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As part of a long-term strategic investment in one of the world’s fastest-growing
economies, Bank of America finalized an innovative partnership with China
Construction Bank in 2005. Under the agreement, Bank of America became a significant shareholder in, and long-term strategic partner of, China Construction Bank. Bank of America associates will work with China Construction Bank to provide advice and assistance to the Beijing-based bank.
China Construction Bank has built a leading franchise in China, the world’s fourth-largest economy. Both partners see significant added value in combining China Construction Bank’s local knowledge and distribution with Bank of America’s product expertise, technology and experience in managing growth and scale.
The partnership with China Construction Bank will enable Bank of America to better serve our multinational clients who do business in China. We also expect to find
opportunities in China’s consumer market, which currently includes a growing population of more than 1.3 billion
people. In 2006, we hope to establish a joint venture
between China Construction Bank and Bank of America to provide credit cards in China.
China Construction Bank is the third-largest commercial bank in China, with $522 billion in assets and
$467 billion in deposits. It has 146 million active retail deposit account relationships, a national network of 14,250 branches concentrated in the more economically developed areas of
the country, and relationships with 97 of the top 100 enterprises in China. It is China’s largest mortgage lender and has leading positions in credit cards and infrastructure loans.
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Bank of America Global Corporate Planning and Strategy executive Gregory L. Curl, left, with China Construction Bank chairman Guo Shuqing in Hangzhou, China. The two leaders are exploring new joint venture opportunities that support the companies’ mutual business interests.
Video transcript
Bank of America bought approximately 9 percent of China Construction Bank stock for $3 billion. Under the terms of the seven-year agreement, it has the option of
increasing that stake to 19.9 percent in the future.
This is just one example of how we are recognizing
opportunities to expand our business.
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