zhihong
+Wang Hao
+Zhang Min
+Li Yun
+schemes
+3,182
+57,586
+1
+at amortised cost
+financial assets measured
+Net gain/(loss) on derecognition of
+10,498
+3,024
+18,205
+(2,769)
+(7,962)
+Net (loss)/gain arising from investment
+securities
+5,921
+Other operating income, net
+5,885
+Dividend income
+7,816
+1,752
+7,684
+(52)
+(1,568)
+Net trading (loss)/gain
+121,492
+8,261
+16,257
+36
+60,906
+Operating income
+3,538
+(9,234)
+(13,038)
+(33,213)
+(112,464)
+Credit impairment losses
+(219,182)
+(18,797)
+(12,534)
+(102,205)
+(85,646)
+995
+51
+Operating expenses
+46,758
+63,373
+350,127
+304,448
+8,925
+3,454
+4,634
+(4)
+105
+4,810
+610
+764,706
+(167,949)
+36,068
+605,420
+Business segments (continued)
+(2)
+OPERATING SEGMENTS (CONTINUED)
+56
+NOTES TO THE FINANCIAL STATEMENTS
+Annual Report 2021
+China Construction Bank Corporation
+These represent equity investments and the revenues, results, assets and liabilities of overseas branches and subsidiaries.
+This segment covers the Group's treasury operations. The treasury business segment enters into inter-bank money market
+transactions, repurchase and resale transactions, and invests in debt securities. It also trades in derivatives and foreign currencies
+for its own account. The treasury business segment carries out customer-driven derivatives, foreign currency and precious metal
+trading. Its function also includes the management of the Group's overall liquidity position, including the issuance of debt securities.
+Others
+Treasury business
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+This segment represents the provision of a range of financial products and services to individual customers. The products and
+services comprise personal loans, deposit taking and wealth management services, card business, remittance services and agency
+services, etc.
+This segment represents the provision of a range of financial products and services to corporations, government agencies and
+financial institutions. The products and services include corporate loans, trade financing, deposit taking and wealth management
+services, agency services, financial consulting and advisory services, cash management services, remittance and settlement services,
+custody services and guarantee services, etc.
+Corporate banking
+Business segments, as defined for management reporting purposes, are as follows:
+Business segments
+(2)
+OPERATING SEGMENTS (CONTINUED)
+56
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+260
+Personal banking
+Net fee and commission income
+Year ended 31 December 2021
+Personal
+24,386
+16,276
+287,894
+276,864
+Net interest income
+(379)
+(189,052)
+122,044
+67,387
+Internal net interest income/(expense)
+Corporate
+605,420
+205,328
+165,850
+209,477
+External net interest income
+Total
+Others
+business
+banking
+banking
+Total liabilities
+24,765
+3,181
+Other impairment losses
+(465)
+190,605
+174,543
+187,158
+External net interest income
+Total
+Others
+business
+banking
+banking
+Treasury
+23,603
+Personal
+Year ended 31 December 2020
+Business segments (continued)
+(2)
+OPERATING SEGMENTS (CONTINUED)
+56
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+261
+China Construction Bank Corporation
+Annual Report 2021
+3,369,894
+Corporate
+274,994
+575,909
+69,181
+Dividend income
+4,313
+1,693
+4,313
+(37)
+(1,656)
+Net trading (loss)/gain
+114,582
+5,802
+15,804
+Internal net interest income/(expense)
+Deposits from banks and non-bank financial institutions
+Net fee and commission income
+575,909
+14,780
+37,863
+266,927
+256,339
+Net interest income
+(8,823)
+(152,742)
+92,384
+35,390
+(14)
+1,116,724
+Off-balance sheet credit commitments
+10,242,492
+Segment assets
+31 December 2021
+19,838
+27,295
+4,838
+3,230
+742
+1,191
+8,251
+13,236
+6,007
+9,638
+Depreciation and amortisation
+Capital expenditure
+7,989,445
+378,412
+37,336
+214,709
+106,324
+Profit before tax
+1,603
+1,603
+joint ventures
+Share of profits of associates and
+(766)
+(287)
+20,043
+1,978,176
+10,646,401
+1,479,905
+18,875
+27,639,857
+1,395
+(215,482)
+27,853,944
+2,089,910
+1,839,462
+11,827,180
+12,097,392
+30,253,979
+92,343
+(215,482)
+30,377,118
+Long-term equity investments
+1,498,780
+7,989,445
+10,242,492
+Total liabilities
+Elimination
+Deferred tax liabilities
+Segment liabilities
+Total assets
+Elimination
+Deferred tax assets
+30,358,243
+18,875
+10,646,401
+Financial assets measured at fair value through other comprehensive income
+Other assets
+Treasury
+Financial assets measured at fair value through profit or loss
+0.05%
+158
+0.04%
+0.01%
+34
+0.79%
+Net trading gain
+Balances outstanding as at the end of the reporting period
+31 December 2021
+31 December 2020
+Balance
+Ratio to similar
+transactions
+Balance
+Ratio to similar
+transactions
+Loans and advances to customers
+Financial investments
+4,000
+0.02%
+Financial assets measured at fair value through profit
+or loss
+30
+0.01%
+104
+0.02%
+220
+1
+0.20%
+1,987
+0.14%
+RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
+(1)
+Transactions with parent companies and their affiliates
+The parent companies of the Group are CIC and Huijin.
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+As approved by the State Council, CIC was established on 29 September 2007 with registered capital of RMB1,550,000 million. As
+a wholly-owned subsidiary of CIC, Huijin exercises its rights and obligations as an investor on behalf of the PRC government in
+accordance with laws.
+Huijin was incorporated on 16 December 2003 as a wholly-state-owned investment company. It was registered in Beijing with
+registered capital of RMB828,209 million. Its principal activities are equity investments as authorised by the State Council, without
+engaging in other commercial operations. As at 31 December 2021, Huijin directly held 57.11% of shares of the Bank.
+The related companies under parent companies include the subsidiaries under parent companies and other associates and joint
+ventures.
+The Group's transactions with parent companies and their affiliates mainly include deposit taking, entrusted asset management,
+operating leases, lending, purchase and sale of debt securities, money market transactions and inter-bank clearing. These
+transactions are priced based on market prices and conducted under normal commercial terms.
+The Group has issued subordinated debts with a nominal value of RMB46,000 million (as at 31 December 2020: RMB80,000 million).
+These are bearer bonds and tradable in the secondary market. The Group has no information in respect of the amount of the bonds
+held by the affiliates of parent companies as at the end of the reporting period.
+Financial assets measured at amortised cost
+(a)
+In the ordinary course of the business, material transactions that the Group entered into with parent companies are as
+follows:
+Amounts
+Interest income
+Interest expense
+2021
+2020
+Amount
+Ratio to similar
+transactions
+Amount
+Ratio to similar
+transactions
+1,438
+Transactions with parent companies
+60
+24,444
+23,490
+Transactions with parent companies and their affiliates (continued)
+(b)
+Transactions with the affiliates of parent companies
+In the ordinary course of the business, material transactions that the Group entered into with the affiliates of parent
+companies are as follows:
+Amounts
+Interest income
+Interest expense
+Fee and commission income
+Fee and commission expense
+Net trading gain
+Net gain arising from investment
+securities
+Operating expenses
+2021
+2020
+Note
+Amount
+Ratio to similar
+transactions
+Amount
+Ratio to similar
+transactions
+18,272
+1.73%
+18,413
+(1)
+RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (CONTINUED)
+60
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+0.52%
+Financial assets measured at fair value through other
+comprehensive income
+14,489
+0.75%
+20,163
+1.08%
+Deposits from banks and non-bank financial
+institutions
+12
+0.00%
+Deposits from customers
+0.47%
+52,271
+5,681
+0.03%
+Credit commitments
+288
+0.01%
+288
+0.01%
+China Construction Bank Corporation
+Annual Report 2021
+265
+NOTES TO THE FINANCIAL STATEMENTS
+0.23%
+1.86%
+NOTES TO THE FINANCIAL STATEMENTS
+China Construction Bank Corporation
+Entrusted funds
+31 December
+31 December
+2021
+2020
+3,852,573
+3,572,599
+3,852,573
+3,572,599
+PLEDGED ASSETS
+(1) Assets pledged as securities
+(2)
+The Group's collaterals for liabilities or contingent liabilities include financial assets such as securities and bills, which mainly serve as
+collaterals for repurchase agreements, derivative contracts and local statutory requirements. As at 31 December 2021, the carrying
+values of the Group's financial assets pledged as collaterals amounted to approximately RMB1,079,782 million (31 December 2020:
+RMB1,137,581 million).
+Collateral accepted as securities for assets
+As part of the resale agreements, the Group has received securities that were allowed to sell or repledge in the absence of default
+by their owners. As at 31 December 2021 and 31 December 2020, the Group did not hold any collateral for resale agreements which
+was permitted to sell or repledge in the absence of default for the transactions.
+COMMITMENTS AND CONTINGENT LIABILITIES
+(1) Credit commitments
+Credit commitments take the form of undrawn loan facilities which are approved and contracted, unutilised credit card limits,
+financial guarantees, letters of credit, etc. The Group assesses and makes allowance for any probable losses accordingly.
+The contractual amounts of loan commitments and credit card overdraft commitments represent the cash outflows should the
+contracts be fully drawn upon. The amounts of guarantees and letters of credit represent the maximum potential loss that would be
+recognised if counterparties failed completely to perform as contracted. Acceptances comprise undertakings by the Group to pay
+bills of exchange drawn on customers.
+As credit commitments may expire without being drawn upon, the contractual amounts set out in the following table do not
+represent the expected future cash outflows.
+Loan commitments
+- with an original maturity within one year
+- with an original maturity of one year or more
+Entrusted loans
+59
+As at the end of the reporting period, the entrusted loans and entrusted funds were as follows:
+57 ENTRUSTED LENDING BUSINESS
+7,409,563
+Financial assets measured at amortised cost
+10,077,510
+1,486,486
+28,209,431
+92,950
+(170,127)
+28,132,254
+11,502,039
+10,639,882
+1,693,095
+2,076,461
+Credit card commitments
+25,911,477
+25,742,901
+Off-balance sheet credit commitments
+2,115,619
+1,031,210
+266,701
+3,413,530
+262
+China Construction Bank Corporation
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+1,551
+(170,127)
+Annual Report 2021
+Bank acceptances
+Financing guarantees
+Non-financing guarantees
+Usance letters of credit
+Others
+31 December
+2021
+31 December
+2020
+1,118,908
+1,108,129
+(4)
+(5)
+(6)
+(7)
+(8)
+Capital commitments
+As at 31 December 2021, the Group's contracted for but not disbursed capital commitments amounted to RMB5,781 million (as at
+31 December 2020: RMB15,004 million).
+Underwriting obligations
+As at 31 December 2021, there was no unexpired underwriting commitment of the Group (as at 31 December 2020: Nil).
+Government bond redemption obligations
+As an underwriting agent of PRC government bonds, the Group has the responsibility to buy back those bonds sold by it should
+the holders decide to early redeem the bonds held. The redemption price for the bonds at any time before their maturity date is
+based on the coupon value plus any interest unpaid and accrued up to the redemption date. Accrued interest payables to the bond
+holders are calculated in accordance with relevant rules of the MOF and the PBOC. The redemption price may be different from the
+fair value of similar instruments traded at the redemption date.
+The redemption obligations, which represent the nominal value of government bonds underwritten and sold by the Group, but not
+yet matured as at 31 December 2021, were RMB65,119 million (as at 31 December 2020: RMB74,435 million).
+Outstanding litigations and disputes
+As at 31 December 2021, the Group was the defendant in certain pending litigations and disputes with gross claims of RMB8,765
+million (as at 31 December 2020: RMB9,424 million). Provisions have been made for the estimated losses arising from such litigations
+based upon the opinions of the Group's internal and external legal counsels (Note 44). The Group considers that the provisions
+made are reasonable and adequate.
+Provision against commitments and contingent liabilities
+The Group assessed and made provisions for any probable outflow of economic benefits in relation to the commitments and
+contingent liabilities in accordance with their accounting policies.
+Impact of the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions
+In accordance with the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions jointly issued
+by the PBOC and three other ministries as well as the PBOC's announcement to extend the transition period to 2021, financial
+institutions with difficulty in completing the rectification may apply for disposal of assets on a case-by-case basis. In addition to
+assets for which the Group had applied to regulators for disposal on a case-by-case basis, the Group has completed the rectification
+of legacy wealth management business and recognised its impact in 2021 financial statements in terms of provisions and credit
+impairment losses. The Group will duly implement relevant policies and regulatory requirements, and continue to assess and
+disclose relevant impact, and strive to complete the rectification as soon as possible.
+264
+Credit risk-weighted amount of contingent liabilities and commitments
+The credit risk-weighted amount refers to the amount as computed in accordance with the rules set out by the CBIRC and depends
+on the status of the counterparty and the maturity characteristics.
+Credit risk-weighted amount
+(2)
+Total
+31 December
+2021
+31 December
+2020
+65,623
+350,767
+1,149,306
+94,762
+488,350
+1,068,582
+1,565,696
+1,651,694
+322,698
+48,127
+1,241,473
+278,231
+46,656
+1,236,368
+Sight letters of credit
+41,858
+143,941
+141,600
+6,101
+15,652
+3,369,894
+3,413,530
+China Construction Bank Corporation
+Annual Report 2021
+263
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+59
+COMMITMENTS AND CONTINGENT LIABILITIES (CONTINUED)
+43,329
+3,184
+58
+3,508
+Interest expense
+Fee and commission income
+Fee and commission expense
+Operating expenses
+Balances outstanding as at the end of the reporting period
+Loans and advances to customers
+Other assets
+Financial liabilities measured at fair value through profit or loss
+Deposits from customers
+Other liabilities
+Credit commitments
+2021
+2020
+410
+171
+305
+55
+130
+69
+4
+99
+119
+31 December
+Interest income
+(3)
+Amounts
+In the ordinary course of the business, material transactions that the Group entered into with associates and joint ventures are as
+follows:
+Other liabilities
+9,366
+1.70%
+6,587
+1.21%
+Credit commitments
+9,581
+0.28%
+14,193
+0.42%
+(i)
+31 December
+Operating expenses mainly represent fees for related services provided by parent companies and their affiliates.
+Deposits from the affiliates of parent companies are unsecured and are repayable under normal commercial terms.
+266
+China Construction Bank Corporation
+Annual Report 2021
+60
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (CONTINUED)
+(2)
+Transactions with associates and joint ventures of the Group
+Transactions between the Group and its associates and joint ventures are conducted in the normal and ordinary course of the
+business and under normal commercial terms as those transactions conducted between the Group and non-related companies
+outside the Group.
+(ii)
+0.36%
+2021
+9,907
+697
+775
+676
+557
+8,381
+6,407
+152
+101
+267
+268
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+60
+RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (CONTINUED)
+(3)
+Transactions between the Bank and its subsidiaries (continued)
+Balances outstanding as at the end of the reporting period
+Deposits with banks and non-bank financial institutions
+Placements with banks and non-bank financial institutions
+Positive fair value of derivatives
+0.70%
+Loans and advances to customers
+Financial investments
+2,257
+3,053
+1,160
+847
+7,959
+1,168
+913
+9
+7
+6,940
+8,047
+923
+6,709
+322
+303
+2020
+Transactions between the Bank and its subsidiaries
+Transactions between the Bank and its subsidiaries are conducted in the normal and ordinary course of the business and under
+normal commercial terms as those transactions are conducted between the Group and non-related companies outside the Group.
+All the inter-group transactions and inter-group balances are eliminated when preparing the consolidated financial statements as
+mentioned in Note 4(1)(b).
+Interest income
+Interest expense
+Fee and commission income
+Fee and commission expense
+Dividend income
+Operating expenses
+Other operating expense, net
+2021
+2020
+2,002
+1,871
+In the ordinary course of the business, material transactions that the Bank entered into with its subsidiaries are as follows:
+Amounts
+74,052
+China Construction Bank Corporation
+Annual Report 2021
+75,397
+Deposits with banks and non-bank
+financial institutions
+25,124
+16.20%
+85,722
+18.91%
+Placements with banks and non-bank
+financial institutions
+52,385
+27.84%
+138,354
+37.55%
+Positive fair value of derivatives
+4,054
+12.85%
+14,013
+20.30%
+Financial assets held under resale
+agreements
+72,244
+13.16%
+35,743
+5.94%
+Loans and advances to customers
+Ratio to similar
+transactions
+Balance
+Ratio to similar
+transactions
+Balance
+0.28%
+0.34%
+394
+0.85%
+221
+0.17%
+84
+0.49%
+359
+2.12%
+4.87%
+82,059
+289
+(i)
+3,616
+1,028
+34.44%
+2,119
+0.47%
+810
+36.76%
+0.43%
+Balances outstanding as at the end of the reporting period
+31 December 2021
+31 December 2020
+Note
+6.70%
+0.45%
+381
+0.45%
+6.38%
+Placements from banks and non-bank
+financial institutions
+111,136
+37.14%
+119,434
+34.16%
+Financial liabilities measured at fair
+value through profit or loss
+3
+Negative fair value of derivatives
+4,477
+0.00%
+14.29%
+90
+12,037
+Financial assets sold under repurchase
+agreements
+1,860
+Deposits from customers
+5.49%
+1,291
+72,800
+2.28%
+124,039
+5.48%
+0.04%
+14.69%
+16.78%
+value through profit or loss
+103,301
+105,969
+18.94%
+97,007
+Financial assets measured at
+158,579
+3.08%
+Financial investments
+200,448
+4.45%
+amortised cost
+Financial assets measured at fair
+Deposits from banks and non-bank
+at fair value through other
+comprehensive income
+Other assets
+229,918
+11.84%
+221,531
+(ii)
+11.86%
+Financial assets measured
+53
+financial institutions
+0.02%
+Central
+Stage 3
+(22,989)
+Stage 1
+70,428
+Allowances for expected credit losses
+Stage 2
+balance
+41,805
+(29,569)
+(46,942)
+Bohai Rim
+(49,895)
+(27,159)
+(26,074)
+Pearl River Delta
+Stage 3
+Gross loan
+37,532
+(54,458)
+(57,822)
+830,609
+18,807,830
+Details of Stage 3 loans and expected credit losses in respect of geographical sectors as at the end of the reporting period are
+as follows:
+4.95%
+738,219
+3.93%
+(21,850)
+185,051
+729,606
+4.35%
+170,559
+Accrued interest
+31 December 2021
+43,684
+Gross loans and advances
+to customers
+100.00%
+10,107,316
+41,664
+0.25%
+16,787,432
+100.00%
+9,126,177
+0.23%
+Western
+Total
+(52,958)
+(172,666)
+Stage 3
+31 December 2020
+Allowances for expected credit losses
+Gross loan
+balance
+Stage 1
+Stage 2
+Stage 3
+(154,465)
+Central
+Western
+65,990
+(50,739)
+(19,917)
+(49,417)
+4.79%
+43,467
+(45,227)
+(21,927)
+Bohai Rim
+(310,207)
+266,071
+(2,755)
+(31,002)
+(23,239)
+Yangtze River Delta
+32,286
+(63,241)
+(27,272)
+(19,689)
+Northeastern
+30,672
+(12,260)
+(11,980)
+(21,792)
+Head office
+12,046
+(16,648)
+(2,057)
+(10,325)
+Overseas
+4,775
+(2,925)
+(2,437)
+36,527
+900,573
+(d) Loans and advances to customers analysed by geographical sector concentrations
+Head office
+31 December 2020
+Allowances for expected credit losses
+2020
+Stage 3
+Gross loans
+Stage 1
+Stage 2
+Stage 3
+Charge for
+the year
+Written off
+during the
+year
+Annual Report 2021
+37,695
+(14,023)
+(27,783)
+(14,829)
+2,382
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+61
+RISK MANAGEMENT (CONTINUED)
+(1) Credit risk (continued)
+(28,478)
+China Construction Bank Corporation
+and postal services
+Transportation, storage
+7,311,183
+(26,744)
+6,704,601
+259,061
+43.55%
+1.54%
+6,104,175
+Accrued interest
+43,684
+0.23%
+Total loans and advances
+to customers
+18,807,830
+100.00%
+10,107,316
+41,664
+0.25%
+16,787,432
+100.00%
+9,126,177
+As at 31 December 2021, no economic sector accounted for 10% or above of the Group's total balance of loans and advances
+to customers.
+The table below lists economic sectors accounting for 10% or above of the Group's total balance of loans and advances to
+customers as at 31 December 2020, details of credit impaired (stage 3) loans, allowances for expected credit losses, credit
+impairment losses, and amounts written off:
+31 December 2021
+Overseas
+31 December 2020
+Percentage
+3,137,528
+16.68%
+2,096,561
+2,770,718
+16.50%
+1,885,512
+Western
+3,070,704
+16.33%
+Pearl River Delta
+1,757,244
+16.33%
+1,589,540
+Northeastern
+805,241
+4.28%
+387,189
+766,232
+4.56%
+375,371
+2,741,336
+1,367,386
+16.80%
+2,819,557
+Balance
+secured by
+collateral
+Gross loan
+balance
+Percentage
+Balance
+secured by
+collateral
+Yangtze River Delta
+Central
+3,492,555
+18.57%
+2,094,035
+3,003,466
+17.89%
+1,823,289
+3,460,768
+18.40%
+2,090,226
+3,084,244
+18.37%
+1,914,520
+Bohai Rim
+3,158,558
+16.79%
+1,497,010
+Gross loan
+balance
+39,218
+15,937,968
+(17,893)
+The Group classifies asset risk characteristics according to the quality of assets. "Low risk" means that the borrower can fulfil
+the contract, and there are not enough reasons to suspect that the principal and interest of the loan cannot be repaid in full
+on time; "Medium risk" means that the borrower is currently able to repay the principal and interest of the loan, but there
+are some factors that may adversely affect the repayment; "High risk" means that the borrower has obvious problems in its
+repayment ability and loan principal and interest cannot be repaid in full by relying on normal business income. Even if the
+guarantee is enforced, losses may be incurred.
+China Construction Bank Corporation
+Annual Report 2021
+61
+RISK MANAGEMENT (CONTINUED)
+(1) Credit risk (continued)
+(g) Credit exposure (continued)
+Financial investments
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+(840)
+31 December 2021
+Medium risk
+High risk
+Stage 1
+12-month ECL
+6,985,424
+18,337
+Stage 2
+Lifetime ECL
+455
+Stage 3
+Lifetime ECL
+Total
+6,985,879
+6,255
+Low risk
+24,592
+(237)
+Allowances for impairment losses on loans and
+advances measured at fair value through
+other comprehensive income
+31 December 2020
+Stage 2
+Lifetime ECL
+Stage 3
+Lifetime ECL
+Low risk
+Medium risk
+High risk
+Gross loans and advances
+44,916
+492,265
+Total
+15,982,884
+492,265
+(603)
+260,729
+15,937,968
+537,181
+260,729
+16,735,878
+Allowances for impairment losses on loans and
+advances measured at amortised cost
+(275,428)
+(108,099)
+(172,536)
+(556,063)
+260,729
+18,370
+18,370
+Total carrying amount excluding accrued interest
+China Construction Bank Corporation
+Annual Report 2021
+The Group classifies financial investment risk characteristics based on asset eligibility and internal rating changes. "Low risk"
+means that the issuer's initial internal rating is above the entry level, and there are no reasons to suspect that the financial
+investment is expected to default; "Medium risk" means that although the issuer's internal rating is reduced to a certain
+extent, but there are not enough reasons to suspect that the financial investment is expected to default; "High risk" means
+that there are obvious problems which may cause a default, or the financial investment indeed is defaulted.
+(3,345)
+(11)
+(3,334)
+Allowance for impairment losses on financial
+assets measured at fair value through other
+comprehensive income
+(20,238)
+(6,745)
+(282)
+279
+(13,211)
+6,297,743
+10,420
+3,575
+6,283,748
+Total carrying amount excluding accrued interest
+11,367
+10,420
+42.42%
+2.02%
+947
+Allowance for impairment losses on financial
+assets measured at amortised cost
+208
+6,266,753
+16,995
+Total
+7,003,761
+6,710
+18,370
+7,028,841
+Allowance for impairment losses on financial
+assets measured at amortised cost
+(17,737)
+(1,427)
+(15,064)
+(34,228)
+Allowance for impairment losses on financial
+assets measured at fair value through other
+comprehensive income
+(3,640)
+(101)
+(70)
+(3,811)
+Low risk
+Medium risk
+High risk
+Stage 1
+12-month ECL
+31 December 2020
+Stage 2
+Lifetime ECL
+Stage 3
+Lifetime ECL
+12-month ECL
+Stage 1
+(1,116)
+(216)
+(3,194)
+Total
+260,729
+(275,428)
+(108,099)
+(172,536)
+The definitions of geographical segments are set out in Note 56(1). The above allowances for ECL do not include allowances
+for ECL of loans and advances measured at fair value through other comprehensive income.
+China Construction Bank Corporation
+277
+(3,113)
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+61
+RISK MANAGEMENT (CONTINUED)
+(1)
+Credit risk (continued)
+(e) Loans and advances to customers analysed by type of collateral
+31 December
+31 December
+278
+(2,836)
+6,446
+Overseas
+(25,133)
+Pearl River Delta
+38,323
+(46,614)
+(12,955)
+(21,855)
+Yangtze River Delta
+32,932
+(53,150)
+(20,265)
+(20,308)
+Northeastern
+22,581
+(12,771)
+(9,112)
+(15,654)
+Head office
+11,772
+(15,165)
+(2,917)
+(10,231)
+2021
+(48,926)
+2020
+Guaranteed loans
+12-month ECL
+31 December 2021
+Stage 2
+Lifetime ECL
+Stage 3
+Lifetime ECL
+Total
+17,902,319
+88,858
+503,137
+266,071
+17,991,177
+503,137
+266,071
+Gross loans and advances
+Stage 1
+17,902,319
+266,071
+18,760,385
+Allowances for impairment losses on loans and
+advances measured at amortised cost
+(310,207)
+(154,465)
+(172,666)
+(637,338)
+Allowances for impairment losses on loans and
+advances measured at fair value through
+other comprehensive income
+(900)
+591,995
+High risk
+Medium risk
+Low risk
+Loans secured by property and other immovable assets
+Other pledged loans
+Accrued interest
+6,295,609
+5,397,481
+2,361,221
+2,222,110
+8,589,061
+7,703,618
+1,518,255
+1,422,559
+43,684
+41,664
+(f)
+Gross loans and advances to customers
+18,807,830
+16,787,432
+Restructured loans and advances to customers
+Restructured loans and advances to customers are those loans and advances to customers for which the Group has modified
+the contract terms as a result of the deterioration in the borrower's financial position or of the borrower's inability to make
+payments when due. The proportion of the Group's restructured loans and advances to customers was not significant for the
+years ended 31 December 2021 and 2020.
+(g)
+Credit exposure
+Loans and advances to customers
+Unsecured loans
+7,977,650
+379,469
+When measuring provisions for expected credit losses measured on a collective basis, the Group divided exposures with
+shared risk characteristics into separate groups. In performing this grouping, the Group obtained sufficient information to
+ensure it is statistically reliable. The Group measured expected credit losses on personal loans and advances on a collective
+basis by considering factors such as internal rating risk pool, product type and client type.
+advances
+The Group has set qualitative and quantitative criteria for assessing whether the credit risk of financial instruments has
+increased significantly since initial recognition. For example, the credit risk of corporate loans and advances whose internal
+credit ratings have fallen to level 15 and below, and of bond investments whose internal credit ratings have fallen by 2 and
+more levels, is regarded as having increased significantly.
+272
+China Construction Bank Corporation
+Annual Report 2021
+61
+RISK MANAGEMENT (CONTINUED)
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+(1) Credit risk (continued)
+The Group assesses at least quarterly whether the credit risk of a financial instrument has increased significantly since initial
+recognition. The Group compares the risk of default of financial instruments as at the balance sheet date with that as at the
+date of initial recognition for an individual financial instrument or a group of financial instruments with similar credit risk
+characteristics to determine whether the credit risk has increased significantly since initial recognition. The Group sufficiently
+considers all reasonable and supportable information in related assessments, including regulatory and business environment,
+internal and external credit rating of customer, customer repayment ability, customer operation capacity, contract terms of
+the loan, asset price, market interest rate, customer repayment behaviors, and forward-looking information.
+Measurement of expected credit losses (ECL) (continued)
+Significant increase in credit risk ("SICR") (continued)
+Usually, the credit risk of loans overdue for more than 30 days is regarded as having increased significantly.
+For borrowers who were eligible for temporary deferral in principal repayment and interest payment, deferred repayment
+and other credit support measures in the wake of COVID-19, the Group, by reference to guidelines by relevant regulators,
+did not consider such support measures as an automatic trigger of a significant increase in credit risk. The Group continued
+to make judgment based on substantive risk assessment and comprehensively considered the operation and repayment
+capacity of borrowers, as well as factors such as the impact of COVID-19, on these borrowers, to assess whether the credit risk
+of relevant financial instruments had increased significantly since initial recognition.
+Definition of default and credit-impaired assets
+The Group considers a financial asset as having defaulted when it is credit-impaired. Generally, financial assets overdue for
+more than 90 days on contractual payment terms shall be considered as having credit-impaired.
+In order to evaluate whether a financial asset is impaired, the Group considers the following criteria:
+Significant financial difficulty of the borrower or issuer;
+Breach of contract terms, such as a default or delinquency in interest or principal payments;
+The Group, for economic or legal reasons, making a concession to a borrower experiencing financial difficulty that the
+Group would not otherwise consider;
+(B)
+It is becoming probable that the borrower will enter into bankruptcy or other financial reorganisation;
+Disappearance of an active market for financial assets because of financial difficulties;
+Significant increase in credit risk ("SICR")
+Stage 3:
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+61
+RISK MANAGEMENT (CONTINUED)
+(1) Credit risk (continued)
+Credit risk management (continued)
+Credit business (continued)
+With respect to the credit risk management of corporate and institutional business, the Group has accelerated the adjustment of
+its credit portfolio structure, enhanced post-lending monitoring, and refined the industry-specific guideline and policy baseline for
+credit approval. Management also fine-tuned the credit acceptance and exit policies, and optimised its economic capital and credit
+risk limit management. All these policies have been implemented to maintain the stability of asset quality. The Group manages
+credit risk throughout the entire credit process including pre-lending evaluations, credit approval and post-lending monitoring. The
+Group performs pre-lending evaluations by assessing the entity's credit ratings based on internal rating criteria and assessing the risk
+and rewards with respect to the proposed project. Credit approvals are granted by designated Credit Approval Officers. The Group
+continually carries out post-lending monitoring, particularly those related to targeted industries, geographical segments, products
+and clients. Any adverse events that may significantly affect a borrower's repayment ability are reported timely and measures are
+implemented to prevent and control risks.
+With respect to the personal credit business, the Group relies on credit assessment of applicants as the basis for loan approval.
+Customer relationship managers are required to assess the income, credit history, and repayment ability of the applicant. The
+customer relationship managers then forward the application and recommendations to the loan-approval departments for consent.
+The Group pays great attention to post-lending monitoring of personal loans, focuses on borrowers' repayment ability, the status
+of collateral and any changes to collateral value. Once a loan becomes overdue, the Group starts the recovery process according to
+standard recovery procedures.
+To mitigate risks, the Group requests the customers to provide collateral or guarantees where appropriate. A refined management
+system and operating procedure for collateral have been developed, and there is a guideline to specify the suitability of accepting
+specific types of collateral. Collateral values, structures and legal covenants are regularly reviewed to ensure that they still serve their
+intended purposes and conform to market practices.
+For financial instruments with objective evidence of impairment on the balance sheet date, lifetime expected
+credit losses are recognised.
+Treasury business
+Measurement of expected credit losses (ECL)
+(A) Segmentation of financial instruments
+The Group adopts a "three-stage" model for impairment based on changes in credit risk since initial recognition or by
+determining whether the financial instruments are credit-impaired, to estimate the expected credit losses.
+The key definition of the three stages are summarised below:
+(B)
+Stage 1:
+For financial instruments with no significant increase in credit risk after initial recognition, expected credit losses
+in the next 12 months are recognised.
+Stage 2:
+For financial instruments with significant increase in credit risk since initial recognition, but with no objective
+evidence of impairment, lifetime expected credit losses are recognised.
+For risk management purposes, credit risk arising from debt securities and derivatives exposures is managed independently and
+information thereon is disclosed in Notes (1)(i) and (1)(j) below. The Group sets credit limits for treasury activities and monitors them
+regularly with reference to the fair values of the relevant financial instruments.
+A financial asset purchased or originated by a large discount which reflects the fact of credit-impairment having
+occurred;
+Observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of
+financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the
+individual financial assets in the Group, including adverse changes in the payment status of borrowers in the Group,
+an increase in the unemployment rate in the geographical area of the borrowers, a decrease in property prices for
+mortgages in the relevant area, or adverse changes in industry conditions that affect the borrowers in the Group; and
+Other objective evidence indicating there is a credit impairment of the financial asset.
+The Group's definition of default has been consistently applied to the estimates of PD, LGD and EAD during the ECL
+China Construction Bank Corporation
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+61
+RISK MANAGEMENT (CONTINUED)
+Maximum credit risk exposure
+(1) Credit risk (continued)
+(a)
+The Group constructs empirical models to derive the relationship between historical macroeconomic variables and PD and
+LGD, and calculates the PD and LGD values for a given future horizon using the forecasted macroeconomic variables.
+The Group constructs empirical models to determine the weightings for optimistic, baseline and pessimistic scenarios. As at
+31 December 2021 and 31 December 2020, the optimistic, baseline and pessimistic scenarios are of comparable weighting.
+Grouping of financial instruments for expected credit losses measured on a collective basis
+The following table presents the maximum exposure to credit risk as at the end of the reporting period without taking into
+consideration any collateral held or other credit enhancement. In respect of the financial assets recognised in the statement
+of financial position, the maximum exposure to credit risk is represented by the carrying amount after deducting any
+impairment allowance.
+31 December
+2021
+31 December
+2020
+Deposits with central banks
+Deposits with banks and non-bank financial institutions
+Placements with banks and non-bank financial institutions
+Positive fair value of derivatives
+2,715,279
+2,767,096
+155,107
+(b)
+The forecast GDP value for baseline scenario was set as the average value of forecasts released by authoritative international
+and domestic institutions, and the forecast 2022 GDP growth under the baseline scenario ranged from 5.0% to 5.5%. For
+other macroeconomic variables, the Group involved internal experts and used methods such as transmission models,
+economic principles, and expert judgment to calculate the predicted value of each variable under each scenario.
+In 2021, the spread of COVID-19 pandemic accelerated globally, the external environment remained complex and severe
+with significant uncertainties in macroeconomic development. The Group referred to forecast results of international and
+domestic authoritative institutions and utilized internal experts to develop scenario assumptions specifically applicable to the
+measurement of expected credit losses.
+The Group has performed historical data analysis and identified the macroeconomic variables affecting expected credit
+losses, such as GDP, CPI, M2, PPI, RMB deposit reserve rate, London spot gold price, average exchange rate of US Dollar to
+RMB, sales price indices of second-hand residential buildings in 70 large and medium-sized cities, national real estate climate
+index, unemployment rate, and so on.
+measurement.
+China Construction Bank Corporation
+Annual Report 2021
+273
+274
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+61
+RISK MANAGEMENT (CONTINUED)
+(1) Credit risk (continued)
+Measurement of expected credit losses (ECL) (continued)
+(D) Explanation of parameters, assumptions and estimation techniques
+The ECL is recognised on either within a 12-month or lifetime basis depending on whether a significant increase in credit
+risk has occurred since initial recognition or whether a financial instrument is considered to be credit-impaired. Expected
+credit losses are the discounted product of the weighted average of PD, LGD, and EAD under the optimistic, baseline and
+pessimistic scenarios, defined as follows:
+PD refers to the likelihood of a borrower defaulting on its financial obligation in the future, after consideration of forward-
+looking information. Please refer to earlier disclosure in this note for the definition of default.
+LGD refers to the Group's expected loss amount resulting from default as a proportion of total exposure, after consideration
+of forward-looking information.
+EAD is the total amount of risk exposure on and off-balance sheet at the time of default. The exposure is determined by the
+repayment plan according to different types of products.
+The discount rate used in the ECL measurement is the effective interest rate.
+During the reporting period, based on changes in macroeconomic environment, the Group has updated forward-looking
+information used in the measurement of expected credit losses. Please refer to further disclosure in this note for forward-
+looking information which is incorporated in the measurement of expected credit losses.
+The assumptions underlying the ECL measurement, such as the PDs for different maturities and how the collateral values
+change, are monitored and reviewed on a quarterly basis.
+During the reporting period, the Group conducted a comprehensive review of key models for the measurement of expected
+credit losses, and continued to optimize models based on the result of this review.
+There have been no significant changes in estimation techniques and such assumptions made during the reporting period.
+Forward-looking information incorporated in the ECL
+The assessment of SICR and the measurement of ECL both incorporate forward-looking information.
+NOTES TO THE FINANCIAL STATEMENTS
+453,233
+271
+The Risk Management Department takes the lead in the development and implementation of the credit risk measurement tools
+including customers rating and facilities grading. The Credit Management Department is responsible for establishing credit risk
+management policies and monitoring the quality of credit assets. The Special Assets Resolution Department is responsible for the
+special assets resolutions. The Credit Approval Department is responsible for the Group's comprehensive credit limits and credit
+approval of various credit businesses. While the Credit Management Department takes the lead, both the Credit Management
+Department and the Credit Approval Department will coordinate with the Corporate Banking Department, the Inclusive Finance
+Department, the Institutional Banking Department, the International Business Department, the Strategic Clients Department, the
+Housing Finance & Personal Lending Department, the Credit Card Center, and the Legal Affairs Department to implement the credit
+risk management policies and procedures.
+2018-2020
+income
+tenure
+RMB'000
+RMB'000
+RMB'000
+RMB'000
+775
+159
+income for
+258
+595
+15
+2,399
+243
+2,399
+239
+Zhang Min
+Chief Risk Officer
+Jin Yanmin
+64
+Secretary to the Board
+Other Monetary
+(Allowances)
+6,266,961
+19,415
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+60
+270
+RELATED PARTY RELATIONSHIPS AND TRANSACTIONS (CONTINUED)
+(6) Key management personnel (continued)
+Executive Vice Presidents
+Ji Zhihong
+Wang Hao
+and housing
+provident fund
+Employer's
+social insurances,
+enterprise
+annuity,
+supplemental
+2020
+Annual
+Incentive
+remuneration
+medical insurance
+payable
+contribution to
+Hu Changmiao
+Former Executive Vice President
+Huang Yi
+Annual Report 2021
+61
+RISK MANAGEMENT
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+The Group has exposure to the following risks:
+credit risk
+market risk
+liquidity risk
+China Construction Bank Corporation
+operational risk
+This note presents information about the Group's exposures to each of the above risks, the Group's objectives, policies and processes for
+measuring and managing risk, and the Group's capital management.
+Risk management framework
+The Board performs risk management responsibilities pursuant to the Bank's Articles of Association and regulatory requirements. The Risk
+Management Committee under the Board is responsible for developing risk management strategies, supervising the implementation, and
+assessing the overall risk profile on a regular basis. The Board reviews the statements of risk appetite regularly and transmits risk appetite
+through policies. The Board of Supervisors supervises the construction of the comprehensive risk management system, as well as the
+performance of the Board and senior management in delivering comprehensive risk management responsibilities. Senior management is
+responsible for implementing risk strategies developed by the Board and organising the comprehensive risk management work across the
+Group.
+Chief Risk Officer of the Bank assists the President with the corresponding risk management work within designated responsibilities.
+Risk Management Department is the leading management department responsible for the Group's comprehensive risk management,
+and its subordinate department, Market Risk Management Department takes the lead in market risk management. Credit Management
+Department is the leading management department responsible for the overall credit risk management and country risk management.
+Asset & Liability Management Department is the leading management department responsible for the management of liquidity risk
+and interest rate risk of banking book. Internal Control & Compliance Department is the leading management department responsible
+for operational risk and information technology risk management. Public Relations & Corporate Culture Department is in charge of
+reputational risk management. Strategy and Policy Coordination Department is the leading management department responsible for
+strategic risk management. Other specialised departments are responsible for other respective risks.
+The Bank attached great importance to the risk management of subsidiaries, implemented management requirements of the parent
+bank through the corporate governance mechanism, continuously improved the quality and efficiency of the performance of the Board
+of Directors of the subsidiaries, and required the subsidiaries to focus on their main businesses, operate steadily, and establish a sound risk
+control system. It further highlighted the transmission of risk appetite at the Group level within the group risk management framework,
+and implemented refined and differentiated management of different types of subsidiaries. It strengthened the Group's consolidation
+and credit management to avoid lending beyond credit limits. It continued to promote the establishment of risk views of subsidiaries,
+and effectively improved the digital level of risk early warning and risk monitoring of subsidiaries. It strengthened overall planning and
+coordination and improved the long-term mechanism for risk management of the asset management business at the subsidiaries.
+Credit risk
+(1)
+Credit risk management
+Credit risk represents the financial loss that arises from the failure of a debtor or counterparty to discharge its contractual obligations
+or commitments to the Group.
+Credit business
+insurance risk
+The Group had no material balance of loans, quasi-loans and other credit transactions to directors, supervisors and senior executives
+as at the end of reporting period. Those loans, quasi-loans and other credit transactions to directors, supervisors and senior
+executives were conducted in the normal and ordinary course of the business and under normal commercial terms or on the same
+terms and conditions with those which are available to other employees, based on terms and conditions granted to third parties
+adjusted for risk reduction.
+Loans, quasi-loans and other credit transactions to directors, supervisors and senior executives
+(iv) From 2015 onwards, remuneration of the Bank's leaders administered by central authorities has been paid in accordance with relevant
+policies relating to the central remuneration reform.
+258
+Former Chief Financial Officer
+Xu Yiming
+350
+74
+19
+46
+494
+46
+799
+60
+6,952
+823
+937
+(7)
+(i)
+(ii)
+(!!!)
+Other benefits in kind included the Bank's contributions to medical fund, housing fund and other social insurances, which are payable to
+labour and security authorities based on the lower of certain percentage of the salaries and allowance or the prescribed upper limits as
+required by the relevant regulations issued by the government authorities. Other benefits also included the Bank's contribution to its own
+corporate annuity plan (which was set up in accordance with the relevant policies issued by the government authorities) and supplementary
+medical insurance.
+The total compensation package for these key management personnel for the year ended 31 December 2021 has not yet been finalised in
+accordance with regulations of the PRC relevant authorities. The amount of the compensation to be adjusted for is not expected to have
+significant impact on the Group's financial statements for the year ended 31 December 2021. The final compensation will be disclosed in a
+separate announcement when determined.
+The total compensation package for certain key management personnel for the year ended 31 December 2020 had not been finalised in
+accordance with regulations of the PRC relevant authorities as at the date that the 2020 financial statements were announced. The aforesaid
+total compensation package for the key management personnel for the year ended 31 December 2020 has been reviewed and approved by
+the Board meeting of the Bank and the shareholders' general meeting of the Bank.
+China Construction Bank Corporation
+Annual Report 2021
+188,162
+368,404
+31,550
+377,767
+- Real estate
+837,716
+4.45%
+426,456
+788,560
+4.70%
+436,419
+- Water, environment
+4.61%
+and public utility
+645,987
+3.43%
+263,172
+540,313
+3.22%
+235,243
+- Construction
+454,623
+2.42%
+management
+130,856
+773,466
+5.11%
+569,004
+426,494
+1,481,999
+8.83%
+505,365
+1,425,165
+8.49%
+378,593
+- Production and
+supply of electric
+503,282
+power, heat, gas
+1,009,162
+5.37%
+200,015
+867,109
+5.17%
+189,047
+- Wholesale and retail
+trade
+961,353
+and water
+396,171
+2.36%
+106,836
+56,141
+- Others
+781,799
+0.30%
+4.16%
+421
+247,202
+55,905
+0.33%
+1,604
+746,102
+social organisation
+4.44%
+Total corporate loans and
+advances
+10,407,027
+55.33%
+3,402,715
+9,175,524
+54.66%
+3,022,002
+Personal loans and
+210,436
+social securities and
+- Public management,
+16,713
+- Mining
+272,833
+1.45%
+16,953
+236,199
+1.41%
+16,885
+- Agriculture, forestry,
+farming, fishing
+99,550
+0.53%
+23,380
+88,754
+0.53%
+17,644
+- Education
+75,167
+0.40%
+17,994
+72,721
+0.43%
+9.49%
+8.26%
+1,553,851
+- Manufacturing
+1,784,905
+3,413,530
+32,844,761
+30,837,824
+Loans and advances to customers analysed by credit quality
+Within overdue but not credit impaired loans and advances and credit impaired loans and advances, the portions covered
+and not covered by the collateral held are as follows:
+Portion covered
+Portion not covered
+Total
+Portion covered
+Portion not covered
+Total
+3,369,894
+31 December 2021
+Overdue but not credit impaired
+loans and advances
+Corporate
+Personal
+loans and
+advances
+Corporate
+1,749
+1,445
+16,686
+9,649
+67,909
+166,480
+3,194
+Credit impaired
+27,424,294
+29,474,867
+Maximum credit risk exposure
+69,029
+Financial assets held under resale agreements
+549,078
+602,239
+Loans and advances to customers
+18,170,492
+16,231,369
+Financial investments
+Financial assets measured at fair value through profit or loss
+280,217
+361,318
+Financial assets measured at amortised cost
+5,155,168
+4,505,243
+Financial assets measured at fair value through other comprehensive income
+Other financial assets
+1,934,061
+1,860,503
+295,753
+205,860
+Total
+Off-balance sheet credit commitments
+26,335
+Discounted bills
+234,389
+Overdue but not credit impaired
+31 December 2021
+31 December 2020
+Gross loan
+balance
+Percentage
+Balance
+secured by
+collateral
+Gross loan
+balance
+Percentage
+Balance
+secured by
+collateral
+Corporate loans and
+Loans and advances to customers analysed by economic sector concentrations
+advances
+storage and postal
+services
+1,873,940
+9.96%
+577,486
+1,703,060
+10.14%
+529,450
+- Leasing and
+commercial services
+- Transportation,
+(c)
+RISK MANAGEMENT (CONTINUED)
+(1) Credit risk (continued)
+61
+loans and advances
+Credit impaired
+loans and
+advances
+Corporate
+Personal
+Corporate
+1,011
+16,468
+81,636
+1,535
+10,419
+148,796
+2,546
+26,887
+230,432
+The above collateral includes land use rights, buildings and equipment, etc. The fair value of collateral was estimated by the
+Group with reference to the latest available external valuations adjusted after taking into account the current realisation
+experience as well as the market situation.
+China Construction Bank Corporation
+Annual Report 2021
+275
+276
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+31 December 2020
+2,420
+(i)
+Annual Report 2021
+For certain types of transactions, the Group mitigates this risk by conducting settlements through a settlement or clearing
+agent to ensure that a trade is settled only when both parties have fulfilled their contractual settlement obligations.
+Sensitivity analysis
+The Group's activities may give rise to settlement risk at the time of the settlement of transactions and trades. Settlement
+risk is the risk of loss due to the failure of an entity to honour its obligations to deliver cash, securities or other assets as
+contractually agreed.
+The majority of the Group's derivative transactions with domestic customers are hedged back-to-back with overseas banks
+and non-bank financial institutions. The Group is exposed to credit risk in respect of both domestic customers and overseas
+banks and non-bank financial institutions. The Group manages this risk by monitoring this exposure on a regular basis.
+Settlement risk
+Credit risk arising from the Group's derivative exposures
+(1)
+(k)
+6,727,064
+6,722,898
+(13,493)
+Total
+Subtotal
+impairment losses
+Allowances for
+6,736,391
+29,323
+95,334
+49,061
+3,667,571
+2,895,102
+The allowance for impairment losses is sensitive to the inputs used in internally developed models, macroeconomic variables
+in the forward-looking forecasts, and other factors considered when applying expert judgement. Changes in these inputs,
+assumptions, models, and judgements would have an impact on the assessment of significant increase in credit risk and the
+measurement of ECL.
+(i)
+Sensitivity analysis of segmentation
+The loss provisions of performing financial assets consist of an aggregate amount of Stage 1 and Stage 2 probability-
+weighted ECL which are within 12-month ECL and lifetime ECL, respectively. A significant increase in credit risk since
+initial recognition will result in financial assets transferring from Stage 1 to Stage 2, and the loss allowance for those
+financial assets shall be measured at an amount equal to the lifetime expected credit losses. The following table
+presents the impact of ECL from the second year to the end of the lifetime for financial assets in Stage 2.
+21,397
+434,106
+12 months
+allowances
+for ECL of all
+performing
+financial assets
+Performing financial investments
+Performing loans
+Performing financial investments
+Performing loans
+(ii)
+Sensitivity analysis of segmentation (continued)
+Total
+(i)
+Sensitivity analysis (continued)
+(1) Credit risk (continued)
+RISK MANAGEMENT (CONTINUED)
+61
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+284
+283
+China Construction Bank Corporation
+Annual Report 2021
+(1)
+31 December 2021
+410,971
+25,242
+- Central banks
+5,102,847
+15,151
+11,236
+5,296
+3,167,073
+1,904,091
+4,166
+(6,745)
+10,911
+1,800
+1,226
+7,885
+10,571
+1,800
+1,226
+7,545
+340
+340
+27,875
+2,335
+7,997
+927
+25,000
+295,736
+59,740
+- Enterprises
+401,542
+8,416
+35,632
+10,768
+202,019
+5,253
+144,707
+financial
+- Banks and non-bank
+781,394
+22,297
+408
+758,689
+- Policy banks
+39,637
+503
+institutions
+- Government
+Impact of
+lifetime
+Current
+allowances
+for ECL
+464,672
+22,905
+Minimum
+Maximum
+Average
+31 December
+Note
+As at
+2020
+VaR of trading portfolio
+45
+9
+110
+203
+163
+55
+155
+1
+(i)
+- Foreign exchange risk
+-Commodity risk
+30
+89
+141
+250
+317
+137
+A 1-day holding period assumes that it is possible to hedge or dispose of positions within that period. This is
+considered to be a realistic assumption in almost all cases but may not be the case in situations in which there is
+severe market illiquidity for a prolonged period;
+Although VaR is an important tool for measuring market risk, the assumptions on which the model is based give rise to some
+limitations, including the following:
+VaR for each risk factor is the independently derived largest potential loss for a specific holding period and at a given
+confidence level due to fluctuations solely in that risk factor. The individual VaRs do not add up to the total VaR as there is
+diversification effect due to correlation amongst the risk factors.
+The VaR in relation to bullion is included in the foreign exchange risk above.
+(i)
+42
+9
+137
+298
+53
+246
+-Commodity risk
+(i)
+- Foreign exchange risk
+46
+182
+98
+87
+- Interest rate risk
+Of which:
+145
+1
+1,508
+35
+Of which:
+The Group considers that the market risk arising from stock prices in respect of its investment portfolios is minimal.
+The Group's foreign exchange exposures mainly comprise exposures from foreign currency portfolios within treasury proprietary
+investments in debt securities and money market placements, and currency exposures from its overseas business. The Group
+manages its foreign exchange exposures by spot foreign exchange transactions and by matching its foreign currency denominated
+assets with corresponding liabilities in the same currency, and also uses derivatives in the management of its own foreign currency
+asset and liability portfolios and structural positions.
+The Group's interest rate risk mainly comprises repricing risk and basis risk arising from the mismatch of term structure and pricing
+basis of assets and liabilities. The Group uses multiple tools such as repricing gap analysis, sensitivity analysis on net interest income,
+scenario analysis and stress testing, etc., to monitor the interest rate risk periodically.
+The Group continues to improve market risk management system. The Market Risk Management Department is responsible for
+leading the establishment of market risk management policies and rules, developing the market risk measurement tools, monitoring
+and reporting the trading market risk and related daily work. The Asset and Liability Management Department (the "ALM") is
+responsible for managing non-trading interest rate risk, exchange rate risk and the size and structure of the assets and liabilities
+in response to structural market risk. The Financial Market Department manages the Bank's RMB and foreign currency investment
+portfolios, conducts proprietary and customer-driven transactions, as well as implementing market risk management policies and
+rules. The Audit Department is responsible for regularly performing independent audits of the reliability and effectiveness of the
+processes constituting the risk management system.
+Market risk is the risk of loss, in respect of the Group's on and off-balance sheet activities, arising from adverse movements in market
+rates including interest rates, foreign exchange rates, commodity prices and stock prices. Market risk arises from both the Group's
+trading and non-trading businesses. A trading book consists of positions in financial instruments and commodities held either with
+trading intent or in order to hedge other elements of the trading book. Non-trading book records those financial instruments and
+commodities which are not included in the trading book.
+The Group has carried out sensitivity analysis of GDP forecast. As at 31 December 2021, when GDP growth rate in
+the baseline scenario increased or decreased by 10%, the change in allowances for ECL did not exceed 5% (As at 31
+December 2020: did not exceed 5%).
+Market risk
+Sensitivity analysis of macroeconomic variables
+The above allowances for ECL do not contain the allowances for ECL of loans and advances measured at fair value
+through other comprehensive income.
+16,838
+284
+383,527
+18,759
+364,768
+16,554
+Current
+allowances
+for ECL
+Impact of
+lifetime
+12 months
+allowances
+for ECL of all
+performing
+financial assets
+31 December 2020
+30,566
+The Group monitors market risk separately in respect of trading portfolios and non-trading portfolios. Trading portfolios include
+exchange rate and interest rate derivatives as well as trading securities. The historical simulation model for the Value-at-Risk (“VaR”)
+analysis is a major tool used by the Bank to measure and monitor the market risk of its trading portfolio. Net interest income
+sensitivity analysis, interest rate repricing gap analysis and foreign exchange risk concentration analysis are the major tools used by
+the Group to monitor the market risk of its overall businesses.
+China Construction Bank Corporation
+Annual Report 2021
+61
+127
+196
+160
+151
+Minimum
+Maximum
+Average
+31 December
+Note
+- Interest rate risk
+As at
+VaR of trading portfolio
+A summary of the VaR of the Bank's trading portfolio as at the end of the reporting period and during the respective years is
+as follows:
+VaR is a technique which estimates the potential losses that could occur on risk positions taken, due to movements in market
+interest rates, foreign exchange rates and other market prices over a specified time horizon and at a given level of confidence.
+The Risk Management Department calculates interest rates, foreign exchange rates and commodity prices VaR for the Bank's
+trading portfolio. By reference to historical movements in interest rates, foreign exchange rates and commodity prices,
+the Risk Management Department calculates VaR on a daily basis for the trading portfolio and monitors it regularly. VaR is
+calculated at a confidence level of 99% and with a holding period of one day.
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+VaR analysis
+(a)
+(2) Market risk (continued)
+RISK MANAGEMENT (CONTINUED)
+2021
+Neither overdue nor
+impaired
+Subtotal
+impairment losses
+Allowances for impairment losses
+Total
+Accrued interest
+- unrated
+- grades B to BBB
+-grades A to AAA
+Neither overdue nor impaired
+Subtotal
+Allowances for impairment losses
+Credit impaired
+2020
+2021
+31 December
+31 December
+Distribution of amounts due from banks and non-bank financial institutions in terms of credit quality is as follows:
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+(h)
+(1) Credit risk (continued)
+Subtotal
+Total
+634,609
+392
+255,788
+2,189
+1,133,754
+2,507
+(1) Credit risk (continued)
+RISK MANAGEMENT (CONTINUED)
+61
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+282
+281
+Annual Report 2021
+China Construction Bank Corporation
+RISK MANAGEMENT (CONTINUED)
+Amounts neither overdue nor impaired are analysed above according to the Group's internal credit ratings. Unrated amounts
+due from banks and non-bank financial institutions include amounts due from a number of banks and non-bank financial
+institutions for which the Group has not assigned internal credit ratings.
+892,347
+1,423,876
+892,347
+(775)
+(631)
+1,424,651
+892,978
+3,465
+284,925
+1,423,876
+(i)
+61
+(775)
+Low risk
+890,789
+16,250
+874,539
+Total
+Stage 3
+Lifetime ECL
+31 December 2021
+Stage 2
+Lifetime ECL
+12-month ECL
+Stage 1
+Annual Report 2021
+China Construction Bank Corporation
+280
+Amounts due from banks and non-bank financial institutions include deposits and placements with banks and non-bank
+financial institutions, and financial assets held under resale agreements of which counterparties are banks and non-bank
+financial institutions.
+Amounts due from banks and non-bank financial institutions
+Credit exposure (continued)
+(g)
+RISK MANAGEMENT (CONTINUED)
+61
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Medium risk
+High risk
+Total carrying amount excluding accrued
+interest
+874,539
+- 1,421,186
+(775)
+Allowance for impairment losses
+1,421,186
+Total carrying amount excluding accrued
+interest
+High risk
+Medium risk
+Low risk
+Total
+1,421,186
+The Group classifies risk characteristics of amounts due from banks and non-bank financial institutions based on asset
+eligibility and internal rating changes. "Low risk" means that the issuer's initial internal rating is above the entry level,
+and there are no reasons to suspect that the amount due from banks and non-bank financial institutions is expected
+to default; "Medium risk" means that although the issuer's internal rating is reduced to a certain extent, but there are
+not enough reasons to suspect that the amount due from banks and non-bank financial institutions is expected to
+default; "High risk" means that there are obvious problems which may cause a default, or the amount due from banks
+and non-bank financial institutions indeed is defaulted.
+1,421,186
+31 December 2020
+Stage 2
+Lifetime ECL
+12-month ECL
+Stage 1
+(631)
+890,789
+(67)
+(564)
+Allowance for impairment losses
+16,250
+Stage 3
+Lifetime ECL
+Distribution of debt investments analysed by rating
+The Group adopts a credit rating approach to manage the credit risk of the debt investment portfolio held. The ratings are
+obtained from Bloomberg Composite, or major rating agencies where the issuers of the debt investments are located. The
+carrying amounts of the debt investments analysed by the rating agency designations as at the end of the reporting period
+are as follows:
+Credit impaired
+109,161
+58,243
+3,929,448
+3,255,332
+China Construction Bank Corporation
+Annual Report 2021
+Total
+Subtotal
+losses
+Allowances for impairment
+Total
+383,822
+410,450
+10,854
+5,125
+18,441
+29,675
+306,944
+23,637
+- Enterprises
+41,379
+32,291
+7,384,475
+(19,164)
+7,365,311
+Allowances for
+Total
+- Enterprises
+institutions
+financial
+- Banks and non-bank
+Credit impaired
+Total
+Lower than A
+9,969
+A
+AAA
+Unrated
+Distribution of debt investments analysed by rating (continued)
+(1) Credit risk (continued)
+RISK MANAGEMENT (CONTINUED)
+61
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+7,369,446
+31 December 2020
+AA
+226,826
+121,422
+financial institutions
+17,690
+- Government
+impaired
+Neither overdue nor
+Subtotal
+losses
+Allowances for impairment
+Total
+17,156
+1,509
+- Enterprises
+financial institutions
+Total
+Lower than A
+A
+AA
+AAA
+Unrated
+31 December 2021
+- Banks and non-bank
+534
+A 99 percent confidence level does not reflect losses that may occur beyond this level. Within the model used, there is
+1 percent probability that losses could exceed the VaR;
+534
+18,665
+19,199
+- Banks and non-bank.
+5,772,670
+43,106
+774,427
+21,706
+505
+744
+751,472
+- Policy banks
+506
+1,146
+1,509
+9,504
+27,890
+- Central banks
+15,806
+26,489
+8,590
+3,390,874
+2,330,911
+4,135
+(15,064)
+4,060
+VaR is calculated on an end-of-day basis and does not reflect exposures that may arise on positions during the trading
+day;
+The use of historical data as a basis for determining the possible range of future outcomes may not always cover all
+possible scenarios, especially those of an exceptional nature; and
+The VaR measure is dependent upon the Bank's position and the volatility of market prices. The VaR of an unchanged
+position reduces if the market price volatility declines and vice versa.
+108,331
+25,742,901
+23,405
+4,468,437
+4,017,822
+16,269,325
+963,912
+Asset-liability gap
+Total liabilities
+802,482
+802,482
+Others
+940,197
+20,614,976
+16,035
+1,945
+4,020,810
+320,570
+2,754,998
+306,548
+13,695,262
+311,134
+Debt securities issued
+(2,864,124)
+3,641,112
+(1,502,646)
+3,006,680
+31 December 2021
+The currency exposures of the Group's assets and liabilities as at the end of the reporting period are as follows:
+Currency risk (continued)
+(d)
+(2) Market risk (continued)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+RISK MANAGEMENT (CONTINUED)
+61
+127,871
+Annual Report 2021
+The Group actively manages foreign currency exposures by minimizing foreign exchange risk by business lines. Therefore,
+the net exposure is not sensitive to exchange rate fluctuations and the potential impact on the pre-tax profits and other
+comprehensive income of the Group is not material.
+The Group manages currency risk by spot and forward foreign exchange transactions and by matching its foreign currency
+denominated assets with corresponding liabilities in the same currency, and also uses derivatives (principally foreign
+exchange swaps and cross currency swaps) in the management of its own foreign currency asset and liability portfolios and
+structural positions.
+The Group's foreign exchange exposures mainly comprise exposures that arise from the foreign currency proprietary
+investments of the treasury business and currency exposures originated by the Group's overseas businesses.
+Investments include financial assets measured at fair value through profit or loss, financial assets measured at amortised cost, financial
+assets measured at fair value through other comprehensive income and long-term equity investments, etc.
+Currency risk
+For loans and advances to customers, the "within three months" category includes overdue amounts (net of allowances for
+impairment losses) of RMB26,372 million as at 31 December 2021 (as at 31 December 2020: RMB27,225 million).
+(ii)
+(i)
+(d)
+2,389,353
+China Construction Bank Corporation
+Note
+customers
+56,725
+28,132,254
+3,030,085
+2,965,791
+7,658,934
+13,405,201
+1,072,243
+696,490
+6,964,355
+16,231,369
+76,029
+2,954,056
+223,064
+2,725,215
+6,888,551
+690,258
+9,009,373
+347,431
+247,395
+696,490
+34,352
+602,239
+4,695
+597,544
+821,637
+175,189
+605,165
+816
+781,170
+1,704
+2,320
+52,701
+agreements
+under repurchase
+Financial assets sold
+254,079
+57,259
+163,261
+Deposits from
+33,559
+value through
+measured at fair
+Financial liabilities
+2,293,272
+5,425
+124,537
+291,532
+1,871,778
+institutions
+profit or loss
+RMB
+USD (RMB
+equivalent)
+Others (RMB
+equivalent)
+7,495
+731,325
+7,620
+505,290
+182,542
+1,065,825
+Others
+Debt securities issued
+21,600,365
+Deposits from customers
+19,402
+agreements
+Financial assets sold under repurchase
+229,022
+196
+12,928
+215,898
+through profit or loss
+Financial liabilities measured at fair value
+2,232,201
+106,794
+6,878
+273,159
+75,010
+18,690
+33,900
+22,378,814
+1,323,377
+757,510
+Total liabilities
+China Construction Bank Corporation
+3,369,894
+152,350
+317,734
+2,899,810
+15,428
+8,320
+(8,465)
+15,573
+185,500
+2,614,122
+(13,137)
+2,527,308
+27,639,857
+502,483
+917,657
+26,219,717
+Credit commitments
+Net notional amount of derivatives
+Long position
+99,951
+1,939,907
+non-bank financial institutions
+Deposits and placements from banks and
+Loans and advances to customers
+549,078
+4,585
+1,227
+543,266
+agreements
+Financial assets held under resale
+343,269
+14,745
+17,311,609
+111,935
+2,763,892
+99,027
+109,836
+2,555,029
+non-bank financial institutions
+Deposits and placements with banks and
+Cash and deposits with central banks
+Assets
+Total
+216,589
+2,816,164
+500,076
+(i)
+685,033
+21,756
+16,282
+646,995
+Borrowings from central banks
+Liabilities
+30,253,979
+602,434
+904,520
+Investments
+28,747,025
+766,454
+7,660,794
+18,170,492
+358,807
+103,665
+21,605
+30,298
+714,551
+Others
+151,148
+7,405,981
+Total assets
+289
+17,512
+728,820
+7,660,794
+18,170,492
+274,494
+3,596,871
+317,673
+2,824,725
+8,164,164
+698,478
+9,380,447
+243,755
+296,965
+(ii)
+Investments
+33,714
+(i)
+to customers
+Loans and advances
+549,078
+1,127
+547,951
+agreements
+held under resale
+343,269
+Others
+766,454
+766,454
+Total assets
+685,033
+1,296
+536,593
+147,144
+30,253,979
+3,871,365
+3,151,315
+8,942,106
+13,099,296
+8,917
+1,189,897
+Financial liabilities
+institutions
+bank financial
+banks and non-
+placements from
+Deposits and
+central banks
+Borrowings from
+Liabilities
+measured at fair
+1,784,317
+78,337
+--- 2,763,892
+RISK MANAGEMENT (CONTINUED)
+61
+China Construction Bank Corporation
+Annual Report 2021
+The ALM is responsible for regularly monitoring the interest rate risk positions and measuring the interest rate re-pricing gap.
+The main reason for measuring the interest rate re-pricing gap is to assist in analysing the impact of interest rate changes on
+net interest income.
+Interest rate risk refers to the risk where the market interest rates, term structure and other factors may experience
+unfavourable fluctuations which impact the overall profitability and fair value resulting in losses to the Bank. The key
+determinants of the Group's interest rate risk arises from the mismatch between the maturity periods of the assets and
+liabilities, and inconsistent pricing basis, resulting in re-pricing risk and basis risk.
+Interest rate risk
+(c)
+The above interest rate sensitivity is for illustration purposes only and is assessed based on simplified assumptions. The figures
+here indicate estimated net interest income movements under various predicted yield curve scenarios and are subject to
+the Bank's current interest rate exposures. However, the possible risk management measures that can be undertaken by the
+interest risk management department or related business departments to mitigate interest rate risk have not been taken
+into account. In practice, the departments that manage the interest rate risk strive to reduce loss arising from the risk while
+increasing the net income. These figures are estimated on the assumption that the interest rates on various maturities will
+move within similar ranges, and therefore do not reflect the potential net interest income changes in the event that interest
+rates on some maturities may change and others remain unchanged. Moreover, the above estimations are based on other
+simplified assumptions, including that all positions will be held to maturity and rolled over upon maturity.
+(b) Net interest income sensitivity analysis
+In monitoring interest rate risk on its overall non-derivative financial assets and liabilities, the Bank regularly measures
+its future net interest income sensitivity to an increase or decrease in market interest rates (assuming no asymmetrical
+movement in yield curves and a constant financial position). An incremental 100 basis points parallel fall or rise in all yield
+curves, other than that applicable to balances with central banks, would increase or decrease annualised net interest income
+of the Group by RMB53,453 million (as at 31 December 2020: RMB45,546 million). Had the impact of yield curves movement
+for demand deposits from customers been excluded, the annualised net interest income of the Group would decrease or
+increase by RMB76,805 million (as at 31 December 2020: RMB80,344 million).
+Market risk (continued)
+(2)
+61
+RISK MANAGEMENT (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+286
+Annual Report 2021
+285
+China Construction Bank Corporation
+(2) Market risk (continued)
+(c) Interest rate risk (continued)
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+2,671,128
+92,764
+Total
+More than
+five years
+Between one
+and five years
+Between three
+months and
+one year
+Within three
+months
+Non-interest-
+bearing
+Note
+256,015
+31 December 2021
+institutions
+bank financial
+banks and non-
+placements with
+Deposits and
+with central banks
+Cash and deposits
+Assets
+The following tables indicate the expected next repricing dates (or maturity dates whichever are earlier) for the assets and
+liabilities of the Group as at the end of the reporting period.
+Financial assets
+319,449
+122,299
+6,136
+to customers
+Loans and advances
+agreements
+held under resale
+Financial assets
+institutions
+bank financial
+banks and non-
+placements with
+Deposits and
+with central banks
+Cash and deposits
+Assets
+(c) Interest rate risk (continued)
+(2) Market risk (continued)
+RISK MANAGEMENT (CONTINUED)
+61
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+Investments
+Others
+Total assets
+Liabilities
+125
+2,722,033
+94,006
+==
+Total
+More than
+five years
+Between one
+and five years
+months and
+one year
+months
+288
+Within three
+Note
+Between three
+31 December 2020
+bank financial
+banks and non-
+placements from
+Deposits and
+central banks
+Borrowings from
+Non-interest-
+bearing
+287
+China Construction Bank Corporation
+Annual Report 2021
+2,614,122
+4,371,534
+3,209,947
+14,679,634
+108,049
+customers
+Deposits from
+33,900
+1,602
+5,435
+9,650
+26,863
+under repurchase
+Financial assets sold
+229,022
+51,851
+145,123
+32,048
+profit or loss
+value through
+2,232,201
+agreements
+75,305
+22,378,814
+issued
+3,820,695
+(1,773,860)
+4,229,630
+(3,954,633)
+292,290
+Asset-liability gap
+27,639,857
+50,670
+4,925,175
+Debt securities
+4,712,476
+897,607
+Total liabilities
+1,323,377
+757,510
+757,510
+Others
+34,884
+428,444
+589,201
+270,848
+17,053,929
+(1) Credit risk (continued)
+NOTES TO THE FINANCIAL STATEMENTS
+219,182
+27.64
+FINANCIAL REVIEW
+Loans and advances to customers
+2021
+51.01%
+Corporate loans and
+advances
+2020
+Annual Report 2021
+49.80%
+Personal loans and
+advances
+43.09%
+18,807,830
+16,787,432
+2.02%
+4.78%
+0.23%
+41.96%
+Discounted bills
+Overseas operations
+and subsidiaries
+Accrued interest
+27
+At the end of 2021, the Group's total assets stood at RMB30.25 trillion, an increase of RMB2.12 trillion or 7.54% over 2020. The Group
+increased credit supply in areas such as inclusive finance, advanced manufacturing, strategic emerging industries and green finance with
+a higher proportion of core assets, so as to promote the development of the real economy. Loans and advances to customers increased
+by RMB1.94 trillion or 11.95% over 2020; financial investments increased by RMB691,266 million or 9.95% over 2020. The proportion of net
+loans and advances to customers to total assets increased by 2.36 percentage points to 60.06%; the proportion of financial investments
+rose by 0.55 percentage points to 25.26%. The Group reduced the use of short-term funds in compliance with the needs of the source
+and use of funds. As a result, cash and deposits with central bank decreased by RMB52,272 million or 1.86% over 2020; deposits and
+placements with banks and non-bank financial institutions decreased by RMB478,368 million or 58.22% over 2020; financial assets held
+under resale agreements decreased by RMB53,161 million or 8.83% over 2020. The proportion of cash and deposits with central banks
+decreased by 0.87 percentage points to 9.14%; that of deposits and placements with banks and non-bank financial institutions decreased
+by 1.79 percentage points to 1.13%; and that of financial assets held under resale agreements decreased by 0.33 percentage points to
+1.81%.
+2.19
+785,329
+2.60
+710,192
+2.52
+551,393
+2.17
+China Construction Bank Corporation
+Total assets
+100.00
+28,132,254
+100.00
+25,436,261
+100.00
+1.
+These comprise precious metals, positive fair value of derivatives, long-term equity investments, fixed assets, land use rights, intangible assets, goodwill,
+deferred tax assets and other assets.
+30,253,979
+1.54%
+5.32%
+0.25%
+Gross loans and advances to customers of the Group as
+14.27
+2,593,677
+15.45
+2,205,697
+14.68
+Medium to long-term loans
+6,910,124
+2,683,402
+36.74
+34.35
+4,754,147
+31.65
+Personal loans and advances
+7,891,928
+41.96
+7,233,869
+5,766,544
+Short-term loans
+46.33
+6,959,844
+at the end of the reporting period (unit: in millions of RMB)
+The following table sets forth the composition of the Group's gross loans and advances to customers as at the dates indicated.
+As at 31 December 2021
+As at 31 December 2020
+As at 31 December 2019
+(In millions of RMB, except percentages)
+Amount
+% of total
+Amount
+% of total
+Amount
+% of total
+Corporate loans and advances
+9,593,526
+51.01
+8,360,221
+49.80
+557,809
+2.14
+602,239
+1.81
+Loans and advances to customers measured at
+amortised cost
+18,380,916
+60.76
+16,476,817
+58.57
+14,479,931
+56.93
+57.17
+Allowances for impairment losses on loans
+Book values of loans and advances to customers at
+fair value through other comprehensive income
+Book values of loans and advances to customers at
+fair value through profit or loss
+(2.11)
+(556,063)
+(1.98)
+(482,158)
+(1.90)
+379,469
+1.25
+(637,338)
+% of total
+Amount
+14,542,001
+57.70
+2.14%
+2.60%
+Others
+2.52%
+Total assets of the Group as at the end of the
+reporting period (unit: in millions of RMB)
+The following table sets forth the composition of the Group's total assets as at the dates indicated.
+As at 31 December 2021
+As at 31 December 2020
+As at 31 December 2019
+(In millions of RMB, except percentages)
+Amount
+% of total
+Loans and advances to customers
+18,170,492
+60.06
+Amount
+16,231,369
+% of total
+259,061
+43.09
+0.92
+1.94
+2,763,892
+9.14
+2,816,164
+10.01
+2,621,010
+10.30
+Deposits and placements with banks and
+Cash and deposits with central banks
+non-bank financial institutions
+1.13
+821,637
+2.92
+950,807
+3.74
+Financial assets held under resale agreements
+Others¹
+549,078
+343,269
+24.43
+6,213,241
+24.71
+3,761
+0.01
+9,890
+0.04
+15,282
+0.06
+Accrued interest
+43,684
+0.15
+41,664
+0.15
+36,253
+0.14
+Financial investments
+7,641,919
+25.26
+6,950,653
+492,693
+6,477,352
+43.11
+Residential mortgages
+Accrued interest
+43,684
+0.23
+41,664
+0.25
+Gross loans and advances to customers
+18,807,830
+8.47
+100.00
+100.00
+Allowances for impairment losses on loans and advances to customers
+(In millions of RMB)
+As at 1 January 2021
+Transfers:
+2021
+Stage 1
+275,428
+16,787,432
+1,422,559
+8.07
+1,518,255
+% of total
+Unsecured loans
+6,295,609
+33.47
+5,397,481
+32.15
+Guaranteed loans
+2,361,221
+12.56
+2,222,110
+13.24
+Loans secured by property and other immovable assets
+8,589,061
+45.67
+7,703,618
+45.89
+Other pledged loans
+Stage 2
+As at 31 December 2020
+Amount
+108,099
+Total
+Remeasurements
+(7,143)
+83,341
+72,186
+148,384
+Write-off
+(59,999)
+(174,144)
+(59,999)
+13,760
+13,760
+As at 31 December 2021
+310,207
+154,465
+172,666
+637,338
+Recoveries of loans and advances previously written off
+(47,119)
+(19,250)
+(107,775)
+556,063
+Transfers in/(out) to Stage 1
+9,277
+(8,793)
+(484)
+Transfers in/(out) to Stage 2
+(10,303)
+12,817
+(2,514)
+Transfers in/(out) to Stage 3
+(2,551)
+(21,749)
+24,300
+Newly originated or purchased financial assets
+153,274
+153,274
+Transfer out/repayment
+Stage 3
+172,536
+Financial assets held
+under resale agreements
+% of total
+(In millions of RMB, except percentages)
+226,463
+1.20
+138,481
+0.82
+48,053
+0.32
+Other loans²
+Personal business loans¹
+149,681
+174,238
+1.04
+193,419
+1.29
+Discounted bills
+379,469
+2.02
+0.80
+1.26
+189,588
+1.58
+6,386,583
+33.96
+5,830,859
+34.73
+5,305,095
+35.31
+Credit card loans
+896,222
+4.76
+825,710
+4.92
+741,197
+4.93
+Personal consumer loans
+232,979
+1.24
+264,581
+259,061
+Amount
+1.54
+3.28
+1.
+These comprise personal loans for production and operation and online business loans.
+2.
+These comprise personal commercial property mortgage loans and home equity loans, etc.
+At the end of 2021, the Group's gross loans and advances to customers stood at RMB18.81 trillion, an increase of RMB2.02 trillion or
+12.04% over 2020, mainly due to the increase in domestic loans and advances of the Bank.
+Domestic corporate loans and advances of the Bank reached RMB9.59 trillion, an increase of RMB1.23 trillion or 14.75% over 2020, mainly
+extended to sectors such as infrastructure-related industries and manufacturing. In this amount, short-term loans and medium to long-
+term loans were RMB2.68 trillion and RMB6.91 trillion, respectively.
+Domestic personal loans and advances of the Bank reached RMB7.89 trillion, an increase of RMB658,059 million or 9.10% over 2020. In this
+amount, residential mortgages increased by RMB555,724 million or 9.53% to RMB6.39 trillion; credit card loans were RMB896,222 million,
+an increase of RMB70,512 million or 8.54%; personal consumer loans decreased by RMB31,602 million or 11.94% to RMB232,979 million;
+personal business loans were RMB226,463 million, an increase of RMB87,982 million or 63.53%.
+100.00
+Discounted bills amounted to RMB379,469 million, an increase of RMB120,408 million over 2020.
+28
+China Construction Bank Corporation
+Annual Report 2021
+MANAGEMENT DISCUSSION AND ANALYSIS
+Distribution of loans by type of collateral
+The following table sets forth the distribution of loans and advances by type of collateral as at the dates indicated.
+As at 31 December 2021
+Loans and advances made by overseas operations and subsidiaries were RMB899,223 million, an increase of RMB6,606 million over 2020.
+15,024,159
+100.00
+16,787,432
+Overseas operations and subsidiaries
+899,223
+4.78
+892,617
+5.32
+1,058,017
+7.04
+Accrued interest
+43,684
+0.23
+41,664
+0.25
+36,253
+0.24
+Gross loans and advances to customers
+18,807,830
+100.00
+492,693
+1.81%
+placements with banks
+and non-bank financial
+institutions
+2.92%
+23,733
+59.25
+159,286
+138,315
+15.16
+In 2021, the Group's net non-interest income reached RMB159,286 million, an increase of RMB20,971 million or 15.16% over 2020. Net
+non-interest income accounted for 20.83% of operating income, an increase of 1.46 percentage points over 2020, mainly driven by the
+growth of other net non-interest income.
+Net fee and commission income
+37,794
+The following table sets forth the composition and change of the Group's net fee and commission income during the respective periods.
+2021
+2020
+Change (%)
+2019
+Fee and commission income
+138,637
+131,512
+(In millions of RMB, except percentages)
+6.03
+114,582
+121,492
+Net non-interest income
+The following table sets forth the composition and change of the Group's net non-interest income during the respective periods.
+(In millions of RMB, except percentages)
+Fee and commission income
+Fee and commission expense
+Net fee and commission income
+Other net non-interest income
+Total other net non-interest income
+2021
+2020
+Change (%)
+138,637
+131,512
+5.42
+(17,145)
+(16,930)
+1.27
+5.42
+FINANCIAL REVIEW
+126,667
+28,942
+10.84
+14,194
+Settlement and clearing fees
+13,220
+12,542
+5.41
+12,267
+15,593
+Consultancy and advisory fees
+11,577
+0.70
+10,331
+Guarantee fees
+3,981
+3,917
+1.63
+11,658
+17,284
+Commission on trust and fiduciary activities
+12,899
+29,007
+(0.22)
+25,666
+Bank card fees
+21,148
+21,374
+(1.06)
+24,025
+Agency service fees
+19,283
+17,366
+11.04
+16,894
+Wealth management service fees
+18,550
+15,574
+19.11
+Electronic banking service fees
+3,633
+24
+China Construction Bank Corporation
+Annual Report 2021
+153,660
+1.51
+9,645,218
+139,189
+1.44
+Demand deposits
+6,356,409
+10,153,188
+55,117
+6,076,943
+50,260
+0.83
+Time deposits
+3,796,779
+98,543
+2.60
+0.87
+Corporate deposits
+cost (%)
+Average
+4.51%
+Interest expense on borrowings from central banks
+0.18%
+Interest expense on financial assets sold under repurchase agreements
+The following table sets forth the average balance, interest expense and average cost of each component of the Group's deposits from
+customers during the respective periods.
+2021
+2020
+Average
+Interest
+Average
+Average
+(In millions of RMB, except percentages)
+balance
+expense
+cost (%)
+balance
+Interest
+expense
+3,568,275
+23
+88,929
+Personal deposits
+2.97
+3,491
+0.82
+501,277
+7,310
+1.46
+358,241
+153,561
+1.67
+313,852
+1.59
+Interest expense on deposits from customers was RMB358,241
+million, an increase of RMB44,389 million or 14.14% over 2020,
+mainly because the average balance of deposits from customers
+increased by 8.52% and the average cost rose by eight basis
+points over 2020.
+Interest expense on deposits and placements from banks and
+non-bank financial institutions decreased by RMB7,588 million
+or 15.62% over 2020 to RMB40,989 million, mainly because the
+average balance of deposits and placements from banks and
+non-bank financial institutions decreased by 6.64%, and the
+average cost fell by 19 basis points over 2020.
+Interest expense on debt securities issued increased by RMB656
+million or 2.13% over 2020 to RMB31,483 million, mainly because
+the average balance of debt securities issued increased by 6.20%
+over 2020.
+Interest expense on borrowings from central banks increased by
+RMB978 million or 5.04% to RMB20,384 million over 2020, mainly
+because the average balance of borrowings from central banks
+increased by 11.02% over 2020.
+Interest expense on financial assets sold under repurchase
+agreements decreased by RMB121 million or 12.90% over 2020 to
+RMB817 million, mainly because the average balance of financial
+assets sold under repurchase agreements decreased by 18.64%
+over 2020.
+19,718,339
+5,165,109
+3.02
+186,585
+Demand deposits
+10,816,186
+201,090
+1.86
+9,571,844
+167,353
+1.75
+4,643,984
+14,505
+0.31
+4,406,735
+13,792
+0.31
+Time deposits
+Overseas operations and subsidiaries
+Total deposits from customers
+6,172,202
+428,323
+21,397,697
+2.49
+The Group made provisions for impairment losses on loans in line with factors such as macro economy and credit asset quality as
+required by the New financial instruments standard. At the end of 2021, the allowances for impairment losses on loans and advances
+measured at amortised cost were RMB637,338 million. In addition, the allowances for impairment losses on discounted bills measured at
+fair value through other comprehensive income were RMB1,116 million. The Group's allowances to NPLs and allowances to total loans
+were 239.96% and 3.40%, respectively.
+Credit commitment fees
+Fee and commission expense
+2021
+2020
+Change (%)
+2019
+160,324
+167,139
+(4.08)
+(In millions of RMB, except percentages)
+Loans and advances to customers
+148,942
+16,298
+7,675
+112.35
+7,286
+Financial assets measured at amortised cost
+15,830
+7,919
+Financial investments
+The following table sets forth the composition of the Group's impairment losses during the respective periods.
+Impairment losses
+FINANCIAL REVIEW
+6.36
+6,777
+57,611
+41,967
+37.28
+41,896
+Interest expense
+188,574
+25.38
+16.23
+188,132
+2.26
+26.75
+In 2021, the Group continuously strengthened cost management and optimised expenses structure. Cost-to-income ratio increased
+by 2.26 percentage points over 2020 to 27.64%, continuing to stay at a sound level. Operating expenses were RMB219,182 million,
+an increase of RMB30,608 million or 16.23% over 2020. In this amount, staff costs were RMB118,238 million, an increase of RMB13,885
+million or 13.31% over 2020, mainly due to the lower bases for five types of insurance expenditures following a temporary social security
+exemption in 2020; premises and equipment expenses were RMB35,542 million, an increase of RMB613 million or 1.75% over 2020; taxes
+and surcharges were RMB7,791 million, an increase of RMB466 million or 6.36% over 2020. Meanwhile, the Group proactively supported
+the implementation of its strategies and digitalised operation, and the investment in FinTech and marketing expenses increased rapidly.
+China Construction Bank Corporation
+25
+Annual Report 2021
+26
+99.90
+7,325
+5,789
+other comprehensive income
+2021
+2020
+60.06%
+Loans and advances
+57.70%
+25.26%
+to customers
+Financial investments
+MANAGEMENT DISCUSSION AND ANALYSIS
+24.71%
+9.14%
+Cash and deposits
+10.01%
+with central banks
+28,132,254
+1.13%
+Deposits and
+30,253,979
+Assets
+STATEMENT OF FINANCIAL POSITION ANALYSIS
+Annual Report 2021
+Others
+Total impairment losses
+468
+(244)
+N/A
+1,497
+(7,907)
+168,715
+15,115
+(152.31)
+7,293
+189,929
+(11.17)
+163,521
+In 2021, the Group's impairment losses were RMB168,715 million, a decrease of RMB21,214 million or 11.17% over 2020. This was mainly
+because impairment losses on loans and advances to customers decreased by RMB6,815 million and other impairment losses decreased
+by RMB23,022 million over 2020. Impairment losses on financial investments increased by RMB8,623 million. Specifically, impairment
+losses on financial assets measured at amortised cost increased by RMB7,911 million or 99.90% over 2020.
+Income tax expense
+In 2021, the Group's income tax expense was RMB74,484 million, an increase of RMB11,447 million over 2020. The effective income tax
+rate was 19.68%, lower than the statutory rate of 25%. This was mainly because interest income from the PRC treasury bonds and local
+government bonds was non-taxable in accordance with the tax law.
+China Construction Bank Corporation
+Financial assets measured at fair value through
+Others
+7,791
+1.75
+Other net non-interest income
+The following table sets forth the composition and change of the Group's other net non-interest income during the respective periods.
+(In millions of RMB, except percentages)
+2021
+2020
+Change (%)
+2019
+MANAGEMENT DISCUSSION AND ANALYSIS
+Net gain arising from investment securities
+5,765
+82.10
+9,093
+Net trading gain
+7,816
+4,313
+81.22
+10,498
+Annual Report 2021
+China Construction Bank Corporation
+In 2021, the Group seized market opportunities, focused on customer needs, continued to optimise products and increase innovation,
+and improved financial service capabilities. As a result, net fee and commission income was RMB121,492 million, an increase of 6.03% over
+2020. The ratio of net fee and commission income to operating income was 15.89%, down 0.15 percentage points over 2020.
+Electronic banking service fees, bank card fees, agency service fees, wealth management service fees, commissions on trust and fiduciary
+activities accounted for 75.89% of the fee and commission income. Specifically, electronic banking service fees were RMB28,942 million,
+a slight decrease mainly due to the decline of SMS service fees; bank card fees were RMB21,148 million, a slight decrease of 1.06% mainly
+due to the slowdown in the growth of offline consumer transactions; agency service fees reached RMB19,283 million, an increase of
+11.04%, mainly due to the rapid growth of sales of agency business for insurance and funds; wealth management service fees increased
+by 19.11% to RMB18,550 million, mainly due to the solid growth of WMPs as the Group continued to drive forward the construction
+of its new asset management system and accelerated the transformation and innovation of the asset management business model;
+commission on trust and fiduciary activities rose by 10.84% to RMB17,284 million, mainly due to the rapid growth of assets under custody
+as the Group strengthened business expansion in key areas.
+1,358
+1,309
+3.74
+1,449
+3,213
+3,253
+(1.23)
+5,309
+(17,145)
+(16,930)
+1.27
+(15,769)
+Net fee and commission income
+121,492
+114,582
+6.03
+110,898
+9,120
+33,675
+Dividend income
+3,182
+(In millions of RMB, except percentages)
+Staff costs
+Premises and equipment expenses
+Taxes and surcharges
+Others
+Total operating expenses
+Cost-to-income ratio (%)
+The following table sets forth the composition of the Group's operating expenses during the respective periods.
+2021
+118,238
+Change (%)
+2019
+104,353
+13.31
+105,784
+35,542
+34,929
+2020
+Operating expenses
+Other net non-interest income of the Group was RMB37,794 million, an increase of RMB14,061 million, or 59.25% over 2020. Specifically,
+net gain arising from investment securities was RMB10,498 million, an increase of RMB4,733 million over 2020, mainly due to the
+significant increase in gains on revaluation of stocks held by domestic branches taken as repossessed assets previously; net trading gain
+was RMB7,816 million, an increase of RMB3,503 million over 2020, mainly due to increases in valuation gains and trading gains on trading
+debt securities from falling yields in bond market; dividend income was RMB5,921 million, an increase of RMB2,739 million over 2020,
+mainly due to the substantial increase in dividends of equity investments held by certain subsidiaries; other net operating income was
+RMB8,925 million, an increase of RMB3,101 million over 2020, mainly due to the year-on-year increase in foreign exchange gains.
+30,037
+86.08
+1,184
+Net gain on derecognition of financial assets measured at
+amortised cost
+4,634
+4,649
+(0.32)
+3,359
+Other net operating income
+8,925
+5,824
+53.25
+7,281
+Other net non-interest income
+37,794
+23,733
+59.25
+5,921
+The Group adopts a "three-stage" model for impairment based on changes in credit risk since initial recognition or by determining
+whether the financial instruments are credit-impaired, to estimate the expected credit losses (ECL). For stage one, financial instruments
+with no significant increase in credit risk since initial recognition, ECL in the next 12 months is recognised. For stage two, financial
+instruments with significant increase in credit risk since initial recognition, but with no objective evidence of impairment, lifetime
+ECL is recognised. For stage three, financial instruments with objective evidence of impairment on the balance sheet date, lifetime
+ECL is recognised. The Group continued to make judgement based on substantive risk assessment and comprehensively considered
+regulatory and business environment, internal and external credit rating of customers, customer repayment ability, customer operation
+capacity, contract terms of loans, asset price, market interest rate, customer repayment behaviours, and forward-looking information, to
+assess whether the credit risk of relevant financial instruments had increased significantly since initial recognition. For borrowers who
+were eligible for temporary deferral in principal repayment and interest payment in the wake of COVID-19, the Group, by reference to
+guidelines issued by relevant regulators, did not consider these support measures as an automatic trigger of a significant increase in credit
+risk. The assessment of significant increase in credit risk and the measurement of ECL both incorporated forward-looking information.
+The Group developed scenarios specifically tailored for ECL measurement by reference to forecast results of authoritative institutions at
+home and abroad and leveraging on the capability of internal experts. The Group calculates expected credit loss as weighted average
+of the products of probability of defaults (PD), loss given defaults (LGD) and exposure at default (EAD) under the optimistic, baseline and
+pessimistic scenarios, having considered the discount factor. Please refer to Note "Loans and advances to customers" to the financial
+statements for details of allowances for impairment losses on loans.
+China Construction Bank Corporation
+Annual Report 2021
+29
+Borrowings from central banks
+708,601
+20,384
+2.88
+638,280
+19,406
+3.04
+Financial assets sold under repurchase agreements
+40,121
+817
+2.04
+49,312
+938
+1.90
+Total interest-bearing liabilities
+3.14
+25,503,762
+30,827
+3.02
+1.67
+19,718,339
+313,852
+1.59
+Deposits and placements from banks and
+non-bank financial institutions
+2,313,948
+40,989
+1.77
+2,478,450
+48,577
+1.96
+Debt securities issued
+1,043,395
+31,483
+982,516
+358,241
+451,914
+23,866,897
+China Construction Bank Corporation
+Annual Report 2021
+MANAGEMENT DISCUSSION AND ANALYSIS
+The following table sets forth the effects of the movement of average balances and average interest rates of the Group's assets and
+liabilities on the change in interest income and expense for 2021 versus 2020.
+(In millions of RMB)
+Assets
+Volume factor¹
+Interest rate factor¹
+Change in interest
+income/expense
+Gross loans and advances to customers
+79,517
+(22,987)
+56,530
+Financial investments
+23,124
+In 2021, the Group continued to increase its support for the real economy and dynamically adjusted its business strategy and asset and
+liability structure. Loan yield declined due to factors such as the conversion of pricing basis to loan prime rate upon loan repricing and
+increased efforts in surrendering profits to support the real economy. The yield of debt securities was lower than that of last year due to
+market interest rates decline, and cost of deposits was higher than that of last year due to more intense market competition. As a result,
+net interest spread fell to 1.94%, down ten basis points from 2020; net interest margin was 2.13%, down six basis points from 2020.
+1.77
+2.19
+1.94
+2.13
+413,600
+1.73
+Non-interest-bearing liabilities
+1,653,036
+1,326,591
+Total liabilities
+27,156,798
+451,914
+25,193,488
+413,600
+Net interest income
+605,420
+575,909
+Net interest spread
+Net interest margin
+2.04
+21,397,697
+Deposits from customers
+Liabilities
+3.53
+209,803
+5,946,763
+3.41
+225,706
+6,609,659
+Financial investments
+4.39
+710,531
+16,191,067
+4.25
+767,061
+18,028,304
+Gross loans and advances to customers
+Assets
+Deposits with central banks
+Average
+yield/cost (%)
+2,530,647
+1.45
+2.19
+12,894
+587,768
+Financial assets held under resale agreements
+2.01
+21,672
+1,075,685
+2.05
+14,898
+726,819
+non-bank financial institutions
+Deposits and placements with banks and
+1.45
+35,537
+2,454,146
+36,775
+Interest
+income/
+expense
+Average
+balance
+Average
+yield/cost (%)
+3.71
+26,272,330
+989,509
+3.77
+Total allowances for impairment losses
+(626,618)
+(542,594)
+Non-interest-earning assets
+1,757,377
+1,817,863
+Total assets
+29,613,956
+1,057,334
+27,547,599
+989,509
+1,057,334
+28,483,197
+Total interest-earning assets
+1.98
+expense
+balance
+(In millions of RMB, except percentages)
+income/
+Average
+Interest
+2020
+(7,221)
+2021
+In 2021, the Group's net interest income amounted to RMB605,420 million, an increase of RMB29,511 million, or 5.12% over 2020. The net
+interest income accounted for 79.17% of the operating income.
+Net interest income
+FINANCIAL REVIEW
+20
+Interest expense on debt securities issued
+604,669
+11,966
+The following table sets forth the Group's average balances of assets and liabilities, related interest income or expense, and average yields
+or costs during the respective periods.
+15,903
+6.97%
+1,238
+362,742
+non-bank financial institutions
+Interest expense on deposits and placements from banks and
+9.07%
+Interest expense on deposits from customers
+79.27%
+In 2021, the Group's interest expense reached RMB451,914 million, an increase of RMB38,314 million or 9.26% over 2020. In this amount,
+interest expense on deposits from customers accounted for 79.27%, that on deposits and placements from banks and non-bank financial
+institutions accounted for 9.07%, that on debt securities issued accounted for 6.97%, that on borrowings from central banks accounted for
+4.51%, and that on financial assets sold under repurchase agreements accounted for 0.18% of the total.
+Interest expense
+MANAGEMENT DISCUSSION AND ANALYSIS
+Annual Report 2021
+China Construction Bank Corporation
+Interest income from financial assets held under resale
+agreements amounted to RMB12,894 million, an increase of
+RMB928 million or 7.76% over 2020, mainly due to the 21 basis
+points increase in the average yield on financial assets held under
+resale agreements over 2020.
+Interest income from deposits and placements with banks and
+non-bank financial institutions amounted to RMB14,898 million,
+a decrease of RMB6,774 million or 31.26% over 2020, mainly due
+to the 32.43% decrease in the average balance of deposits and
+placements with banks and non-bank financial institutions over
+2020.
+Interest income from deposits with central banks amounted to
+RMB36,775 million, an increase of RMB1,238 million or 3.48% over
+2020, mainly due to the 3.12% increase in the average balance of
+deposits with central banks over 2020.
+Interest income from loans and advances to customers
+amounted to RMB767,061 million, an increase of RMB56,530
+million or 7.96% over 2020, mainly driven by the 11.35% increase
+in the average balance of loans and advances to customers over
+2020.
+7,547,245
+4.39
+Personal loans and advances
+221,122
+7,859,715
+324,205
+4.12
+Short-term loans
+2,743,696
+97,861
+3.57
+2,564,049
+103,083
+4.02
+Medium to long-term loans
+6,419,060
+267,432
+4.17
+5,295,666
+4.18
+3.99
+710,531
+39,809
+306,318
+6,294,077
+Medium to long-term loans
+5.53
+58,979
+1,066,718
+4.50
+56,424
+1,253,168
+Short-term loans
+4.92
+336,587
+6,840,063
+4.81
+Deposits with central banks
+4.87
+3.62
+5,773,345
+4.81
+1,100,575
+16,191,067
+4.25
+767,061
+3.05
+32,602
+1,067,442
+18,028,304
+Gross loans and advances to customers
+Overseas operations and subsidiaries
+2.54
+9,930
+390,714
+2.56
+6,424
+250,861
+Discounted bills
+277,608
+365,293
+Interest income from financial investments amounted to
+RMB225,706 million, an increase of RMB15,903 million or 7.58%
+over 2020, mainly due to the 11.15% increase in the average
+balance of financial investments over 2020.
+Corporate loans and advances
+(3,084)
+(7,588)
+Debt securities issued
+1,864
+(1,208)
+656
+Borrowings from central banks
+2,044
+(1,066)
+978
+Financial assets sold under repurchase agreements
+(186)
+65
+(121)
+Change in interest expense
+Deposits and placements from banks and non-bank financial institutions
+44,389
+16,485
+27,904
+Deposits and placements with banks and non-bank financial institutions
+1,238
+9,162,756
+(7,193)
+419
+(6,774)
+Financial assets held under resale agreements
+28,542
+(336)
+928
+Change in interest income
+96,350
+(28,525)
+67,825
+Liabilities
+Deposits from customers
+1,264
+9,772
+(4,504)
+Change in net interest income
+Interest income from deposits and placements with banks and non-bank financial institutions
+Interest income from financial assets held under resale agreements
+The following table sets forth the average balance, interest income and average yield of each component of the Group's loans and
+advances to customers during the respective periods.
+2021
+2020
+Interest
+Average
+Average
+1.41%
+1.22%
+(In millions of RMB, except percentages)
+income
+yield (%)
+balance
+Interest
+income
+38,314
+yield (%)
+Average
+balance
+Interest income from deposits with central banks
+Average
+Interest income
+67,808
+3.48%
+29,511
+1.
+Changes caused by both average balances and average interest rates were allocated to the volume factor and interest rate factor respectively based on
+the respective proportions of absolute values of volume factor and interest rate factor.
+Net interest income increased by RMB29,511 million over 2020. In this amount, an increase of RMB67,808 million was due to the
+movements of average balances of assets and liabilities, and a decrease of RMB38,297 million was due to the movements of average
+yields and costs.
+China Construction Bank Corporation 21
+Annual Report 2021
+22
+(38,297)
+Interest income
+In 2021, the Group realised interest income of RMB1.06 trillion, an increase of RMB67,825 million or 6.85% over 2020. In this amount,
+interest income from loans and advances to customers, financial investments, deposits with central banks, deposits and placements with
+banks and non-bank financial institutions, and financial assets held under resale agreements accounted for 72.54%, 21.35%, 3.48%, 1.41%
+and 1.22%, respectively.
+72.54%
+21.35%
+interest income from loans and advances to customers
+Interest income from financial investments
+FINANCIAL REVIEW
+601,183
+130,319
+60,820
+77,728
+228,641
+5,435
+3,444,169
+12,783
+Debt securities issued
+Others
+22,378,814
+11,486
+4,556,563
+33,900
+1,602
+446,785
+110,206
+34,884
+13,428,253
+243,161
+1,970,321
+1,215,585
+12,783
+Annual Report 2021
+China Construction Bank Corporation
+292
+Total
+1,323,377
+- Other contracts
+-Interest rate contracts
+Notional amount of derivatives
+Net gaps
+Total liabilities
+757,510
+112,002
+22,375
+-Exchange rate contracts
+1,459,761
+1,706,733
+3,805
+Deposits and placements from
+685,033
+1,296
+536,593
+42,633
+104,511
+Borrowings from central banks
+Liabilities
+30,253,979
+11,552,372
+7,499,931
+4,205,816
+1,148,058
+1,259,361
+1,686,327
+banks and non-bank financial
+11,691,250
+institutions
+126,724
+23,058
+repurchase agreements
+Deposits from customers
+Financial assets sold under
+229,022
+51,982
+88,688
+68,333
+20,019
+value through profit or loss
+Financial liabilities measured at fair
+2,232,201
+8,986
+138,981
+324,690
+144,477
+1,488,343
+5,207,213
+3,047,961
+167,358
+banks and non-bank financial
+Deposits and placements with
+2,816,164
+1,088
+1,537
+483,266
+2,330,273
+banks
+Cash and deposits with central
+Assets
+Total
+More than
+five years
+Between one
+and five years
+Between
+three months
+and one year
+and three
+months
+institutions
+month
+83,441
+254,203
+2,881,708
+891,697
+390,460
+818,412
+92,098
+Loans and advances to customers
+602,239
+4,695
+13,053
+584,491
+agreements
+Financial assets held under resale
+821,637
+17,951
+218,418
+247,624
+5,167,602
+demand
+Within one
+1,161
+111,214
+15,023
+170,002
+194,142
+1,254,797
+61,935
+129,524
+859,569
+33,140
+75,411
+956,826
+33,104
+2,614,122
+11,385,014
+2,332,329
+(538,269) (1,001,397)
+(710,960)
+(11,721,520)
+2,868,925
+27,639,857
+584,102
+3,183,567
+Indefinite
+1,959
+1,065,341
+Repayable on
+Between one
+31 December 2020
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Maturity analysis (continued)
+(a)
+(3)
+Liquidity risk (continued)
+61 RISK MANAGEMENT (CONTINUED)
+NOTES TO THE FINANCIAL STATEMENTS
+3,897,807
+16,184
+283,175
+1,510,874
+1,022,233
+130,138
+Total assets
+547,082
+99,678
+46,841
+Others
+Debt securities issued
+Deposits from customers
+agreements
+Financial assets sold under repurchase
+254,079
+2,220
+15,245
+236,614
+through profit or loss
+Financial liabilities measured at fair value
+2,293,272
+132,705
+275,053
+1,885,514
+bank financial institutions
+Deposits and placements from banks and non-
+781,170
+12,800
+19,087
+3,764
+749,283
+19,834,531
+684,612
+785,657
+36,405
+25,640
+2,389,353
+212,355
+(69,455)
+2,246,453
+25,742,901
+513,584
+1,006,265
+24,223,052
+Annual Report 2021
+China Construction Bank Corporation
+Please refer to Note 61(2)(c)(ii) for the scope of investments.
+(i)
+Credit commitments
+Net notional amount of derivatives
+Long position
+Total liabilities
+56,725
+20,614,976
+940,197
+802,482
+6,120
+284,493
+67,194
+8,052
+8,773
+495,952
+Borrowings from central banks
+Liabilities
+28,132,254
+126,735
+671,014
+Deposits and placements with banks and non-
+bank financial institutions
+2,816,164
+126,077
+179,211
+2,510,876
+Cash and deposits with central banks
+Total
+290
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+61
+RISK MANAGEMENT (CONTINUED)
+(2) Market risk (continued)
+(d) Currency risk (continued)
+Assets
+31 December 2020
+USD (RMB
+Note
+RMB
+23,888
+821,637
+Financial assets held under resale agreements
+599,033
+725,939
+936,810
+26,469,505
+Total assets
+696,490
+54,161
+33,831
+608,498
+Others
+6,964,355
+(59,080)
+118,401
+6,712,930
+(i)
+Investments
+16,231,369
+400,206
+464,009
+15,367,154
+Loans and advances to customers
+602,239
+3,206
+133,024
+766,454
+2,965
+292,663
+53,163
+26,800
+- Financial assets measured at
+amortised cost
+545,273
+149,638
+51,402
+50,389
+10,828
+14,431
+16,355
+252,230
+-Financial assets measured at
+fair value through profit or loss
+549,078
+18,170,492
+7,850,061
+4,597,768
+1,127
+3,345,344
+896,253
+495,811
+884,299
+100,956
+Loans and advances to customers
+Investments
+385,756
+869
+1,780,089
+5,155,168
+34,991
+78,227
+53,925
+equivalent)
+25,337
+162,621
+311,675
+Others
+18,875
+18,875
+-Long-term equity investments
+1,941,478
+543,485
+1,019,288
+265,334
+83,094
+22,860
+7,417
+comprehensive income
+at fair value through other
+- Financial assets measured
+2,909,360
+agreements
+Financial assets held under resale
+343,269
+The following tables provide an analysis of the assets and liabilities of the Group based on the remaining periods to
+repayment as at the end of the reporting period:
+Maturity analysis
+(a)
+Liquidity risk (continued)
+(3)
+RISK MANAGEMENT (CONTINUED)
+61
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+291
+China Construction Bank Corporation
+Annual Report 2021
+The Group adopts liquidity indicator analysis, remaining maturity analysis and undiscounted cash flow analysis to measure the
+liquidity risk.
+The Group conducts quarterly liquidity risk stress testing in order to gauge its risk tolerance in unlikely extreme scenarios and other
+adverse scenarios. It has improved its liquidity risk stress testing methods in accordance with regulatory and internal management
+requirements. The key factors and events set by the stress testing as having an impact on liquidity risk include significant decline
+in the ability to liquidate current assets, significant loss of wholesale and retail deposits, reduction of the availability of wholesale
+and retail financing, reduction of financing duration and increase in financing cost, significant adverse changes in market liquidity
+conditions, and sudden suspension of the Bank's payment and settlement system. The results of stress testing show that under
+different stress scenarios, the Group's liquidity risk is under control.
+The Board assumes the ultimate responsibility for liquidity risk management and reviews and approves liquidity risk strategy and
+risk appetite. The senior management carries out liquidity risk strategy set by the Board and organises the implementation of
+liquidity risk management activities. The board of supervisors supervises and evaluates the performance of the Board and senior
+management in liquidity risk management. The Asset & Liability Management Department leads the Bank's daily liquidity risk
+management and forms an implementation system together with business management departments and branches to perform
+various duties in liquidity risk management. The subsidiaries assume primary responsibility for their own liquidity risk management.
+The Group adheres to a liquidity management strategy featuring prudence, decentralisation, coordination and diversification.
+Management's objective for liquidity risk management is to establish and improve a liquidity management system that can fully
+identify, accurately measure, continuously monitor, and effectively control liquidity risk, effectively balance the return on funds
+and security of funds, and safeguard the steady operation across the Bank. In light of regulatory requirements, external macro
+environment, and the Bank's business development, the Head Office formulates approaches for liquidity risk identification,
+measurement and monitoring, sets out risk limit management criteria, carries out daily liquidity management, periodically conducts
+stress testing at the group level, and reviews and assesses contingency plans.
+Liquidity risk
+(3)
+61 RISK MANAGEMENT (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+3,413,530
+166,373
+Assets
+31 December 2021
+Indefinite
+Repayable
+on demand
+150
+16,393
+79,639
+48,862
+126,971
+71,254
+institutions
+banks and non-bank financial
+Deposits and placements with
+2,763,892
+2,954,494
+1,064
+572,204
+2,190,555
+banks
+Cash and deposits with central
+Total
+More than
+five years
+Between one
+and five years
+Between
+three months
+and one year
+Between one
+and three
+months
+Within one
+month
+69
+188,391
+Others (RMB
+equivalent)
+3,984,181
+3,761
+379,469
+123,857
+931
+- Funds and others
+268
+16,167
+3,688
+135,058
+98,053
+- Debt securities
+15,925
+1,421
+149,905
+264,125
+Financial assets measured at fair value through
+other comprehensive income
+- Debt securities
+160,941
+1,772,856
+264
+1,934,061
+19,613
+136,747
+- Equity instruments designated as measured
+at fair value through other comprehensive
+income
+- Credit investments
+Other financial assets measured at fair value
+Level 1
+31 December 2021
+Level 2
+Level 3
+Total
+31,532
+18
+31,550
+through profit or loss
+3,761
+profit or loss
+Financial assets held for trading purposes
+- Debt securities
+1,175
+- Equity instruments and funds
+405
+122,682
+526
+379,469
+Total
+Liabilities
+Financial liabilities measured at fair value through
+profit or loss
+RISK MANAGEMENT (CONTINUED)
+(5) Fair value of financial instruments (continued)
+(c)
+Financial instruments measured at fair value (continued)
+(i) Fair value hierarchy (continued)
+China Construction Bank Corporation
+Annual Report 2021
+Assets
+61
+Positive fair value of derivatives
+-Loans and advances to customers measured
+at fair value through profit or loss
+- Loans and advances to customers measured
+at fair value through other comprehensive
+income
+Financial assets measured at fair value through
+profit or loss
+31 December 2020
+Loans and advances to customers
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+298
+2,158
+5,259
+7,417
+181,114
+2,547,625
+172,792
+2,901,531
+- Financial liabilities designated as measured at
+fair value through profit or loss
+Negative fair value of derivatives
+228,346
+31,305
+676
+18
+229,022
+31,323
+Total
+259,651
+694
+260,345
+China Construction Bank Corporation
+Annual Report 2021
+297
+Financial assets measured at fair value through
+at fair value through other comprehensive
+income
+- Loans and advances to customers measured
+at fair value through profit or loss
+-Loans and advances to customers measured
+Loans and advances to customers
+1,500,693
+4,535,790
+5,227,847
+129,800
+Off-balance sheet loan
+commitments and credit card
+commitments (Note)
+1,860,963
+Guarantees, acceptances and
+(Note)
+1,651,694
+1,073,078
+15,286
+54,154
+164,463
+165,902
+other credit commitments
+12,925,256
+26,180,349
+25,444,013
+986,193
+124,483
+154,158
+333,073
+372,280
+2,199
+Other non-derivative financial
+liabilities
+503,594
+508,046
+141,118
+63,153
+34,903
+159,151
+13,975
+95,746
+Total
+178,811
+Level 1
+1,761,836
+273,366
+Fair value hierarchy
+The Group measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in
+making the measurements:
+Level 1: Fair value based on quoted prices (unadjusted) in active markets for identical assets or liabilities.
+Level 2: Fair value based on inputs other than quoted prices included within level 1 that are observable for the asset or
+liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
+Level 3: Fair value based on inputs for the asset or liability that are not based on observable market data (that is,
+unobservable inputs).
+China Construction Bank Corporation
+Annual Report 2021
+61
+For the year ended 31 December 2021, there was no significant change in the valuation techniques or inputs used to
+determine fair value as compared to those used for the year ended 31 December 2020.
+RISK MANAGEMENT (CONTINUED)
+(5) Fair value of financial instruments (continued)
+(c)
+Financial instruments measured at fair value
+(i) Fair value hierarchy
+The table below analyses financial instruments, measured at fair value at the end of the reporting period, by the level
+in the fair value hierarchy into which the fair value measurement is categorised:
+Assets
+Positive fair value of derivatives
+NOTES TO THE FINANCIAL STATEMENTS
+The Group has established an independent valuation process for financial assets and financial liabilities. The relevant
+departments are responsible for performing valuation, verifying valuation model and accounting of valuation results.
+The Board is responsible for establishing a robust internal control policy of valuation, and takes the ultimate responsibility
+for the adequacy and effectiveness of internal control system. The Board of Supervisors takes charge of supervising
+the performance of the Board and senior management. According to the requirements of the Board and the Board of
+Supervisors, senior management is responsible for organising and implementing the internal control system over the
+valuation process to ensure the effectiveness of the internal control system of valuation.
+Valuation process, technique and input
+226,013
+714,676
+507,553
+39,361
+Note: The off-balance sheet loan commitments and credit card commitments may expire without being drawn upon. Guarantees,
+acceptances and other credit commitments do not represent the amounts to be paid.
+China Construction Bank Corporation
+Annual Report 2021
+295
+296
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+61
+RISK MANAGEMENT (CONTINUED)
+(4) Operational risk
+Operational risk refers to risk of losses resulting from inadequate or flawed internal processes, people and systems or from external
+events.
+In 2021, the Group comprehensively deepened operational risk management, continuously improved the business continuity
+management system, and actively responded to COVID-19. The Group continued to improve and extend the "offline grid and online
+intelligent" employee behaviour management system, to effectively prevent and control operational risks caused by people.
+Fair value of financial instruments
+(a)
+(b)
+867
+Level 2
+Level 3
+Total
+137,259
+430
+4,687
+173,484
+(2,106)
+(37)
+(2,143)
+57
+Total gains or losses:
+(17)
+(31)
+31
+(982)
+(7)
+3,324
+2,287
+In profit or loss
+13,181
+17,833
+37
+at fair value
+through
+profit or loss
+at fair value
+Negative
+Credit
+investments
+Debt
+securities
+Funds and
+others
+Debt
+securities
+Equity
+instruments
+Total
+through
+fair value of
+Total
+assets
+profit or loss
+derivatives
+liabilities
+As at 1 January 2021
+565
+Positive fair
+value of
+derivatives
+17
+In other
+2
+(569)
+1,436
+As at 31 December 2021
+18
+15,925
+1,421
+149,905
+1,434
+264
+172,792
+679
+(676)
+(18)
+(694)
+China Construction Bank Corporation
+Annual Report 2021
+299
+5,259
+(42,183)
+(415)
+(21,648)
+comprehensive
+income
+(5)
+(478)
+(483)
+Purchases
+5,931
+1,482
+30,970
+254
+1,050
+39,687
+(569)
+Sales and settlements
+(2)
+(17,802)
+(2,205)
+(111)
+582
+940,197
+as measured
+comprehensive income
+through profit or loss
+- Credit investments
+- Debt securities
+- Funds and others
+27,916
+1,021
+115,514
+50,044
+13,181
+Other financial assets measured at fair value
+14,202
+115,571
+137,259
+215,219
+Financial assets measured at fair value through
+other comprehensive income
+- Debt securities
+119,489
+1,740,584
+57
+61,180
+17,833
+43,347
+68,992
+37
+69,029
+9,890
+259,061
+9,890
+259,061
+Financial assets held for trading purposes
+- Debt securities
+- Equity instruments and funds
+1,156
+1,385
+169,209
+30
+170,365
+1,415
+Financial assets designated as measured at fair
+value through profit or loss
+- Other debt instruments
+430
+Financial
+liabilities
+designated
+1,860,503
+Total
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+(5) Fair value of financial instruments (continued)
+(c)
+Financial instruments measured at fair value (continued)
+(i) Fair value hierarchy (continued)
+(ii)
+A majority of the financial assets classified as level 2 are RMB bonds. The fair value of these bonds is determined based
+on the valuation results provided by China Central Depository & Clearing Co., Ltd. A majority of the financial liabilities
+designated as measured at fair value through profit or loss classified as level 2 are the funds raised from structured
+deposits and principal guaranteed wealth management products, the fair value of which are determined based on the
+income approach. The majority of derivatives are classified as level 2 and valued using the income approach. For the
+valuation of financial instruments classified as level 2, all significant inputs are observable market data.
+NOTES TO THE FINANCIAL STATEMENTS
+The financial assets classified as level 3 are primarily the underlying assets of principal guaranteed wealth management
+products and unlisted equity instruments measured at fair value through profit or loss. These financial assets are
+valued using the income approach and market approach, which incorporate the non-observable assumptions
+including discount rate and P/B ratio.
+Movements of fair value of financial instruments in level 3 of the fair value hierarchy
+The following table shows a reconciliation from the opening balances to the ending balances for fair value
+measurement in level 3 of the fair value hierarchy:
+2021
+Other debt
+instruments
+designated
+as measured
+Financial assets measured
+Other financial assets measured at fair value
+through profit or loss
+at fair value through other
+For the year ended 31 December 2021 and 2020, there were no significant transfers within the fair value hierarchy of
+the Group.
+RISK MANAGEMENT (CONTINUED)
+61
+336,035
+income
+2,268
+4,687
+6,955
+152,214
+2,457,692
+173,484
+2,783,390
+Liabilities
+Financial liabilities measured at fair value through
+profit or loss
+- Financial liabilities designated as measured at
+fair value through profit or loss
+Negative fair value of derivatives
+251,973
+81,919
+2,106
+37
+254,079
+81,956
+Total
+333,892
+2,143
+- Equity instruments designated as measured
+at fair value through other comprehensive
+Debt securities issued
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+4,683,271
+Liabilities
+28,132,254
+10,050,515
+6,798,903
+4,080,231
+1,346,945
+1,368,632
+Borrowings from central banks
+1,503,569
+Total assets
+696,490
+89,088
+26,719
+109,048
+40,770
+12,503
+2,983,459
+100,855
+121,089
+605,165
+19,058
+value through profit or loss
+Financial liabilities measured at fair
+2,293,272
+12,768
+144,493
+294,142
+54,100
+173,627
+1,518,231
+institutions
+18,228
+banks and non-bank financial
+Deposits and placements from
+781,170
+816
+150,011
+317,507
+Others
+13,702
+78,416
+53,304
+21,282
+48,777
+17,595
+222,924
+-Financial assets measured at fair
+value through profit or loss
+135,654
+Investments
+7,006,560
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+61
+RISK MANAGEMENT (CONTINUED)
+(3)
+877,074
+16,231,369
+577,952
+-Financial assets measured at
+amortised cost
+48,828
+13,702
+-Long-term equity investments
+1,867,458
+509,073
+1,068,340
+209,352
+39,326
+34,412
+6,955
+comprehensive income
+at fair value through other
+- Financial assets measured
+4,505,243
+2,310,140
+1,623,296
+437,453
+85,526
+110,119
+67,643
+57,259
+254,079
+168,030
+264,040
+130,562
+69,502
+2,389,353
+9,916,318
+2,061,094
+18,091
+(362,539)
+(491,243)
+(11,562,623)
+2,959,627
+25,742,901
+134,197
+4,737,809
+4,442,770
+(131,281)
+294
+293
+Annual Report 2021
+692,678
+1,798,058
+85,774
+7,437
+3,461,021
+17,940
+19,538
+80,646
+7,947
+126,071
+964,516
+842,778
+2,142,744
+261,751
+25,528
+4,237,317
+China Construction Bank Corporation
+1,478,226
+(b)
+1,859,875
+23,832
+Debt securities issued
+Others
+20,614,976
+17,471
+4,225,570
+2,926,982
+973,853
+1,225,798
+124,371
+11,245,302
+56,725
+1,704
+2,320
+4,774
+47,927
+repurchase agreements
+Financial assets sold under
+Deposits from customers
+147,702
+325,314
+340,865
+Total
+-Other contracts
+-Exchange rate contracts
+-Interest rate contracts
+Notional amount of derivatives
+Net gaps
+Total liabilities
+802,482
+102,013
+24,361
+231,588
+56,527
+80,560
+283,601
+23,832
+940,197
+1,945
+13,066,192
+Contractual undiscounted cash flow
+Liquidity risk (continued)
+31 December 2021
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+31 December 2020
+Between
+Carrying
+amount
+Gross cash
+outflow
+Repayable
+on demand
+Within one
+month
+Between
+one and
+three months
+three
+months and
+Between
+one and
+one year
+five years
+More than
+five years
+Non-derivative financial
+Contractual undiscounted cash flow (continued)
+liabilities
+(b)
+Liquidity risk (continued)
+1,156,471
+5,607
+16,768
+91,409
+142,090
+153,351
+Guarantees, acceptances and other
+credit commitments (Note)
+1,804,198
+780
+468,935
+145,106
+549,280
+584,668
+55,429
+China Construction Bank Corporation
+Annual Report 2021
+61 RISK MANAGEMENT (CONTINUED)
+(3)
+1,565,696
+Borrowings from central banks
+794,953
+67,706
+57,259
+Financial assets sold under
+repurchase agreements
+56,725
+56,770
+47,948
+4,784
+2,325
+1,713
+Deposits from customers
+20,614,976
+21,268,003
+11,246,849
+1,243,390
+1,010,531
+3,065,734
+110,204
+781,170
+19,058
+254,079
+121,383
+54,293
+618,461
+816
+Deposits and placements from
+banks and non-bank financial
+institutions
+2,293,272
+2,312,157
+1,518,231
+150,402
+174,318
+299,787
+155,792
+13,627
+Financial liabilities measured at
+fair value through profit or
+loss
+254,227
+The following tables provide an analysis of the contractual undiscounted cash flow of the non-derivative financial liabilities
+and off-balance sheet credit commitments of the Group as at the end of the reporting period. The Group's expected cash
+flows on these instruments may vary significantly from this analysis.
+173,846
+5,389,760
+institutions
+2,232,201
+2,248,184
+1,488,343
+126,969
+145,129
+330,476
+banks and non-bank financial
+147,393
+Financial liabilities measured at fair
+value through profit or loss
+Financial assets sold under
+229,022
+229,207
+20,019
+5,666,239
+88,741
+9,874
+51,982
+Deposits and placements from
+548,400
+Between
+Carrying
+amount
+Gross cash
+outflow
+Repayable
+on demand
+Within one
+month
+Between one
+and three
+months
+three
+months and
+one year
+1,296
+Between
+one and
+More than
+five years
+Non-derivative financial
+liabilities
+Borrowings from central banks
+685,033
+697,170
+104,685
+42,789
+five years
+repurchase agreements
+68,465
+Deposits from customers
+77,895
+33,900
+46,874
+212,319
+10,220
+108,429
+Total
+Off-balance sheet loan
+commitments and credit card
+commitments (Note)
+27,397,979
+28,220,939
+13,277,942
+1,983,591
+1,729,561
+519,994
+515,632
+64,257
+Other non-derivative financial
+22,378,814
+Debt securities issued
+1,323,377
+33,917
+23,096,255
+1,396,212
+23,068
+3,806
+5,433
+liabilities
+1,610
+650,225
+1,485,929
+110,218
+1,271,143
+131,079
+3,618,096
+623,054
+5,015,209
+14,193
+490,511
+41,350
+11,691,685
+Level 2
+Carrying
+value
+Fair value
+Level 1
+Level 2
+Level 3
+Level 3
+430
+NOTES TO THE FINANCIAL STATEMENTS
+Unrealised
+Realised
+Total
+2020
+2021
+Unrealised
+Realised
+2,831
+Total gains/(losses)
+Gains or losses on level 3 financial assets and liabilities included in the statement of comprehensive income comprise:
+In level 3 of the fair value hierarchy, total gains or losses included in profit or loss for the year in the above table are
+presented in net trading gain and net gain arising from investment securities.
+(2,143)
+(37)
+(2,106)
+4,687 173,484
+430
+137,259
+57
+13,181
+963 62,777
+(138)
+(138)
+(8,286)
+(32,698)
+(733)
+Total
+(319)
+(3) (56,215)
+62
+62
+As at 31 December 2020
+37
+17,833
+(14,176)
+49,283
+38
+1,261
+Financial assets
+Level 1
+Fair value
+Carrying
+value
+31 December 2020
+31 December 2021
+The following table shows the carrying values and the fair values of financial assets measured at amortised cost as at
+31 December 2021 and 2020 which are not presented in the statement of financial position at their fair values.
+(ii)
+Financial assets measured at amortised cost
+Financial assets (continued)
+(i)
+Financial instruments not measured at fair value (continued)
+(5) Fair value of financial instruments (continued)
+(d)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+RISK MANAGEMENT (CONTINUED)
+(4,087)
+(2,826)
+Financial instruments not measured at fair value
+(d)
+(i)
+Financial assets
+2,869
+The Group's financial assets not measured at fair value mainly include cash and deposits with central banks, deposits
+and placements with banks and non-bank financial institutions, financial assets held under resale agreements, loans
+and advances to customers and financial assets measured at amortised cost.
+Deposits with central banks, deposits and placements with banks and non-bank financial institutions and financial
+assets held under resale agreements are mainly priced at market interest rates and mature within one year.
+Accordingly, the carrying values approximate to the fair values.
+Loans and advances to customers
+Majority of the loans and advances to customers measured at amortised cost are repriced at least annually to the
+market rate. Accordingly, their carrying values approximate to the fair values.
+China Construction Bank Corporation
+Annual Report 2021
+61
+Deposits with central banks, deposits and placements with banks and non-bank financial institutions and financial
+assets held under resale agreements
+266
+11,773
+62
+Equity
+instruments
+Debt
+securities
+Funds and
+others
+Debt
+securities
+Credit
+investments
+instruments
+Other debt
+Debt
+securities
+derivatives
+fair value of
+Negative fair
+fair value
+Positive
+as measured at
+designated
+liabilities
+Financial
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+61
+RISK MANAGEMENT (CONTINUED)
+(5) Fair value of financial instruments (continued)
+(c)
+Financial instruments measured at fair value (continued)
+Total through profit
+(ii)
+2020
+Financial assets
+designated as measured at
+fair value through profit
+or loss
+Other financial assets measured at
+fair value through profit or loss
+Financial assets
+measured at fair value
+through other
+comprehensive income
+Movements of fair value of financial instruments in level 3 of the fair value hierarchy (continued)
+value of
+Total
+assets
+(163)
+(86)
+(2,501)
+106
+(2,665)
+(182)
+(21)
+21
+In other comprehensive
+income
+Purchases
+Sales and settlements
+142
+142
+(161)
+300
+In profit or loss
+(1,906)
+or loss
+derivatives
+liabilities
+As at 1 January 2020
+58
+8,449
+Total gains or losses:
+50,555
+110
+102,046
+3,585
+169,445
+(1,848)
+(58)
+4,642
+measured at
+31,207
+5,155,168 5,249,531
+17,707,822
+15,764,751
+Financial investments
+Financial assets measured at fair value through profit or loss
+238,283
+312,014
+Financial assets measured at amortised cost
+5,061,712
+4,397,169
+Financial assets measured at fair value through other comprehensive income
+1,845,569
+1,792,488
+Long-term equity investments
+86,692
+Loans and advances to customers
+70,892
+48,731
+68,629
+Fixed assets
+133,646
+137,218
+Land use rights
+12,779
+13,236
+4,734
+4,203
+Deferred tax assets
+Other assets
+89,943
+313,943
+89,980
+Investments in consolidated structured entities
+231,764
+585,310
+30,643
+535,423
+From the first half year of 2014, the Group has adopted the advanced approach to calculate capital adequacy ratio and implemented the
+parallel period rules.
+The Common Equity Tier 1 ratio is calculated by dividing the Common Equity Tier 1 Capital after deduction by risk-weighted assets. Tier 1 ratio
+is calculated by dividing the Tier 1 Capital after deduction by risk-weighted assets. Total capital ratio is calculated by dividing the total capital
+after deduction by risk-weighted assets.
+The scope for calculating capital adequacy ratio of the Group includes all the domestic branches and subsidiaries in the financial sector
+(insurance companies excluded).
+(d)
+Others include other comprehensive income (including foreign exchange reserve).
+(e)
+(f)
+(g)
+(h)
+Both balances of goodwill and other intangible assets (excluding land use right) are the net amounts after deducting relevant deferred tax
+liabilities.
+From the first half year of 2014, eligible excessive loan provisions were measured based on the advanced approach and implemented parallel
+period rules.
+Common Equity Tier 1 capital after regulatory adjustments is calculated by netting off the corresponding deduction items from the Common
+Equity Tier 1 capital. Tier 1 capital after regulatory adjustments is calculated by netting off the corresponding deduction items from the Tier 1
+capital. Total capital after regulatory adjustments is calculated by netting off the corresponding deduction items from the total capital.
+According to the rules of advanced approach, risk-weighted assets include credit risk-weighted assets, market risk-weighted assets,
+operational risk-weighted assets and excess risk-weighted assets due to the application of capital floor.
+62 STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CHANGES IN EQUITY OF THE BANK
+66,313
+31 December
+2021
+Assets:
+Cash and deposits with central banks
+Deposits with banks and non-bank financial institutions
+2,743,731
+95,720
+2,790,965
+406,533
+Positive fair value of derivatives
+Precious metals
+Placements with banks and non-bank financial institutions
+Financial assets held under resale agreements
+121,493
+101,671
+292,067
+460,991
+31 December
+2020
+Total assets
+China Construction Bank Corporation
+Annual Report 2021
+35,588
+30,547
+84,089
+82,374
+43,527
+51,660
+1,242,931
+863,083
+39
+48
+274,572
+321,698
+Total liabilities
+.26,825,552
+20,289,611
+Equity:
+Other equity instruments
+Preference Shares
+Perpetual Bonds
+Capital reserve
+Other comprehensive income
+Surplus reserve
+General reserve
+Retained earnings
+Total equity
+Total liabilities and equity
+Approved and authorised for issue by the Board of Directors on 29 March 2022.
+24,975,612
+31 December
+2021
+31 December
+2020
+Share capital
+22,067,148
+33,364
+5,477
+29,362,931
+27,294,127
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+62 STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CHANGES IN EQUITY OF THE BANK
+(CONTINUED)
+Liabilities:
+Borrowings from central banks
+Deposits from banks and non-bank financial institutions
+Placements from banks and non-bank financial institutions
+Financial liabilities measured at fair value through profit or loss
+Negative fair value of derivatives
+Financial assets sold under repurchase agreements
+Deposits from customers
+Accrued staff costs
+Taxes payable
+Provisions
+Debt securities issued
+78,424
+30,170
+251,898
+228,034
+256,325
+208,348
+(c)
+1,935,410
+781,170
+685,033
+31 December
+2020
+31 December
+2021
+Other liabilities
+Deferred tax liabilities
+1,920,596
+(b)
+(a)
+Notes:
+China Construction Bank Corporation
+Annual Report 2021
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+61
+RISK MANAGEMENT (CONTINUED)
+(8) Capital management (continued)
+The Group's capital adequacy ratio calculated in accordance with the "Capital Rules for Commercial Banks (Provisional)" issued by
+the CBRC as at the end of the reporting period are as follows:
+Common Equity Tier 1 ratio
+Tier 1 ratio
+Total capital ratio
+31 December
+31 December
+Note
+2021
+302
+2020
+13.59%
+13.62%
+(a)(b)(c)
+14.14%
+14.22%
+(a)(b)(c)
+17.85%
+17.06%
+Common Equity Tier 1 capital
+-Qualifying common share capital
+- Capital reserve
+250,011
+250,011
+134,237
+(a)(b)(c)
+Based on the approval for the Group to implement the advanced capital management method in 2014, the CBIRC approved the
+Group to expand the implementation scope of the advanced capital management method in April 2020. The Group calculated the
+capital requirements for financial institution credit exposures and corporate credit risk exposures that meet regulatory requirements
+with the foundation internal ratings-based approach, the capital requirements for retail credit risk exposures with the internal
+ratings-based approach, the capital requirements for market risk with the internal models approach, and the capital requirements
+for operational risk with the standardised approach.
+The capital raising management of the Group involves reasonable utilisation of various capital instruments to ensure that both
+external regulatory and internal capital management objectives are met, taking into account capital planning and operating
+environment. This helps to optimise the Group's capital structure.
+The Group's capital planning has taken the regulatory requirements, the Group's development strategy and risk appetite into
+consideration, and based on those factors the Group projects the capital usage and need.
+amortised cost
+Total
+5,155,168
+5,249,531
+23,479 5,070,927
+155,125
+4,505,243
+4,534,743
+19,815 4,372,096
+142,832
+Financial liabilities
+The Group's financial liabilities not measured at fair value mainly include borrowings from central banks, deposits
+and placements from banks and non-bank financial institutions, financial assets sold under repurchase agreements,
+deposits from customers, and debt securities issued. As at 31 December 2021, the fair value of subordinated bonds
+and the eligible Tier 2 capital bonds issued was RMB390,504 million (As at 31 December 2020: RMB282,028 million)
+and the corresponding carrying value was RMB381,288 million (As at 31 December 2020: RMB275,887 million), and
+the carrying values of other financial liabilities approximated to their fair values as at the end of the reporting period.
+The Group uses observable inputs to measure the fair values of subordinated bonds and eligible Tier 2 capital bonds
+issued, and classified them as level 2 of the fair value hierarchy.
+(6) Offsetting financial assets and financial liabilities
+(7)
+Certain financial assets and financial liabilities of the Group are subject to enforceable master netting arrangements or similar
+agreements. The agreement between the Group and the counterparty generally allows for net settlement of the relevant financial
+assets and financial liabilities when both elect to settle on a net basis. In the absence of such an election, financial assets and
+financial liabilities will be settled on a gross basis. However, each party to the master netting arrangements or similar agreements
+will have the option to settle all such amounts on a net basis in the event of default of the other party. These financial assets and
+financial liabilities of the Group are not offset in accordance with IFRSS.
+As at 31 December 2021, the amounts of the financial assets and financial liabilities subject to enforceable master netting
+arrangements or similar agreements are not material to the Group.
+Insurance risk
+The Group timely monitors, analyses and reports capital adequacy ratios, assesses if the capital management objectives have been
+met and exercises effective management of capital adequacy ratio. The Group adopts various measures such as controlling asset
+growth, adjusting the structure of risk assets, increasing internal capital supply and raising capital through external channels, to
+ensure that the Common Equity Tier 1 ratio, Tier 1 ratio and total capital ratio of the Group are in full compliance with regulatory
+requirements and meet internal management requirements. This helps to insulate against potential risks as well as support healthy
+business developments. The Group now fully complies with all regulatory requirements in this respect.
+Capital adequacy ratio is a reflection of the Group's ability to maintain a stable operation and resist adverse risks. In accordance with
+the CBRC's Capital Rules for Commercial Banks (Provisional) and relevant regulations, commercial banks should meet the minimum
+capital requirements from 1 January 2013. The Common Equity Tier 1 ratio should be at or above a minimum of 5%, Tier 1 ratio at or
+above a minimum of 6% and the total capital ratio at or above a minimum of 8%. Besides, capital conservation buffer requirements,
+additional buffer requirements of Global and Domestic Systemically Important Banks should also be met. If a countercyclical buffer
+is required or the Pillar 2 capital requirement is raised by the regulator to a specific commercial bank, the minimum requirements
+should be met within the transitional period.
+The Bank has implemented comprehensive capital management, covering capital management policy design, capital projecting
+and planning, capital calculation, internal capital assessment, capital allocation, capital motivation, restriction and conduction,
+capital raising, monitoring and reporting, and applications of advanced approach of capital calculation on the management of the
+ordinary course of the business. General principles of capital management of the Bank is to continuously retain an adequate capital
+level, retain a certain margin of safety and a certain level of buffer based on that all regulatory requirements have been complied,
+and ensure that the capital can cover all kinds of risks adequately; exercise reasonable and effective capital allocation and strengthen
+capital restraint and incentive mechanism to support the strategic planning effectively and to restrict and conduct the business so
+as to increase the capital efficiency and return level continuously; tamp capital strength, and retain relatively high capital quality
+by achieving capital supplement with priority to the internal accumulation and utilising various capital instruments reasonably to
+optimise capital structure; continuously develop the advanced approach of capital management on the applications in the business
+management such as credit policies, credit approval and pricing.
+Capital management
+(8)
+61
+134,237
+RISK MANAGEMENT (CONTINUED)
+NOTES TO THE FINANCIAL STATEMENTS
+301
+China Construction Bank Corporation
+Annual Report 2021
+The Group makes related assumptions for the insurance risks and recognises insurance contract liabilities accordingly. For long-
+term personal insurance contracts and short-term personal insurance contracts, insurance risk may be elevated by the uncertainty of
+insurance risk assumptions including assumptions on death events, relevant expenses, and interest rates. For property and casualty
+insurance contracts, claims are often affected by natural disasters, catastrophes, terrorist attacks and other factors. In addition,
+the insurance risk will be affected by the policy termination, premium reduction or policyholders' refusal of payment, that is, the
+insurance risk will be affected by the policyholders' behaviour and decision.
+The Group manages the uncertainty of insurance risk through its underwriting strategy and policies to diversify the underwriting
+risks, adequate reinsurance arrangements, and enhanced underwriting control and claim control.
+The risk under an insurance contract is the possibility that the insured event occurs and the uncertainty in the resulting claim
+amount. The characteristic of an insurance contract inherently decides randomness and unpredictability of the underlying insurance
+risk. For insurance contracts where the theory of probability is applied to pricing and provisioning of insurance contract liabilities,
+the principal risk that the Group faces is that the actual claims and benefit payments exceed the carrying amount of the insurance
+contract liabilities.
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+250,011
+- Surplus reserve
+275,995
+- Provisions in Tier 2
+(f)
+353,341
+323,254
+159
+225,016
+245,989
+159
+- Non-controlling interest recognised in Tier 2 capital
+Common Equity Tier 1 capital after regulatory adjustments
+Tier 1 capital after regulatory adjustments
+Total capital after regulatory adjustments
+Risk-weighted assets
+(g)
+2,475,462
+2,261,449
+(g)
+- Directly issued qualifying Tier 2 instruments including related premium
+2,575,528
+(g)
+3,252,282
+2,832,681
+(h)
+18,215,893
+16,604,591
+China Construction Bank Corporation
+Annual Report 2021
+303
+304
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+61
+RISK MANAGEMENT (CONTINUED)
+(8) Capital management (continued)
+2,361,517
+Tier 2 capital
+99,968
+100
+99,968
+98
+- General reserve
+381,282
+350,647
+- Retained earnings
+1,392,515
+1,241,127
+- Non-controlling interest recognised in Common Equity Tier 1 capital
+4,027
+3,954
+- Others
+(d)
+21,934
+19,483
+Deductions for Common Equity Tier 1 capital
+- Goodwill
+(e)
+1,947
+- Non-controlling interest recognised in additional Tier 1 capital
+- Other directly issued qualifying additional Tier 1 instruments including related
+premium
+Additional Tier 1 capital
+6,970
+6,970
+- Investments in common equity of financial institutions being controlled but outside
+the scope of consolidation
+305,571
+367
+- Cash flow hedge reserves that relate to the hedging of items that are not fair valued
+on the balance sheet
+4,623
+5,137
+(e)
+- Other intangible assets (excluding land use rights)
+2,045
+61
+250,011
+Intangible assets
+59,977
+65
+ULTIMATE PARENT
+As stated in Note 1, the immediate and ultimate parents of the Group are Huijin and CIC, respectively.
+66
+POSSIBLE IMPACT OF AMENDMENTS, NEW STANDARDS AND INTERPRETATIONS ISSUED BUT NOT
+YET EFFECTIVE
+Up to the date of issue of the financial statements, the IASB has issued the following amendments, new standards and interpretations
+which are relevant to the Group. These amendments, new standards and interpretations are not yet effective for the year ended 31
+December 2021 and have not been adopted in the financial statements.
+Standards
+(1)
+Amendments to IFRS 3 Reference to the Conceptual Framework
+(2)
+(3)
+Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use
+Amendments to IAS 37 Onerous Contracts - Cost of Fulfilling a Contract
+(4)
+Annual Improvements to IFRS Standards 2018-2020 Cycle
+Certain comparative figures have been adjusted to confirm with the presentation and disclosures in the current period.
+(5)
+(6)
+IFRS 17 Insurance Contracts
+(7)
+Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies
+(8) Amendments to IAS 8 Definition of Accounting Estimates
+(9)
+Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction
+Effective for annual periods
+beginning on or after
+1 January 2022
+1 January 2022
+1 January 2022
+1 January 2022
+No earlier than 1 January 2024
+1 January 2023
+Amendments to IAS 1 Classification of Liabilities as Current or Non-current
+COMPARATIVE FIGURES
+64
+On 21 January 2022, the Group issued in the overseas market USD2.00 billion Tier 2 Capital Bonds maturing in 2032. These bonds have a
+10-year term with a fixed coupon rate of 2.85%. The Group has an option to redeem these bonds at the end of the fifth year upon meeting
+certain conditions.
+reserve
+iii Dividends to ordinary
+shareholders
+iv Dividends to other
+equity instrument
+holders
+(11,768)
+26,817
+... - 35,488
+268,174
+256,406
+(19,933)
+(26,817)
+(35,488)
+(80,004)
+(80,004)
+(5,624)
+(5,624)
+As at 31 December 2020
+250,011
+EVENTS AFTER THE REPORTING PERIOD
+63
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+NOTES TO THE FINANCIAL STATEMENTS
+Annual Report 2021
+China Construction Bank Corporation
+1 January 2023
+2,318,515
+342,174
+275,995
+21,759
+134,835
+39,991
+59,977
+1,193,773
+ii Appropriation to general
+1 January 2023
+(10) Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint
+Venture
+An optional, simplified premium allocation approach is permitted for the liability for the remaining coverage for short duration
+contracts, which are often written by non-life insurers.
+There is a modification of the general measurement model called the "variable fee approach" for certain contracts written by life
+insurers where policyholders share in the returns from underlying items. When applying the variable fee approach, the entity's share
+of the fair value changes of the underlying items is included in the contractual service margin. The results of insurers using this
+model are therefore likely to be less volatile than under the general model.
+Amendments to IFRS 17 were issued in June 2020.
+The Group is currently assessing the impact of IFRS 17 upon initial application.
+Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies
+The amendments to IAS 1 replace the requirement to disclose 'significant' accounting policies with a requirement to disclose
+'material' accounting policies. Guidance and illustrative examples are added in the Practice Statement 2 to assist in the application of
+the materiality concept when making judgements about accounting policy disclosures.
+308
+China Construction Bank Corporation
+Annual Report 2021
+66
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+POSSIBLE IMPACT OF AMENDMENTS, NEW STANDARDS AND INTERPRETATIONS ISSUED BUT NOT
+YET EFFECTIVE (CONTINUED)
+(8) Amendments to IAS 8 Definition of Accounting Estimates
+The standard allows a choice between recognising changes in discount rates either in the income statement or directly in other
+comprehensive income. The choice is likely to reflect how insurers account for their financial assets under IFRS 9.
+Amendments to IAS 8, introduces a new definition of 'accounting estimates'. Accounting estimates are defined as "monetary
+amounts in financial statements that are subject to measurement uncertainty". The amendments clarify what changes in accounting
+estimates are and how these differ from changes in accounting policies and corrections of errors.
+Amendments to IAS 12 introduce an exception to the initial recognition exemption in IAS 12 for deferred tax assets and deferred
+tax liabilities, and clarify the accounting treatment method of deferred income tax for right-of-use assets and lease liabilities, and
+decommissioning obligations.
+(10) Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint
+Venture
+The narrow-scope amendments to IFRS 10 "Consolidated Financial Statements" and IAS 28 "Investments in Associates and Joint
+Ventures" clarify the accounting treatment for sales or contribution of assets between an investor and its associates or joint ventures.
+They confirm that the accounting treatment depends on whether the non-monetary assets sold or contributed to an associate or
+joint venture constitute a "business" (as defined in IFRS 3 "Business Combinations").
+Where the non-monetary assets constitute a business, the investor will recognise the full gain or loss on the sale or contribution of
+assets. If the assets do not meet the definition of a business, the gain or loss is recognised by the investor only to the extent of the
+other investor's investors in the associate or joint venture. The amendments apply prospectively.
+China Construction Bank Corporation
+Annual Report 2021
+309
+142,832
+4,372,096
+19,815
+4,534,743
+4,505,243
+155,125
+23,479 5,070,927
+Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction
+a contractual service margin ("CSM") representing the unearned profit of the contract which is recognised as revenue over
+the coverage period.
+an explicit risk adjustment, and
+discounted probability-weighted cash flows
+Effective date has been
+deferred indefinitely
+Except for IFRS 17, the Group anticipates that the adoption of the new standards and amendments will not have a significant impact on
+the Group's consolidated financial statements.
+(1)
+Amendments to IFRS 3 Reference to the Conceptual Framework
+(2)
+59,977
+Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use
+Amendments to IAS 16 prohibit entities from deducting from the cost of an item of property, plant and equipment any proceeds
+from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating
+in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the cost of
+producing those items, in profit or loss.
+China Construction Bank Corporation
+Annual Report 2021
+307
+NOTES TO THE FINANCIAL STATEMENTS
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+66
+POSSIBLE IMPACT OF AMENDMENTS, NEW STANDARDS AND INTERPRETATIONS ISSUED BUT NOT
+YET EFFECTIVE (CONTINUED)
+(3) Amendments to IAS 37 Onerous Contracts - Costs of Fulfilling a Contract
+Amendments to IAS 37 specify that the "cost of fulfilling" a contract comprises the "costs that relate directly to the contract". The
+costs that relate directly to a contract include both incremental costs (examples would be the costs of direct labour and materials)
+and an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation
+charge for an item of property, plant and equipment used in fulfilling the contract).
+(4) Annual Improvements to IFRSS 2018-2020 Cycle
+IFRS 17 was issued in May 2017 as replacement for IFRS 4 Insurance Contracts. It requires a current measurement model where
+estimates are re-measured during each reporting period. Contracts are measured using the building blocks of:
+(7)
+IFRS 17 Insurance Contracts
+(6)
+That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not
+impact its classification
+That classification is unaffected by the likelihood that an entity will exercise its deferral right
+1 January 2023
+That a right to defer must exist at the end of the reporting period
+What is meant by a right to defer settlement
+•
+The IASB issued amendments to IAS 1 to specify the requirements for classifying liabilities as current or non-current.
+The amendments clarify:
+Amendments to IAS 1 Classification of Liabilities as Current or Non-current
+Annual Improvements to IFRSS 2018-2020 Cycle was issued in May 2020. Those amendments affect IFRS 1 First-time Adoption of
+International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and IFRS 16 Leases.
+(5)
+•
+i Appropriation to surplus
+reserve
+Amendments to IFRS 3 are intended to replace a reference to the Framework for the Preparation and Presentation of Financial
+Statements issued in 1989 with a reference to the Conceptual Framework for Financial Reporting issued in March 2018, without
+significantly changing its requirements. The amendments add an exception to the recognition principle of IFRS 3 to avoid the issue
+of potential "day 2" gains or losses arising for liabilities and contingent liabilities, and clarify that contingent assets do not qualify for
+recognition at the acquisition date.
+(274)
+(3) Profit distribution
+i Appropriation to surplus
+reserve
+ii Appropriation to general
+reserve
+iii Dividends to ordinary
+shareholders
+iv Dividends to other
+equity instrument
+holders
+Other equity instruments
+Other
+Share
+Preference
+Perpetual
+instruments holders
+Capital comprehensive
+shares
+bonds
+reserve
+income
+Surplus
+reserve
+General
+reserve
+250,011
+59,977
+39,991
+134,835
+21,759
+275,995
+342,174
+Retained
+earnings
+1,193,773 2,318,515
+capital
+by other equity
+Capital deduction
+i
+39,991
+(3) Profit distribution
+39,991
+134,835
+134,835
+30,901
+21,759
+305,571
+275,995
+373,381
+342,174
+1,342,712
+1,193,773
+2,537,379
+2,318,515
+29,362,931
+27,294,127
+income for the year
+(1) Total comprehensive
+Movements during the year
+As at 1 January 2021
+62 STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CHANGES IN EQUITY OF THE BANK
+(CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Total
+NOTES TO THE FINANCIAL STATEMENTS
+305
+China Construction Bank Corporation
+Annual Report 2021
+Independent non-executive director
+Michel Madelain
+Kenneth Patrick Chung
+Independent non-executive director
+Xu Jiandong
+Non-executive director
+306
+equity
+(2) Changes in share capital
+29,576
+Surplus
+General
+capital
+shares
+bonds
+reserve
+income
+reserve
+reserve
+Retained
+earnings
+Total
+equity
+250,011
+79,636
+135,109
+33,527
+249,178
+(19,659)
+Capital deduction
+by other equity
+instruments holders
+9,142
+¡
+150,845
+120,241
+Other
+comprehensive
+35,488
+(11,768)
+(274)
+(19,659)
+2,167,670
+1,073,532
+306,686
+26,817
+Capital
+39,991
+Preference
+As at 31 December 2021
+(4,538)
+(4,538)
+(81,504)
+(81,504)
+148,939
+250,011
+31,207
+304,906
+295,764
+29,576
+Perpetual
+9,142
+218,864
+(29,576)
+59,977
+(31,207)
+39,991
+Share
+Other equity instruments
+(2) Changes in share capital
+income for the year
+Movements during the year
+As at 1 January 2020
+(1) Total comprehensive
+1,342,712
+373,381
+305,571
+30,901
+134,835
+2,537,379
+Amount³
+31,935,171
+Annual Report 2021
+As at 31 December 2021
+Securities outstanding and other financing tools
+Intra-financial system liabilities
+Intra-financial system assets
+Total on and off-balance sheet assets after adjustments'
+INDICATORS FOR ASSESSING GLOBAL SYSTEMIC IMPORTANCE OF COMMERCIAL BANKS
+NO.
+(In millions of RMB)
+The Group disclosed the indicators in accordance with the Guidelines for the Disclosure of Indicators for Assessing Global Systemic
+Importance of Commercial Banks issued by the former CBRC. From the end of 2021, the Group calculated the indicators for assessing
+global systemic importance of the Bank in accordance with the Global systemically important banks: revised assessment methodology and
+the higher loss absorbency requirement (July 2018) and the Instructions for the end-2021 G-SIBS assessment exercise issued by the Basel
+Committee. The following table sets forth the Group's indicators as at 31 December 2021.
+315
+1
+APPENDIX II ¦ INDICATORS FOR ASSESSING SYSTEMIC IMPORTANCE OF COMMERCIAL BANKS
+316
+Indicators
+826,299
+2,081,357
+7
+497,218,797
+5,369,028
+China Construction Bank Corporation
+9
+Fixed income securities trading volume
+8
+Securities underwriting activity
+Assets under custody
+2,541,016
+6
+5
+4
+3
+2
+1
+2,485,803
+17,771,566
+Total payments through payment system and as a correspondent for other banks
+The Bank is a commercial bank incorporated in Mainland China with its banking business primarily conducted in Mainland China. As at 31
+December 2021, substantial amounts of the Bank's exposures arose from businesses with Mainland China entities or individuals. Analyses of
+various types of exposures by counterparty have been disclosed in the respective notes to the financial statements.
+Pearl River Delta
+7
+36,547
+34,417
+Overseas
+Head office
+North eastern
+Yangtze River Delta
+Bohai Rim
+Western
+Central
+31 December 2020
+31 December 2021
+OVERDUE LOANS AND ADVANCES TO CUSTOMERS BY GEOGRAPHICAL SECTOR
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+Listed equities and other securities trading volume
+UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION
+22,392
+23,954
+18,294
+16,262
+Loans and advances to customers repayable on demand are classified as overdue when a demand for repayment has been served on the
+borrower but repayment has not been made in accordance with the instructions. If the loans and advances to customers repayable on
+demand are outside the approved limit that was advised to the borrower, they are also considered to be overdue.
+Loans and advances to customers with a specific repayment date are classified as overdue when the principal or interest is overdue.
+According to regulation requirements, the above analysis represents the gross amount of loans and advances to customers overdue for
+more than three months.
+127,924
+127,615
+Total
+2,977
+EXPOSURES TO NON-BANKS IN MAINLAND CHINA
+3,965
+6,904
+8,034
+10,440
+13,995
+13,738
+17,147
+17,465
+9,008
+937,244
+China Construction Bank
+Notional amount of over-the-counter (OTC) derivatives
+728,677
+4,237,317
+14,708
+Total WMPs issued by the wealth management subsidiary
+Cross-jurisdictional claims and liabilities
+Total non-principal guaranteed WMPs issued by the Bank
+Assets of non-bank subsidiaries
+Securities at fair value
+675,449
+Derivatives
+Complexity
+70,386
+Number of personal customers (in 10 thousands)
+761
+Number of corporate customers (in 10 thousands)
+3,546,356
+Agency and underwriting activity
+Number of domestic business organizations
+15,309,633
+1,471,010
+1.
+6
+601939 (Ordinary A-Share) 360030 (Domestic Preference Share)
+939 (Ordinary H-Share)
+Stock Code :
+Republic of China with limited liability)
+(A joint stock company incorporated in the People's
+China Construction Bank Corporation
+696,984
+The annual report is printed on recyclable paper
+Beijing 100033
+No. 25, Financial Street, Xicheng District,
+Registered address and postcode
+中国建设银行
+Annual Report 2021
+China Construction Bank Corporation
+The above indicators are calculated in full accordance with the Measures for the Assessment of Systemically Important Banks, which are different from
+the indicators for G-SIBS.
+www.ccb.com
+10
+504,421,661
+Substitutability
+In accordance with the Instructions for G-SIBS assessment exercise by the Basel Committee on Banking Supervision, capital regulatory adjustments will
+not be deducted from on and off-balance sheet assets after adjustments.
+Cross-jurisdictional liabilities
+14
+3.
+2.
+1.
+1,053,410
+Securities at fair value through profit or loss and securities at fair value through other comprehensive income are calculated by netting off the level 1
+and level 2 assets, in accordance with the CBIRC requirements. Level 1 and Level 2 assets are defined in the Measures for Liquidity Risk Management of
+Commercial Banks issued by the CBIRC.
+802,042
+13
+155,275
+670,459
+Securities at fair value through profit or loss and securities at fair value through other comprehensive income²
+Level 3 financial assets
+12
+11
+3,886,221
+Cross-jurisdictional claims
+Total payments through payment system and as a correspondent for other banks
+Assets under custody
+As per the regulatory requirements, the indicators for assessing global systemic importance are calculated under the scope of consolidation as
+required by the Basel Committee, which are different from the data under accounting scope of consolidation. As impacts related to intragroup
+transactions were excluded, these indicators were not comparable to other business statistics.
+INDICATORS FOR ASSESSING DOMESTIC SYSTEMIC IMPORTANCE OF COMMERCIAL BANKS
+1,929,689
+Securities outstanding and other financing tools
+2,680,675
+Intra-financial system liabilities
+2,664,144
+29,548,554
+Amount
+2
+As at 31 December 2020
+Total on and off-balance sheet assets after adjustments
+Tier 2 indicators¹
+Interconnectedness
+Size
+Tier 1 indicators
+(Expressed in millions of RMB unless otherwise stated)
+The Group calculated the indicators for assessing domestic systemic importance of the Bank in accordance with the Measures for Assessing
+Systemic Importance of Banks issued by the PBC and the CBIRC. The following table sets forth the Group's indicators as at 31 December
+2020.
+Intra-financial system assets
+1,427,759
+271,493
+799,852
+553,752
+above categories
+All other liabilities and equity not included in the
+13
+25,782
+35,378
+NSFR derivative liabilities
+12
+262,332
+246,785
+82,657
+531,820
+228,268
+216,273
+94,748
+553,752
+Other liabilities:
+94,748
+180,895
+228,268
+531,820
+22,648
+41,117
+operational purposes
+Deposits held at other financial institutions for
+1,647,881
+1,673,032
+Total NSFR high-quality liquid assets (HQLA)
+56
+11
+16
+RSF Item
+21,156,350
+21,315,282
+Total ASF
+14
+262,332
+221,003
+82,657
+15
+Liabilities with matching interdependent assets
+10
+3,015,804
+8
+6,500,483
+542,982
+1,024,311
+5,278,772
+6,962,235
+6,566,705
+580,827
+Operational deposits
+1,352,957
+6,872,641
+Wholesale funding:
+7
+9,099,030
+619,804
+282,048
+5,724,334
+3,414,981
+4,995,451
+1,593
+6,448,073
+29,194
+542,009
+1,017,186
+4,718,041
+562,680
+3,090,047
+579,725
+1,323,763
+4,521,606
+473,845
+424,568
+9
+3,484,679
+973
+7,125
+560,731
+6,399,555
+3,476,658
+1,102
+Other wholesale funding
+9,038,192
+8,782
+37,202
+177,173
+173,210
+Performing residential mortgages, of which:
+22
+22
+6,155
+2,908
+credit risk
+under the Basel II Standardised Approach for
+With a risk weight of less than or equal to 35%
+21
+8,201,552
+6,645,907
+1,786,166
+2,433,316
+885,159
+8,295,772
+3,257
+6,073,983
+6,648
+5,338,172
+13,279
+78,287
+61,037
+267,441
+231,225
+26,267
+53,324
+61,543
+as HQLA, including exchange-traded equities
+6,788,448
+Securities that are not in default and do not qualify
+under the Basel II Standardised Approach for
+credit risk
+With a risk weight of less than or equal to 35%
+23
+5,208,149
+5,920,548
+177,331
+173,417
+6,639
+24
+1,710,757
+2,423,533
+917,604
+Performing loans to financial institutions secured
+18
+14,082,517
+12,919,982
+2,113,912
+4,059,775
+946,196
+14,208,841
+by Level 1 HQLA
+13,134,963
+3,661,118
+979,147
+Performing loans and securities:
+17
+50,105
+18,540
+4,652
+20,777
+2,133,421
+41,719
+501,660
+547,436
+banks and PSES, of which:
+customers, and loans to sovereigns, central
+clients, loans to retail and small business
+Performing loans to non-financial corporate
+20
+311,271
+122,158
+124,665
+75,249
+827,319
+41,307
+219,224
+509,391
+performing loans to financial institutions
+secured by non-Level 1 HQLA and unsecured
+Performing loans to financial institutions
+19
+82,115
+232,207
+619,617
+224,053
+3,441,134 5,688,785
+Outflows related to loss of funding on secured debt products
+12
+28,519
+28,519
+Outflows related to derivative exposures and other collateral requirements
+11
+201,265
+1,860,558
+Additional requirements, of which:
+10
+1,259
+Secured funding
+9
+112,780
+112,780
+Unsecured debt
+8
+13
+Credit and liquidity facilities
+2,307
+1,829,732
+2,307
+1,648,799
+Inflow from fully performing exposures
+18
+620,810
+621,958
+Secured lending (including reverse repos and securities borrowing)
+17
+Cash Inflows
+1,637,632
+497,786
+5,162,365
+16
+3,388,326
+Other contingent funding obligations
+15
+50
+Other contractual funding obligations
+14
+170,439
+Total Cash Outflows
+3,490,861
+Non-operational deposits (all counterparties)
+7
+1 Total High-Quality Liquid Assets (HQLA)
+High-Quality Liquid Assets
+S/N (In millions of RMB, except percentages)
+Total
+Weighted
+Value
+Unweighted
+Value
+Total
+The following tables set the Group's liquidity coverage ratio for the fourth quarter of 2021.
+The liquidity coverage ratio equals to the qualified and high-quality liquid assets divided by net cash outflows in the future 30 days. Net
+stable funding ratio equals to the available stable funding divided by required stable funding. According to the regulatory requirements,
+definitions and accounting standards applicable in the current period, the average daily liquidity coverage ratio of the Group in the fourth
+quarter of 2021 was 134.70% and the net stable funding ratio was 125.75% as at the end of December 2021.
+Cash Outflows
+LIQUIDITY COVERAGE RATIO AND NET STABLE FUNDING RATIO
+As a financial institution incorporated in the People's Republic of China (the "PRC") and listed on the Shanghai Stock Exchange, the Group
+also prepares its consolidated financial statements for the year ended 31 December 2021 in accordance with the Accounting Standards for
+Business Enterprises and other relevant regulations issued by the regulatory bodies of the PRC (collectively "PRC GAAP and regulations").
+There is no difference in the net profit for the year ended 31 December 2021 or total equity as at 31 December 2021 between the Group's
+consolidated financial statements prepared under IFRS and those prepared under PRC GAAP and regulations.
+China Construction Bank Corporation (the "Bank") prepares consolidated financial statements, which include the financial statements of the
+Bank and its subsidiaries (collectively the "Group"), in accordance with International Financial Reporting Standards and its interpretations
+("IFRS") promulgated by the International Accounting Standards Board and the applicable disclosure provisions of the Rules Governing the
+Listing of Securities on The Stock Exchange of Hong Kong Limited.
+DIFFERENCE BETWEEN THE FINANCIAL STATEMENTS PREPARED UNDER IFRS AND THOSE PREPARED
+IN ACCORDANCE WITH PRC GAAP
+1
+The following information of the Group does not form part of the audited financial statements, and is included herein for information purposes
+only.
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION
+310
+2
+971,898
+4,756,263
+Retail deposits and deposits from small business customers, of which:
+1,744,436
+7,023,939
+Operational deposits (excluding those generated from correspondent banking activates)
+6
+3,494,848
+10,627,580
+Unsecured wholesale funding, of which:
+5
+2
+845,736
+Less stable deposits
+4
+121,471
+2,431,263
+Stable deposits
+3
+967,207
+10,888,627
+8,457,364
+19
+Other cash inflows
+36,381
+5,726,951
+6,061,284
+customers:
+Retail deposits and deposits from small business
+4
+Other capital instruments
+3
+2,812,346
+230,623
+2,812,346
+2,812,346
+2,943,635
+2,943,635
+2,943,635
+2,943,635
+Regulatory capital
+2
+Capital:
+2,812,346
+1
+626,458
+6,002,090
+Less stable deposits
+6
+2,482,159
+6,150
+6,663
+12,554
+2,587,109
+2,538,482
+11,576,674
+6,841
+38,166
+2,620,150
+Stable deposits
+5
+11,581,189
+625,954
+288,711
+5,736,888
+6,570
+25,750
+ASF Item
+≥ 1yr
+The above quarterly daily means represent simple arithmetic means of the values for 92 calendar days in the latest quarter, calculated in accordance
+with the current applicable regulatory requirements, definitions and accounting standards.
+1.
+134.70
+Liquidity Coverage Ratio (%)¹
+23
+3,536,514
+Total Net Cash Outflows
+22
+China Construction Bank Corporation
+4,756,263
+21
+Value
+Total
+Adjusted
+1,625,851
+2,307,138
+Total Cash Inflows
+20
+33,143
+Total HQLA
+Weighted
+value
+Annual Report 2021
+UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION
+to <1yr
+<6 months
+No maturity
+6 months
+Weighted
+value
+≥ 1yr
+to <1yr
+<6 months
+2
+No maturity
+No.
+6 months
+The Third Quarter of 2021
+Unweighted value by residual maturity
+Unweighted value by residual maturity
+The Fourth Quarter of 2021
+The following tables set the quantitative information on the net stable funding ratio at the end of the last two quarters.
+LIQUIDITY COVERAGE RATIO AND NET STABLE FUNDING RATIO (CONTINUED)
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+(In RMB millions, except percentages)
+24,269
+231,369
+2228
+75,051
+1,826,299
+(330,942)
+(1,000,213)
+352,098
+945,417
+Total
+Others (RMB
+equivalent)
+equivalent)
+HKD (RMB
+USD (RMB
+equivalent)
+31 December 2020
+Forward purchases
+Spot liabilities
+Spot assets
+28,360
+(657)
+(1,758,605)
+(60,684)
+376,645
+(290,448)
+137,233
+(203,639)
+1,674,160
+(6,959)
+2,313
+34,141
+Net structural position
+51,919
+19,787
+35,494
+(3,362)
+2,623
+Net (short)/long position
+Forward sales
+(16,294)
+(4)
+(29)
+(16,261)
+(2,022,928)
+2,038,583
+(1,621,603)
+Net option position
+26,394
+Net structural position
+54,315
+31 December 2021
+Forward purchases
+Spot liabilities
+Spot assets
+4
+2.
+1.
+7.99%
+equivalent)
+8.13%
+31,670,893
+2,361,517
+2,575,528
+1,583,599
+1,622,887
+(2,924,243)
+(3,220,076)
+4,507,842
+29,548,554
+29,495
+USD (RMB
+Others (RMB
+equivalent)
+21,805
+34,106
+(1,596)
+Net (short)/long position
+Net option position
+Forward sales
+1,767,322
+(1,751,604)
+6,627
+1,564,929
+(1,532,959)
+HKD (RMB
+equivalent)
+335,806
+(270,104)
+150,570
+(194,623)
+156
+88,234
+(33,060)
+(1,523,921)
+1,528,518
+(333,522)
+(929,333)
+312,454
+916,669
+Total
+6,471
+4,842,963
+China Construction Bank Corporation
+Annual Report 2021
+314
+611,168
+127,130
+223,982
+Asia Pacific
+Total
+Others
+Non-bank
+private
+institutions
+entities
+Banks
+Public sector
+31 December 2020
+1,345,697
+13,260
+838,919
+257,804
+235,714
+Total
+23,060
+985,340
+- of which attributed to Hong Kong
+8,974
+332,145
+Annual Report 2021
+China Construction Bank Corporation
+Total
+324,146
+117,751
+171,380
+35,015
+232,211
+North and South America
+1,209
+70,933
+33,635
+12,496
+Europe
+391,990
+324,489
+58,527
+118,273
+5,516
+105,915
+97,049
+Non-bank
+private
+institutions
+entities
+Banks
+Public sector
+31 December 2021
+International claims have been disclosed by country or geographical area. A country or geographical area is reported where it constitutes
+10% or more of the aggregate amount of international claims, after taking into account any risk transfers. Risk transfers are only made if the
+Group reduces its exposure to a particular country/region by an effective transfer of credit risk to a different country/region with the use of
+credit risk mitigation which include guarantees, collateral and credit derivatives.
+International claims include loans and advances to customers, deposits with central banks, deposits and placements with banks and non-
+bank financial institutions, holdings of trade bills and certificates of deposit and investment securities.
+The Group is principally engaged in business operations within Mainland China. The international claims of the Group are the sum of cross-
+border claims in all currencies and local claims in foreign currencies.
+Others
+INTERNATIONAL CLAIMS
+investments in overseas subsidiaries and related companies.
+capital and statutory reserves of overseas branches; and
+investments in property and equipment, net of accumulated depreciation;
+The net option position is calculated using the delta equivalent approach required by the Hong Kong Monetary Authority (the "HKMA").
+The net structural position of the Group includes the structural positions of the Bank's overseas branches, banking subsidiaries and other
+subsidiaries substantially involved in the foreign exchange. Structural assets and liabilities include:
+CURRENCY CONCENTRATIONS (CONTINUED)
+4
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION
+5
+313
+Total
+198,614
+23,731
+North and South America
+107,199
+2,094
+49,417
+42,319
+13,369
+Europe
+Asia Pacific
+358,202
+307,721
+41,244
+7,783
+- of which attributed to Hong Kong
+1,006,287
+5,650
+683,587
+118,436
+1,454
+602,640
+680
+1,013
+546,322
+132,349
+4,615,327
+657,489
+268,473
+133,694
+260,879
+721,394
+383,879
+121,848
+216,278
+5,181
+5,181
+4,411
+30,193
+1,184
+1,392
+Net Stable Funding Ratio (%)
+4,723,062
+146,015
+16,950,020
+125.75
+16,757,578
+2021
+(In millions of RMB, except percentages)
+30 September
+31 December
+As at
+As at
+The following table sets forth the information related to the Group's leverage ratio.
+From the first quarter of 2015, the Group measures the leverage ratio in accordance with the Measures for the Administration of the
+Leverage Ratio of Commercial Banks (Revised). The leverage ratio refers to the ratio of the net amount of Tier 1 capital to the adjusted
+balance of on- and off-balance sheet assets. The leverage ratio of commercial banks should be no less than 4%. As at 31 December 2021,
+the Group's leverage ratio was 8.13%, meeting the regulatory requirements.
+34
+LEVERAGE RATIO
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION
+312
+311
+According to the regulatory requirements, definitions and accounting standards applicable in the fourth quarter of 2021, the Group's net stable funding ratio
+was 125.75%, from which the available stable funding was RMB21,315,282 million against the required stable funding of RMB16,950,020 million.
+China Construction Bank Corporation
+Annual Report 2021
+The amount filled out in this account refers to derivative liabilities, i.e., the amount of NSFR derivative liabilities before deduction of variable reserves.
+This amount makes no distinction between durations, nor does it count towards the total in "26 Other Assets".
+1.
+126.25
+3
+Total RSF
+33
+Off-balance sheet items
+121,506
+Physical traded commodities, including gold
+27
+831,060
+300,058
+133,694
+260,879
+119,717
+103,280
+894,079
+121,848
+216,278
+121,506
+Other assets:
+26
+་
+Assets with matching Interdependent liabilities
+25
+419,719
+2021
+119,717
+Assets posted as initial margin for derivative
+32
+categories
+All other assets not included in the above
+31
+7,089
+7,089
+variation margin posted
+NSFR derivative liabilities before deduction of
+101,760
+30
+34,931
+773
+909
+NSFR derivative assets
+29
+23
+CCPs
+contracts and contributions to default funds of
+13
+As at
+30 June
+2021
+Leverage ratio
+Tier 1 capital after regulatory adjustments
+Replacement costs of various derivatives (excluding eligible margin)
+On-balance sheet assets after adjustments (excluding derivatives and securities financing
+transactions)
+27,241,556
+(14,005)
+29,415,746
+(14,115)
+Less: Regulatory adjustments to Tier 1 capital
+On-balance sheet assets (excluding derivatives and securities financing transactions)'
+2020
+2021
+Potential risk exposures of various derivatives
+(In millions of RMB, except percentages)
+31 December
+As at
+The following table sets forth the information related to the Group's leverage ratio, Tier 1 capital after regulatory adjustments, and on and
+off-balance sheet assets after adjustments and their relevant detailed items.
+LEVERAGE RATIO (CONTINUED)
+3
+(EXPRESSED IN MILLIONS OF RMB, UNLESS OTHERWISE STATED)
+UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION
+Annual Report 2021
+As at
+31 December
+China Construction Bank Corporation
+Nominal principals arising from sales of credit derivatives
+Accounting assets arising from securities financing transactions
+601,960
+545,309
+134,764
+100,053
+250
+50,403
+84,361
+27,227,551
+Derivative assets
+29,401,631
+44,718
+55,085
+Leverage Ratio²
+On and off-balance sheet assets after adjustments
+Tier 1 capital after regulatory adjustments
+Off-balance sheet assets after adjustments
+Less: Decrease in off-balance sheet assets due to credit conversion
+Off-balance sheet assets
+Securities financing transactions assets
+Counterparty credit risk exposure arising from securities financing transactions
+These refer to on-balance sheet assets excluding derivatives and securities financing transactions on a regulatory consolidated basis.
+Leverage ratio is calculated through dividing Tier 1 capital after regulatory adjustments by on and off-balance sheet assets after adjustments.
+CURRENCY CONCENTRATIONS
+279,430
+Other adjustments mainly comprise regulatory adjustments to Tier 1 capital.
+Off-balance sheet items adjustment refers to the balance of off-balance sheet items after being multiplied by credit conversion factors in accordance
+with the Measures for the Administration of the Leverage Ratio of Commercial Banks (Revised).
+(In millions of RMB)
+As at
+On and off-balance sheet assets after adjustments = On-balance sheet assets after adjustments + Off-balance sheet assets after
+adjustments - Regulatory adjustments to Tier 1 capital.
+The following table sets forth the detailed items that constitute the on and off-balance sheet assets after adjustments used in the
+calculation of the Group's leverage ratio, and the reconciliation with the accounting items.
+2.
+The leverage ratios have been calculated in accordance with relevant regulatory requirements. The balance of Tier 1 capital after
+regulatory adjustments has been calculated with the same data used by the Group to calculate total capital ratio.
+1.
+30,826,197
+Total on-balance sheet assets¹
+31,263,173
+2,442,723
+2,434,940
+2,509,963
+As at
+31 March
+2021
+7.92%
+7.79%
+7.96%
+8.13%
+2,575,528
+31,670,893
+On and off-balance sheet assets after adjustments
+31,514,718
+4.
+Consolidated adjustment²
+Securities financing transactions adjustment
+Consolidated adjustment refers to the difference between regulatory consolidated total assets and accounting consolidated total assets.
+3.
+2.
+Total on-balance sheet assets refer to the one calculated in accordance with financial and accounting standards.
+1.
+29,548,554
+31,670,893
+On and off-balance sheet assets after adjustments
+Derivatives adjustment
+(14,005)
+1,622,887
+(14,115)
+Other adjustments4
+680
+28,132,254
+(220,217)
+66,243
+30,253,979
+(261,374)
+68,503
+1,013
+As at
+31 December
+2020
+31 December
+2021
+Off-balance sheet items adjustment³
+1,583,599
+1,913,312
+As at 31 December 2019
+Investment banking business
+As at 31 December 2020
+The following table sets forth the composition of the Group's total liabilities as at the dates indicated.
+4.10%
+Other liabilities
+3.56%
+Total liabilities of the Group as at the end of the
+reporting period (unit: in millions of RMB)
+agreements
+As at 31 December 2021
+under repurchase
+Financial assets sold
+0.12%
+central banks
+3.04%
+Borrowings from
+2.48%
+3.65%
+0.22%
+Debt securities issued
+39
+CC建融家人
+BUSINESS REVIEW
+CCB's house rental business can help researchers in the laboratory to concentrate on scientific research without worries, says Academician Zhong Nanshan.
+PROMOTION OF THREE MAJOR STRATEGIES
+House rental strategy
+The Group steadily pressed ahead with its house rental strategy. By the end of 2021, the
+Group's comprehensive house rental service platform had covered 96% administrative regions
+at prefecture-level or above across the country, providing a transparent trading platform for
+15 thousand enterprises and 38 million individual landlords and tenants. More than 10.16
+million verified houses and apartments and 7.60 million contracts had been filed with the
+platform on a cumulative basis, which also provided the government with an effective tool
+for market supervision. It created the "CCB Home" long-term rental community, incorporating
+smart communities, public services, financial services and entrepreneurship services, to create
+a comfortable living environment for blue-collars, white-collars, young entrepreneurs and
+other tenants. By the end of 2021, the Group had officially operated 179 communities. The
+Group vigorously supported the construction of indemnificatory housing projects for rental,
+participated in more than 300 indemnificatory housing projects for rental in major cities across
+the country, and granted designated loans to increase the supply of small apartments with
+low rents. It supported system building and launched the indemnificatory rental housing
+APP in more than 50 cities. The Group proactively promoted the pilot of public REITs for the
+indemnificatory rental house projects, strengthened the connection with key market entities,
+and entered into cooperation agreements on public REITs with enterprises in Guangzhou,
+Nanjing and other cities, so as to smooth the financing cycle of the indemnificatory rental house
+with financial innovation. The public rental housing APP has been launched in more than 30
+cities to enable a convenient mobile device-based business process for qualified applicants.
+The Group actively explored the integration of its house rental initiatives with policies on urban
+reconstruction and rural revitalisation and supported the transformation of villages in urban
+areas and old residential areas in cities such as Beijing and Guangzhou to promote integrated
+development. At the end of 2021, the Bank's loans for house rental business were RMB133,461
+million, an increase of RMB50,060 million or 60.02% from 2020. Specifically, corporate house
+rental loans totalled RMB82,020 million, an increase of RMB38,221 million or 87.26% from 2020,
+supporting more than 400 house rental enterprises and projects supported by CCB can provide
+500,000 properties to society. Public rental house loans totalled RMB51,441 million, an increase of
+RMB11,839 million or 29.89% from 2020.
+China Construction Bank Corporation
+Annual Report 2021
+MANAGEMENT DISCUSSION AND ANALYSIS
+China Construction Bank Corporation
+Annual Report 2021
+Case story
+The Group actively implemented national policies on accelerating the development of indemnificatory
+rental housing, gave full play to synergies between parent company and subsidiaries, vigorously
+supported the construction of indemnificatory rental housing projects, and provided financial services
+adapted to various types of projects and designed to address different financing difficulties.
+In Beijing, the Group allocated credit funds to support the construction of indemnificatory rental
+housing on collectively-owned commercial rural land, cooperated with professional agencies to
+provide decoration services and operation management, introduced green and low-carbon elements
+such as environmentally friendly photovoltaic devices, and created a high-quality community of "CCB
+Home for Start-ups" to solve problems such as difficulties in governance at the urban-rural junction,
+balance between work and housing for workers in surrounding industrial parks, and insufficient
+experience in the operation and management of builders, so as to provide high-quality rental houses
+for white-collars in these parks, new citizens, young people and other groups eligible for basic public
+services.
+In Guangzhou, the Group completed procedures for changing the nature of property use by
+deepening the cooperation with governments and enterprises, provided loans for housing rental
+operations, and transformed old factories of state-owned enterprises into a warm and habitable
+Jiyuandong Community, so as to provide a shelter for new urban youth working in surrounding
+business districts. It is not only the first project to transform non-residential buildings into rental houses
+with complete processes and written approvals in Guangdong, but also the first project under the
+whole-process approval model of reconstruction in terms of construction application, fire protection,
+and supply of civil water, electricity, and natural gas. It offered a model for future projects.
+In Shanghai, the Group customised exclusive solutions for customers, took the lead in syndicated loans,
+and supported the project of indemnificatory housing on the country's first R4 land for residential rental
+housing - Shanghai Zhangjiang International Community Talent Apartment Project (Phase I), to meet
+rental needs of high-end international talents, white-collars of science and technology enterprises, and
+young entrepreneurs in Zhangjiang Science City.
+In Hangzhou, the Group supported the renovation of idle industrial plants with credit funds to
+create "CCB Home Pukun Community". As the first local indemnificatory rental housing project, the
+community has fully furnished apartments, abundant shared space, sound commercial facilities, and
+considerate services. The rent is 30% lower than the market price of surrounding communities, which
+effectively addresses the housing issues of many new industrial workers in the industrial park.
+FI
+Continuously support the development of indemnificatory rental housing
+38
+4.79%
+institutions
+Policy bank bond issued in 2020
+5.21
+2025-11-12
+4.00
+12,850
+Policy bank bond issued in 2018
+2.04
+12,660
+2029-01-08
+13,100
+Policy bank bond issued in 2019
+1.46
+2028-02-04
+3.48
+13,780
+Commercial bank bond issued in 2021
+3.48
+25,742,901
+3.34
+0.70
+8.91%
+Deposits and
+placements from banks
+and non-bank financial
+80.08%
+Deposits from customers
+8.08%
+80.97%
+27,639,857
+2025-07-14
+2020
+Liabilities
+FINANCIAL REVIEW
+32
+31
+China Construction Bank Corporation
+Annual Report 2021
+As part of its effort to recover impaired loans and advances to customers, the Group may obtain the title of the collateral, through legal
+actions or voluntary transfer from the borrowers, as compensation for the losses on loans and advances and interest receivable. At the
+end of 2021, the Group's repossessed assets were RMB1,648 million, and the impairment allowances for repossessed assets were RMB980
+million. Please refer to "Other assets" in the notes to the financial statements for details.
+Repossessed assets
+2021
+37
+China Construction Bank Corporation
+Annual Report 2021
+65
+•
+House rental strategy
+Inclusive finance strategy
+FinTech strategy
+Operating income
+Impairment losses
+Profit before tax
+CORPORATE BANKING
+38
+45
+2021
+Corporate banking
+304,448
+2020
+284,393
+2021
+(112,478)
+2020
+2021
+(In millions of RMB)
+(146,580)
+PROMOTION OF THREE
+MAJOR STRATEGIES
+The Group's major business segments are corporate banking,
+personal banking, treasury business, and others including
+overseas business and subsidiaries.
+Net cash from financing activities was RMB16,123 million, an increase of RMB106,083 million over 2020, mainly due to the increase of cash
+proceeds from issue of bonds.
+SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
+Please refer to "Significant accounting policies and accounting estimates" in the notes to financial statements for details of the Group's
+significant accounting estimates and judgements; please refer to "Statement of compliance" in the notes to financial statements for
+details of the significant changes in accounting policies.
+DIFFERENCES BETWEEN THE FINANCIAL STATEMENTS PREPARED UNDER PRC GAAP AND THOSE
+PREPARED UNDER IFRS
+There is no difference in net profit for 2021 or total equity as at 31 December 2021 between the Group's consolidated financial statements
+prepared under PRC GAAP and those prepared under IFRS.
+China Construction Bank Corporation
+Annual Report 2021
+The following table sets forth, for the periods indicated, the
+operating income, impairment losses, and profit before tax of
+each major business segment.
+35
+【芙蓉道
+GOLFER
+运网络:
+We focused on expanding the scope and
+enhancing the benefits of inclusive finance.
+At the end of 2021, the balance of inclusive
+finance loans reached RMB1.87 trillion.
+Since the launch of the products with new
+pattern such as "Quick Loan for Small and
+Micro Business", the Bank had served a
+total of 2,524.9 thousand customers, and
+provided credit support of RMB5.93 trillion.
+In Hunan Province, we tailored financial service solutions for merchants
+in Yangfan Night Market and achieved full coverage of e-CNY
+BUSINESS REVIEW
+扬机水果批发大市场欢迎
+106,324
+Personal banking
+Treasury business
+8.19
+Financial institutional business
+OVERSEAS COMMERCIAL
+BANKING BUSINESS
+53
+INTEGRATED OPERATION
+SUBSIDIARIES
+•
+55
+GEOGRAPHICAL SEGMENT
+58
+ENTITIES, OUTLETS AND
+E-CHANNELS
+61
+DIGITALISED OPERATION
+AND PRODUCT INNOVATION
+ANALYSED BY
+Assets management
+Financial market business
+•
+Others
+Total
+350,127
+63,373
+46,758
+764,706
+327,136
+(33,213) (30,887)
+66,292 (13,503)
+108 37,336 55,915
+36,403 (9,521) (12,570) 20,043
+8,039
+714,224 (168,715) (189,929) 378,412 336,616
+214,709
+2020
+66,615
+206,047
+Corporate financial service
+Institutional business
+•
+In 2021, operating income of the Group's corporate banking business reached
+RMB304,448 million, up 7.05%; impairment losses were RMB112,478 million,
+down 23.27%; profit before tax was RMB106,324 million, up 59.61%, accounting
+for 28.10% of the Group's profit before tax, up 8.31 percentage points over 2020.
+Operating income of personal banking business reached RMB350,127 million,
+up 7.03%; impairment losses were RMB33,213 million, up 7.53%; profit before
+tax totalled RMB214,709 million, up 4.20%, accounting for 56.74% of the total
+at the group level, down 4.47 percentage points over 2020. Operating income
+of treasury business totalled RMB63,373 million, down 4.40%; impairment
+losses were RMB13,503 million; profit before tax totalled RMB37,336 million,
+down 33.23%, accounting for 9.87% of the total at the group level, down 6.74
+percentage points over 2020. Other operating income totalled RMB46,758
+million, up 28.45%, and profit before tax totalled RMB20,043 million.
+International business
+Asset custody services
+Settlement and cash
+management business
+PERSONAL BANKING
+Personal financial service
+Entrusted housing finance
+business
+Bank card business
+Private banking
+TREASURY BUSINESS
+49
+51
+1.20
+Cash from financing activities
+2031-05-24
+14,270
+Policy banks
+Banks and non-bank financial institutions
+Others
+Total debt securities
+Amount
+% of total
+5,763,166
+Central banks
+78.20
+% of total
+76.45
+43,088
+0.58
+39,619
+0.59
+774,286
+As at 31 December 2020
+Amount
+5,095,677
+10.51
+Government
+As at 31 December 2021
+0.43
+33,495
+0.50
+64,635
+0.87
+55,526
+0.83
+(In millions of RMB, except percentages)
+7,369,446
+6,665,884
+100.00
+At the end of 2021, total investments in RMB debt securities were RMB7.13 trillion, an increase of RMB694,453 million or 10.79% over 2020.
+Total investments in foreign-currency debt securities were RMB236,158 million, an increase of RMB9,109 million or 4.01% over 2020.
+China Construction Bank Corporation
+Annual Report 2021
+MANAGEMENT DISCUSSION AND ANALYSIS
+The following table sets forth the composition of the Group's debt instruments by issuer as at the dates indicated.
+100.00
+31,730
+781,313
+404,472
+2029-01-25
+4.54
+Policy bank bond issued in 2020
+16,400
+3.74
+2030-11-16
+1.30
+3.75
+Policy bank bond issued in 2019
+3.86
+2029-05-20
+2.82
+Policy bank bond issued in 2020
+15,980
+3.23
+2030-03-23
+16,120
+11.72
+17,440
+Maturity date
+5.49
+363,852
+5.46
+384,434
+5.22
+385,423
+5.78
+Allowances for
+impairment losses
+7,369,446
+6,665,884
+100.00
+At the end of 2021, government bonds held by the Group increased by RMB667,489 million or 13.10% over 2020 to RMB5.76 trillion.
+Central bank bonds increased by RMB3,469 million or 8.76% over 2020 to RMB43,088 million. Financial debt securities increased by
+RMB33,593 million or 2.93% over 2020 to RMB1.18 trillion. Specifically, RMB774,286 million was issued by policy banks and RMB404,472
+million was issued by banks and non-bank financial institutions, accounting for 65.69% and 34.31%, respectively.
+The following table sets forth the top ten financial debt securities held by the Group by par value at the end of the reporting period.
+(In millions of RMB, except percentages)
+Policy bank bond issued in 2019
+Par value
+Annual interest
+rate (%)
+100.00
+2.07
+138,028
+1.90
+Financial assets measured at amortised cost
+5,155,168
+67.46
+4,505,243
+64.82
+Financial assets measured at fair value through
+other comprehensive income
+8.31
+1,941,478
+7,641,919
+25.41
+1,867,458
+100.00
+6,950,653
+26.87
+100.00
+Total financial investments
+For further details on the financial instruments measured at fair value, please refer to Note "Risk Management-Fair Value of Financial
+Instruments" to the financial statements.
+577,952
+545,273
+Policy bank bond issued in 2021
+2.89
+2030-04-17
+2.96
+15,510
+30
+FINANCIAL REVIEW
+7.13
+Financial investments
+As at 31 December 2021
+(In millions of RMB, except percentages)
+Amount
+% of total
+As at 31 December 2020
+Amount
+% of total
+Financial assets measured at fair value through profit or loss
+The following table sets forth the composition of the Group's financial investments by measurement as at the dates indicated.
+The following table sets forth the composition of the Group's financial investments by nature as at the dates indicated.
+Debt securities
+(In millions of RMB, except percentages)
+Debt securities
+The following table sets forth the composition of the Group's debt instruments by currency as at the dates indicated.
+(In millions of RMB, except percentages)
+RMB
+USD
+HKD
+Other foreign currencies
+At the end of 2021, the Group's financial investments totalled RMB7.64 trillion, an increase of RMB691,266 million or 9.95% over 2020. In
+this amount, debt securities increased by RMB703,562 million or 10.55%, and accounted for 96.43% of total financial investments, up 0.53
+percentage points over 2020; equity instruments and funds increased by RMB48,884 million, and accounted for 3.57% of total financial
+investments, up 0.35 percentage points over 2020.
+Total debt securities
+% of total
+As at 31 December 2020
+Amount
+% of total
+96.80
+6,438,835
+96.60
+139,793
+As at 31 December 2021
+Amount
+7,133,288
+100.00
+6,950,653
+100.00
+Equity instruments and funds
+Other debt instruments
+Total financial investments
+As at 31 December 2021
+Amount
+7,369,446
+% of total
+As at 31 December 2020
+Amount
+% of total
+96.43
+6,665,884
+95.90
+272,473
+3.57
+223,589
+3.22
+61,180
+0.88
+7,641,919
+3.52
+Net cash used in investing activities was RMB518,548 million, a decrease of RMB123,610 million over 2020, mainly due to a large decrease
+in cash payments for investment activities.
+Policy bank bond issued in 2020
+Net cash received from operating activities was RMB436,718 million, a decrease of RMB143,967 million over 2020, mainly due to a large
+decrease in net increase in deposits from customers and from banks and non-bank financial institutions.
+8.91
+2,194,251
+9.46
+Debt securities issued
+1,323,377
+4.79
+940,197
+3.65
+1,076,575
+4.64
+Borrowings from central banks
+685,033
+2.48
+781,170
+3.04
+549,433
+2.37
+Financial assets sold under repurchase agreements
+33,900
+2,293,272
+0.12
+8.08
+non-bank financial institutions
+3,014,212
+16.61
+3,425,075
+3,789,405
+32.28
+5,927,636
+30.44
+6,274,658
+(In millions of RMB, except percentages)
+Deposits from customers
+Amount
+22,378,814
+% of total
+80.97
+Amount
+20,614,976
+% of total
+80.08
+Amount
+18,366,293
+% of total
+79.16
+Deposits and placements from banks and
+2,232,201
+56,725
+0.22
+114,658
+Corporate deposits
+As at 31 December 2021
+Amount
+As at 31 December 2020
+% of total
+Amount
+% of total
+As at 31 December 2019
+Amount
+% of total
+10,338,734
+46.20
+9,699,733
+47.05
+8,941,848
+48.69
+Demand deposits
+Time deposits
+6,549,329
+29.27
+Cash used in investing activities
+(In millions of RMB, except percentages)
+The following table sets forth the Group's deposits from customers by product type as at the dates indicated.
+Deposits from customers
+At the end of 2021, the Group's total liabilities were RMB27.64 trillion, an increase of RMB1.90 trillion or 7.37% over 2020. In this amount,
+deposits from customers amounted to RMB22.38 trillion, an increase of RMB1.76 trillion or 8.56% over 2020; deposits and placements from
+banks and non-bank financial institutions were RMB2.23 trillion, a decrease of RMB61,071 million or 2.66% over 2020; debt securities issued
+were RMB1.32 trillion, an increase of RMB383,180 million or 40.76% over 2020; borrowings from central banks were RMB685,033 million, a
+decrease of 12.31% over 2020. Accordingly, in the Group's total liabilities, deposits from customers accounted for 80.97% of total liabilities,
+an increase of 0.89 percentage points over 2020; deposits and placements from banks and non-bank financial institutions accounted for
+8.08% of total liabilities, a decrease of 0.83 percentage points over 2020; debt securities issued accounted for 4.79% of total liabilities, an
+increase of 1.14 percentage points over 2020; borrowings from central banks accounted for 2.48% of total liabilities, a decrease of 0.56
+percentage points over 2020.
+0.49
+Other liabilities'
+Total liabilities
+986,532
+27,639,857
+3.56
+100.00
+1,056,561
+4.10
+899,924
+3.88
+16.41
+25,742,901
+23,201,134
+100.00
+1.
+These comprise financial liabilities measured at fair value through profit or loss, negative fair value of derivatives, accrued staff costs, taxes payable,
+provisions, deferred tax liabilities and other liabilities.
+The Group establishes a liability quality management system commensurate with the size and complexity of its liabilities, clarifies the
+governance system and organisational structure for liability quality management, and formulates and implements the whole-process
+liability quality management strategy and rules covering planning, monitoring, measurement, assessment, control, and reporting. It
+establishes a liability management indicator system that meets regulatory requirements and the Group's risk appetite, to continuously
+improve the Group's liability quality management level.
+In 2021, the Group adhered to the principle of prudent operation, continued to consolidate the foundation for business development,
+and promoted high-quality development of the liability business. It built a management system for funds raised from all channels,
+established a multi-level and high-frequency liability monitoring and analysis system, paid close attention to changes in the form of
+customer funds and the size and structure of its own liabilities, continuously improved market competitiveness of core liabilities, and
+maintained stable sources of liabilities. It continued to optimise liability structure and established diversified financing channels and
+a decentralised and balanced customer structure to increase the diversity of liability structure. It made overall arrangements for total
+amount and structure of the source and use of funds, actively responded to monetary policy adjustments, re-oriented financial resource
+allocation, and implemented stable and prudent liquidity management strategy, to achieve stable and coordinated development of
+assets and liabilities. It actively built the ability to actively assume liabilities, and reasonably determined the size and frequency of issuance
+of long-term bonds and interbank certificates of deposit based on the strategic arrangement of assets and liabilities and market price
+trends, to improve market-oriented financing capabilities. It adhered to the principle of balanced development of volume and pricing,
+established a scientific, effective and dynamically adjusted internal and external fund pricing mechanism, and continuously optimised
+liability maturities, to ensure the appropriate, reasonable and controllable cost of liability. It adhered to the concept of compliance, and
+strengthened management and supervision of liability transactions, accounting, and data statistics, to ensure that liability businesses
+comply with regulatory requirements. During the reporting period, the Group's regulatory indicators, such as liquidity coverage ratio, net
+stable funding ratio and liquidity ratio constantly met regulatory requirements. For details of the indicators, please refer to "Management
+Discussion and Analysis - Risk Management - Liquidity Risk Management". Indicators related to the quality of liabilities were kept within
+the limits, with stable performance. The Group's liability quality management steadily improved.
+China Construction Bank Corporation
+Annual Report 2021
+MANAGEMENT DISCUSSION AND ANALYSIS
+100.00
+Personal deposits
+16.93
+50.40
+39,991
+59,977
+59,977
+99,968
+99,968
+250,011
+As at 31 December 2020
+As at 31 December 2021
+250,011
+Total equity
+39,991
+Non-controlling interests
+Retained earnings
+General reserve
+Surplus reserve
+Other comprehensive income
+Capital reserve
+- perpetual bond
+- preference shares
+Other equity instruments
+11,278,207
+Total equity attributable to equity shareholders of the Bank
+(In millions of RMB)
+134,925
+21,338
+Cash from operating activities
+ANALYSIS ON CASH FLOW STATEMENTS
+MANAGEMENT DISCUSSION AND ANALYSIS
+Annual Report 2021
+China Construction Bank Corporation
+The Group's off-balance sheet items include derivatives, commitments and contingent liabilities. Derivatives mainly include interest rate
+contracts, exchange rate contracts, precious metals and commodity contracts. Please refer to "Derivatives and hedge accounting" in the
+notes to the financial statements for details on the nominal amounts and fair value of derivatives. Commitments and contingent liabilities
+include credit commitments, capital commitments, government bond redemption obligations, and outstanding litigation and disputes.
+Specifically, credit commitments were the largest component, including undrawn loan facilities which are approved and contracted,
+unused credit card limits, financial guarantees, and letters of credit. At the end of 2021, the balance of credit commitments was RMB3.37
+trillion, a decrease of RMB43,636 million or 1.28% over 2020. Please refer to "Commitments and contingent liabilities" in the notes to the
+financial statements for details on commitments and contingent liabilities.
+Off-balance sheet items
+At the end of 2021, the Group's equity was RMB2.61 trillion, an increase of RMB224,769 million or 9.41% over 2020, primarily driven by
+the increase of RMB155,502 million in retained earnings. As the growth rate of total equity was faster than that of assets, the ratio of total
+equity to total assets for the Group rose to 8.64%, an increase of 0.15 percentage points over 2020.
+2,389,353
+134,263
+24,545
+2,364,808
+2,588,231
+1,239,295
+1,394,797
+350,228
+381,621
+275,995
+305,571
+15,048
+25,891
+2,614,122
+The following table sets forth the Group's total equity and its composition as at the dates indicated.
+Share capital
+FINANCIAL REVIEW
+25.08
+4,605,943
+Shareholder's equity
+5,519,480
+28.62
+6,404,215
+Time deposits
+22.32
+Overseas operations and subsidiaries
+4,100,088
+4,665,424
+21.78
+4,873,992
+Demand deposits
+47.40
+8,706,031
+49.41
+10,184,904
+22.63
+411,682
+26.78
+453,991
+34
+33
+China Construction Bank Corporation
+Annual Report 2021
+At the end of 2021, domestic corporate deposits of the Bank were RMB10.34 trillion, an increase of RMB639,001 million or 6.59% over
+2020; domestic personal deposits of the Bank were RMB11.28 trillion, an increase of RMB1.09 trillion or 10.73% over 2020, and accounted
+for 52.17% of domestic deposits from customers, up 0.95 percentage points over 2020; deposits from overseas operations and subsidiaries
+were RMB411,682 million, a decrease of RMB42,309 million, and accounted for 1.84% of total deposits from customers. Domestic demand
+deposits were RMB11.42 trillion, an increase of RMB483,239 million or 4.42% over 2020, and accounted for 52.84% of domestic deposits
+from customers; domestic time deposits were RMB10.19 trillion, an increase of RMB1.25 trillion or 13.96% over 2020, and accounted for
+47.16% of domestic deposits, up 2.18 percentage points over 2020.
+100.00
+18,366,293
+100.00
+1.84
+1.13
+20,614,976
+1.34
+2.20
+510,907
+207,507
+Accrued interest
+Total deposits from customers
+2.78
+1.56
+100.00
+276,348
+350,191
+22,378,814
+By the end of 2021, the Group had established 510,000 “CCB
+Yunongtong" inclusive finance service sites, covering 80% of
+towns and administrative villages, and 37% of the service sites
+were jointly set up with the CPC village committees and villagers'
+self-governance committees. The Group continued to upgrade
+financial services, smart village affairs, convenience affairs and
+e-commerce functions in "CCB Yunongtong" comprehensive
+service platform for rural revitalisation. The platform served
+more than 2 million registered users on a cumulative basis,
+granted RMB5,119 million loans, and completed payments of
+The Group refined the two reporting lines and improved the two-way communication mechanism for inclusive
+finance. It created a reporting channel for front offices to report directly to the chief risk officer on business
+development and risk profile. It established normal mechanisms such as joint meetings on key businesses, joint
+approval of new products and risk control models, and risk monitoring information exchange and sharing. It
+explored to set up an agile, efficient, flexible support team for risk control to further support management's
+decisions.
+The Group explored and established an inclusive finance risk control mechanism with two-way synergy between
+the front and middle offices, to improve the efficiency of risk control and ensure the high-quality development of
+key strategic businesses.
+42
+Feature article
+BUSINESS REVIEW
+41
+China Construction Bank Corporation
+Annual Report 2021
+Establishing an inclusive finance risk control mechanism with two-way synergy
+between the front and middle offices
+over RMB180 million. The Group issued 18.53 million "Rural
+Revitalisation Yunongtong Cards" mainly targeted at large
+planting and breeding households and people returning to rural
+areas for innovation and entrepreneurship, with new customers
+accounting for more than 80% of the total. The Group focused
+on the construction of an ecological scenario-based financial
+service system for six featured agriculture-related industrial
+chains, including food security, dairy industry revitalisation, beef
+cattle, vegetables, fruits, and flowers, and built a new business
+model serving all scenarios, customer groups and industrial
+chains. At the end of 2021, the balance of agriculture-related
+loans of the Bank was RMB2.47 trillion, up RMB376,962 million or
+18.05% from 2020. Specifically, the balance of agriculture-related
+corporate loans was RMB1.74 trillion; the balance of agriculture-
+related personal loans was RMB721,325 million; the balance
+of agriculture-related inclusive loans (excluding discounted
+bills) was RMB295,427 million, up RMB70,170 million or 31.15%
+from 2020; the balance of agriculture-related green loans was
+RMB406,988 million, up RMB138,820 million or 51.77% from 2020.
+The number of agriculture-related loan borrowers was 2,351.5
+thousand with an interest rate of 4.30% for new agriculture-
+related loans originated during the year, down 0.07 percentage
+points from 2020.
+offline service. At the end of 2021, the Bank had more than
+14,000 outlets that can provide inclusive finance services, and
+approximately 19,000 inclusive finance specialists. The Bank also
+established 252 inclusive finance (small business) service centres
+and small business centres, as well as 2,449 featured inclusive
+finance outlets. It continuously upgraded the "digital, whole-
+process, standardised" intelligent risk control and management
+system for inclusive finance to ensure the stable credit asset
+quality of inclusive finance. According to the regulatory
+classification requirements in 2021, the Bank's inclusive finance
+loans increased by RMB449,944 million or 31.60% over 2020 to
+RMB1.87 trillion. The number of inclusive finance loan borrowers
+increased by 241.2 thousand over 2020 to 1,936.7 thousand. The
+Group increased efforts in surrendering profits to support the real
+economy, and the interest rate of new inclusive loans granted to
+small and micro businesses was 4.16%, down 0.20 percentage
+points from 2020.
+Enterprises" to grant credit to an
+国 萬
+最有趣的等待,是未来
+·国家(广州)北斗产业
+China Construction Bank Corporation
+Annual Report 2021
+111
+华泰斗微电子科技有限公司
+a national "specialised, refined,
+peculiar and new" enterprise. ③
+The Bank grants "Yunyi Loan" to
+help a small business which has
+encountered difficulties during the
+epidemic, enabling it to resume
+growth quickly. Employees of
+the Bank understand customers'
+financial needs in the production
+plant.
+the Bank helped it be rated as
+enterprise for its development,
+The Group created an inclusive finance risk control toolbox with "Policy + Technology". It deployed the intelligent
+risk control system, integrated polices, systems, data and tools across the front, middle and back offices, established
+a database of key issues for inclusive finance business, and continuously improved risk control technologies and
+tools for risk monitoring, early warning and screening, as well as customer scoring and anti-fraud management.
+In 2021, the coverage ratio of the risk alert and detection (RAD) system on the NPL borrowers of small and micro
+businesses exceeded 80%; and the risk screening and detection (RSD) system automatically screened 78,971,200
+transactions and effectively blocked 357,100 dubious transactions.
+MANAGEMENT DISCUSSION AND ANALYSIS
+The Group advanced the solid implementation of new product evaluation and anti-fraud work. The front and
+middle offices jointly promoted the innovation of inclusive finance products and carried out risk assessment and
+scorecard development for new products of "Shan" series inclusive finance loans. The front and middle offices
+jointly built an anti-fraud system for small and micro business loans based on "Rule + List + Model", optimised and
+promoted the small and micro business anti-fraud system, integrated multi-dimensional related party relationships
+of customers, and explored to launch a centralised operation of suspicious fraud verification.
+遼事通
+Annual Report 2021
+The Bank made every effort to build a new development pattern
+of "dual circulation" and steadily enhanced its ability to engage
+in international competition. It improved the service quality
+and efficiency of "CCB Match Plus" to help stabilise the global
+industrial chain and smooth international trade. It also innovated
+cross-border payment products to provide more convenient,
+efficient, and low-cost payment and settlement services for
+Chinese enterprises to participate in global economic activities.
+The Blockchain Trade (BCTrade) Finance Platform became the
+first blockchain trading platform in the industry with a transaction
+volume of over RMB1 trillion. The Bank listed in the "Forbes
+Blockchain 50" for three consecutive years and was awarded
+International business
+The Bank promoted the comprehensive service platform for
+the supervision of collective funds, assets and resources in rural
+areas, the trading of rural property rights and smart village affairs,
+innovated the credit service system for rural collective economy,
+and supported customers across the country to achieve common
+prosperity for the rural areas. The Bank continuously deepened
+and expanded the cooperative relationship with customers
+in education and healthcare sectors and was the exclusive
+sponsor of the "CCB Cup" China International College Students'
+'Internet +' Innovation and Entrepreneurship Competition for the
+seventh consecutive year. It continuously expanded the high-
+quality development of fiscal business and won first prize in the
+comprehensive assessment of the national treasury centralised
+payment business of the MOF for the third consecutive year.
+It also outperformed peers in terms of the number of budget
+payment holders and business volume of agency payment
+business authorised by the central government. The Bank
+launched the "Smart Payment" to provide finance and tax
+authorities and the public with comprehensive financial services
+for inquiring, reporting, non-tax paying, and taxes and fees. In
+2021, the platform completed over 200 million transactions.
+MANAGEMENT DISCUSSION AND ANALYSIS
+China Construction Bank Corporation
+Annual Report 2021
+46
+the first among its peers to designate a smart teller machine
+(STM) service zone for "all-in-one network" model for government
+affairs in all 31 provinces, autonomous regions, and municipalities,
+covering 1,593 various government affairs scenarios. The Bank
+helped launch the "cross-provincial" government affairs service
+platform in Chongqing, Sichuan, Guizhou, Yunnan, and Tibet to
+provide convenient cross-region government affairs services for
+residents. The Bank further integrated government affairs services
+and banking services, and constantly developed scenarios for
+government affairs services payment system, covering property
+transactions, non-tax services, social security contributions,
+convenience services, litigation fees, tuition payment, and
+hospital diagnosis and treatment. It had enabled over 12,000
+online payment items with total payment exceeding RMB100
+billion.
+The Bank continued to implement the smart government affairs
+services strategy. By the end of 2021, the Bank had established
+cooperative relationships with 29 provincial governments, and
+participated in government affairs service and development
+of supervision platforms and application scenarios. The total
+number of registered users of the online platforms exceeded 200
+million, and the total number of processed government affairs
+reached more than 2.5 billion. The Group shared outlets and
+channels to build a "Government Affairs Lobby for the Public".
+More than 14,000 outlets enabled the government affairs service
+function, where people could process, make appointments for
+and inquire about more than 6,000 government affairs items.
+By the end of 2021, the Bank had processed over 47 million
+government affairs for more than 20 million users. The Bank was
+Institutional business
+南海诸岛
+the "Best Blockchain Initiative Application or Programme" by
+The Asian Banker for two consecutive years as a result of its
+innovative practice. As the first batch of banks directly linked to
+China International Trade "Single Window", the Bank launched
+over ten online financial service functions, maintaining a leading
+advantage among peers. The whole-process online "Cross-border
+Quick Loan" series products granted approximately RMB20 billion
+to small- and micro-sized foreign trade enterprises. The Bank
+innovated and enriched the product line of Credit Insurance
+Finance, and continued expanding its volume. It has established
+correspondent banking relationships with more than 600 banks
+in countries along the Belt and Road and launched all-currency
+payment products supporting the settlement in more than
+140 minor currencies, with over RMB130 billion transactions
+completed via "Cross-border Easy Payment". Project Factoring
+(Jiandantong, Jianpiaotong and Jianxintong) had provided
+financial support to more than 130 projects in 49 countries along
+the Belt and Road, with a cumulative amount of over RMB13
+billion. In 2021, the Bank's trade financing reached RMB1.40
+trillion.
+о
+i安康
+i昆明
+智慧湘西
+安馨辦
+191
+慧黃山
+吳優辦
+政通雄安
+北京大興
+秦務員
+୪
+The Bank actively contributed to the implementation of RMB
+liberalisation strategy, continued to promote the use of RMB in
+key areas, and enhanced the comprehensive capacity to serve
+overseas institutional investors, and was awarded the title of "Best
+Domestic Bank for RMB Internationalisation" by Global Finance.
+In 2021, the Bank's cross-border RMB settlement volume reached
+RMB2.67 trillion, an increase of 23% over 2020, serving 31,400
+cross-border RMB settlement customers. The Bank officially
+became the HK dollar settlement agent of the Cross-border
+Interbank Payment System (CIPS), actively promoting the stable
+operation of the "Southbound Bond Connect". Its RMB clearing
+branch in UK continued to be the largest RMB clearing bank
+outside Asia, with a cumulative clearing amount of over RMB64
+trillion.
+China Construction Bank Corporation 47
+Annual Report 2021
+48
+The Bank adhered to its positioning of "customers' major
+banking partner", focused on trends of the wealth era, embraced
+opportunities in the digital era, built a new ecosystem of personal
+finance, and promoted the high-quality development of retail
+business. It was awarded the "Best Mega Retail Bank in China" by
+the Asian Banker in 2021. The Bank built a "layered, sub-group
+and graded" personal customer operation management system.
+It strengthened the hierarchical management, connected the
+chain of "Direct operation through scenarios for basic customers -
+Direct operation through private domain for potential customers
+- Exclusive operation through outlets for medium- and high-end
+customers - 1+1+N services for private banking customers", so as
+to enhance matrix and grid-based customer service capabilities. It
+Personal financial service
+PERSONAL BANKING
+"Yongle Wealth Management Room" of CCB Zhejiang branch
+combined online and offline salons to expand private domain
+customers in asset allocation.
+STERTIURE
+201
+The Bank continuously enhanced its capabilities in providing
+settlement and cash management services. Relying on digital and
+intelligent means, it coordinated and optimised account service
+and conducted account life cycle management. By implementing
+the national deployment on reducing fees for micro and small
+enterprises and individual business owners, it finished fee
+reduction of 15 items such as corporate RMB remittance fee to
+effectively reduce the overall costs of small and micro businesses
+and other market entities and support high-quality development
+of the real economy. It continuously enriched the variety of cash
+management products, launched the "Yudao - Treasury Cloud", a
+cross-bank treasury management service platform for enterprises
+and the "Zhangbutong", an innovative fund classification
+management product. It provided more safe, convenient
+and efficient collection and payment services to improve
+customer experience. It also strengthened its overall services
+to multinational enterprises by providing more cross-border
+products, including improved integrated cash management
+services usable both at home and abroad. In terms of gambling
+and fraud risk management measures, the Bank was capable of
+intercepting suspicious transactions and controlling customers'
+accounts timely to reduce the number of misused accounts. At
+the end of 2021, the Bank had 11,950.9 thousand corporate RMB
+settlement accounts, an increase of 492.1 thousand over 2020.
+Settlement and cash management business
+The Bank fully promoted the high-quality development of
+custody services. It successfully won the bid of custody of
+National Green Development Fund, Beijing-Tianjin-Hebei
+Synergistic Development Industrial Investment Fund and
+Guangdong Beautiful Countryside Revitalisation Development
+Fund, carried out enterprise assets reorganisation service trust
+custody innovation, and was appointed as the depositary bank of
+China Depository Receipts (CDR) with the largest issuing amount.
+It was also awarded the "Best Digital Assets Custodian in China" by
+The Asian Banker. At the end of 2021, assets under custody of the
+Bank reached RMB17.7 trillion, an increase of RMB2.45 trillion over
+2020. Specifically, insurance assets, assets entrusted to security
+companies and qualified foreign investors (QFI) assets under
+the Bank's custody increased by RMB626.2 billion, RMB360.3
+billion and RMB65.4 billion respectively, all ranking first in the
+industry. Income from custody services was RMB6,945 million, an
+increase of RMB1,412 million or 25.52% over 2020. Specifically,
+total fees income and incremental income of QFI custody service
+outperformed its peers.
+Asset custody services
+MANAGEMENT DISCUSSION AND ANALYSIS
+Annual Report 2021
+China Construction Bank Corporation
+The Bank's "3D digital banking exhibition halls" provides customers with "cloud services" such as settlement financing, cross-border matchmaking and financial live
+broadcasting to facilitate the smooth launch of the Canton Fair.
+China Construction Bark
+广交会
+中国建设银行
+Relying on "CCB Match Plus", the Bank created a "Digital Exhibition" scenario, supporting organisers, exhibitors,
+and purchasers to organise, arrange and view exhibitions online in both Chinese and English, providing real-time
+interactive "virtual site" and meeting rooms, and offering an integrated solution for exhibition and display, exchange
+and communication, matchmaking, and event operation to realise a flexible, efficient, and integrated exhibition
+ecology. In 2021, "CCB Match Plus" provided comprehensive service solutions for large-scale exhibitions such as the
+Canton Fair, China International Consumer Products Expo, Expo Central China, China-CEEC Expo and International
+Consumer Goods Fair, China-ASEAN Expo, and China-Africa Economic and Trade Expo. It held more than 100 digital
+exhibitions and online matchmaking activities for 33 countries and regions, built a cloud bridge for cross-border
+communication for more than 10,000 domestic and foreign enterprises, and helped smooth the flow of industrial
+chain and supply chain.
+The Bank continued to enrich the scenarios and functions of "CCB Match Plus". The featured section "COVID-19
+Prevention" created a green channel for the supply and demand of COVID-19 prevention supplies and supported
+international cooperation against the pandemic; while other featured sections such as the "Belt and Road", "Greater
+Bay Area", "China Railway Express" and "Investment China" were provided in line with national development
+strategies, displaying business opportunities, business environment, policy interpretations, news and financial
+services. "CCB Match Plus" expanded transaction functions, connected online banking channels for enterprises,
+organically combined front-end non-financial services such as demand release, supply and procurement matching
+and transaction matching with back-end financial services such as cross-border payment and settlement and credit
+financing, and facilitated domestic and foreign enterprises to expand international footprints and integrate into
+global industrial chains and supply chains.
+To facilitate cross-border trade and investment and address difficulties such as information asymmetry and
+high transaction costs in cross-border transaction scenarios, the Bank launched the B2B cross-border intelligent
+matchmaking platform "CCB Match Plus" with more than 140,000 registered users. The platform integrated multiple
+resources to share business opportunities and provide intelligent matching and comprehensive financial service
+solutions for cross-border trade and investment of domestic and foreign enterprises.
+Committed to cross-border matchmaking to drive global economic, trade and
+investment cooperation
+Feature article
+BUSINESS REVIEW
+辦事通
+渝快辦
+新湘事成
+DIGEN
+China Construction Bank Corporation
+In order to deepen the New Finance initiative and form new advantages in FinTech, the Group released the China
+Construction Bank FinTech Strategic Plan (2021-2025) (TOP+2.0), which sets out the Group's overall goals, priorities
+and safeguard measures for FinTech development in the next five years. The Group is committed to building new
+infrastructure, developing new momentums, and advancing the in-depth development of FinTech strategy, so as to
+build CCB into "the most financial-savvy technology group" and "the most tech-savvy financial group".
+During the 14th Five-Year Plan period, the Group will maintain its strategic focus, adhere to a consistent blueprint,
+continue to allocate more resources in FinTech, improve the layout of FinTech capabilities, cultivate a FinTech
+ecosystem, strengthen the integration and strategic synergy of the Group, stimulate the Group's innovate vitality
+and expand the team of technological talents. The Group will adhere to the principles of FinTech upward and
+for good, independent innovation and green development, system concept, openness and integration, equal
+emphasis on platform construction and operation, value creation and experience first. It will focus on ecological and
+intelligent development and take the comprehensive cloud-native oriented transformation as the technological
+route, so as to consolidate the advanced, reliable and inclusive New Finance digital infrastructure, continue to
+advance the construction of the three major Middle Platforms, basically build the financial data centre cluster
+layout with green and energy conservation, and establish a solid enterprise-level network and information security
+protection system. It will build a high-value brand of "CCB Cloud" and turn it into the preferred financial cloud
+service brand for users. It will fully empower the high-quality business development of the Group with high-quality
+FinTech, build an "I-CCB" service brand to realise "Intelligent management, Customised products, Collaborated
+operation and Boundless channels", and grow into a FinTech leader, a national FinTech strategic force for
+independent innovation and a New Finance ecosystem pioneer.
+FinTech Strategic Plan (2021-2025)
+Feature article
+among peers to implement Al application cases in the letter
+of credit review scenario. It won the second place in the 16th
+ICDAR2021, the top international event for Al document image
+analysis and recognition, with its independent algorithm of
+OCR/ICR (intelligent character recognition). The Group built
+a unified blockchain service platform, enabled trusted data
+exchange and secure and encrypted privacy protection,
+supported 16 business areas such as trade financing and cross-
+border payment, launched 40 scenarios, and was shortlisted for
+the "Forbes BlockChain 50" for three consecutive years. It built
+an applet-based mass development capability with the mobile
+internet platform, integrated the applet operation engine for
+"CCB Lifestyle" platform and mobile banking, and supported
+the applet ecology construction. It took the lead in completing
+the construction of 5G messaging platform and was the first
+to launch the "5G Messaging Bank". It built an enterprise-level
+secure computing platform for data sharing and implemented
+the privacy protection computing technology to make data
+"available yet invisible". It built a smart security operation platform,
+defended 79,695,000 network attacks and blocked 2.47 million
+source addresses in 2021, effectively improved the practical,
+systematic and normal network security operations as well as
+enhanced the capacity of security defence, maintaining the
+industry's leading position.
+The Group continued to advance the construction of technology
+middle platform and created a group-level one-stop fundamental
+technological capability of sharing, agility and collaboration. It
+was the first among peers in the domestic financial industry to
+complete the independent development of the container cloud
+platform at financial level, as well as the cloud-native architecture
+upgrade of technology platforms, such as big data platform, Al
+platform, blockchain platform, and mobile internet platform. It
+independently developed the big data cloud platform, deployed
+the domestic financial industry's largest MPP database processing
+cluster with separation between storage and computation,
+covered 18,000 computing nodes, and migrated all business
+data into the data lake. It significantly enhanced real-time data
+collection, analysis and visualisation capabilities, effectively
+supported more than 100 real-time business scenarios such
+as customer journey application and realised the cloud-based
+processing and intensive management of big data analysis
+and mining at all 37 branches. It upgraded the Al platform to
+use the cloud-native architecture, and built complete end-to-
+end capabilities for data annotation, model training, and service
+deployment. It applied Al services to the five fields of computer
+vision, intelligent voice, natural language processing, knowledge
+graph and intelligent decision-making, which supported 617
+scenarios on a cumulative basis. It established the knowledge
+graph system for the review of documents and was the first
+BUSINESS REVIEW
+44
+43
+China Construction Bank Corporation
+Annual Report 2021
+outperformed peers in overall size and service capabilities in
+China. It also took the lead among peers to provide full-stack,
+independent, controllable cloud services, and to put into full
+production of "Collaborative Office System" based on the full-
+stack innovative technology within the Group, which was
+shortlisted for the "Ten Major Events of Financial Informatisation
+across the Mainland of China in 2021". The Group achieved
+remarkable achievements in the distributed architecture
+transformation. It was the first large commercial bank to launch
+and operate the distributed core system for domestic and
+overseas credit card business and supported multi-technology
+stack operation. It was the first to complete the cloud-native
+deployment of the retail loan system, migrate all businesses
+to the distributed system and to fully use the independent
+distributed database. It was also the first among peers in the
+domestic financial industry to complete the architecture
+transformation of the distributed core system, and to have the
+ability to completely replace the traditional architecture core
+system with an open distributed architecture system. The Bank
+won five key awards in the PBC's 2020 Fintech Development
+Awards, including the first prize of "Practice on Core Banking
+System Construction Based on Multi-Technology Stack".
+Scan for more
+The Group accelerated the comprehensive cloud-native oriented
+transformation and promoted "CCB Cloud" to be the preferred
+cloud service brand for users in the financial industry. Beijing
+Daoxianghu Park was officially put into use. The Group started
+national infrastructure layout of financial data centre clusters by
+changing from three centres across two locations to multiple
+centres across multiple locations. It continued to build innovative,
+high-speed, ubiquitous networks, continuously promoted the
+full deployment of software-defined networking (SDN) and
+created the first SRv6-based intelligent cloud backbone network
+in the financial industry in China. It took the lead among peers
+to realise the CCB Cloud layout of "Multi-Zone, Multi-Region,
+Multi-Technology Stack and Multi-Chip", deployed more than
+200,000 cloud servers with standard computing capacity, and
+The Group released the FinTech Strategic Plan (2021-2025) to
+further promote FinTech strategy, improve FinTech system and
+mechanism, consolidate the construction of digital infrastructure
+of New Finance, strengthen the abilities of independent
+controllable technological innovation, ensure the safety and
+stability of IT operation and maintenance and empower the high-
+quality development of New Finance.
+FinTech strategy
+Employees of the Bank introduced online financial services to villagers. 2
+The Bank assisted the revitalization of the dairy industry in Inner Mongolia and
+created a comprehensive service business model. 3 The Bank used satellite
+remote sensing technology to measure farmland crops, assisting the release of
+Yunong Quick Loan. 4 The Bank built smart village platform to provide credit
+support for grain planting in Heilongjiang Province. 5 The Bank developed the
+Vegetable Intelligent Management Service Platform of Shouguang to create a
+smart vegetable ecosystem.
+MANAGEMENT DISCUSSION AND ANALYSIS
+00
+中国建设银行 农通
+C
+19-1-5-0
+1--1--0
+Found
+Annual Report 2021
+China Construction Bank Corporation
+MANAGEMENT DISCUSSION AND ANALYSIS
+CORPORATE BANKING
+Corporate financial service
+D
+Innovation Capability of Sci-Tech
+三普通
+冀時辦
+津心辦
+HI
+100%
+9:41 AM
+e
+governments and a total of 16 smart government affairs mobile client applications have been launched.
+By the end of 2021, the Bank had established cooperative relationships with 29 provincial
+Promoting smart government affairs services Supporting the
+modernization of social governance
+BUSINESS REVIEW
+Annual Report 2021
+China Construction Bank Corporation 45
+The Group developed exclusive products for the private economy, and worked with federations of industry and
+commerce and chambers of commerce at all levels to research and formulate product plans. It innovatively
+developed the "Innovation-Performance-Trust" evaluation system exclusively for "innovative and growth" member
+enterprises, which can evaluate the competitiveness of enterprises against their peers based on enterprise financial
+indicators, R&D investment percentage, characteristic labels, and their profiles made by financial institutions. The
+Group launched the "Chambers of commerce of high-performing teams, solidarity, high-quality services and self-
+discipline" enterprise credit enhancement evaluation standards and promoted the pilot project to formulate an
+evaluation plan jointly by branches, local federations of industry and commerce and chambers of commerce to
+calculate the reasonable credit enhancement limit of the enterprise. The Group set up a flexible team of "Head
+Office + Branch + Chamber of Commerce + Enterprise", developed industry solutions from a finance perspective,
+dynamically adjusted the solutions based on market changes, and accurately reached intended customers.
+The Group supported the healthy and circulated development of the private economic ecosystem of "Federation of
+Industry and Commerce + Chamber of Commerce + Enterprise + Bank", jointly built a "Comprehensive Enterprise
+Service System" with the ACFIC, and deployed eight platforms to meet the lifetime full-factor needs of private
+enterprises. It formed a region-specific flexible model of "Provincial federation of industry and commerce system +
+Member management subsystem + Comprehensive Enterprise Service System" that can be effectively connected
+to each other. It also built a digital middle office of "Digital Engine for Market Entities" simultaneously. By the end of
+2021, the system had been launched in 20 entities across the country.
+The Group actively responded to the national policy of supporting the development of private economy, deepened
+strategic cooperation with the All-China Federation of Industry and Commerce ("ACFIC"), and promoted the high-
+quality development of private economy.
+Jointly building a new ecosystem of private economy through comprehensive
+strategic cooperation
+Feature article
+Corporate loans maintained a rapid growth, vigorously supported
+key areas and effectively served the real economy. At the end
+of 2021, domestic corporate loans of the Bank amounted to
+RMB9.59 trillion, an increase of RMB1.23 trillion or 14.75% over
+2020, with the NPL ratio of 2.27%. Loans to infrastructure sectors
+reached RMB5.07 trillion, an increase of RMB733,108 million or
+16.91% over 2020, accounting for 52.82% of domestic corporate
+loans and advances, with the NPL ratio of 1.58%. Medium to long-
+term manufacturing loans amounted to RMB671,741 million,
+an increase of RMB151,993 million or 29.24% over 2020. Loans
+to private enterprises amounted to RMB3.32 trillion, an increase
+of RMB438,749 million or 15.21% over 2020. Loans to strategic
+emerging industries totalled RMB921,979 million, an increase of
+RMB306,459 million or 49.79% over 2020. Domestic loans to real
+estate industry of the Bank amounted to RMB730,087 million, an
+increase of RMB42,583 million over 2020. The Bank had provided
+94.6 thousand customers in 5,952 core enterprise industrial chains
+with a total of RMB802,387 million supply chain financing support
+on a cumulative basis.
+to RMB6.54 trillion, an increase of RMB267,740 million or 4.27%
+over 2020. Specifically, demand deposits increased by 2.94% and
+time deposits increased by 10.50%. The number of the Bank's
+corporate customers was 8,460 thousand, an increase of 850
+thousand from 2020. The Bank had 11,950.9 thousand corporate
+RMB settlement accounts, an increase of 492.1 thousand over
+2020.
+Corporate deposits increased steadily, and the customer base
+and account base were continuously consolidated. At the end
+of 2021, domestic corporate deposits of the Bank amounted
+The Group improved systems and mechanisms of FinTech
+and empowered the high-quality development of New
+Finance. In 2021, it handled 18,000 new business requirements,
+and implemented 86,000 business requirements with total
+requirements implemented going up 104.2% over 2020,
+promoting the development and capacity enhancement
+across the Bank. The Group established the FinTech and Digital
+Promotion Committee, improved the organisational structure
+of FinTech, continued to increase FinTech investments, and
+enhanced the vitality of technological innovation. It improved the
+IT business partner (ITBP) cooperation mechanism that deeply
+integrated business, data and technology, recruited more FinTech
+talents, and realised a steady growth of the interdisciplinary
+FinTech talent team with business and technology expertise. At
+the end of 2021, the number of FinTech personnel of the Group
+was 15,121, accounting for 4.03% of its total headcount. The
+investment in FinTech was RMB23,576 million, accounting for
+3.08% of its operating income. The Group had been granted a
+total of 731 patents, an increase of 167 over 2020, including 455
+invention patents which topped the domestic banking industry.
+12 Using "Evaluation System for
+China Construction Bank Corporation 49
+Techtotop
+The Group continued to develop the model of digitalised inclusive finance featuring "batch
+customer acquisition, accurate profiling, automated approval, intelligent risk control, and integrated
+services", and pressed steadily ahead with the high-quality development of inclusive finance
+services. The Group enhanced platform operation with digital technology and other technologies
+to improve market responsiveness. "CCB Huidongni" APP had attracted over 150 million online user
+visits and been downloaded more than 19 million times. It had 14,433.4 thousand registered users
+and 6,396 thousand certified enterprises, an increase of 1,947.3 thousand from 2020. It had 1,260.6
+thousand credit customers, and granted RMB989.9 billion loans, an increase of RMB550,050 million
+from 2020. The Group focused on the diverse needs of inclusive finance groups such as small and
+micro businesses, individual business owners, agriculture-related customers, as well as upstream
+and downstream customers in the supply chain, and diversified product lines of "Quick Loan for
+Small and Micro Businesses", "Quick Loan for Personal Business", "Yunong Quick Loan", and "Quick
+Loan for Transactions" so as to improve the ability and efficiency to meet customer demands.
+Loans granted through products with new characteristics such as "Quick Loan for Small and Micro
+Businesses" totalled RMB5.93 trillion since their launch, benefiting 2,524.9 thousand customers. The
+Group upgraded "CCB Start-up Station" service models for medium, small and micro businesses
+engaging in sci-tech innovation and enhanced the service capabilities in technological innovation.
+By the end of 2021, the Group had launched "CCB Start-up Station" in 19 provinces and cities,
+granting more than RMB30 billion loans to over 9,000 member enterprises. The Group gave full
+play to the advantages of outlets and channels and strengthened the integrated development to
+make its service more accessible to common people online and provide warm and high-quality
+Inclusive finance strategy
+40
+BUSINESS REVIEW
+CCCCCCCCO
+Annual Report 2021
+4,365
+1.30
+68,394
+18.08
+74,704
+(0.32)
+(1,205)
+1.01
+(584)
+(0.17)
+378,412
+22.19
+3,806
+15.59
+55,709
+100.00
+59,008
+12.47
+41,982
+16.94
+64,115
+14.75
+49,667
+17.07
+64,594
+15.79
+53,160
+16.55
+336,616
+The following table sets forth, as at the dates indicated, the distribution of the Group's assets by geographical segment.
+15.65
+11.84
+4,423,501
+12.20
+4,808,874
+17.86
+6,671,861
+17.66
+6,960,553
+10.55
+3,942,366
+10.89
+4,291,896
+Northeastern
+Western
+Central
+Bohai Rim
+Pearl River Delta
+13.05
+4,874,094
+13.82
+5,445,665
+% of total
+Amount
+% of total
+Amount
+Yangtze River Delta
+(In millions of RMB, except percentages)
+As at 31 December 2020
+As at 31 December 2021
+100.00
+59,231
+15.98
+57,613
+Annual Report 2021
+China Construction Bank Corporation
+CCB International maintained stable development in all business
+lines by continuing to focus on the trend of China concept stocks
+seeking listings on A-share or H-share market, supporting the
+development of national strategies and providing innovative
+services to the real economy. It led the industry in areas of acting
+as securities sponsor and underwriter as well as M&A financial
+advisor. At the end of 2021, total assets of CCB International were
+RMB85,003 million, and shareholders' equity was RMB14,271
+million. Net profit in 2021 was RMB679 million.
+CCB International (Holdings) Limited, established in 2004 with
+a registered capital of US$601 million, is one of the Bank's
+wholly-owned subsidiaries in Hong Kong. It offers through its
+subsidiaries investment banking related services, including
+sponsoring and underwriting of public offerings, corporate
+merger and acquisition and restructuring, direct investment, asset
+management, securities brokerage and market research.
+CCB International
+CCB Wealth Management persisted in serving the real economy,
+actively participated in the development of capital market and
+continuously improved its proactive management capability on
+the basis of sound and compliant operations. At the end of 2021,
+total assets of CCB Wealth Management were RMB18,530 million,
+and shareholder's equity was RMB17,447 million. The size of
+WMPs amounted to RMB2,188,330 million. Net profit in 2021 was
+RMB2,062 million.
+In 2021, CCB Wealth Management, BlackRock and Temasek
+jointly established BlackRock CCB Wealth Management Co., Ltd.
+with a registered capital of RMB1 billion. BlackRock, CCB Wealth
+Management and Temasek hold 50.1%, 40% and 9.9% of its
+shares, respectively, which further enriches the supply of WMPs in
+the financial market and enhance the exchange of international
+advanced experience and technology.
+CCB Wealth Management Co., Ltd., a wholly-owned subsidiary
+of the Bank, was established in 2019, with a registered capital
+of RMB15 billion. It is mainly engaged in the offering of WMPS,
+investment services of entrusted properties, and wealth
+management advisory and consulting services to the customers.
+CCB Wealth Management
+CCB Investment adopted a market-oriented approach and made
+active efforts to explore opportunities with business innovations.
+By the end of 2021, it had realised a total contractual amount of
+RMB937,084 million in terms of framework agreements, and an
+actual investment amount of RMB382,269 million. At the end of
+2021, total assets of CCB Investment were RMB140,178 million,
+and shareholders' equity was RMB31,712 million. Net profit in
+2021 was RMB3,613 million.
+CCB Financial Assets Investment Co., Ltd., a wholly-owned
+subsidiary of the Bank, was established in 2017, with a registered
+capital of RMB27 billion. It is mainly engaged in debt-for-equity
+swaps and relevant supporting businesses.
+CCB Investment
+CCB Property & Casualty witnessed a steady business
+development. At the end of 2021, total assets of CCB Property &
+Casualty were RMB1,304 million, and shareholders' equity was
+RMB486 million. Net profit in 2021 was RMB1 million.
+57
+CCB Property & Casualty Insurance Co., Ltd. was established in
+2016 with a registered capital of RMB1 billion. CCB Life, Ningxia
+Communications Investment Group Co., Ltd. and Yinchuan
+Tonglian Capital Investment Operation Co., Ltd. hold 90.2%, 4.9%
+and 4.9% of its shares, respectively. It is mainly engaged in motor
+vehicle insurance, insurance for business and household property,
+construction and engineering, liability insurance, hull and cargo
+insurance, short-term health and accidental injury insurance, and
+reinsurance of the above-mentioned offerings.
+MANAGEMENT DISCUSSION AND ANALYSIS
+Annual Report 2021
+China Construction Bank Corporation
+CCB Pension intensified its efforts in pension finance, supported
+the development of pension business, strengthened the
+construction of the "Three Major Systems" of investment
+management, customer service, risk management and internal
+control, and further advanced the planning and implementation
+of the FinTech "Ginkgo Project", achieving stable and high-quality
+development of various businesses. At the end of 2021, assets
+under management amounted to RMB528,972 million. Total
+assets of CCB Pension were RMB3,817 million, and shareholders'
+equity was RMB2,878 million. Net profit in 2021 was RMB316
+million.
+CCB Pension Management Co., Ltd. was established in 2015
+with a registered capital of RMB2.3 billion. The Bank and the
+National Council for Social Security Fund hold 85% and 15%
+of its shares, respectively. It is mainly engaged in investment
+and management of national social security funds, businesses
+related to management of enterprise annuity funds, entrusted
+management of pension funds, and pension advisory service for
+the above-mentioned asset management activities.
+CCB Pension
+CCB Futures gave full play to its professional strength,
+strengthened its ability to serve the real economy and maintained
+steady improvement in all business lines. At the end of 2021, total
+assets of CCB Futures were RMB18,284 million, and shareholders'
+equity was RMB1,152 million. Net profit in 2021 was RMB80
+million.
+CCB Futures Co., Ltd. is a futures subsidiary invested and
+controlled by the Bank in 2014 with a registered capital of
+RMB936 million. CCB Trust and Shanghai Liangyou (Group) Co.,
+Ltd. hold 80% and 20% of its shares, respectively. It is mainly
+engaged in commodity futures brokerage, financial futures
+brokerage, asset management and futures investment advisory
+business. CCB Trading Company Limited, a wholly-owned
+subsidiary of CCB Futures, is engaged in pilot risk management
+operations approved by the CSRC, such as warehouse receipt
+service and pricing service, and general trade business.
+Sino-German Bausparkasse achieved steady business
+development, and the sales of housing savings products
+amounted to RMB41,465 million in 2021. At the end of 2021, total
+assets of Sino-German Bausparkasse were RMB31,229 million, and
+shareholders' equity was RMB2,901 million. Net profit in 2021 was
+RMB90 million.
+Sino-German Bausparkasse Co., Ltd. was established in 2004 with
+a registered capital of RMB2 billion. The Bank and Bausparkasse
+Schwaebisch Hall AG hold 75.10% and 24.90% of its shares,
+respectively. As a specialised commercial bank committed to
+serving the housing finance sector, Sino-German Bausparkasse
+is engaged in bauspar deposits, bauspar-related loans, other
+individual housing loans, and development loans to special
+projects supported by government policy.
+Sino-German Bausparkasse
+CCB Life pressed ahead with its business transformation and its
+financial results continued to improve. At the end of 2021, total
+assets of CCB Life were RMB271,482 million, and shareholders'
+equity was RMB22,515 million. Net profit in 2021 was RMB1,188
+million. According to the requirements of accounting standard,
+CCB Life did not implement the New financial instruments
+standard in 2021.
+CCB Life Insurance Co., Ltd. is a life insurance subsidiary invested
+and controlled by the Bank in 2011 with a registered capital of
+RMB7.12 billion. The Bank, China Life Insurance Co., Ltd. (Taiwan),
+the National Council for Social Security Fund, Shanghai Jin Jiang
+International Investment and Management Company Limited,
+Shanghai China-Sunlight Investment Co., Ltd., and China Jianyin
+Investment Limited hold 51%, 19.9%, 16.14%, 4.9%, 4.85% and
+3.21% of its shares, respectively. It is mainly engaged in personal
+insurance such as life, health, accidental injury insurance and
+reinsurance of the above-mentioned offerings.
+CCB Property & Casualty
+17.12
+58
+ANALYSED BY GEOGRAPHICAL SEGMENT
+60,469
+% of total
+Amount
+% of total
+Amount
+2020
+2021
+Profit before tax
+Overseas
+Head Office
+Northeastern
+Western
+Central
+BUSINESS REVIEW
+Bohai Rim
+Yangtze River Delta
+(In millions of RMB, except percentages)
+The following table sets forth, for the periods indicated, the distribution of the Group's profit before tax by geographical segment.
+MANAGEMENT DISCUSSION AND ANALYSIS
+Annual Report 2021
+China Construction Bank Corporation
+The Bank assisted Xiong'an in building a new mechanism for the housing market. It advanced the construction of
+the "Digital Housing" platform in the new area and built a whole-process smart housing system. It obtained the
+leasing and operation rights of 1,074 houses in Rongdong, and successfully implemented the house rental projects.
+It provided services for relocation and resettlement, innovated personal relocation and resettlement loans, and
+cumulatively granted RMB486 million housing funds for relocated residents. It also innovated the "House Deposit +"
+business and completed 389 deposits of houses with high-quality decoration.
+The Bank supported multi-dimensional construction of Digital Xiong'an in all aspects. It cooperated with the
+Xiong'an New Area Management Committee to promote the construction of the "Internet + Government Affairs
+Service" platform in the new area, and initially established the online government affairs service system that
+integrates online and offline development. It assisted the new area in establishing the data governance system and
+modernised the government investment projects and financial management capabilities. It innovated scenarios of
+e-CNY to encourage residents in the new area to use e-CNY. It developed the fund management and operation and
+engineering project management platform based on blockchain technology, to support the construction of key
+projects. It had 34 projects in operation, with the amount of investment totalling RMB73.2 billion.
+The Bank provided comprehensive services for the construction of key projects in the new area. It implemented
+differentiated policies for the new area in terms of credit approval process, transfer of authorisation, created a "green
+channel" for the approval of key projects in the new area, allocated credit resources, and actively formed an external
+syndicate to support the construction of key projects in the new area. In 2021, it cumulatively provided RMB28,500
+million financing for nearly 3,000 companies from 63 industries across eight major sectors, including low-carbon
+and environmental protection, infrastructure, and strategic emerging industries; drove direct financing in the new
+area, and took the lead in completing the registration of RMB15 billion medium-term notes of Xiong'an Group
+and the issuance of first RMB627 million asset-backed notes of the new area; and applied "CCB e Credit" supply
+chain products to serve the supply chains in Xiong'an. At the end of 2021, the credit balance of network supply
+chain business was RMB13,336 million, serving 2,674 customers. The Bank actively supported the construction of
+Xiong'an Free Trade Zone and provided the electronic port card agency business at its outlet. It took advantages
+in the engineering consulting service to reduce unreasonable expenditures by RMB9 billion for the construction of
+projects in the new area.
+In 2021, Xiong'an New Area in Hebei province stepped into an important stage, simultaneously promoting its
+planning and construction as a major role and taking up another role to relieve Beijing's non-essential capital city
+functions. The Bank paid close attention to the development of the new area and gave full play to advantages at
+the group level in new area project construction, function undertaking, investment and financing, to support its
+high-quality development.
+CCB assisted in the construction of Xiong'an New Area
+Case story
+The Group actively implemented national strategies and advanced the coordinated development of different regions. For the three
+key areas of Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area, it strengthened resource
+allocation, enhanced the comprehensive contribution of business development in these areas, and advanced business development in
+areas with regional advantages such as Xiong'an New Area, Guangdong-Macao In-depth Cooperation Zone in Hengqin, Central China in
+a New Era and Xinjiang.
+Pearl River Delta
+CCB Futures
+696,984
+2,224,848
+CCB Trust stepped up efforts in improving compliance in its
+operations, actively engaged in innovation-driven development,
+and delivered good operating results. At the end of 2021,
+trust assets under management amounted to RMB1,697,729
+million. Total assets of CCB Trust were RMB48,548 million, and
+shareholders' equity was RMB24,696 million. Net profit in 2021
+was RMB2,427 million.
+(In millions of RMB,
+except percentages)
+Cash, deposits and
+interbank negotiable
+certificates of deposit
+Debt securities
+The assets in which the Group's WMPs invested directly and indirectly as at the dates indicated are as follows.
+183,949
+2,188,330
+2,372,279
+82
+970
+1,052
+57,428
+5,516,880
+3,619,080
+9,193,388
+410
+3,700
+9,340,819
+1,810
+5,110,426
+Amount
+829
+551
+2,942
+Total
+CCB Wealth Management
+3,289
+4,229,819
+981
+1,471,010
+2,390
+Non-principal guaranteed WMPs
+10.84
+1
+The Bank
+% of total
+Amount
+44.81
+27.01
+651,839
+33.31
+50.57 1,081,486
+24.02
+42.08
+688,972
+393,298
+34.74
+50.72
+34.35 867,540
+53.38 1,266,375
+As at 31 December 2021
+CCB Wealth Management
+Amount % of total
+39.11 786,897
+21.14 1,222,780
+80,643
+% of total
+Amount
+The Group
+As at 31 December 2020
+CCB Wealth Management
+Amount % of total
+% of total
+Amount
+The Bank
+The Group
+% of total
+43,595
+574
+56,854
+1
+The Bank strengthened its proactive management with a
+combination of money market tools, and maintained reasonable
+RMB and foreign currency positions, to ensure sound liquidity.
+It paid close attention to changes in monetary policies with in-
+depth understanding of market movement pattern to enhance
+the transaction capacity, investment and research capability
+and risk prevention capability. With regard to RMB money
+market business segment, the Bank maintained a high volume
+of money market transactions, continued to improve portfolio
+returns, launched the "Al Trader" for money market, improved
+digitalised operation capabilities, continued to empower small
+and medium-sized financial institutions, and actively played the
+role of "transmitter" of monetary policy and "stabiliser" of money
+market. With regard to foreign currency money market business
+segment, the Bank tracked changes in global markets and policies
+in a timely manner, and flexibly adjusted its strategic allocation to
+ensure reasonable and adequate foreign currency liquidity. The
+Bank implemented the interest rate benchmark reform, expanded
+foreign currency bond repo business, and remained among the
+best in the interbank Foreign Currency Lending (FCL) Quoting
+Banks.
+Money market business
+Adhering to high-quality development, the financial market
+business of the Bank achieved remarkable results in operation
+and management, with continuously enhanced profitability
+and market position, and further consolidated foundation of risk
+control.
+Financial market business
+TREASURY BUSINESS
+The Bank focused on meeting the needs of high net-worth
+customers for their wealth management, assets allocation and
+quality services. It implemented a pilot of private banking asset
+allocation services and provided customised and differentiated
+wealth planning and asset allocation services. The Bank deepened
+investment product research, improved product selection,
+innovated private banking pension services, and diversified open
+products and services. It issued professional reports on private
+banking strategy analysis, laws and taxation, launched a "Wealth
+Management, Creation and Succession" video forum, improved
+the professional service ability of front-line private banking
+functions and expanded the brand influence of private banking
+in the market. It pressed ahead with the building of the whole-
+process integrated system for smart applications and customer
+services of private banking and created a high-standard quality
+service experience for private banking customers. It strengthened
+comprehensive risk management, and effectively protected the
+interests of customers. At the end of 2021, the private banking
+customers' assets under management reached RMB2.02 trillion,
+an increase of 13.64% over 2020. The Bank had 177,200 private
+banking customers, an increase of 10.19% over 2020. The balance
+of assets under management of family trust advisory business was
+RMB68,510 million, further consolidating the leading position of
+the Bank.
+Private banking
+At the end of 2021, the Bank's domestic credit card loans totalled
+RMB896,222 million, with the NPL ratio of 1.33%. The cumulative
+number of credit cards issued reached 147 million, an increase of
+3.96 million over 2020, with the cumulative number of customers
+of 105 million and transaction volume of RMB3.04 trillion, ranking
+the first in the industry in terms of total customers, loan size,
+instalment transaction volume, instalment loans and income from
+instalment business. The number of debit cards issued exceeded
+1,256 million, with the transaction volume of RMB25.92 trillion, an
+increase of 10.39% over 2020.
+MANAGEMENT DISCUSSION AND ANALYSIS
+Debt securities business
+Annual Report 2021
+The Bank accelerated the transformation of credit card innovation
+to meet the multi-level needs of customers. The Bank built a
+digital virtual credit card product system with products such as
+"CCB Lifestyle Card", "Long Card Credit (Daiba)" and "Ultimate
+Card", innovated and launched new products such as "Rose me
+Card", "Leader" credit card in its Transformers series and "American
+Express Red Card", explored to cooperate with and attract traffic
+from leading internet enterprises and expanded the credit card
+business to cover young and inclusive finance customers. It
+created the brand "Long Credit Card Discounts 666", carried
+out activities such as cashback for spending certain amount of
+money and bonus point activity "Monthly Gift", and promoted
+the construction of the ecology and scenario of the preferential
+business area. It innovated and launched products, such as "Long
+Green & Low-Carbon Credit Card" and "Long E-Loan Cars" for
+used car instalment, and further cooperated with new energy
+automobile brands. The Bank stepped up efforts to promote
+Yunongtong Credit Card, accelerated the construction of the
+consumer payment acceptance environment in the county and
+countryside, and innovated the service of "Easy POS Payment
+for Xinjiang Cotton Farmers", benefiting more than 200,000 local
+cotton farmers. The Bank safeguarded the bottom line of wiping
+out risks, strengthened the control over capital use and fraud
+risk, complied with the policy that "houses are for living in and
+not for speculation", and upgraded the source management of
+real estate transactions. It strengthened the analysis of customers
+susceptible to telecom fraud clients, their cards and transaction
+characteristics, and established a long-term merchant risk
+monitoring mechanism for gambling and fraud risks.
+The Bank steadily promoted the development of mass
+consumption ecology. It took outlets as the hub to build the
+business area around the community, launched the "Business
+Management Insight" online business platform, and drove
+traffic between online and offline channels, outlets and business
+areas. It cooperated with the third-party payment institutions to
+expand the new track of scenario-based ecology and created
+a new comprehensive service model of "Card acquiring +
+Marketing empowerment + Exclusive financial products". It built
+a flexible and universal scenario-based account service system
+that extensively connects to external scenarios. It deployed
+functions, scenarios and rights of "Long Pay" on the "CCB Lifestyle"
+platform to provide users with a one-stop service experience of
+consumption scenarios, payment and settlement. It launched a
+series of activities such as "Long Pay - Joyful Summer Holiday" and
+cooperated with high-quality merchants to provide customers
+with multi-scenario and multi-coverage consumption discounts
+to facilitate active consumption transactions. The Bank further
+promoted the intensive operation of merchant business. At the
+end of 2021, the Bank had 4.92 million card acquiring merchants,
+an increase of 120,000 over 2020, with the transaction volume of
+RMB4.20 trillion, an increase of 12.22% over 2020.
+Bank card business
+The Bank continued to improve the financial ecology
+construction of housing reform and promoted the digital
+transformation of provident housing fund. At the end of 2021,
+the balance of housing fund pools totalled RMB3.85 trillion, the
+balance of housing fund deposits was RMB1.06 trillion, and the
+balance of personal provident housing fund loans was RMB2.78
+trillion, maintaining the leading market position. The Bank
+promoted financial services for the indemnificatory housing
+market and granted a total of RMB117,613 million indemnificatory
+housing loans to 600,000 low- and middle-income residents.
+Entrusted housing finance business
+The Bank actively implemented national policies on real estate
+macro-control and prudent management requirements on
+real estate finance, and strictly implemented differentiated
+housing credit policies. It carefully selected proper locations,
+enterprises, projects and customers in granting loans to support
+the reasonable housing demand of households, and actively
+practised the whole-process risk prevention and control concept
+to ensure the sustainable, stable and healthy development
+of residential mortgages. At the end of 2021, the balance of
+domestic personal loans amounted to RMB7.89 trillion, up 9.10%
+over 2020. Specifically, the balance of residential mortgages was
+RMB6.39 trillion; the balance of personal consumer loans was
+RMB232,979 million, including RMB209,049 million personal
+quick loans; and the balance of agriculture-related personal loans
+"Yunong Loan" was RMB15,874 million.
+upgraded the operation of sub-groups, and focused on meeting
+the needs of key customer segments in phases based on the
+quarterly fluctuation pattern. It coordinated graded services,
+integrated the rights and benefits of various products, and
+created the path of self-motivated relationship enhancement
+by customers. The Bank became increasingly sophisticated in
+digitalised operation. It had a keen grasp of the digital trend and
+formed the operation logic of "identifying customers based on
+funds, forming in-depth insights on the right customers, focusing
+on and exploring prospective customer segments". The Bank
+fully released the multiplier effect of "Business + Technology"
+and "People + Digitalisation" and achieved remarkable results in
+the direct operation to hundreds of millions of long-tail personal
+customers. It outlined the inclusive, shared, professional, and
+intelligent mega wealth management blueprint, and built the
+mega wealth management system with CCB characteristics.
+Relying on digital means and FinTech, the Bank improved the
+wealth management capability for all personal customers. It
+kicked off the mega wealth management transformation with
+the "Wealth Season" marketing campaign and improved the
+brand awareness of "CCB Long Fortune". The Bank launched an
+innovative mega wealth management platform, upgraded the
+wealth management channel via mobile banking, enhanced the
+smart service capability, and advanced the "Cross-border Wealth
+Management" to diversify WMPs and channels for cross-border
+investment for residents in Guangdong-Hong Kong- Macao
+Greater Bay Area. At the end of 2021, domestic personal deposits
+of the Bank increased by RMB1.09 trillion over 2020, to RMB11.28
+trillion; and financial assets of personal customers exceeded
+RMB15 trillion. The number of personal customers reached 726
+million, an increase of 22.52 million over 2020; and the number
+of investment and wealth management customers increased by
+22.05 million or 17% over 2020. The profit of personal banking
+business accounted for 56.74% of the total profit.
+BUSINESS REVIEW
+50
+China Construction Bank Corporation
+The Bank adhered to the principle of value-driven investment
+and supported the development of the real economy and the
+implementation of macro-control policies. The Bank continued to
+predict interest rate movements, adjusted its pace of investment
+when appropriate, and optimised the portfolio structure to
+raise the overall return on investments. It paid close attention
+to interest rate changes in global markets and struck a balance
+between liquidity and safety within the bank-wide risk appetite
+to achieve a stable portfolio returns. It increased its investment
+in high-quality corporate bonds at home and abroad, as well as
+green bonds, and strictly controlled credit risks.
+Customer-based trading business
+The Bank continuously implemented refined management and
+steadily executed the business strategy to constantly promote the
+high-quality development of its customer-based trading business.
+It focused on advancing channel optimisation and digitalised
+operation, consolidated its customer base, actively expanded its
+overseas institutional investors base, with a steadily increasing
+number of customers. It actively promoted the concept of
+interest rate hedging to meet customer needs. It continued to
+optimise the independently developed "Blue Core Exchange Rate
+Portfolio Management Platform", taking the lead among its peers
+in terms of system autonomy and comprehensive function. In
+2021, customer-based trading business amounted to US$755.4
+billion, and the volume of foreign exchange market-making
+transactions reached US$5.15 trillion. The Bank maintained its
+competitive strength in the comprehensive ranking for interbank
+foreign exchange market makers.
+Principal guaranteed WMPS
+Amount
+183,949
+82
+As at 31 December 2021
+Batches
+WMPs matured in 2021
+Batches
+Amount
+3,290 5,574,308
+WMPs issued in 2021
+Batches
+Amount
+4,230,393
+981
+1,527,864
+Amount
+Batches
+2,391
+(In millions of RMB, except batches)
+The Bank
+As at 31 December 2020
+Information on issuance, maturity and balance of the Group's WMPs during the reporting period is as follows.
+In 2021, the Bank raised RMB4,230,393 million by issuing WMPs and redeemed RMB5,574,308 million at maturity. At the end of 2021, the
+balance of WMPs of the Bank was RMB183,949 million, including RMB59,709 million closed-end products and RMB124,240 million open-
+end products. The balance of WMPs to corporate customers was RMB37,322 million, accounting for 20.29% of the total, and the balance
+of WMPs to personal customers was RMB146,627 million, accounting for 79.71% of the total. In 2021, CCB Wealth Management raised
+RMB5,110,426 million by issuing WMPs and redeemed RMB3,619,080 million at maturity. At the end of 2021, the balance of WMPs of CCB
+Wealth Management was RMB2,188,330 million, including RMB498,489 million closed-end products and RMB1,689,841 million open-end
+products. The balance of WMPs to corporate customers was RMB367,072 million, accounting for 16.77% of the total, and the balance of
+WMPs to personal customers was RMB1,821,258 million, accounting for 83.23% of the total.
+The Bank seized opportunities such as wealth management and capital market development, continued to advance the building of
+the Group's new asset management system, accelerated the transformation and innovation of the asset management business model,
+and strengthened the integrated and coordinated management within the Group. It continued to step up efforts in key areas, such as
+investment research, channel sales, asset allocation, internal risk control, investment operation, and asset management technology.
+It strictly followed regulatory policies to carry out operation and rectification of existing WMPs in a smooth and orderly manner and
+completed the rectification of outstanding wealth management business in the transition period. At the end of 2021, the Group's WMPS
+amounted to RMB2,372,279 million. In this amount, those managed by the Bank were RMB183,949 million, and those managed by CCB
+Wealth Management were RMB2,188,330 million. The Group's net-value WMPs amounted to RMB2,188,330 million, all of which were
+managed by CCB Wealth Management, accounting for 92.25% of the total, an increase of 47.71 percentage points over 2020.
+Assets management
+The Bank was committed to the transformation and development of precious metals and commodities business. It paid close attention to
+market fluctuations, provided commodity hedging services for industrial chain enterprises to help them operate steadily. It also adjusted
+its business structure, strengthened digitalised operations and business training, enhanced customer service capabilities in precious
+metals and commodities business, and improved the protection of customer's rights and interests. In 2021, the total trading volume of
+precious metals of the Bank reached 63,322 tonnes.
+Precious metals and commodities
+BUSINESS REVIEW
+51
+China Construction Bank Corporation
+Annual Report 2021
+Non-standardised
+CCB Life
+debt assets
+Equity investments
+China Construction Bank Corporation
+CCB New Zealand holds wholesale and retail business license,
+and offers all-round and high-quality financial services, including
+corporate loans, trade finance, RMB clearing and cross-border
+trading. At the end of 2021, total assets of CCB New Zealand
+amounted to RMB10,999 million, and shareholders' equity was
+RMB1,142 million. Net profit in 2021 was RMB101 million.
+China Construction Bank (New Zealand) Limited, a wholly-owned
+subsidiary of the Bank, was established in New Zealand in 2014,
+with a registered capital of NZD199 million.
+CCB New Zealand
+CCB Europe mainly provides services to large and medium-
+sized enterprises in Europe as well as European multinational
+enterprises in China. It is mainly engaged in corporate deposits
+and loans, international settlement, trade finance, and cross-
+border trading. At the end of 2021, total assets of CCB Europe
+amounted to RMB19,530 million, and shareholders' equity was
+RMB3,736 million. Net losses in 2021 were RMB83 million.
+China Construction Bank (Europe) S.A., established in
+Luxembourg in 2013, is a wholly-owned subsidiary of the Bank,
+with a registered capital of EUR550 million. Based in Luxembourg,
+CCB Europe has established branches in Paris, Amsterdam,
+Barcelona, Milan, Warsaw and Hungary.
+CCB Europe
+CCB Russia is mainly engaged in corporate deposits and loans,
+international settlement and trade finance, financial market
+trading, financial institutional business, etc. At the end of 2021,
+total assets of CCB Russia amounted to RMB1,705 million, and
+shareholders' equity was RMB558 million. Net profit in 2021 was
+RMB1,706,100.
+China Construction Bank (Russia) Limited, established in Russia in
+2013, is a wholly-owned subsidiary of the Bank, with a registered
+capital of RUB4.2 billion. CCB Russia holds a comprehensive
+banking license, a precious metal business license and a security
+market participant license issued by the Central Bank of Russia.
+Annual Report 2021
+CCB Russia
+China Construction Bank (London) Limited, a wholly-owned
+subsidiary of the Bank, was established in the UK in 2009, with a
+registered capital of US$200 million and RMB1.5 billion.
+CCB London
+CCB Asia holds a banking license to engage in multiple lines
+of business, with its core base in Hong Kong and a wide reach
+that spreads to Macau, the mainland of China and Southeast
+Asia. The targeted customers of its wholesale business include
+local Blue-Chip and large Red-Chip companies, large Chinese
+conglomerates and multinational corporations, while it also
+provides quality financial services to premium local customers.
+CCB Asia has traditional advantages in providing professional
+financial services such as overseas syndicated loans and
+structured finance and has rich experience in corporate financial
+services in international settlement, trade finance, financial market
+trading, large structured deposits and financial advisory service.
+CCB Asia is the Group's service platform for retail and small and
+medium-sized enterprises in Hong Kong, and has 33 branches
+and outlets. At the end of 2021, total assets of CCB Asia amounted
+to RMB391,727 million, and shareholders' equity was RMB65,058
+million. Net profit in 2021 was RMB2,768 million.
+China Construction Bank (Asia) Corporation Limited is a licensed
+bank registered in Hong Kong with an issued and fully paid
+capital of HK$6,511 million and RMB17,600 million.
+CCB Asia
+BUSINESS REVIEW
+54
+53
+China Construction Bank Corporation
+Annual Report 2021
+In order to better respond to changes in the external market
+environment and meet the needs of internal operation and
+management, the Group gradually promoted the business
+integration of its London institutions. CCB London's application
+for termination of business has been approved by domestic and
+overseas regulators, and the follow-up work has been advancing.
+At the end of 2021, total assets of CCB London amounted to
+RMB3,370 million, and shareholders' equity was RMB3,370 million.
+Net profit in 2021 was RMB917,600.
+OVERSEAS COMMERCIAL BANKING BUSINESS
+The Group steadily expanded its overseas business and its
+network of institutions to enhance globalised customer service
+capability and international competitiveness. By the end of
+2021, the Group had established overseas commercial banking
+institutions in 30 countries and regions. The Group had wholly-
+owned operating subsidiaries including CCB Asia, CCB London,
+CCB Russia, CCB Europe, CCB New Zealand, CCB Brasil and CCB
+Malaysia, and held 60% of equity in CCB Indonesia. Net profit of
+overseas commercial banking institutions of the Group in 2021
+was RMB7,524 million, an increase of 29.28% over 2020.
+MANAGEMENT DISCUSSION AND ANALYSIS
+China Construction Bank (Brasil) Banco Múltiplo S/A is a wholly-
+owned subsidiary acquired by the Bank in Brasil in 2014. The
+name of its predecessor, Banco Industrial e Comercial S.A., was
+changed to the present one in 2015.
+CCB Trust Co., Ltd. is a trust subsidiary invested and controlled by
+the Bank in 2009 with a registered capital of RMB10.5 billion. The
+Bank and Hefei Xingtai Financial Holding (Group) Co., Ltd. hold
+67% and 33% of its shares, respectively. It is mainly engaged in
+trust business, investment banking and proprietary business.
+CCB Trust
+BUSINESS REVIEW
+56
+55
+China Construction Bank Corporation
+Annual Report 2021
+CCB Financial Leasing leveraged its license advantages and
+refocused on the origin business priority of leasing. It continued
+to promote green leasing, inclusive leasing and digital
+transformation to improve the quality and efficiency of serving
+the real economy; and took multiple measures to prevent and
+mitigate existing risks and maintained a high asset quality in
+the industry. At the end of 2021, total assets of CCB Financial
+Leasing were RMB133,845 million, and shareholders' equity was
+RMB22,334 million. Net profit in 2021 was RMB1,785 million.
+CCB Financial Leasing Co., Ltd., a wholly-owned subsidiary of
+the Bank, was established in 2007 with a registered capital of
+RMB11 billion. It is mainly engaged in finance leasing, transfer
+and purchase of finance lease assets, fixed-income securities
+investment, etc.
+CCB Principal Asset Management made full efforts to promote
+the development of various businesses, maintained safe and
+steady operation, and achieved good business performance. At
+the end of 2021, total assets managed by CCB Principal Asset
+Management were RMB1.36 trillion. Specifically, mutual funds
+were RMB676,600 million; separately managed accounts were
+RMB433,622 million, and assets managed by its subsidiary CCB
+Principal Capital Management Co., Ltd. reached RMB250,607
+million. At the end of 2021, total assets of CCB Principal Asset
+Management were RMB9,629 million, and shareholders' equity
+was RMB7,863 million. Net profit in 2021 was RMB1,155 million.
+CCB Financial Leasing
+CCB Brasil
+CCB Principal Asset Management Co., Ltd. was established in
+2005, with a registered capital of RMB200 million, to which the
+Bank, Principal Financial Services, Inc. and China Huadian Capital
+Holdings Company Limited contribute 65%, 25% and 10%,
+respectively. It is engaged in the raising and selling of funds, and
+asset management.
+The Group has multiple domestic and overseas subsidiaries,
+including CCB Principal Asset Management, CCB Financial
+Leasing, CCB Trust, CCB Life, Sino-German Bausparkasse, CCB
+Futures, CCB Pension, CCB Property & Casualty, CCB Investment,
+CCB Wealth Management and CCB International. In 2021,
+the overall development of integrated operation subsidiaries
+was robust with steady business growth. At the end of 2021,
+total assets of integrated operation subsidiaries amounted to
+RMB778,614 million. Net profit reached RMB12,186 million in
+2021.
+INTEGRATED OPERATION SUBSIDIARIES
+CCB Indonesia is committed to promoting the bilateral
+investment and trade between China and Indonesia, including
+providing major support to the Belt and Road Initiative and
+service to local Blue-Chip companies in Indonesia, and its
+business priorities include corporate business, small and medium-
+sized enterprise business, trade finance and infrastructure finance.
+At the end of 2021, total assets of CCB Indonesia amounted
+to RMB11,674 million, and shareholders' equity was RMB2,714
+million. Net profit in 2021 was RMB36 million.
+PT Bank China Construction Bank Indonesia Tbk is a fully licensed
+commercial bank listed on the Indonesia Stock Exchange,
+with a registered capital of IDR3.79 trillion. CCB Indonesia is
+headquartered in Jakarta and has 82 branches and sub-branches
+in Indonesia. The Bank completed the acquisition of 60% equity
+in PT Bank Windu Kentjana International Tbk in September 2016
+and renamed it PT Bank China Construction Bank Indonesia Tbk in
+February 2017.
+CCB Indonesia
+As a licensed commercial bank, CCB Malaysia provides various
+financial services, including global credit granting, trade finance,
+supply chain finance, clearing in multiple currencies, and cross-
+border fund transactions for key projects under the Belt and Road
+Initiative, enterprises engaging in Sino-Malaysian bilateral trade,
+and large local infrastructure projects in Malaysia. At the end of
+2021, total assets of CCB Malaysia amounted to RMB7,605 million,
+and shareholders' equity was RMB1,400 million. Net profit in 2021
+was RMB85 million.
+China Construction Bank (Malaysia) Berhad, a wholly-owned
+subsidiary of the Bank, was established in Malaysia in 2016, with a
+registered capital of MYR822.6 million.
+CCB Malaysia
+CCB Brasil provides banking services, including corporate loans,
+trading and personal lending, as well as non-banking financial
+services such as leasing. CCB Brasil has eight domestic branches
+and sub-branches in Brasil, one Cayman branch, and eight
+subsidiaries. The subsidiaries provide personal loans, credit
+cards, leasing, factoring and other services. At the end of 2021,
+total assets of CCB Brasil amounted to RMB22,026 million, and
+shareholders' equity was RMB1,198 million. Net losses in 2021
+were RMB87 million.
+CCB Principal Asset Management
+The Bank continued to advance the construction of the interbank
+cooperation platform, focusing on setting up scenarios such
+as risk co-governance, interbank finance, smart sharing, and
+technology empowerment. It actively assisted small and medium-
+sized financial institutions in capability improvement, governance
+enhancement, application expansion, and gradually explored
+new business models for competition and cooperation in
+the digital age. By the end of 2021, the interbank cooperation
+platform had attracted 2,916 contracted customers, provided
+1,027 financial institutions with the service of "Hui" series risk
+tools with a cumulative query volume of 58 million, and the
+transaction volume of the platform had reached RMB579 billion.
+The Bank performed overall management of online and offline
+channels to provide convenient, efficient and diversified products
+and services for cooperative security companies and investors,
+and outperformed peers with its third-party security custody
+services in terms of the number of customers and the amount
+of funds. The Bank signed cooperation agreements with several
+key financial institution customers and cooperated with several
+national joint-stock commercial banks, leading city commercial
+banks, and rural commercial banks in e-CNY. It won multiple
+awards such as "Leading Institution in Bond Market", "Excellent
+Financial Bond Issuer", "Excellent ABS Originator" and "Excellent
+Bond Underwriter" from China Central Depository & Clearing
+Co., Ltd., and "Excellent Clearing Member", "Excellent Settlement
+Member", and "Excellent Proprietary Foreign Exchange Clearing
+Award" from Shanghai Clearing House in 2021. At the end
+of 2021, the Bank's amounts due to other domestic financial
+institutions (including insurance companies' deposits) were
+RMB1.80 trillion, a decrease of RMB12,131 million from 2020. The
+Bank's assets placed with other domestic financial institutions
+were RMB308,584 million, a decrease of RMB415,899 million from
+2020.
+Financial institutional business
+Taking into account factors such as market demand, regulatory
+requirements, and internal management needs, the Bank
+dynamically arranged the strategy and plan for securitisation
+issuance. In 2021, the Bank issued 27 batches of normal assets-
+backed securities, totalling RMB223,052 million, which included
+ten batches of trust beneficial right transfer products of Jianrong
+corporate loans credit assets, amounting to RMB39,571 million;
+two batches of Jianpu inclusive finance loan assets-backed
+securities, amounting to RMB14,983 million; 15 batches of
+Jianyuan residential mortgages-backed securities, amounting
+to RMB168,498 million. It issued ten batches of non-performing
+loan assets-backed securities, totalling RMB6,829 million, which
+included six batches of non-performing loan assets-backed
+securities backed by non-performing residential mortgages and
+non-performing personal consumer loans, with a principal of
+RMB10,349 million and an issuance size of RMB5,295 million. It
+issued three batches of non-performing credit card assets-backed
+securities, with a principal of RMB7,423 million and an issuance
+size of RMB1,303 million; and one batch of non-performing
+unsecured small and micro business assets-backed securities
+invested by non-performing quick loan assets, with a principal of
+RMB1,689 million and an issuance size of RMB231 million.
+4.12
+67,515
+2.84
+70,885
+133,720
+100.00 2,496,970
+5.84
+0.66
+18.26
+440,681
+10.63
+18,120
+82,494
+358,187
+6.35
+158,450
+5.78
+12.68 132,312
+27.07 15,081
+133,720
+100.00 2,290,790
+206,180
+Total
+Other assets
+55,804
+21.88
+2.33
+85,635
+3.55
+Securitisation business
+The Bank continued to optimise the platform ecology and
+integrate products and processes in the financial advisory
+business, with its market share increasing continuously. It
+optimised the structure of bond underwriting business and
+underwrote a total of 878 batches of bond financing instruments
+for enterprises with an aggregate financing amount of RMB518.3
+billion. It focused on serving the national key strategies, and
+innovatively undertook the first batch of carbon neutral bond
+in the market, sustainable development linked bond, rural
+revitalisation bond, high growth bond, equity contribution
+bond, and real estate merger and acquisition notes. It continued
+to improve asset creation and supply and attracted 5,066 new
+customers to the investor alliance platform. The Bank also
+increased efforts in investment research and empowerment at
+group level for 32 industries across five major sectors, including
+macroeconomics, financial markets, international overview,
+hot topics, and industry research. At the end of 2021, the Bank
+had more than 87,000 investment banking customers and
+its customer access capability improved fundamentally. The
+Bank steadily improved its ability in serving the real economy,
+providing RMB1.7 trillion direct financing for enterprises.
+Investment banking business
+MANAGEMENT DISCUSSION AND ANALYSIS
+Annual Report 2021
+China Construction Bank Corporation
+52
+52
+100.00
+2,413,411
+100.00
+776,147
+100.00
+1,637,264
+6.37
+153,770
+3.15
+24,478
+7.90
+129,292
+5.36
+100.00
+26,138
+3,985,433
+258,541
+392,514
+1,530,966
+10.67
+59
+Annual Report 2021
+China Construction Bank Corporation
+Total assets exclude elimination and deferred tax assets.
+1.
+100.00
+37,360,366
+100.00
+39,410,709
+Total assets¹
+3.84
+4,272,993
+3.57
+1,434,781
+3.89
+3.88
+Head Office
+10,691,168
+1,451,185
+10,577,145
+28.31
+Overseas
+1,408,594
+27.13
+Asset & Liability
+Management Department
+(Liquidity risk and interest
+rate risk of banking book)
+Department
+(Comprehensive risk
+and
+market risk)
+Credit Management
+Department
+(Credit risk and
+country risk)
+Internal Control &
+Compliance Department
+(Operational risk and
+information
+represents secondary reporting line.
+Public Relations &
+Corporate Culture
+Department
+(Reputational risk)
+Strategy and Policy
+Coordination
+Department
+(Strategic risk)
+Management of Branches
+and Subsidiaries
+represents primary reporting line,
+Risk Management
+2. Other risks besides the risks above have been incorporated
+into the comprehensive risk management framework of the Bank.
+Note: 1.
+technology risk)
+Board of Supervisors
+The Board
+Internal Control
+Management Committee
+79
+CONSOLIDATED MANAGEMENT
+79
+INTERNAL AUDIT
+79
+China Construction Bank Corporation
+Annual Report 2021
+67
+68
+RISK MANAGEMENT
+RISK MANAGEMENT STRUCTURE
+The risk management organisational structure of the Bank comprises the Board and its special committee, the senior management and its
+special committees, the risk management departments, etc. The basic structure is as follows.
+Risk Management Departments
+of Branches and Subsidiaries
+Risk Management Committee
+Head Office Level
+Risk Management and
+Senior Management
+Branches and Subsidiaries Level
+Annual Report 2021
+Chief Risk Officer of the Bank assists the President with the
+corresponding risk management work within designated
+responsibilities. Risk management department is the leading
+management department responsible for the Group's
+comprehensive risk management, and its subordinate
+department, market risk management department, takes the lead
+in market risk management. Credit management department is
+the leading management department responsible for the overall
+credit risk management and country risk management. Asset &
+liability management department is the leading management
+department responsible for the management of liquidity risk
+and interest rate risk of the banking book. Internal control &
+compliance department is the leading management department
+BUSINESS REVIEW
+62
+61
+Annual Report 2021
+China Construction Bank Corporation
+The Bank promoted improvement in comprehensive
+competitiveness of outlets by continuously focusing on
+customer experience and value creation objectives. It continued
+to promote its intelligent operation and governance system
+and improve intelligent business operation. It promoted the
+centralised operation of overseas entities and helped 14 overseas
+entities centralise their operations in head office and CCB Europe,
+with a total of 1.35 million centralised operations conducted
+in 2021, an increase of 75% over 2020. The Bank fully rolled out
+the enterprise-level application of Robotic Process Automation
+(RPA), launched 1,162 scenarios online and saved 2.71 million
+man-hours, and was awarded "Best Productivity, Efficiency and
+Automation Project in China" by The Asian Banker. It accelerated
+the application of Intelligent Character Recognition (ICR) AI
+technology in operations and launched 11 scenarios such as
+foreign exchange business audit, saving a total of 950,000 man-
+hours. The Bank promoted the overall optimisation of end-to-end
+processes from the perspective of customers and established the
+ability of monitoring customer journey operation. By means of the
+branch customer experience management system and the Voice
+of Experience (VOX) online user forum, the Bank systematically
+set up a customer experience governance structure suitable
+for digital age, gradually improved its digital experience
+management capabilities, and would never relent in pursuing the
+best user experience for both employees and customers.
+and deployed 1,387 self-service facilities in 160 key counties
+that need national assistance in rural revitalisation, to further
+improve the coverage of financial services at the county level.
+The Bank continued to improve intelligent services and customer
+experience in outlets by setting up ten new "5G+ Smart Banks" in
+areas including Beijing Pilot Free Trade Zone and Chongli Winter
+Olympic Town in Zhangjiakou. The Bank had 69,030 ATMs, 23,679
+self-service banks, including 9,714 off-premise self-service banks,
+and 49,495 smart teller machines to fully support corporate and
+personal banking. The Bank had established 252 inclusive finance
+(small business) service centres and small business centres, and
+over 1,800 personal loan centres.
+The Bank continued to optimise its outlets layout and ensure
+resource investment in channel construction in key national
+strategic planning areas and key cities such as the Beijing-Tianjin-
+Hebei region, the Yangtze River Delta, and the Guangdong-Hong
+Kong-Macao Greater Bay Area. It comprehensively promoted
+the rectification of inefficient outlets and the optimisation of
+outlets layout, stepped up the withdrawal, merger, or relocation
+of inefficient and intensive outlets in urban areas, and expanded
+the outlet coverage to new urban planning areas and counties.
+The Bank actively explored New Finance service channels and
+applied mobile financial service vehicles to specific business
+scenarios in outlet-covered regions. It deployed multiple mobile
+financial service vehicles in provinces and autonomous regions
+such as Hebei, Inner Mongolia, Qinghai, and Tibet, to provide
+financial services such as account opening, money transfer, and
+cash for underbanked customers. In 2021, the Bank relocated 267
+outlets, upgraded 60 outlets, and set up 31 new outlets, including
+20 county-level outlets, and expanded into 13 new counties. It
+supported the consolidation of poverty alleviation achievements
+and continued to improve its ability to serve rural revitalisation.
+It set up 3,340 outlets in towns and townships, science and
+technology cities and parks, agricultural and forestry farms, as
+well as 942 outlets in the previous 832 state-level impoverished
+counties, and 129 outlets in 75 out of 160 key counties that
+needed national assistance in rural revitalisation. The Bank set up
+21,513 ATMs and 13,899 smart teller machines at county outlets
+Physical channels
+overseas ones.
+The Group provided its customers with convenient and high-
+quality financial services through its extensive branches and sub-
+branches, self-service facilities, specialised service entities at home
+and abroad as well as electronic banking service platforms. At
+the end of 2021, the Bank had a total of 14,510 operating entities,
+consisting of 14,476 domestic entities including the head office,
+37 tier-one branches, 362 tier-two branches, 13,960 sub-branches,
+115 outlets, a specialised credit card centre at the head office
+level, and 34 overseas entities. The Bank had 19 major subsidiaries
+with a total of 597 entities, including 437 domestic ones and 160
+ENTITIES, OUTLETS AND E-CHANNELS
+MANAGEMENT DISCUSSION AND ANALYSIS
+China Construction Bank Corporation
+Annual Report 2021
+100.00
+19931
+Workers from a plush toy manufacturer in the city of Ankang are producing mascot "Wanbao ()" for "Workers' Harbour"
+The Bank opened more than 14,000 "Workers' Harbour" to the
+public, continued to deepen the "Workers' Harbour +" model,
+and successively cooperated with 1,456 institutions such as the
+Party and government organisations at all levels, labour unions,
+China Disabled Persons' Federation, and charity organisations, to
+continuously expand the service scope of outlets in fields such as
+elderly-friendly and barrier-free services, and poverty alleviation,
+education, and justice services. It comprehensively advanced the
+interoperability of information, services, and risk controls through
+online and offline channels, and provided financial services such
+as appointment, form filling and "CCB Doorstep Service" to 7.09
+million users based on WeChat account "CCB Banking Centre".
+The Bank built characteristic outlets on themes such as inclusive
+finance, housing rental, Bilibili (a video sharing website), and auto
+finance, and accelerated the transformation and upgrade of the
+outlet service function to a scenario-based ecological service
+function that combines both integrated services and featured
+services across financial and non-financial sectors. The Bank
+continued to strengthen its leading role among domestic peers.
+In 2021, a total of 130 outlets of the Bank were awarded the title
+of "Top 1000 Demonstration Outlets with Standardised Services
+in China's Banking Industry" by the China Banking Association,
+ranking first in terms of quantity in the industry for the first time.
+E-channels
+responsible for operational risk and information technology risk
+management. Public relations & corporate culture department
+is in charge of reputational risk management. Strategy and
+policy coordination department is the leading management
+department responsible for strategic risk management. Other
+specialised departments are responsible for managing other
+respective risks.
+The Bank attaches great importance to the risk management
+of subsidiaries, implements management requirements of the
+parent bank through the corporate governance mechanism,
+continuously improves the quality and efficiency of the
+performance of the board of directors of the subsidiaries, and
+urges its subsidiaries to operate steadily and serve the Group's
+development strategy. It strengthened the transmission of the
+Group's risk appetite, performed risk profiling of subsidiaries,
+improved the subsidiary-specific risk control mechanism, and
+implemented refined and differentiated risk management. It
+strengthened risk alert management of subsidiaries, reinforced
+risk segregation between parent and subsidiaries, standardised
+the reporting system for material risks of subsidiaries and
+performed comprehensive risk assessment and analysis of key
+subsidiaries.
+China Construction Bank Corporation
+COUNTRY RISK MANAGEMENT
+MANAGEMENT DISCUSSION AND ANALYSIS
+CREDIT RISK MANAGEMENT
+In 2021, the Group continued to strengthen risk research and
+judgement, proactively responded to challenges, supported New
+Finance practices with FinTech, optimised credit structure, and
+promoted risk mitigation and disposal to maintain stable asset
+quality.
+The Board fulfils the risk management responsibilities pursuant
+to the Articles of Association of the Bank and related regulatory
+requirements. The risk management committee under the
+Board is responsible for developing risk management strategies,
+supervising the implementation, and assessing the overall risk
+profile on a regular basis. The Board reviews the statements
+of risk appetite regularly and transmits risk appetite through
+relevant policies. The board of supervisors supervises the building
+of the comprehensive risk management system, as well as the
+performance of the Board and senior management in delivering
+their comprehensive risk management responsibilities. Senior
+management is responsible for implementing the risk strategies
+developed by the Board and organising the implementation of
+the comprehensive risk management work across the Group.
+The Group continuously enhanced its credit management.
+It optimised and adjusted credit structure, and focused on
+management of loans to key areas. It advanced the leap-
+forward development of green finance, further implemented
+strategies of housing rental and inclusive finance, standardised
+the management of internet loan business, consolidated
+development advantages in the infrastructure sector, supported
+the high-quality development of the manufacturing industry,
+empowered technology enterprises, increased loans to fields of
+people's livelihood and loans to the agriculture-related industry,
+and provided financial services to ensure energy security and
+supply. It accelerated digital development of credit management
+and strengthened application of FinTech in key links of the credit
+process. It continuously improved the level of intelligence in areas
+such as eligibility review for granting loans and retail collection,
+further refined post-lending and post-investment operation
+and unified credit risk monitoring, and further improved whole-
+process refined management of credit business.
+The Group enhanced risk measurement capabilities. It applied
+an upgraded LGD model for domestic non-retail businesses,
+which can adapt to changes in the write-off and disposal
+methods and loan losses. It launched intelligent financial
+exception identification and financial forecasting models to
+enhance the intelligence and foresight of risk evaluation for
+corporate customers; developed the "Supply Chain e Evaluation"
+statistical model to support the development of supply chain
+business; and started to build an ESG rating system for corporate
+customers in response to the national strategy requirement to
+achieve carbon peak and carbon neutrality and the trend of
+green and low-carbon development. The Group optimised the
+scorecard for retail and small and micro businesses to enhance
+risk identification capability of business model for inclusive
+finance; strengthened development of measurement tools for
+rural financial business, explored the use of data with agricultural
+characteristics, and supported the risk evaluation of rural financial
+business. It optimised the functions and modules of the risk
+alert system, improved alert rules for key industries and sectors,
+and enhanced foresight and effectiveness of risk alert; relied on
+the unified risk view, improved the enterprise-level panoramic
+customer profiling, and strengthened information sharing and
+collaborative risk control across the Group.
+The Group strengthened its special assets operation. It continued
+to focus on risk resolution and value creation, advanced non-
+performing assets disposal, and improved its operation and
+disposal capacity comprehensively. It disposed of several non-
+performing items by coordinating the use of creditors' committee
+mechanisms and restructuring, market-oriented debt-to-equity
+swaps and other approaches. It launched the industry's first
+"Long Market" non-performing assets trading platform and was
+the first among peers to implement the non-performing assets
+valuation model, continuously improving its digitalised operation
+and innovation capability. The Group continued to intensify non-
+performing assets disposal and optimised disposal structure
+to provide solid support for bank-wide strategy promotion,
+asset quality management, structural adjustment and efficiency
+enhancement.
+China Construction Bank Corporation
+Annual Report 2021
+69
+Mobile finance
+collaborative construction of ecosystem and the technology-
+enabled risk prevention and control, to further promote the high-
+quality development of online financial business.
+The Bank accelerated the pace of digital transformation of
+online financial services and pressed ahead with the data-driven
+decision-making management, the agile adjustment of business
+mechanism, the intelligent restructuring of business model, the
+The Group strengthened its credit approval risk management
+and control. It standardised the implementation of policies
+on local government debts and reviewed and analysed key
+businesses such as real estate loans. It strengthened risk screening
+and management of large exposure customers. In response to
+the frequent debenture defaults of state-owned enterprises
+credit debt, it screened potential risks of group customers with
+comprehensive credit limits. It analysed the potential risks of key
+overseas businesses in depth and thoroughly screened the risk
+of overseas customers. The Group reinforced model construction
+and system optimisation and improved the risk control rules,
+variables and indicators of the online business risk decision
+model. It embedded environmental protection requirements
+into the process, implemented the "veto policy of environmental
+protection", and adopted differentiated processes for projects
+meeting green credit standards through the "green channel".
+78
+73
+76
+For customers, "CCB Lifestyle" provides them with a unified channel for benefits collection and exchange by
+integrating marketing activities and incentives across the Bank. For merchants, it adheres to the "no commission"
+strategy, and supports their operation with platform traffic and operation capabilities. For governments, it supports
+the issuance of shopping coupons by multiple local governments and cooperates with them to create platform
+scenarios such as "Low-carbon Travel" and "Beautiful Countryside" to empower the real economy and help
+implement national strategies. By the end of 2021, "CCB Lifestyle" APP had accumulated registered users of more
+than 34 million, with 15 million monthly active users, more than 2.1 million daily active users, and over 150,000
+merchant stores. Both the platform traffic and the market reputation saw continuous improvement.
+EXITH
+China Construction Bank Corporation
+Annual Report 2021
+-0000
+0000-
+リハ
+建行生活
+Quality of life
+一刻钟品质生活爷/屄行
+开门见
+EA
+逸开
+四
+ARTBDX
+"CCB Lifestyle" is an enterprise-level mobile ecological operation platform built by the Bank, relying on the FinTech
+online platform mode to echo the trend of online and scenario-based user behaviour in the digital age. "CCB
+Lifestyle" focuses on non-financial services, supports users with high frequency local life scenarios such as food
+recommendation and delivery, groceries and supermarkets, account top-up, movie tickets, so as to establish
+ecological connections with users, gather user traffic, enhance user activeness, and embed scenario-based
+financial services to realise customer advancement and financial services involvements. "CCB Lifestyle" extends
+the touch points between the Bank and customers from financial services to all aspects of daily life, and upgrades
+the relationship with customers from account and fund management to ecological traffic, which is an important
+upgrade of the Bank's customer operation and service mode to the "Second Curve".
+Building an enterprise-level mobile ecological operation platform "CCB Lifestyle"
+Feature article
+BUSINESS REVIEW
+Relying on e.ccb.com, the Bank developed an innovative model
+of revitalising agriculture through green technology. It built joint
+assistance pavilions for 94 institutions including state ministries
+and departments, state-owned enterprises, the CSRC and its
+capital market divisions, the All-China Federation of Industry
+and Commerce and its members, local state-owned enterprises,
+colleges, universities and social groups, introduced a total of 5,773
+merchants of poverty alleviation and agricultural revitalisation,
+and launched more than 70,000 commodities, with a transaction
+volume amounting to RMB17,659 million. The pavilion was
+listed as a demonstration case of green development services at
+China International Fair for Trade in Services and was awarded
+the "2021 Model Case of National Consumption-assisted Rural
+Revitalisation" by the NDRC. The Bank focused on core enterprises
+in supply chains and used "Shanfutong" to reach upstream
+and downstream enterprises, self-employed individuals, and
+other customer groups. By the end of 2021, "Shanfutong" had
+expanded 317 new external corporate customers, created 1,402
+active supply chains, and covered more than 240,000 upstream
+and downstream active customers with a transaction volume
+of RMB114,922 million, which included 74 agriculture-related
+industry chains, with a transaction volume of RMB3,410 million.
+E.ccb.com
+Meituan, Pinduoduo, and Tik Tok in China. Relying on aggregated
+payment, the Bank improved the quality and efficiency of
+merchant business across the whole bank and drove the growth
+of merchant deposits. The payment transactions amounted to
+RMB2.07 trillion, up 41.47% over 2020, and the transaction share
+ranked first among banking peers in both Alipay and WeChat.
+The Bank innovated online payment products and
+comprehensively enhanced cross-bank, cross-channel and cross-
+border payment capabilities and merchant service capabilities.
+At the end of 2021, the volume of online payment transactions
+was 50,779 million, up 17.55%, amounting to RMB21.97 trillion,
+up 17.11% over 2020, which ranked first among banking peers
+in terms of user share in leading enterprises such as Alipay, JD,
+Online payment
+Personal online banking completed barrier-free and elderly-
+friendly renovation and launched new versions of wealth
+management channel and the featured zone for Guangdong-
+Hong Kong-Macao Great Bay Area to continuously improve
+user experience. Corporate online banking introduced pre-filled
+information mode and connected to third-party platforms to
+push pre-filled documents to corporate online banking, so as
+to reduce the burden of enterprise finance staff. The overseas
+version of corporate online banking promoted direct linkage
+service between banks and enterprises and enhanced the ability
+of intensive funds management of cross-border enterprises
+through open and interconnected channels. At the end of
+2021, the number of personal online banking users rose to 392
+million, an increase of 20,695.7 thousand or 5.57% over 2020,
+and the number of transactions was 5,569 million, amounting to
+RMB17.57 trillion. The number of corporate online banking users
+rose to 11,245 thousand, an increase of 956.3 thousand or 9.29%
+over 2020, and the number of active users was 4,800.6 thousand,
+an increase of 10.38%, and the number of transactions was 1,901
+million, amounting to RMB274.72 trillion. The number of users of
+overseas version of corporate online banking reached 19,250, an
+increase of 770 over 2020, and the number of transactions was
+291 thousand, amounting to RMB261,865 million. The average
+daily views of CCB's international website reached 150 million,
+an increase of 34.15% over 2020, and the number of registered
+members exceeded 100 million.
+Online banking
+JECDD
+increase of 29,168.2 thousand or 7.52% over 2020, with monthly
+average number of active users of 149 million, and the number of
+transactions was 57,353 million, amounting to RMB92.18 trillion.
+The personal mobile banking of the Bank ranked first among
+domestic peers in terms of user base, monthly active users,
+transaction volume, and number of downloads. The number
+of corporate mobile banking users reached 2,972.1 thousand,
+an increase of 802.8 thousand over 2020, up massively by
+37.01%, and the number of transactions was 20,904.2 thousand,
+amounting to RMB2.06 trillion. The Bank's WeChat account has
+137 million followers, including 113 million users who linked
+their bank cards with their WeChat accounts. The number of SMS
+financial service subscribers was 509 million, an increase of 15
+million or 3.14% over 2020.
+China Construction Bank Corporation
+Annual Report 2021
+The personal mobile banking activated the operation
+transformation focusing on wealth management, with a
+fully revised version of investment and wealth management
+services such as fund investment and WMPs, to improve wealth
+management customers experience; launched caring model
+for special groups such as the elderly and the visually impaired.
+The Bank was also the first in the industry to launch the mobile
+provident fund service, providing convenient services such as
+provident fund account information, transaction details, and
+transfers. The corporate mobile banking provided high-frequency
+financial services such as discounted bills, prompt payment,
+transfer by appointment, as well as non-financial services such
+as self-service inquiries on utility bills; deployed corporate e-CNY
+wallet to realise payment collection, transfer and inquiry services;
+launched "Quick Enterprise Information Check" service to help
+customers quickly identify their counterparties; and introduced
+"Smart Bank" for online tutoring and intelligent assistant to
+provide whole-process and real-time support to customers. The
+Bank's WeChat account added new message reminder services
+for the expiration of bonus points, WMPs and fixed-term products,
+and launched "Pleasant Enjoyment" and "Study Abroad" zones
+to provide one-stop financial and non-financial services for
+the elderly and international students. At the end of 2021, the
+number of personal mobile banking users reached 417 million, an
+Remote intelligent banking
+The Bank continuously provided high-quality and efficient
+remote comprehensive financial services for customers through
+multimedia, multiple scenarios, and various service functions. It
+deepened its intelligent applications in many fields, such as voice
+navigation, consulting services, repayment reminder, and auxiliary
+marketing. The telephone voice navigation served nearly 660,000
+visits per day on average; the intelligent consulting handled over
+4 million customer inquiries per day on average; the intelligent
+repayment reminder service covered six business scenarios, such
+as credit cards and personal loans; and the intelligent auxiliary
+marketing made 2.30 million customer contacts. In 2021, the
+Bank handled 1,808 million customer inquiries with a customer
+satisfaction rate of 98.70%. The WeChat official account "CCB
+Customer Service" served more than 20 million visits and had over
+12 million followers.
+China Construction Bank Corporation
+Annual Report 2021
+63
+64
+MANAGEMENT DISCUSSION AND ANALYSIS
+REPUTATIONAL RISK MANAGEMENT
+國
+MANAGEMENT DISCUSSION AND ANALYSIS
+99
+66
+China Construction Bank Corporation
+Annual Report 2021
+RISK MANAGEMENT
+In 2021, the Group continued to play its role as a major state-
+owned bank, integrated development and safety, treated risk
+management as the lifeline of a commercial bank, and strictly
+held the bottom line of preventing and controlling major financial
+risks. The Group continued to improve its comprehensive,
+proactive, intelligent and modern risk management system,
+improved the horizontal, vertical and well-supervised risk
+management accountability system, established a two-way
+inclusive finance risk reporting system for the front and middle
+offices, improved the working mechanisms for risk appetite, risk
+evaluation, risk profiling and accountability, and fully promoted
+compliance of new rules of Basel III. The Group proactively
+engaged in New Finance practices and the whole process of
+business development, improved digital and intelligent risk
+control mechanisms and tools driven by data and models, and
+supported the improvement of key strategic capabilities. It
+accelerated the construction of an intelligent risk control system
+and continuously improved the functions of its comprehensive
+risk management platform to effectively safeguard the sound
+operation and innovation-driven development of the Group.
+RISK MANAGEMENT STRUCTURE
+68
+CREDIT RISK MANAGEMENT
+69
+MARKET RISK MANAGEMENT
+20,614,976
+OPERATIONAL RISK MANAGEMENT
+76
+LIQUIDITY RISK MANAGEMENT
+The technology middle platform creates a bank-level unified fundamental technology capability, realises the large-
+scale and cloud-based supply of fundamental technology and public services, and continues to enhance digitalised
+and agile delivery capabilities. By the end of 2021, the platform had released 102 technology products and 96
+public services for applications, supported the construction of business and data middle platforms, provided shared
+and reusable technological capability for intelligent finance and ecology, and quickly responded to the needs of
+digitalised operation.
+The business middle platform focuses on business foundation such as users, rights and interests to create an
+enterprise-level ecological scenario operation basis. The user centre connects user systems in different ecological
+scenarios, generates an enterprise-level unified user information picture, supports more accurate profiling of user
+characteristics, and reduces repeated registration and authentication in the Bank's system. The rights and interests
+centre builds an enterprise-level rights and interests operation system based on unified users, changing the
+traditional marketing method with scattered rights and interests and repeated investments. By the end of 2021, the
+business middle platform had launched a total of 384 standardised capabilities to provide basic capability support
+for the construction and operation of ecological scenarios.
+The digital middle platform is an enterprise-level capability system which can be shared and reused. It is established
+in line with the transformation of the digital age and is based on the New Generation Core Banking System. It
+reconstructs business processes with digitalised operation logics, standardises and visualises universal data and
+technical services. It is composed of middle platforms in terms of business, data and technology, and acts as an
+important tool to support the quick and efficient construction and operation of ecological scenarios, improve the
+FinTech innovation system, empower and reduce the burden of digitalised operation.
+Building a digital middle platform system and consolidating the foundation for
+scenario-based operation
+"CCB Lifestyle", together with mobile banking, will form "binary star" platforms
+for the Bank's online customer operation. "CCB Lifestyle" provides rich and
+convenient non-financial scenario-based services, while mobile banking
+provides professional and secure financial services, both of which jointly
+provide customers with "Life+Finance" high-quality service experience to
+promote customer advancement and value enhancement. It is expected that
+in the future, "CCB Lifestyle" and mobile banking will share users, traffic, and
+functions to jointly promote the Bank's customer growth.
+繫 建行生活
+DORED
+"CCB Lifestyle" attracts young consumers. In the above photos are offline
+activities and promotions in Beijing, Anhui, Xiamen, and Zhejiang.
+DIGITALISED OPERATION AND PRODUCT INNOVATION
+Digitalised operation
+The Bank comprehensively promoted regular digitalised operation, applied
+the mindset of openness, sharing, collaboration and agility to daily operation
+activities, and continuously improved its digitalised operation capability. For
+key business areas such as "Three Major Strategies", smart government affairs,
+rural revitalisation, green finance, and mega wealth management, it carried
+out operations with scenario-based platforms to effectively monetise traffic.
+Steady progress has been made in the construction of the three major middle
+platforms in terms of business, data and technology, especially in the building
+scheme for the "3+1" Competence Centres, which takes users, merchants,
+rights and interests, and payment as the core. Focusing on the digitalised
+operation logic of "building ecologies, setting up scenarios, and expanding
+user base", the Bank has established CCB ecological scenario system of multi-
+channel layout with mobile banking and "CCB Lifestyle" as the core, enterprise-
+level priority, and featured services as the supplements, and online and offline
+integration development as the purpose. CCB's ecological scenario-based
+platform has gradually become an important channel for customer acquisition
+and reactivation.
+Product Innovation
+|建行生活
+The Bank deepened its New Finance initiative with practices of digitalised
+product innovation. It further promoted the building of enterprise-level
+product family tree and created a whole-process online management
+mechanism for products including functions such as money laundering
+risk assessment, consumer rights and interests review, comprehensive risk
+management, and accounting normative review. It innovatively built a multi-
+dimensional real-time data supply architecture and created a whole-process
+online innovative project management mechanism. Through the "Mass
+Innovation Platform", the Bank carried out overall management of innovation
+ideas of employees, established an innovative ideas collection, processing
+and feedback mechanism from the primary-level organisations to the head
+China Construction Bank Corporation
+65
+Annual Report 2021
+BUSINESS REVIEW
+office, and responded to opinions and suggestions of employees at all levels in a timely manner. It also established an "External Mass
+Innovation Platform" of openness, cooperation, connection and sharing. The Bank stimulated the innovation vitality of the whole bank
+by launching the innovation marathon campaign, combining online and offline channels, recommendation by entities and independent
+participation of employees to attract outstanding talents to participate in innovation practices. The Bank launched more than 2,000
+innovation projects, which cumulatively attracted over 230,000 participants.
+By the end of 2021, focusing on key business areas such as "Three Major Strategies", rural revitalisation, smart government affairs, green
+finance, and technology innovation, the Bank had launched a total of 31 head office strategic product innovation projects, completed
+72 key head office innovation projects, 1,761 key independent innovation projects and 3,703 product portable innovation projects of
+branches, and overseas entities and domestic subsidiaries had implemented 22 innovation projects. The mass innovation platform had
+more than 129,000 active users, launched 787 innovation and creation campaigns in total and collected 68,000 ideas online, of which
+27,000 had been approved and adopted and over 5,800 implemented.
+Feature article
+Scan for more
+100.00
+The data middle platform supports the construction of data system with data fusion in all fields, multi-level
+interconnection, high-speed supply via all links, availability for multiple users, and whole process iteration in closed
+loop. It correlates and integrates financial and non-financial ecological data, quickly releases the business value of
+data assets in the form of data products during the process of digitalised operation and scenario-based platform
+construction and operation, and fully supports intelligent risk prevention and control, customer's personalised
+demand insights, product and service innovation, cost decreasing and efficiency improvement of operation system,
+and customer experience improvement. By the end of 2021, the data middle platform had launched more than
+1,600 data services with an average utilisation of more than one million data.
+Total deposits from customers
+65,990
+18.42
+3,084,244
+2.04
+70,428
+18.44
+3,460,768
+1.54
+43,467
+16.84
+2,819,557
+1.32
+41,805
+16.83
+3,158,558
+2.14
+3,070,704
+16.37
+36,527
+4.57
+766,232
+3.81
+30,672
+4.29
+805,241
+excluding accrued interest
+Western
+Gross loans and advances
+Head Office
+Northeastern
+1.43
+39,218
+16.37
+2,741,336
+1.19
+Overseas
+22,581
+Central
+1.38
+Gross
+loans and
+advances
+(%)
+NPLs
+% of total
+advances
+NPL ratio
+loans and
+(In millions of RMB, except
+percentages)
+Gross
+As at 31 December 2020
+As at 31 December 2021
+The following table sets forth, as at the dates indicated, the distribution of the Group's loans and NPLs by geographical segment.
+BUSINESS REVIEW
+60
+22,378,814
+NPL ratio
+% of total
+NPLs
+(%)
+38,323
+16.55
+2,770,718
+1.20
+37,532
+16.72
+Pearl River Delta
+Bohai Rim
+1.10
+17.93
+3,003,466
+0.92
+32,286
+18.61
+3,492,555
+Yangtze River Delta
+32,932
+2.95
+3,137,528
+4.80
+18.15
+3,741,594
+17.93
+4,012,622
+19.49
+4,018,270
+19.52
+Northeastern
+4,368,977
+3,875,480
+18.73
+4,192,162
+15.59
+3,213,868
+15.73
+3,518,912
+18.80
+Western
+Head Office
+6.58
+1.34
+276,348
+1.57
+900,573
+350,191
+Accrued interest
+2.11
+1,473,206
+434,595
+386,544
+Overseas
+0.08
+17,164
+0.08
+18,209
+6.74
+1.73
+Central
+1,389,559
+Pearl River Delta
+100.00
+18,764,146
+0.88
+6,446
+4.36
+729,606
+4,775
+3.94
+738,219
+1.42
+11,772
+Bohai Rim
+4.96
+830,609
+1.34
+266,071
+1.42
+0.65
+100.00
+17.70
+3,648,098
+18.13
+4,057,991
+16,745,768
+% of total
+Amount
+% of total
+Amount
+12,046
+Yangtze River Delta
+(In millions of RMB, except percentages)
+As at 31 December 2020
+As at 31 December 2021
+260,729
+The following table sets forth, as at the dates indicated, the distribution of the Group's deposits by geographical segment.
+1.56
+2,181
+0.55
+92,887
+2.04
+2,401
+0.63
+117,615
+technology services
+7,132
+20.41
+Information transmission,
+2.35
+427
+3.35
+0.01
+2,092
+335
+0.02
+3,797
+- Exploitation of petroleum and
+natural gas
+1.27
+software and information
+8.82
+0.39
+broadcast and television, and
+590,304
+212,835
+3.14
+Others
+0.11
+75
+0.42
+70,763
+0.16
+114
+73,272
+Education
+2.77
+604
+0.13
+21,802
+3.27
+678
+0.11
+20,729
+satellite transmission services
+- Telecommunications,
+10.14
+727,948
+1.31
+13,536
+3.89
+730,087
+Real estate
+2.88
+20,989
+4.35
+1.99
+18,129
+4.86
+912,515
+Wholesale and retail trade
+1.51
+12,511
+4.93
+826,390
+1.14
+10,955
+5.12
+11,465
+960,869
+1.85
+687,504
+4.11
+9,011
+246,338
+Mining
+1.77
+6,732
+2.28
+381,172
+1.86
+8,274
+2.38
+445,952
+24,973
+Construction
+7,052
+3.13
+524,913
+1.24
+7,781
+3.35
+627,875
+management
+Water, environment and public utility
+1.31
+1.34
+1.94
+0.15
+3.34
+18,910
+Overdue between three months and six months
+0.32
+54,299
+0.26
+48,846
+accrued interest
+Amount
+excluding
+excluding
+accrued interest
+Amount
+(In millions of RMB, except percentages)
+Overdue within three months
+and advances
+and advances
+As at 31 December 2020
+% of gross loans
+% of gross loans
+As at 31 December 2021
+The following table sets forth the Group's overdue loans and advances to customers by overdue period as at the dates indicated.
+Overdue loans and advances to customers
+At the end of 2021, the restructured loans and advances to customers were RMB9,243 million, a decrease of RMB847 million over 2020,
+while its proportion in gross loans and advances excluding accrued interest was 0.05%, down 0.01 percentage points over 2020.
+0.06
+0.10
+% of gross loans
+and advances
+excluding
+accrued interest
+24,664
+36,239
+power, heat, gas and water
+Migration rate of loans
+At the end of 2021, the balance of overdue loans and advances to customers decreased by RMB5,762 million over 2020 to RMB176,461
+million; their proportion in gross loans and advances excluding accrued interest dropped by 0.15 percentage points. Loans and advances
+overdue for more than three months totalled RMB127,615 million, which were mainly concentrated in Central China and the Pearl River
+Delta.
+1.09
+182,223
+0.94
+176,461
+Total overdue loans and advances to customers
+0.05
+7,571
+0.08
+14,833
+Overdue for over three years
+0.36
+59,888
+0.31
+57,633
+Overdue between one and three years
+0.21
+35,801
+0.19
+Overdue between six months and one year
+Amount
+10,090
+As at 31 December 2020
+0.05
+5.33
+892,617
+1.92
+17,271
+4.79
+899,223
+Overseas operations and
+subsidiaries
+1.55
+0.41
+29,451
+43.20
+7,233,869
+259,061
+0.40
+31,242
+42.06
+2.02
+379,469
+Discounted bills
+7,891,928
+Personal loans and advances
+2.19
+12,230
+17,393
+1.95
+Gross loans and advances
+excluding accrued interest
+accrued interest
+9,243
+Amount
+and advances
+excluding
+% of gross loans
+As at 31 December 2021
+Rescheduled loans and advances to customers
+(In millions of RMB, except percentages)
+The following table sets forth the Group's rescheduled loans and advances to customers as at the dates indicated.
+Rescheduled loans and advances to customers
+559,091
+In 2021, the Group continued to optimise and adjust credit structure, and promoted green transformation to firmly support high quality
+development of the real economy. The NPL ratios in the manufacturing industry and wholesale and retail trade industry were 4.20% and
+1.99%, down 1.83 and 0.89 percentage points, respectively, over 2020.
+72
+China Construction Bank Corporation 71
+Annual Report 2021
+1.56
+260,729
+100.00
+16,745,768
+1.42
+266,071
+100.00
+18,764,146
+RISK MANAGEMENT
+Production and supply of electric
+1.42
+78,059
+2,683,402
+Short-term loans
+2.56
+213,885
+8,360,221
+2.27
+217,558
+9,593,526
+NPL Ratio (%)
+NPLs
+advances
+NPL Ratio (%)
+NPLs
+advances
+Corporate loans and advances
+(In millions of RMB, except percentages)
+Loans and
+Loans and
+As at 31 December 2020
+As at 31 December 2021
+The following table sets forth the Group's loans and NPLs by product type as at the dates indicated.
+74,808
+2.79
+2,593,677
+82,260
+0.19
+11,320
+5,830,859
+0.20
+12,909
+6,386,583
+Residential mortgages
+0.41
+29,451
+7,233,869
+Distribution of loans and NPLs by product type
+0.40
+7,891,928
+Personal loans and advances
+2.28
+131,625
+5,766,544
+2.07
+142,750
+6,910,124
+Medium to long-term loans
+3.17
+31,242
+Credit card loans
+MANAGEMENT DISCUSSION AND ANALYSIS
+China Construction Bank Corporation
+494,638
+2.69
+505,074
+95.49
+% of total
+As at 31 December 2020
+Amount
+15,990,401
+95.89
+% of total
+As at 31 December 2021
+Amount
+17,993,001
+Substandard
+Special mention
+Normal
+(In millions of RMB, except percentages)
+The following table sets forth, as at the dates indicated, the distribution of the Group's loans by the five-category loan classification under
+which NPLs include substandard, doubtful and loss.
+Distribution of loans by five-category classification
+The evaluation system enriches the connotation of credit management. The Bank had gradually shifted its priority
+in evaluating sci-tech enterprises from "cash flow" alone, to "technology flow" and "cash flow" together, and
+creatively transformed the intellectual property data of a vast number of sci-tech enterprises into credit, and then
+turned the credit into tangible financial resources for them. In addition, the Bank used the evaluation system to
+assist government departments in determining the list of sci-tech awards and subsidies, and in supporting the
+development of key local industrial clusters.
+The evaluation system enables One-Click Evaluation, One-Second Credit Enhancement and One-Package Service.
+The One-Click Evaluation function covers 277,000 national high-tech enterprises nationwide, allowing account
+managers for "One-Click Query" of the evaluation results via computer and mobile APP to serve sci-tech enterprises
+more quickly. The One-Second Credit Enhancement function automatically obtains credit "bonus points" for
+small and medium-sized sci-tech enterprises with strong innovation ability and market potential, to make them
+eligible for credit products. The One-Package Service function utilises layered customer management tools and
+takes the Group's parent-subsidiary synergic advantages to provide a series of financial products and services,
+such as matching, settlement, investment banking and credit tailored to sci-tech enterprises at different stages of
+development.
+The Bank comprehensively built and promoted the "Evaluation System for Innovation Capability of Sci-Tech
+Enterprises" to increase financial supports for scientific and technological innovation, crack the "bottlenecks"
+of technical problems, and to help achieve a high-level of scientific and technological self-reliance and self-
+empowerment. Relying on big data of intellectual property, the evaluation system was designed to evaluate the
+sustainable innovation and development ability of sci-tech enterprises by classifying them into ten levels by ability.
+The evaluation system provided differentiated credit policy support to enterprises with strong innovation ability and
+market potential, to address the problem of "difficult to evaluate and finance" for small and medium-sized sci-tech
+enterprises. At the end of 2021, the balance of loans to national high-tech enterprises and small and medium-sized
+sci-tech enterprises was RMB865,370 million.
+Building the "Evaluation System for Innovation Capability of Sci-Tech Enterprises" to
+support high-level scientific and technological self-reliance and self-empowerment
+Feature article
+RISK MANAGEMENT
+2.95
+143,195
+0.76
+120,731
+70
+In 2021, the Group continuously implemented comprehensive, proactive and intelligent risk management, optimised credit structure,
+consolidated management foundation, accurately conducted risk classification, and firmly held the bottom line of preventing risk. As a
+result, the asset quality remained stable. At the end of 2021, the Group's NPLs were RMB266,071 million, an increase of RMB5,342 million
+over 2020; the NPL ratio stood at 1.42%, a decrease of 0.14 percentage points over 2020. The special mention loans accounted for 2.69%, a
+decrease of 0.26 percentage points over 2020.
+1.56
+(%)
+NPL ratio
+260,729
+100.00
+16,745,768
+100.00
+18,764,146
+266,071
+Annual Report 2021
+Gross loans and advances excluding accrued interest
+NPLs
+33,707
+0.23
+42,252
+Loss
+0.64
+106,291
+0.43
+80,624
+Doubtful
+0.72
+0.20
+6.03
+896,222
+1.33
+31,483
+9.45
+1,582,628
+1.18
+20,763
+9.38
+1,760,364
+postal services
+Transportation, storage and
+2.56
+NPL ratio
+(%)
+NPLS
+213,885
+% of total
+49.92
+8,360,221
+2.27
+Loans and
+advances
+(%)
+NPLs
+217,558
+% of total
+51.13
+9,593,526
+Corporate loans and advances
+1.99
+Leasing and commercial services
+1,725,682
+9.20
+7.73
+1,294,355
+4.20
+58,963
+7.48
+1,402,653
+Manufacturing
+1.85
+25,468
+8.22
+advances
+1,376,621
+39,766
+9.03
+1,693,920
+- Commercial services
+1.89
+26,430
+8.36
+1,399,735
+2.33
+40,204
+2.35
+11,960
+except percentages)
+Loans and
+1.65
+2,468
+149,681
+Other loans
+0.99
+1,377
+138,481
+0.72
+1,627
+226,463
+Personal business loans
+0.98
+2,604
+264,581
+0.98
+2,278
+232,979
+Personal consumer loans
+1.40
+11,591
+825,710
+174,238
+2,559
+1.47
+Discounted bills
+(In millions of RMB,
+As at 31 December 2020
+As at 31 December 2021
+The following table sets forth the Group's loans and NPLs by industry as at the dates indicated.
+Distribution of loans and NPLs by industry
+1.56
+260,729
+16,745,768
+1.42
+266,071
+NPL ratio
+18,764,146
+Gross loans and advances excluding
+1.95
+17,393
+892,617
+1.92
+17,271
+899,223
+Overseas operations and subsidiaries
+259,061
+379,469
+accrued interest
+Migration rate of normal loans
+20.02
+Migration rate of substandard loans
+(16,294)
+(4)
+(29)
+(16,261)
+(2,022,928)
+(203,639)
+(60,684)
+(1,758,605)
+2,038,583
+137,233
+(3,362)
+75,051
+1,767,322
+(1,751,604)
+6,627
+54,315
+21,805
+34,106
+156
+6,471
+(1,596)
+Net(short)/long position
+Net options position
+150,570
+(194,623)
+(1,621,603)
+(290,448)
+1,826,299
+(330,942)
+35,494
+51,919
+Regulatory standard
+(%)
+As at
+As at
+The Group adopted liquidity indicator analysis, remaining maturity analysis and undiscounted cash flow analysis to measure liquidity risk.
+The following table sets forth the liquidity ratios and loan-to-deposit ratio of the Group as at the dates indicated.
+Indicators of liquidity risk management
+The Group conducts quarterly stress testing on its liquidity risk in order to gauge its risk tolerance in unlikely extreme scenarios and
+other adverse scenarios. It improves its liquidity risk stress testing methods in accordance with regulatory and internal management
+requirements. According to the stress testing, liquidity risk arises from such major factors and events as a significant drop in liquidation
+of current assets, a massive outflow of wholesale and retail deposits, falling availability of wholesale and retail financing, shorter financing
+periods, increasing financing costs, significant adverse changes in market liquidity and a sudden breakdown of the Bank's payment and
+settlement system. The results of stress testing showed that under different stress scenarios, the Group's liquidity risk was under control.
+Stress testing of liquidity risk
+In 2021, the Group adhered to the principle of robust and prudent liquidity risk management, made forward-looking responses to
+changes in monetary policies and internal and external funding landscape, appropriately arranged the total volume and structure
+of funding sources and utilisation, took multiple measures to improve the efficiency of fund use, and maintained solid and steady
+improvement in fund provisions. It improved the autonomy, intelligence and timeliness of IT systems, increased FinTech support for
+liquidity management, and fully improved the refined liquidity risk management. It strengthened the coordinated liquidity management
+at the group level and addressed the liquidity management weakness of subsidiaries to ensure the security in payment and settlement. It
+proactively fulfilled the obligations of a major bank, and gave play to the role of a market stabliser and a policy transmitter.
+MANAGEMENT DISCUSSION AND ANALYSIS
+19,787
+The Group adheres to the liquidity risk management strategy
+that features prudence, decentralisation, coordination and
+diversification, so as to establish and improve the liquidity
+risk management system, fully identify, accurately measure,
+continuously monitor, and effectively control liquidity risks, and
+keep balance between profitability and security of funds to
+ensure the smooth operation of businesses across the bank. In
+light of the regulatory requirements, external macro environment
+and the Bank's business development, the head office formulates
+approaches to liquidity risk identification, measurement and
+monitoring, sets out risk limit management criteria, carries out
+daily liquidity management, conducts stress testing at the group
+level regularly, and reviews and assesses contingency plans.
+LIQUIDITY RISK MANAGEMENT
+In 2021, the Group strictly implemented various AML regulatory
+requirements and thoroughly practised the "risk-based”
+management approach. It improved AML management structure
+and the customer identification management mechanism,
+optimised the construction of the AML system, and strengthened
+talent team and resource allocation, to effectively improve
+the level of money laundering risk management and make
+breakthroughs in the construction of the AML management
+system.
+Anti-money laundering
+Annual Report 2021
+China Construction Bank Corporation
+The Bank formulated the code of conduct and rules for
+employees, which clarifies requirements for professional
+ethics, work discipline and performance, to regulate and guide
+employees' behaviours. It strengthened analysis of abnormal
+employee behaviours through an intelligent grid management
+mechanism, and proactively detected and promptly handled
+employees' malpractices such as violations of business ethics.
+In line with changes in internal and external environment of
+business development, the Bank revised the Measures for
+Handling Employee Violations, which clarifies the principles,
+methodologies, specific violations, and applicable disciplinary
+measures for handling employee malpractices, to implement the
+requirements of strict governance, adapt to the needs of business
+development and regulate employee behaviours. In 2021, the
+Bank organised and performed operational risk audits relating
+to employee behaviours and paid dynamic attention to the
+risks of material violations of employees and the effectiveness of
+employee behaviour management.
+The Group revised the operational risk management policy,
+strengthened the loss data management, restructured the
+operational risk management system, and steadily promoted the
+implementation of the standardised approach for operational
+risk under Basel III. It established a financial service management
+mechanism for emergency response, strengthened the guidance
+for domestic and foreign entities, and ensured the stable
+operation of the Group's business in the wake of COVID-19. It
+optimised business impact analysis, continuously improved
+emergency plans, strengthened targeted emergency drills,
+and improved its ability to respond to business continuity
+emergencies. It strengthened employee behaviour management,
+effectively implemented the grid management mechanism,
+and improved the ability to detect defaults by using intelligent
+approaches.
+In 2021, the Group actively met the implementation requirements
+of Basel III, deepened operational risk management, improved
+the business continuity management system, and proactively
+responded to COVID-19 to ensure continuous business
+operations.
+OPERATIONAL RISK MANAGEMENT
+At the end of 2021, the net exposure of the Group's exchange rate risk was RMB54,315 million, an increase of RMB2,396 million from 2020.
+The Board assumes the ultimate responsibility for liquidity
+risk management, and reviews and approves the liquidity risk
+strategy and risk appetite. The senior management carries out
+the liquidity risk strategy set by the Board, and organises the
+implementation of the liquidity risk management activities. The
+board of supervisors supervises and evaluates the performance
+of the Board and the senior management in the liquidity risk
+management. Asset & liability management department
+leads in the Bank's daily liquidity risk management, and forms
+an executive system together with business management
+departments and branches to perform specific duties in liquidity
+risk management. Subsidiaries assume the primary responsibility
+for their own liquidity risk management.
+31 December 2021
+(1,000,213)
+(270,104)
+(In millions of RMB)
+Others (RMB
+HKD (RMB
+USD (RMB
+As at 31 December 2020
+As at 31 December 2021
+The Group's currency concentrations as at the dates indicated are set out below.
+Currency concentrations
+RISK MANAGEMENT
+76
+equivalent)
+Annual Report 2021
+In 2021, the Group adhered to a prudent and sound exchange rate risk management strategy, continued to improve the exchange rate
+risk management system, and paid close attention to the changes in global economic and financial situation in the wake of COVID-19. It
+strengthened research on exchange rates of currencies of major economies and emerging markets, dynamically monitored and analysed
+changes in the Group's exchange rate risk exposure and took various measures to control exposure fluctuations to always ensure a
+low level exchange rate risk. During the reporting period, the Group's exchange rate risk indicators continued to satisfy regulatory
+requirements of the CBIRC. The stress testing results showed that the overall risk was under control.
+The Group is exposed to exchange rate risk primarily because of the currency mismatch of the assets and liabilities it holds in currencies
+other than RMB and the positions it takes as a market maker in the financial markets. The Group measures and analyses its exchange
+rate risk by using a combination of methods such as exchange rate risk exposure and stress testing, and controls and mitigates its risk by
+matching its assets and liabilities, setting limits, and hedging.
+(80,344)
+(76,805)
+80,344
+76,805
+Fall by 100
+basis points
+Rise by 100
+basis points
+deposits being constant
+Scenario2: the interest rates for
+deposits at the PBC and the demand
+China Construction Bank Corporation 75
+(1,532,959)
+equivalent)
+Total
+(333,522)
+88,234
+(33,060)
+(1,523,921)
+Forward sales
+1,528,518
+Forward purchases
+(929,333)
+Spot liabilities
+1,674,160
+376,645
+352,098
+equivalent)
+945,417
+335,806
+312,454
+916,669
+Spot assets
+Total
+equivalent)
+equivalent)
+Others (RMB
+HKD (RMB
+USD (RMB
+equivalent)
+1,564,929
+RMB
+Liquidity ratio¹
+Loan-to-deposit ratio²
+Net gaps as at 31 December 2021
+Net gaps as at 31 December 2020
+(In millions of RMB)
+Between
+125.56
+123.55
+16,505,566
+16,793,067
+16,757,578
+126.25
+127.15
+Please refer to "Unaudited Supplementary Financial Information" for details of liquidity coverage ratio and net stable funding ratio.
+The analysis of the Group's assets and liabilities by remaining maturity as at the dates indicated is set out below.
+Indefinite
+2,868,925
+2,959,627
+15,515,100
+19,727,180
+20,724,535
+20,748,109
+21,156,350
+21,315,282
+16,950,020
+2020
+31 December
+As at
+As at
+31 March
+2021
+As at
+30 June
+2021
+125.75
+2021
+Repayable
+on demand
+(11,721,520)
+(11,562,623)
+Between
+three
+one and
+months Between
+three
+and one
+one and
+months
+year
+five years
+(538,269) (1,001,397) 2,332,329
+(131,281) (362,539) 2,061,094
+79
+China Construction Bank Corporation
+Annual Report 2021
+Focusing on the goal of "supporting strategy implementation,
+strengthening governance, preventing risks and promoting
+development", the internal audit department continues to
+deepen and improve its audit mechanisms to cover all relevant
+aspects, highlight key areas, coordinate the overall business
+with priorities and agility, and tackle similar problems in other
+areas with a typical audit finding, and covers auditable units of
+all business segments with its audit procedures. In 2021, the
+department performed audit procedures on businesses such
+as loans to large and medium-sized customers, loans to small
+businesses, private banking, key liability products and services,
+special assets resolution, foreign exchange, credit cards, channel
+operation and operational risk management, key financial matters
+management, compliance management, FinTech, and AML. The
+department conducted in-depth research and analysis of the
+underlying causes of problems, advanced the systematic and
+fundamental rectification by departments and branches based
+on such problems, and continuously improved management
+mechanisms, business processes and internal management to
+effectively promote the stable and healthy development of the
+Bank's operation and management.
+The Bank's internal audit department is committed to evaluating
+and supervising the improvement of risk management, control
+and governance processes, promoting value creation and
+improving business operation to help achieve the goal of
+the Bank. The internal audit department works in a relatively
+independent manner and is managed vertically. It is responsible
+to and reports to the Board and the audit committee, and also
+reports to the board of supervisors and senior management. In
+addition to the audit department at the head office, the Bank
+also has 29 audit offices at tier-1 branches and an overseas audit
+centre in Hong Kong.
+INTERNAL AUDIT
+The Group optimised IT systems for consolidated management,
+built the core fundamental platform of consolidated
+management, enriched business functions of the platform,
+promoted the intelligent information management of
+subsidiaries, and improved the automation level of consolidated
+management.
+The Group intensified the comprehensive risk management.
+It deepened the risk appetite coordination, advanced the
+construction of the comprehensive risk management system,
+and improved the capability of proactive risk management.
+It strengthened the risk limit management and continued
+to improve large risk exposure management. It optimised
+the consolidated credit approval rules and strengthened the
+front-office management and control of the consolidated
+credit business of subsidiaries to reinforce the unified credit
+management within the group.
+The Group improved corporate governance of its subsidiaries
+and its consolidated management system. It continued to
+streamline the Group's equity hierarchy and pressed ahead
+with seeing-through management of subsidiaries. It deepened
+the parent-subsidiary coordination and enhanced the Group's
+comprehensive financial services. It prepared the three-year
+business plans of subsidiaries on a rolling basis and refined
+strategic management of subsidiaries. It highlighted the core role
+of subsidiaries' board of directors in their corporate governance
+and continuously improved the standardisation and effectiveness
+of their corporate governance.
+In 2021, the Bank proactively implemented the latest
+requirements on consolidated management, improved the
+Group's consolidated management system, and enhanced the
+planning and coordination, in order to prevent cross-border and
+cross-industry operating risks for the Group and strengthen its
+consolidated management.
+CONSOLIDATED MANAGEMENT
+Within
+one month
+(710,960)
+(491,243)
+In 2021, in the context of a complex and severe situation, the
+Group continued to strengthen country risk management based
+on business development practices. It dynamically reassessed
+country risk ratings and limits, closely monitored country risk
+exposures, issued country risk assessment reports, enhanced
+country risk mitigation capabilities, and effectively controlled
+country risk. It upgraded country risk management system and
+enhanced management of risk identification, measurement,
+monitoring, control and reporting. The Group's country risk
+exposure was mainly concentrated in countries or regions with
+"low" or "relatively low" country risk, and the overall country risk
+was maintained at a reasonable level.
+COUNTRY RISK MANAGEMENT
+MANAGEMENT DISCUSSION AND ANALYSIS
+Annual Report 2021
+China Construction Bank Corporation
+In 2021, the Group continued to improve its reputational
+risk management system building, optimised its systems
+and working mechanisms, and enhanced its competence in
+managing reputational risk. It revised and issued reputational risk
+management measures and emergency plans, and standardised
+the emergency reporting and handling process of its branches.
+It adhered to the forward-looking, comprehensive, proactive and
+effective management principle, and strengthened the source
+management and comprehensive governance of reputational
+risk. It strengthened the professional training and exchanges,
+raised the awareness of reputational risk prevention and control
+of all employees, and improved the capability in implementing
+mitigation measures. It proactively accepted media's supervision,
+continuously improved its businesses, products, processes,
+and financial services. During the reporting period, the Group
+steadily improved its reputational risk management practices and
+effectively safeguarded its good corporate image and reputation.
+REPUTATIONAL RISK MANAGEMENT
+The Group regularly monitored the maturity gaps between its
+assets and liabilities for various businesses in order to assess its
+liquidity risk in different time periods. As at 31 December 2021,
+the cumulative maturity gap of the Group was RMB2,614,122
+million, an increase of RMB224,769 million over 2020. The
+negative gap for repayment on demand was RMB11,721,520
+million, an increase of RMB158,897 million over 2020, mainly
+due to the relatively fast growth of deposits from its expansive
+customer base. Considering the low turnover rate of the Group's
+demand deposits and a steady growth of deposits, the Group
+expects to enjoy a steady source of funding and maintain a sound
+liquidity position in the future.
+Total
+2,614,122
+2,389,353
+five years
+11,385,014
+9,916,318
+More than
+In strict compliance with regulatory requirements, the Group
+incorporated country risk management into the comprehensive
+risk management system. The Board assumes the ultimate
+responsibility for monitoring the effectiveness of country risk
+management. The senior management carries out country risk
+management policies approved by the Board. The Group used a
+range of tools to manage country risk, including evaluation and
+rating, risk limit, exposure monitoring, provisioning, and stress
+testing.
+As at
+30 September
+31 December
+2021
+NSFR (%)
+Liquidity coverage ratio (%) 1
+Net cash outflows
+High-quality liquid assets
+(In millions of RMB, except percentages)
+Second quarter
+The following table sets forth the liquidity coverage ratio of the Group as at the dates indicated.
+In accordance with the requirements of the Administrative Measures for Liquidity Risk Management of Commercial Banks, the liquidity
+coverage ratio equals to high-quality liquid assets divided by net cash outflows in the future 30 days. High-quality liquid assets of the
+Group mainly include securities guaranteed or issued by sovereign states and central banks with a risk weight of zero or 20%, and central
+bank reserves that may be used under stress circumstances. The average daily liquidity coverage ratio of the Group in the fourth quarter of
+2021 was 134.70%, meeting the regulatory requirements. It decreased by 0.17 percentage points over the previous quarter, mainly due to
+an increase in net cash outflows as a result of a reduction in inflow from fully performing exposures.
+Calculated on the basis of domestic legal person in accordance with the requirements of the CBIRC.
+2.
+1. Calculated by dividing current assets by current liabilities in accordance with the requirements of the CBIRC.
+1.
+77.68
+82.28
+68.29
+58.64
+70.58
+51.87
+As at
+31 December 2019
+31 December 2020
+55.66
+59.32
+>25
+>25
+Foreign currency
+RMB
+78.49
+Fourth quarter
+2021
+Third quarter
+2021
+Required stable funding
+Available stable funding
+(In millions of RMB, except percentages)
+As at
+The following table sets forth the NSFR of the Group as at the dates indicated.
+Net stable funding ratio (NSFR) is calculated by dividing available stable funding by the required stable funding. It is used to evaluate
+whether commercial banks have sufficient and stable funding sources to meet the needs of various assets and off-balance sheet risk
+exposures. At the end of 2021, the Group's NSFR was 125.75%, meeting the regulatory requirements. It was 0.50 percentage points lower
+than that as at 30 September mainly due to the increase in the required stable funding as a result of the increase in performing loans and
+securities. It was 2.20 percentage points higher than that as at 30 June, mainly due to the increase in the available stable funding as a
+result of the increase in capital and wholesale funding.
+RISK MANAGEMENT
+78
+77
+China Construction Bank Corporation
+Annual Report 2021
+Calculated in accordance with the applicable regulatory requirements, definitions and accounting standards for the period. All figures represent simple
+arithmetic means of the values for every calendar day in the quarter.
+158.53
+2020
+4,719,927
+2,981,377
+Fourth quarter
+148.78
+134.20
+First quarter
+2021
+4,667,230
+3,151,858
+Migration rate of special mention loans
+4,696,566
+2021
+134.87
+4,669,236
+3,464,001
+4,756,263
+3,536,514
+134.70
+Fall by 100
+basis points
+53,453
+45,546
+(53,453)
+(45,546)
+3,502,773
+Rise by 100
+0.16
+29,546
+Transportation, storage and postal services
+Customer G
+0.16
+30,583
+Transportation, storage and postal services
+Customer F
+0.16
+31,075
+Customer H
+Transportation, storage and postal services
+0.19
+35,150
+Transportation, storage and postal services
+Customer D
+0.19
+35,210
+water
+Production and supply of electric power, heat, gas and
+Customer C
+0.24
+Customer E
+0.73
+Transportation, storage and postal services
+0.14
+The VaR analysis on the Bank's trading book as at the balance sheet date and during the respective periods is as follows.
+RISK MANAGEMENT
+74
+Annual Report 2021
+China Construction Bank Corporation 73
+The Bank divides its on-and off-balance sheet assets and liabilities
+into trading book and banking book. The Bank performs value at
+risk (VaR) analysis on its trading portfolio to measure and monitor
+the potential losses that could occur on risk positions taken, due
+to movements in market interest rates, foreign exchange rates
+and other market prices. The Bank calculates the VaRs of its RMB
+and foreign currency trading portfolios on a daily basis (at a
+confidence level of 99% and with a holding period of one trading
+day).
+Value at Risk analysis
+of the risk control platform for investment and trading business,
+realised the independent development of core management
+functions, and pressed ahead with the implementation of the
+new standardised approach for market risk, the conversion of
+international benchmark interest rates and other important
+functions.
+In 2021, the Group continued to improve its risk management
+system for the trading and investment business, and
+comprehensively enhance market risk management and control.
+It strengthened the limit management for investment and trading
+business and the eligibility management of financial institution
+customers, established a daily monitoring mechanism for offshore
+bonds issued by Chinese institutions, and improved the forward-
+looking response to financial market fluctuations. It established
+a transaction customer risk screening mechanism, strengthened
+real-time monitoring and risk alert of transaction business, and
+improved the risk monitoring and evaluation of key links of the
+bond business. It optimised the risk control mechanism of the
+asset management business, advanced the rectification of the
+asset management business in an orderly manner, strengthened
+the risk control over assets related to the wealth management
+business, and established an accountability management system
+for the asset management business. It advanced the construction
+MARKET RISK MANAGEMENT
+26,293
+2.22
+Total
+0.12
+21,876
+Finance
+Customer J
+0.13
+24,048
+water
+Production and supply of electric power, heat, gas and
+Customer I
+417,106
+45,361
+Leasing and commercial services
+Customer B
+The Group continued to strengthen large exposures management. It improved management mechanism, and refined customer-based
+modes, standards and procedures for large exposures management covering all related information at the group level. It upgraded
+management methods, improved management efficiency, embedded regulatory requirements, limit early warning rules, and internal
+management requirements into business systems, and optimised the data reporting function of large exposures of subsidiaries to realise
+systemised and digitalised management and control.
+20.60
+50.11
+2.52
+15.97
+25.06
+62.62
+Large exposures management
+1. The migration rate of loans was calculated according to the relevant regulations of the CBIRC on a consolidated basis.
+16.44
+33.02
+Annual Report 2021
+14.46
+31 December 2019
+As at
+2.29
+31 December 2020
+As at
+1.64
+31 December 2021
+As at
+Migration rate of doubtful loans
+basis points
+111
+MANAGEMENT DISCUSSION AND ANALYSIS
+Concentration of loans
+At the end of 2021, the Group's gross loans to the largest single borrower accounted for 4.24% of the total capital after regulatory
+adjustments, while those to the top ten customers accounted for 12.83% of the total capital after regulatory adjustments.
+137,964
+Transportation, storage and postal services
+Customer A
+Amount
+Industry
+(In millions of RMB, except percentages)
+accrued interest
+% of total loans and
+advances excluding
+As at 31 December 2021
+The Group's top ten single borrowers as at the date indicated are as follows.
+10.82
+2.65
+31 December 2019
+31 December 2020
+3.55
+11.84
+12.83
+Proportion of loans to top ten customers
+4.24
+Proportion of loans to the largest single customer
+31 December 2021
+(%)
+As at
+As at
+As at
+2021
+2020
+China Construction Bank Corporation
+(In millions of RMB)
+(3,954,633)
+31 December 2021
+sensitivity gap as at
+Accumulated interest rate
+292,290
+31 December 2021
+Interest rate sensitivity gap as at
+(In millions of RMB)
+2,614,122
+3,820,695
+274,997
+(1,773,860)
+(3,954,633)
+Total
+More than
+five years
+Between
+one year
+and five years
+months and
+one year
+Less than
+three months
+bearing
+Non-interest-
+Between three
+The analysis of interest rate sensitivity gaps of the Group's assets and liabilities as at the dates indicated by the next expected repricing
+dates or maturity dates (whichever are earlier) is set out below.
+4,229,630
+Interest rate sensitivity gap analysis
+(1,498,863)
+Interest rate sensitivity gap as at
+As at
+Scenario1:the interest rates for deposits
+at the PBC being constant
+Exchange rate risk management
+As at 31 December 2020
+As at 31 December 2021
+(In millions of RMB)
+The net interest income sensitivity analysis is based on two scenarios. The first assumes that all yield curves rise or fall by 100 basis points
+in a parallel way, while the interest rates for deposits at the PBC remain the same; the second assumes that the interest rates for deposits
+at the PBC and the demand deposits remain the same, while all the other yield curves rise or fall by 100 basis points in a parallel way.
+The change in net interest income of the Group under different scenarios as at the specified dates is set out below.
+Net interest income sensitivity analysis
+At the end of 2021, the repricing gap of the Group's assets and liabilities with maturities of less than one year was RMB274,997 million, a
+decrease of RMB501,991 million over 2020, mainly because the growth of deposits with maturities of less than one year was faster than
+that of loans and advances. The positive gap of the assets and liabilities with maturities of more than one year was RMB2,046,835 million,
+an increase of RMB542,801 million over 2020, mainly because the growth of bonds investment was faster than that of time deposits with
+maturities of more than one year.
+2,281,022
+2,321,832
+(725,658)
+(2,864,124)
+31 December 2020
+sensitivity gap as at
+Accumulated interest rate
+2,389,353
+3,006,680
+3,641,112
+(2,864,124)
+108,331
+31 December 2020
+776,988
+MANAGEMENT DISCUSSION AND ANALYSIS
+(1,502,646)
+China Construction Bank Corporation
+53
+35
+Interest rate risk
+137
+317
+250
+141
+127
+196
+160
+89
+151
+Minimum
+Maximum
+Average
+31 December
+Minimum
+Maximum
+As at
+Annual Report 2021
+31 December
+Average
+Risk valuation of
+30
+trading portfolio
+98
+In 2021, the Group paid close attention to the development of
+COVID-19 at home and abroad, effectively reduced corporate
+financing costs, reasonably responded to challenges brought by
+changes in macro policies to operations, strengthened interest
+rate monitoring and risk prediction, and maintained stable,
+coordinated and sustainable growth of assets and liabilities. At
+87
+The Group established interest rate risk management framework
+and system in light of its own condition and implemented
+robust and prudent interest rate risk management strategy. The
+interest rate risk policy is in line with the Group's development
+strategy, risk appetite and risk management capability, and
+seeks to achieve a healthy balance between interest rate risk
+and profitability, minimise the adverse impact from interest
+rate changes on net interest income and economic value, and
+ensure steady profit growth and stable capital structure. The
+Group employed a range of methods to measure and analyse
+the interest rate risk on banking book, including repricing gap
+analysis, sensitivity analysis of net interest income and economic
+value, duration analysis, stress testing, and economic capital
+analysis. The Group performed a combination of interest rate
+risk management and evaluation by utilising balance sheet
+quantitative tool, internal and external pricing tool, plan and
+performance appraisal and internal capital evaluation to
+effectively control the interest rate risk level of business lines,
+overseas entities and subsidiaries, and ensure that the interest
+rate risk on banking book is within a reasonable level.
+Interest rate risk management
+42
+9
+45
+137
+298
+246
+145
+1
+203
+182
+46
+110
+Foreign exchange
+risk
+155
+the same time, it closely monitored the trend of interest rates
+of deposits, loans and bonds, and changes in asset and liability
+maturities, optimised internal and external pricing strategies, and
+completed the reform of deposit pricing mechanism with high
+quality. It continuously strengthened the interest rate risk control
+of overseas entities and subsidiaries, optimised the interest risk
+limit system when appropriate, and strengthened the assessment
+of interest rate risk management of overseas entities. It reassessed
+the interest rate risk management system and model, enriched
+system functions, strengthened forward-looking prediction
+capabilities, and improved the intelligent management. During
+the reporting period, the results of the stress testing indicated
+that the interest rate risk of the Group is under control, with
+various indicators kept within the limits.
+Commodity risk
+1
+163
+9
+The Group implemented and actively promoted the LIBOR
+conversion step by step, and had fundamentally completed
+the relevant work by the end of 2021. In accordance with the
+system-first strategy, it iterated system updates, comprehensively
+transformed the processes and modules for front, middle and
+back offices, and took the lead in launching the new benchmark
+interest rate system. It introduced a full range of deposit, loan and
+financial market products supporting the new benchmark interest
+rate, and issued the first Secured Overnight Financing Rate
+(SOFR) loan funded by commercial borrowing in China, the SOFR
+certificates of deposit in Hong Kong, the Sterling Overnight Index
+Average (SONIA) syndicated loans in London, as well as the USD
+SOFR floating rate green bonds.
+The roles of chairman of the Board and president are separate,
+each with clearly defined duties.
+President is responsible for the daily management of business
+operations. The president is appointed by and accountable to the
+Board, and performs his duties in accordance with provisions of
+the Articles of Association and authorisation of the Board.
+Chairman is the legal representative of the Bank and is
+responsible for business strategies and overall development of
+the Bank.
+Chairman and president
+82
+The Bank seeks to continuously enhance the Board's professional
+capabilities and structural reasonableness to achieve optimum
+combination of board members that matches the development
+strategies of the Bank, which lays solid foundation for the
+efficient operation and scientific decision-making of the Board.
+At the end of 2021, the Board comprised 14 directors, including
+two executive directors, six non-executive directors, and six
+independent non-executive directors. The executive directors
+of the Bank have rich professional experience from long-time
+financial management and macro views; the non-executive
+directors have rich experience from holding important positions
+with major state-owned enterprises, core financial regulators
+or government departments, and have profound knowledge
+in enterprise management, finance, accounting and other
+special fields; the independent non-executive directors come
+from America, Europe, Oceania, Hong Kong and other major
+economic regions around the world, and have a deep insight
+of international political and economic situation and financial
+industry development trends, and are familiar with international
+accounting standards and capital market rules. The chairpersons
+of the audit committee, risk management committee,
+nomination and remuneration committee and related party
+transaction, social responsibility and consumer protection
+committee of the Board of the Bank are all independent non-
+executive directors. The diversified board structure of the Bank
+has brought broad views and great expertise together with due
+independence elements to the Board, ensuring the scientific
+decision-making of the Board of the Bank.
+88
+87
+China Construction Bank Corporation
+Annual Report 2021
+Looking forward to 2022, the COVID-19 pandemic is likely to
+persist around the world, the developed economies are expected
+to exit from easing economic policies, and with escalated
+geo-political conflicts, the international financial markets may
+experience more turbulence. The world economic recovery
+has slowed down, and the International Monetary Fund and
+the World Bank have lowered their global economic growth
+forecasts. As a large economy with strong resilience, China still
+enjoys the unchanged economic fundamentals with long-term
+sustainability, but its economic development is facing triple
+pressures of shrinking demand, supply shocks, and weakening
+expectations.
+PROSPECTS
+CORPORATE GOVERNANCE REPORT
+In order to diversify the composition of the Board, the Bank
+formulated the Diversity Policy for the Board of Directors in
+August 2013. For nomination of directors, the Board should
+consider the diversity requirement for board members as well
+as professional capabilities and ethics. The candidates selected
+should be complementary to one another, with diversified
+backgrounds in terms of gender, age, cultural and educational
+background, professional experience, skills, knowledge and term
+of service. The final decision should be based on the candidates'
+overall competence and possible contributions to the Board.
+The nomination and remuneration committee is responsible for
+supervising the implementation of the Diversity Policy for the
+Board of Directors.
+Board meetings
+The Board convenes regular meetings, generally no fewer than
+six times a year; extraordinary meetings are convened if and
+when necessary. Board meetings may be convened by means
+of on-site conference or written resolutions. The agenda for
+regular meetings is scheduled upon consultation with each
+director. Board meeting papers and relevant materials are usually
+circulated to all directors and supervisors 14 days in advance of
+board meetings.
+Non-executive directors
+81
+Mr. Tian Guoli
+Executive director
+Board members
+In 2021, the Board of the Bank had eight meetings, held on 5 February, 26 March, 28 April, 25 June, 25 July, 27 August, 29 September and
+29 October respectively. At these meetings, the Board reviewed the following proposals: the Bank's outline of the development plan
+for the 14th Five-Year Plan Period and vision 2035, strategic development plan for Inclusive Finance (2021-2023), FinTech Strategic Plan
+(2021-2025), annual business plan and fixed assets investment budget, the election of directors, the appointment of senior management,
+periodic reports, profit distribution plan, the issuance of capital instruments, provisional limit on charitable donations, data centre
+construction projects, etc. The board members' attendances of board meetings in 2021 are set out as follows.
+Operation of the Board
+CORPORATE GOVERNANCE REPORT
+China Construction Bank Corporation
+The Bank effected directors' liability insurance policy for all
+directors in 2021.
+At board meetings, directors can express their opinions freely,
+and major decisions are made only after thorough discussions.
+Directors may also engage independent professional institutions
+at the Bank's expense after going through due procedures, if they
+deem it necessary to get independent professional opinions. If
+any director has interests in a proposal to be considered by the
+Board, he or she should abstain from discussion and voting on
+the relevant proposal, and will not be counted in the quorum of
+the relevant proposal.
+Communication and reporting mechanism has been established
+between the Board, directors and senior management. The
+president reports his work to the Board on a regular basis, and
+is supervised by the Board. Relevant senior management are
+invited to attend board meetings from time to time to provide
+explanations or reply to enquiries.
+All directors keep contact with the secretary to the Board and the
+company secretary, to ensure compliance with board procedures
+and all applicable rules and regulations. Detailed minutes of
+board meetings are kept by the secretary to the Board, and are
+available for review by directors at any time.
+According to the Articles of Association of the Bank, the Board
+determines risk management policies and internal control policies
+of the Bank, formulates relevant rules of risk management and
+internal control, and supervises the implementation of such rules.
+The Board reviews the overall risk management report of the
+Group semi-annually, and reviews the internal control evaluation
+report and the statements of risk appetite of the Group annually,
+to evaluate the overall risk profile and the effectiveness of internal
+control system. After the evaluation, the Board held the opinion
+that the overall risk profile of the Group remained steady, the
+management and control of the asset quality was in line with
+expectations and core risk indicators were stable. The Board also
+believed that the Bank had maintained effective internal control
+of financial reporting in all the major aspects, in compliance with
+the requirements of the system of rules for enterprise internal
+control and other relevant regulations.
+Annual Report 2021
+Annual Report 2021
+For more details about capital composition, measurement and management, please refer to Capital Adequacy Ratio Report 2021 issued
+by the Bank.
+For the details of leverage ratio, please refer to "Unaudited Supplementary Financial statements".
+Mr. Xu Jiandong
+55,249
+69,610
+34,808
+50,429
+1,291,343
+1,210,201
+Additional risk-weighted assets due to the application of capital floors
+Total risk-weighted assets
+18,215,893
+16,604,591
+LEVERAGE RATIO
+From the first quarter of 2015, the Group measures the leverage ratio in accordance with the Measures for the Administration of the
+Leverage Ratio of Commercial Banks (Revised). The leverage ratio refers to the ratio of the net amount of Tier 1 capital to the adjusted
+balance of on- and off-balance sheet assets. The leverage ratio of commercial banks should be no less than 4%. As at 31 December 2021,
+the Group's leverage ratio was 8.13%, meeting the regulatory requirements.
+The following table sets forth the information related to the Group's leverage ratio.
+As at
+As at
+(In millions of RMB, except percentages)
+Leverage ratio (%)
+31 December 2021 30 September 2021
+8.13
+2,361,517
+29,548,554
+2,442,723
+30,826,197
+31,263,173
+2,434,940
+2,509,963
+31,514,718
+2,575,528
+31,670,893
+China Construction Bank Corporation
+On and off-balance sheet assets after adjustments
+31 December 2020
+7.99
+31 March 2021
+7.92
+As at
+As at
+As at
+30 June 2021
+7.79
+7.96
+Tier 1 capital after regulatory adjustments
+Mr. Zhang Qi
+5/7
+Mr. Xia Yang
+1/1
+0/1
+Resigned directors
+Mr. Wang Jiang
+Mr. Lyu Jiajin
+Ms. Feng Bing
+Ms. Anita Fung Yuen Mei
+Mr. Carl Walter
+Female director
+Male director
+Strategy
+Development
+Committee
+Audit
+Committee
+120,039
+2/7
+3/3
+0/3
+0/0
+89
+China Construction Bank Corporation
+Annual Report 2021
+and Consumer
+Protection
+Committee
+Social
+Responsibility
+Independent non-executive
+director serving as Chairman of
+special committee
+Executive director serving as
+Chairman of special committee
+Mr. Leung Kam Chung, Antony
+Related Party
+Transaction,
+Risk Management
+Committee
+0/4
+4/4
+0/4
+4/4
+0/0
+Nomination and
+Remuneration
+Committee
+Mr. Tian Bo
+0/5
+Mr. William Coen
+Ms. Shao Min
+Ms. Liu Fang
+Independent non-executive directors
+Sir Malcolm Christopher McCarthy
+Number of meetings
+attended in person/
+Number of meetings
+during term of office
+Number of meetings
+attended by proxy/
+Number of meetings
+during term of office
+7/8
+1/8
+8/8
+0/8
+8/8
+0/8
+8/8
+0/8
+8/8
+0/8
+8/8
+0/8
+8/8
+Mr. Michel Madelain
+1/8
+7/8
+0/8
+5/5
+8/8
+Mr. Kenneth Patrick Chung
+0/8
+8/8
+0/8
+8/8
+0/8
+Mr. Graeme Wheeler
+90,057
+As at 31 December 2021
+The Group
+5,247,387
+Under the leadership of the PBC, the Bank continued to push forward e-CNY pilots in Shenzhen, Suzhou, Xiong'an, Chengdu,
+Shanghai, Hainan, Changsha, Xi'an, Dalian and Qingdao and scenarios of the 2022 Winter Olympics in accordance with the principles
+of being steady, secure, manageable, innovative and practical in 2021. The Bank made great efforts to build e-CNY payment scenarios,
+continuously optimised the e-CNY acceptance environment, and fully covered retail payment fields such as transportation, consumption,
+fee payment for utilities, catering and accommodation services, education, healthcare, entertainment, government affairs services and
+online platforms. The Bank was actively engaged in e-CNY red envelope activities in Shenzhen, Suzhou, Xiong'an, Chengdu, Changsha,
+Hainan and other cities, organised a series of promotion activities, and invited customers to participate in e-CNY pilots. It actively
+participated in events such as the Digital China Summit, Lujiazui Forum, Western Digital Economy Expo (Shaanxi), China International
+Consumer Products Expo (Hainan), and vigorously promoted the advantages and characteristics of e-CNY applications. The Bank
+iteratively strengthened CCB e-CNY system and e-CNY wallet system, continuously improved the e-CNY exchange and circulation
+service experience, and strived to provide the public with more secure, universal, and inclusive retail payment services. In 2021, the Bank
+innovatively offered new services such as e-CNY mixed payment, real-time red envelope distribution and automatic redemption of wallet
+balances to bank accounts. By the end of 2021, the cumulative number of e-CNY transactions of the Bank had been over 84.75 million
+with a total amount approximating RMB43.5 billion.
+E-CNY PILOTS AND PROMOTION
+The Group will gather strengths across the group, practise the
+role of a large commercial bank, continue to empower peers by
+expanding coverage and quantity and improving quality and
+efficiency, and move firmly towards the direction of "the most
+financial-savvy technology group".
+of financial institutions. The well-functioning core system has
+been recognised by peers. Based on technological advantages
+and best practices, the Group actively provided independent
+distributed financial solutions for peers, to enhance the overall IT
+independence and controllability in the financial sector in China.
+It created a new profit model based on interbank sharing and
+empowerment. By the end of 2021, the Group had provided
+risk tools of "Hui" series to 1,027 small and medium-sized
+financial institutions, to export intelligent and digital risk control
+technologies and promote co-governance of risk. The interbank
+cooperation platform had established cooperative relationships
+with 2,916 financial institutions, generating economic and social
+benefits gradually.
+The exhibition area of the Bank's e-CNY located at the financial services special exhibition of the
+2021 China International Fair for Trade in Services
+TMF
+MANAGEMENT DISCUSSION AND ANALYSIS
+Annual Report 2021
+China Construction Bank Corporation
+84
+EMPOWERMENT ON FINANCIAL INSTITUTIONAL BUSINESS WITH FINTECH
+In 2021, the Group adhered to the principle of openness and sharing, and actively responded to
+regulators' requirements of "promoting the export of risk control tools and technologies from large
+banks to small and medium-sized banks" and "encouraging the export of FinTech products and services
+from leading banks to financial institutions". It relied on achievements in the construction of the New
+Generation Core Banking System and the professional technology talent team and adopted logics
+and mindsets of New Finance to promote the construction of interbank cooperation platform. It was
+committed to building a new financial pattern of co-working, co-governance and sharing, to maintain
+financial stability in China, prevent and resolve financial risks, and play its part with CCB solutions. It
+integrated advantages of enterprise-level architecture capability, used data and technology to empower
+peers, and assisted financial institutions in capability improvement, governance enhancement, and
+application expansion. It has successfully rolled out the core system construction and business consulting
+services in several policy banks, large commercial banks, joint-stock commercial banks, and other types
+To meet the regulatory requirements on TLAC, the Group, considering its actual conditions, will continue
+to adhere to its steady and prudent capital management strategy, strengthen capital constraints and
+incentives, further advance intensive capital management, and encourage the asset-lite and capital-
+lite development. The Group will improve its financial service capabilities such as wealth management
+and trading business, continuously optimise business structure and income structure, and improve the
+efficiency of capital use. The Group will also comprehensively consider the balanced development needs
+of assets and liabilities and the requirements of regulatory policies, issued TLAC instruments in a forward-
+looking and prudent manner, and steadily and orderly promoted TLAC regulatory compliance.
+具有国隊影
+区
+China Construction Bank Corporation
+Annual Report 2021
+PAR
+中国建设银行
+中国建设银行
+Le CNY VLNNE
+数字人民币二
+DISCUSSIONS ON KEY TOPICS IN BUSINESS DEVELOPMENT
+83
+China Construction Bank Corporation
+Annual Report 2021
+In October 2021, the PBC, the CBIRC and the MOF officially
+issued the Administrative Measures on the Total Loss-absorbing
+Capacity of Global Systemically Important Banks, which clarified
+the regulatory requirements for the total loss-absorbing capacity
+(TLAC) of global systemically important banks (G-SIBS) in China.
+As the Bank is a Bucket 2 G-SIB, the capital and total loss capacity
+requirements shall be no less than 20% from 1 January 2025
+(including 2.5% capital conservation buffer requirements and
+1.5% capital surcharge requirements for G-SIBS), and no less than
+22% from 2028.
+MANAGEMENT OF TLAC
+The Group will take the reform as an opportunity, focus on
+building the mega wealth management system, enhance its
+comprehensive customer service capabilities, improve the
+efficiency of fund undertaking, optimise the deposit maturity
+structure, and ensure the overall stability of deposit interest
+payment, so as to further improve its quality and efficiency in
+serving the real economy.
+REFORM OF THE DEPOSIT PRICING MECHANISM
+In June 2021, after the deliberation and approval at the work
+conference on the self-regulatory mechanism of interest rate
+pricing, commercial banks in China jointly decided to reform the
+deposit pricing mechanism where the price will be determined
+based on the benchmark deposit rate plus basis points. At the
+same time, they optimised the self-regulatory upper limits of
+deposit rates, and reasonably adjusted the maturity premium
+for deposits. The self-regulatory upper limits of deposit rates
+for various maturities moved in different directions after the
+adjustment. The reform is conducive to enhancing the precise
+transmission efficiency of monetary policies, maintaining a
+healthy competition order in the deposit market, gradually
+moderating the pressure of rising deposit interest payment
+in commercial banks, and enabling banks to support the real
+economy with assets through reduction and exemption of
+service fees. The interest rates moved in different directions after
+the reform, which will guide residents to determine the maturity
+and principal of deposits reasonably based on their income
+expectations and liquidity needs.
+The Group will actively implement the national real estate control
+policy, adhere to the policy that "houses are for living in and not
+for speculation", strengthen the concentration management
+of real estate loans, vigorously advance the housing rental
+strategy, maintain the stable and healthy development of the
+real estate market, safeguard the legitimate rights and interests
+of consumers, and promote the virtuous cycle and healthy
+development of the real estate industry.
+In 2021, the Group precisely implemented policies on real estate
+finance, and was committed to meeting the reasonable needs
+of the real estate industry for capital and individuals for housing
+purchases respectively, innovating and exploring feasible paths
+to support the development of housing rental, and helping
+build a long-term real estate development mechanism. In terms
+of corporate real estate loans, the Group comprehensively
+considered market conditions, customer needs and business
+objectives, actively met the reasonable financing needs of
+real estate enterprises, and maintained a stable, balanced, and
+orderly allocation of real estate development loans. In respect of
+residential mortgages, the Group strictly implemented regulatory
+requirements, enforced differentiated housing credit policies,
+actively supported the reasonable housing needs of residential
+households, and ensured the sustainable, stable, and healthy
+development of its residential mortgage loan business. At the
+end of 2021, the Bank's domestic loans to the real estate industry
+totalled RMB730,087 million, an increase of RMB42,583 million or
+6.19% over 2020; the NPL ratio was 1.85%, up 0.54 percentage
+points over 2020. The Bank's domestic residential mortgages
+totalled RMB6.39 trillion, an increase of RMB555,724 million, or
+9.53% over 2020; the NPL ratio was 0.20%, up 0.01 percentage
+points over 2020.
+REAL ESTATE LOANS
+中国建设银行
+85
+86
+CORPORATE GOVERNANCE REPORT
+The term of office of directors of the Bank is three years, and
+directors may be re-elected upon expiration of their terms of
+office.
+At the end of 2021, the Board consisted of 14 directors, including
+two executive directors, namely Mr. Tian Guoli and Mr. Wang
+Jiang; six non-executive directors, namely Mr. Xu Jiandong, Mr.
+Zhang Qi, Mr. Tian Bo, Mr. Xia Yang, Ms. Shao Min and Ms. Liu
+Fang; and six independent non-executive directors, namely Sir
+Malcolm Christopher McCarthy, Mr. Kenneth Patrick Chung, Mr.
+Graeme Wheeler, Mr. Michel Madelain, Mr. William Coen and Mr.
+Leung Kam Chung, Antony.
+Composition of the Board
+In 2021, the Board earnestly implemented the resolutions
+approved by the shareholders' general meetings, including
+the profit distribution plan for 2020, fixed assets investment
+budget for 2021, provisional limit on charitable donations for
+2021, issuance of write-down undated capital bonds, issuance of
+qualified write-down tier 2 capital instruments, and appointment
+of external auditors for 2021.
+The Board's implementation of resolutions of the
+general meetings of shareholders
+exercising other powers under the Articles of Association
+of the Bank and as authorised by the shareholders' general
+meeting.
+formulating plans related to material acquisitions and
+repurchase of the Bank's shares;
+formulating annual financial budget plans, final accounting
+plans, profit distribution plans and loss recovery plans;
+formulating plans related to the increase or reduction of
+registered capital, the issuance and listing of convertible
+bonds, subordinated bonds, corporate bonds or other
+marketable securities; and plans related to merger, split,
+dissolution and liquidation of the Bank;
+deciding on business plans, investment plans and risk
+capital allocation plans of the Bank;
+determining the Bank's development strategies, and
+supervising the implementation of the development
+strategies;
+convening the shareholders' general meeting and
+reporting to the shareholders' general meeting;
+implementing the resolutions of the shareholders' general
+meeting;
+The Board is the executive body of and is responsible to the
+shareholders' general meeting. It performs the following
+functions in accordance with relevant laws:
+BOARD OF DIRECTORS
+Responsibilities of the Board
+On 20 December 2021, the Bank held the 2021 second
+extraordinary general meeting, which reviewed and approved
+proposals including the election of shareholder representative
+supervisor, remuneration distribution and settlement plan for
+directors for the year 2020 and remuneration distribution and
+settlement plan for supervisors for the year 2020, new provisional
+limit on charitable donations in 2021, issuance of write-down
+undated capital bonds and issuance of qualified write-down tier
+2 capital instruments. The executive directors, namely Mr. Tian
+Guoli and Mr. Wang Jiang, the non-executive directors, namely
+Mr. Xu Jiandong, Mr. Zhang Qi, Mr. Tian Bo, Mr. Xia Yang, Ms. Shao
+Min and Ms. Liu Fang, and independent non-executive directors,
+namely Sir Malcolm Christopher McCarthy, Mr. Kenneth Patrick
+Chung, Mr. Graeme Wheeler, Mr. Michel Madelain, Mr. William
+Coen and Mr. Leung Kam Chung, Antony attended the meeting.
+The directors' attendance rate was 100%. The legal advisors as to
+PRC laws and Hong Kong laws of the Bank attended the meeting.
+The shareholders' general meeting was held in compliance with
+procedures prescribed by relevant laws and regulations. The
+announcement on resolutions of the meeting was published
+on the websites of the Shanghai Stock Exchange, Hong Kong
+Stock Exchange and the Bank on 20 December 2021, and on the
+designated newspapers on 21 December 2021 for information
+disclosure.
+CORPORATE GOVERNANCE REPORT
+Annual Report 2021
+China Construction Bank Corporation
+Based on China's actual conditions, industry practices as well as
+international best practice, the Bank built a corporate governance
+mechanism with Chinese characteristics, and improved corporate
+governance continuously so as to enhance the quality and
+efficiency of its governance effectively.
+The Bank is in strict compliance with the PRC Company Law, Law
+on Commercial Banks and other laws and regulations, as well
+as the listing rules of the listing venues. The Bank has complied
+with the code provisions of the Corporate Governance Code and
+Corporate Governance Report as set out in Appendix 14 to the
+Listing Rules of Hong Kong Stock Exchange, and substantially
+adopted the recommended best practices therein.
+SHAREHOLDERS' GENERAL MEETING
+Powers of shareholders' general meeting
+The shareholders' general meeting is the authoritative body
+of the Bank and mainly exercises the following functions and
+powers:
+deciding on the business strategies and investment plans
+of the Bank;
+electing and changing directors and supervisors (except for
+employee representative supervisors), and determining the
+remuneration of relevant directors and supervisors;
+considering and approving the Bank's annual financial
+budgets, final accounts, profit distribution plans and loss
+recovery plans;
+Under the backdrop of complex and severe external
+environment, the Group will continue to implement new
+development concept in a full, accurate, and comprehensive
+manner, persist in taking stability as its priority and pursuing
+progress while ensuring stability, enhance overall arrangement
+and coordination, continue to improve the comprehensive,
+proactive and intelligent risk prevention, monitoring and
+management system, firmly safeguard the bottom line of wiping
+out systemic financial risks, and achieve a virtuous circle that
+supports the high-quality development of both the real economy
+and the Group.
+adopting resolutions related to matters including the
+increase or reduction of registered capital, and merger,
+split, dissolution and liquidation of the Bank;
+adopting resolutions to engage, dismiss or cease to retain
+certified public accountants;
+deciding the issuance of preference shares; deciding
+or authorising the Board to decide the matters relating
+to the issued preference shares by the Bank, including
+but not limited to repurchase, conversion and dividend
+distribution;
+amending the Articles of Association and other basic
+corporate governance documents of the Bank.
+Details of shareholders' general meetings convened
+On 26 March 2021, the Bank held the 2021 first extraordinary
+general meeting, which reviewed and approved proposals
+including election of executive director, confirming the donations
+of anti-pandemic materials made in 2020, and additional limit on
+poverty alleviation donations. The executive directors, namely
+Mr. Tian Guoli and Mr. Lyu Jiajin, the non-executive directors,
+namely Mr. Xu Jiandong, Mr. Zhang Qi, Mr. Tian Bo, Mr. Xia
+Yang, Ms. Shao Min and Ms. Liu Fang, and the independent
+non-executive directors, namely Ms. Anita Fung Yuen Mei, Sir
+Malcolm Christopher McCarthy, Mr. Carl Walter, Mr. Kenneth
+Patrick Chung, Mr. Graeme Wheeler and Mr. Michel Madelain
+attended the meeting. The directors' attendance rate was 100%.
+The legal advisors as to PRC laws and Hong Kong laws of the
+Bank attended the meeting. The convening of this shareholders'
+general meeting was in compliance with procedures prescribed
+by relevant laws and regulations. The announcement on the
+resolutions of the meeting was published on the websites of
+Shanghai Stock Exchange, Hong Kong Stock Exchange and
+the Bank on 26 March 2021, and on the Bank's designated
+newspapers for information disclosure on 27 March 2021.
+On 25 June 2021, the Bank held the 2020 annual general
+meeting, which reviewed and approved proposals including
+the 2020 report of the board of directors, 2020 report of the
+board of supervisors, 2020 final financial accounts, 2020 profit
+distribution plan, 2021 fixed assets investment budget, election
+of independent non-executive directors, and 2021 appointment
+of external auditors. The executive directors, namely Mr. Tian
+Guoli and Mr. Wang Jiang, the non-executive directors, namely
+Mr. Xu Jiandong, Mr. Zhang Qi, Mr. Tian Bo, Mr. Xia Yang, Ms.
+Shao Min and Ms. Liu Fang, and the independent non-executive
+directors, namely Ms. Anita Fung Yuen Mei, Sir Malcolm
+Christopher McCarthy, Mr. Carl Walter, Mr. Kenneth Patrick Chung,
+Mr. Graeme Wheeler and Mr. Michel Madelain attended the
+meeting. The directors' attendance rate was 100%. The domestic
+and international auditors of the Bank, and the legal advisors
+as to PRC laws and Hong Kong laws of the Bank attended the
+meeting. The convening of this shareholders' general meeting
+was in compliance with procedures prescribed by relevant
+laws and regulations. The announcement on the resolutions of
+the meeting was published on the websites of Shanghai Stock
+Exchange, Hong Kong Stock Exchange and the Bank on 25 June
+2021, and on the Bank's designated newspapers for information
+disclosure on 26 June 2021.
+adopting resolutions related to the issuance and listing of
+corporate bonds or other marketable securities;
+adopting resolutions related to material acquisitions and
+repurchase of the Bank's shares;
+In 2021, the Group maintained its proactive management
+of credit risk. It identified risk in a forward-looking manner,
+conducted scientific and accurate classification, made sufficient
+provisions, and maintained stable credit asset quality on the
+whole. At the end of 2021, the Group's NPLs were RMB266,071
+million, an increase of RMB5,342 million over 2020; its NPL ratio
+was 1.42%, a decrease of 0.14 percentage points over 2020.
+Specifically, the NPL ratios of domestic corporate loans and
+personal loans were 2.27% and 0.40% respectively, and that for
+overseas operations and subsidiaries was 1.92%. In 2021, the
+Group's credit impairment losses on loans and advances to
+customers were RMB160,324 million, a decrease of RMB6,815
+million or 4.08% over 2020. Specifically, provisions for credit
+impairment losses on domestic corporate loans and discounted
+bills were RMB128,383 million, a decrease of RMB3,164 million
+or 2.41% over 2020, while credit impairment losses on domestic
+personal loans were RMB29,994 million, a decrease of RMB592
+million or 1.93% over 2020.
+ASSET QUALITY
+DISCUSSIONS ON KEY TOPICS IN BUSINESS DEVELOPMENT
+13.61
+14.09
+13.62
+13.63
+14.22
+14.18
+Total capital ratio (%)
+17.85
+18.03
+17.06
+17.15
+Please refer to Note "Risk management - Capital management" to the financial statements for details of composition of capital.
+China Construction Bank Corporation
+Annual Report 2021
+MANAGEMENT DISCUSSION AND ANALYSIS
+Risk-weighted assets
+Based on the approval for the Group to implement the advanced capital management method in 2014, the CBIRC approved the Group
+to expand the implementation scope of the advanced capital management method in April 2020. The Group calculated the capital
+requirements for financial institution credit exposures and corporate credit risk exposures that meet regulatory requirements with the
+foundation internal ratings-based approach, the capital requirements for retail credit risk exposures with the internal ratings-based
+approach, the capital requirements for market risk with the internal models approach, and the capital requirements for operational risk
+with the standardised approach. Pursuant to the regulatory requirements, the Group calculates capital adequacy ratios with both the
+advanced approach and other approaches to capital measurement, and complies with the relevant requirements for capital floors.
+The following table sets forth the information related to the risk-weighted assets of the Group.
+10,638,946
+11,587,106
+15,274,351
+16,834,493
+As at 31 December 2020
+As at 31 December 2021
+14.14
+Operational risk-weighted assets
+Covered by the internal models approach
+Market risk-weighted assets
+Uncovered by the internal ratings-based approach
+Covered by the internal ratings-based approach
+Credit risk-weighted assets
+(In millions of RMB)
+Uncovered by the internal models approach
+4,635,405
+Tier 1 ratio (%)
+Common Equity Tier 1 ratio (%)
+Annual Report 2021
+China Construction Bank Corporation
+In 2022, the Group will persist in pursuing progress while ensuring
+stability, fully, accurately, and comprehensively implement
+new development concepts, focus on "Three Major Tasks",
+enhance "Three Capabilities", and further implement "Three
+Major Strategies". The Group will continue to deepen the New
+Finance initiatives, fully implement the "14th Five-Year Plan",
+advance the "First Curve" and the "Second Curve" in parallel,
+accelerate the building of a new development paradigm with
+high-quality financial services, and create a new picture of
+high-quality development of the Bank. To this end, firstly, the
+Group will focus on serving the real economy, facilitate the
+implementation of major national strategies, support key areas
+and weak links in the real economy, and improve the Group's
+comprehensive financial service capabilities. Secondly, the
+Group will implement new development concepts and promote
+strategic expansion and upgrading. For house rental services,
+it will focus on the construction of a comprehensive house
+rental service system with financial characteristics. For inclusive
+finance, it will continue to increase the quantity, expand the
+coverage, and reduce the cost of financing for small and micro
+businesses. For FinTech, it will strengthen the overall planning of
+the enterprise-level business structure and enhance the ability
+to empower businesses. For rural revitalisation, it will improve
+the service capacity of "Yunongtong". For green finance, it
+will ensure excellent financial services for energy security and
+low-carbon transformation. Thirdly, the Group will adhere to
+sustainable development concept, consolidate the foundation
+of business capabilities, improve the quality and efficiency of
+liability business development, maintain a reasonable growth
+in fee-based business income, and upgrade the product supply
+system. Fourthly, the Group will adopt a digital mindset to
+innovate traditional business models, coordinate the construction
+and operation of platforms, strengthen the layered, grouped,
+and graded operation, advance the establishment of the middle
+platform system, and improve the management efficiency of
+the middle and back offices. Fifthly, the Group will anchor value
+creativity, strengthen risk control and compliance operations,
+ensure sound asset quality, improve risk governance, focus on
+key areas and links, strengthen compliance system building, and
+deepen consumer rights and interests protection and business
+integration.
+The banking industry in China will encounter a more complex
+and severe operating environment, which presents both
+challenges and opportunities. On the one hand, internationally,
+banks will see more risks from potential large fluctuations in
+international financial markets caused by the lingering impact
+of COVID-19, slowdown of global economic growth, struggling
+supply chains, high inflation, moves by central banks to raise
+interest rates and trim balance sheet in advance, as well as
+disruptions of capital flows in emerging markets. Domestically,
+commercial banks may encounter more uncertainties and
+difficulties in operation and management caused by downward
+pressures on domestic economy, continuous adjustments to
+economic policies, and stricter regulation. On the other hand,
+banking business will gain major support as China accelerates
+its industrial transformation and upgrades, innovation becomes
+the driving force of development, and the green transformation
+provides new momentum for development.
+80
+CAPITAL MANAGEMENT
+The Group adhered to a robust and prudent capital management strategy, gave full play to the guiding role of capital, and promoted
+intensive capital management to continuously enhance the efficiency of capital use. The Group relied both on internal capital
+accumulation and external capital replenishment, and maintained a capital adequacy level that is constantly above the regulatory
+requirements and among the highest in the industry.
+In 2021, the Group actively served the real economy with capital, supported the development of businesses, maintained a stable growth
+of core businesses such as loans and bond investments, and advanced continuous optimisation of asset structure. It pressed ahead with
+the intensive management of capital, explored the potential of capital saving with big data, and reduced the inefficient and less efficient
+capital occupation. It reasonably promoted capital instrument financing and enhanced its capital strength. It actively followed up on the
+impact of regulatory policies such as the total loss-absorbing capacity ("TLAC") of global systemically important banks ("G-SIBS") and made
+forward-looking arrangements for compliance.
+CAPITAL ADEQUACY RATIOS
+Capital adequacy ratios
+In accordance with the regulatory requirements, the scope for calculating capital adequacy ratios of the Group includes both the Bank's
+domestic and overseas branches and sub-branches, and financial subsidiaries (insurance companies excluded). At the end of 2021, given
+relevant rules during the parallel period, the Group's total capital ratio, Tier 1 ratio and Common Equity Tier 1 ratio, which were calculated
+in accordance with the Capital Rules for Commercial Banks (Provisional), were 17.85%, 14.14% and 13.59% respectively, meeting
+regulatory requirements. The Group's total capital ratio increased by 0.79 percentage points, and its Tier 1 ratio and Common Equity Tier 1
+ratio decreased by 0.08 and 0.03 percentage points respectively from 2020.
+Changes in the Group's capital adequacy ratios were mainly due to the following factors: Firstly, the internal capital accumulation capacity
+was enhanced driven by the growth in net profit in 2021 with an amount of RMB211,603 million retained profits after distributing
+dividends; Secondly, the Group issued a total of RMB145 billion domestic Tier 2 capital bonds in 2021 by means of capital replenishments
+through external financing with 0.80 percentage points increase in capital adequacy ratio; Thirdly, the Group supported the development
+of core businesses such as loans and bond investments to serve the real economy with an amount of RMB1.61 trillion or 9.70% increase in
+risk weighted assets over 2020.
+The following table sets forth, as at the dates indicated, the information related to the capital adequacy ratios of the Group and the Bank.
+As at 31 December 2020
+The Group
+(In millions of RMB, except percentages)
+Common Equity Tier 1 capital after regulatory adjustments
+Tier 1 capital after regulatory adjustments
+2,649,639
+2,832,681
+3,059,048
+3,252,282
+Total capital after regulatory adjustments
+2,191,258
+13.59
+2,361,517
+2,575,528
+2,105,934
+2,261,449
+The Bank
+The Bank
+2,309,534
+2,475,462
+2,389,615
+In line with the unified arrangement of the PBC, the Bank will further extend e-CNY application scenarios and optimise its service
+experience in accordance with preliminary pilot practice. Considering the characteristics of e-CNY, the Bank will actively explore and
+innovate e-CNY products, applications, and models, build CCB e-CNY operation system and risk prevention and control system, and make
+greater contributions to e-CNY pilots.