Analysis and Investment Consulting Report on China Banking Industry, 2008

　　Banking is in the subject position of China financial industry. According to the character and function, China banks could be divided into three kinds: Central bank, Commercial bank and Policy bank.
　　In recent years, reform and innovation of China banking have obtained remarkable achievements. The whole banking changes historically, plays the supporting and promoting role in the economic society development, and strongly supports China national economy to develop well and rapidly.
　　In 2005, total capital amount of domestic local and foreign currency in the financial institutions of China banking was to 35.96 trillion yuan, increased year-on-year 19.3%. Total assets amount of state-owned commercial banks was to 19.15 trillion yuan, increased 17.5%; total assets amount of joint-stock commerical banks was to 5.49 trillion yuan, increased 24.4%; total assets amount of urban commercial banks was to 1.88 trillion yuan, increased 19.9%; total assets amount of other financial institutions was 9.44 trillion yuan, increased 20%. Total debt amount of domestic local and foreign currency of the financial institutions was 34.46 trillion yuan, increased year-on-year 18.7%; Of which, total debt amount of state-owned commercial banks was 18.37 trillion yuan, increased 17.4%; total debt amount of joint-stock commercial banks was 5.29 trillion yuan, increased 24.2%; total debt amount of urban commercial banks was 1.81 trillion yuan, increased 19.6%; total debt amount of other financial institutions was 8.99 trillion yuan , increased 18.3%.
　　By the end of 2006, total assets amount of financial institutions of China banking was to 43.95 trillion yuan, profit before tax was 337.92 billion yuan, increased about 10 times of that in 2003 when China Banking Regulatory Commission established.
　　In 2006, asset scale of China banking grew rapidly, asset quality was perfected constantly, profitability was improved stably. Profit before tax of main commercial banks was 240.9 billion yuan, increased by 55.9 billion yuan than that in 2005, increased 30.2%, net return on total assets and net return on equity of four state-owned joint-stock commercial banks were to 0.9% and 14.9% averagely, intermediary business revenue of main commercial banks accounted for 17.5% and revenue structure changed further. Of which, profit before tax of state-owned commercial banks was 197.49 billion yuan, joint-stock commercial banks fellow closely, was 43.42 billion yuan. The next was policy bank 31.1 billion yuan, rural credit cooperatives and urban commercial banks fellow 18.62 billion yuan and 18.09 billion yuan respectively.
　　The research proves that bank businesses, including commercial bank business and investment bank business, are all with high benefit, the main cost is management cost. Calculating on 3% interest margin, only the loan item automatically adds 800-900 billion yuan to the profit of domestic bank annually. Under normal circumstances, banking is definitely the most lucrative industry. Capital expansion multiple of domestic banks is between 20-40, profit rate of total asset is 0.1-0.9% ( average 0.5% around), asset utilization rate is about 2-4%, domestic banks have high potential in improving self-quality and operational management efficiency.
　　Since the reform and opening up, state-owned commercial bank businesses cross and form omnibearing competition status step by step, and such competition driving by commercialization and hunting for profit becomes more and more fierce especially in the developed regions. Compared with international standard and successful foreign commercial banks, the four China commercial banks are still infant, low efficiency and not the commercial bank in a real sense, the competition among the banks haven’t gone out of the low-level competition pattern in which each goes his own way.
　　In the future, China banking has great potential to promote profitability, it is not only because of the huge market development space existing in domestic banking, also because of the high potential to enhance the overall operation quality of domestic banking.

Contents of Chinese vision>>

Chapter I　Survey of international banking
　　1.1　Overall overview of the international banking
　　　　1.1.1　United States
　　　　1.1.2　European countries
　　　　1.1.3　Japan
　　　　1.1.4　Hong Kong
　　1.2　Survey of foreign banks development in China
　　　　1.2.1　Analysis of opening up of China banking
　　　　1.2.2　Main status of foreign banks in China
　　　　1.2.3　Competition analysis of foreign banks in China
　　　　1.2.4　Development prospect analysis of foreign banks in China
Chapter II　Analysis of China banking
　　2.1　Overall survey of China banking development
　　　　2.1.1　Process of China banking development
　　　　2.1.2　Basic characteristics of China banking development
　　　　2.1.3　China banking making historic radical changes
　　2.2　Analysis of China banking 2004-2006
　　　　2.2.1　Development review of China banking 2004
　　　　2.2.2　Reform status of China banking 2005
　　　　2.2.3　Profits of domestic banking increased sharply 2006
　　2.3　Major indexes of banking from 2004 to the first quarter 2007
　　　　2.3.1　Assets and liabilities status of banking 2004
　　　　2.3.2　Assets and liabilities status of banking 2005
　　　　2.3.3　Assets and liabilities status of banking 2006
　　　　2.3.4　Assets and liabilities status of banking the first quarter 2007
　　2.4　Reform and portfolio analysis of banking
　　　　2.4.1　Historical process review of China banking reform
　　　　2.4.2　Three steps of joint-stock commercial banks reform
　　　　2.4.3　Structure adjustment measures of commercial banks portfolio
　　　　2.4.4　Structure adjustment trend of commercial banks portfolio
　　2.5　Problems existing in banking and countermeasures
　　　　2.5.1　Problems existing in China banking development
　　　　2.5.2　Main strategies of China banking development
　　　　2.5.3　Main measures speeding up the development of China banking
Chapter III　Analysis of main bank segmentations
　　3.1　Analysis of commercial banks
　　　　3.1.1　Bank of China
　　　　3.1.2　Agricultural Bank of China
　　　　3.1.3　Industrial and Commercial Bank of China
　　　　3.1.4　China Construction Bank
　　　　3.1.5　Postal Savings Bank
　　3.2　Analysis of joint-stock banks
　　　　3.2.1　China Merchants Bank
　　　　3.2.2　Shenzhen Development Bank
　　　　3.2.3　China Minsheng Bank
　　　　3.2.4　Shanghai Pudong Development Bank
　　　　3.2.5　Huaxia Bank
　　　　3.2.6　CITIC Bank
　　3.3　Analysis of other banks
　　　　3.3.1　Policy banks
　　　　3.3.2　Rural credit cooperatives
Chapter IV　Main businesses analysis of banks
　　4.1　Liability business
　　　　4.1.1　Concept and composition of bank liability business
　　　　4.1.2　Concept and types of central bank liability business
　　　　4.1.3　Analysis on the active liability business of domestic commercial bank
　　4.2　Asset business
　　　　4.2.1　Types of commercial bank asset business
　　　　4.2.2　Asset business of China banking is in urgent need of innovation
　　　　4.2.3　Some proposals for developing asset business of domestic banks
　　4.3　Intermediary business
　　　　4.3.1　Opportunities intermediary business of domestic banks facing
　　　　4.3.2　Existing problems in intermediate business of China banks and countermeasures
　　　　4.3.3　Development trend of intermediate business market of China banks
　　4.4　Bill business
　　　　4.4.1　Development overview on bill business of domestic banks
　　　　4.4.2　Risk prevention and supervision analysis of banks bill business
　　　　4.4.3　Problems existing in bill business of domestic banks and proposals
　　4.5　Internet banking business
　　　　4.5.1　Development stage of China internet banking business
　　　　4.5.2　Some strategies to develop China internet banking business
　　　　4.5.3　Development trend prediction of internet banking business in the future
　　　　4.6　Bank card business
　　4.6.1　Status analysis of bank credit card business
　　　　4.6.2　Problems existing in China bank card business and countermeasures
　　　　4.6.3　Development trend bank card business will show in the future
　　4.7　International business
　　　　4.7.1　Scope and operation objectives of bank international business
　　　　4.7.2　Exploration on international business development of state-owned commercial banks
　　　　4.7.3　Analysis on internet bank development of international business
Chapter V　Banking competition and bad assets analysis
　　5.1　Analysis of banking competition
　　　　5.1.1　Main principles to measure bank competitiveness
　　　　5.1.2　Competition pattern of China banking
　　　　5.1.3　Core competitiveness analysis of China commercial banks
　　　　5.1.4　Exploration on international competitiveness of China banking
　　5.2　Analysis of banking bad assets
　　　　5.2.1　Concept of bank bad assets
　　　　5.2.2　Forming reasons of China banking bad assets
　　　　5.2.3　Securitization analysis of commercial banks bad assets
　　　　5.2.4　Control measures for bank bad assets and proposals
Chapter VI　Investment and prospect analysis of banking
　　6.1　Banking investment analysis
　　　　6.1.1　Analysis on changing environment of China banking development
　　　　6.1.2　Investment value of domestic banking is increasingly obvious
　　　　6.1.3　Analysis on continuous investment enthusiasm of foreign capital in China banking
　　6.2　Development prospect and trend of banking
　　　　6.2.1　Future development trend of international banking
　　　　6.2.2　Development prospect of China banking
　　　　6.2.3　Strategic planning of China banking development during the “Eleventh Five Years”