Company type | Subsidiary |
---|---|
Industry | Investment company |
Founded | 2003Beijing, China | , in
Headquarters | , China |
Area served | People's Republic of China |
Key people | Ding Xuedong (Chairman & CEO) |
Parent | China Investment Corporation |
Website | www |
Central Huijin Investment Co., Ltd. | |||||||
---|---|---|---|---|---|---|---|
Simplified Chinese | 中央汇金投资有限责任公司 | ||||||
Traditional Chinese | 中央匯金投資有限責任公司 | ||||||
Literal meaning | Central Foreign Exchange Investment Company Limited | ||||||
| |||||||
Central Huijin | |||||||
Simplified Chinese | 中央汇金 | ||||||
Traditional Chinese | 中央匯金 | ||||||
|
Central Huijin Investment Co.,Ltd. is a Chinese sovereign fund formerly owned by the government of the People's Republic of China. Established in 2003 by the People's Bank of China,five years later it became a wholly-owned subsidiary of China Investment Corporation,with its own Board of Directors and Board of Supervisors. [1] Central Huijin's principal shareholder rights are exercised on behalf of the State Council. [2] Central Huijin is an organization by which the Chinese government can act as a shareholder for the "big four" state-owned banks,thereby improving corporate governance and initiating reforms of the banking industry. [3]
Central Huijin was established in 2003 by the People's Bank of China. [4] : 13 It was created as a special purpose vehicle incorporated as a limited liability company. [4] : 13 Its mission was to recapitalize China's banks. [4] : 13 Researcher Zongyuan Zoe Liu writes that using a sovereign fund like Central Huijin gave "the CPC the maximum degree of flexibility to decide when it would leave the market to its own devices and when it would forcefully intervene to protect the state's interest." [4] : 13 Between 2003 and 2006,Central Huijin functioned as a quasi-state-owned private equity fund. [4]
In 2005,the State Council approved the Comprehensive Plan for the Consolidation of Brokerage Firms,with the goal of implementing new regulatory mechanisms and rooting out misconduct in the securities field. [4] : 85 Central Huijin wholly-owned subsidiary Jianyin Investment,along with the China Securities Investor Protection Fund,were tasked by the State Council with restructuring Chinese brokerages. [4] : 85 During the period 2004-2007,Central Huijin and Jianyin Investment acquired controlling stakes in ten large Chinese brokerage firms,totaling at that time one-third of the Chinese securities industry. [4] : 86 The brokerages recapitalized in 2005 included Galaxy Securities,China Southern Securities (which was subsequently liquidated), [5] Shenyin &Wanguo Securities,and Guotai Junan Securities. [6] : 283 This in turn gave Central Huijin's parent institution,the People's Bank of China,significant power in the securities industry despite not having formal legal oversight. [4] : 86 Central Huijin's track record of restructuring financial institutions has largely been viewed as a success. [4] : 89
In 2008,Central Huijin Investment was acquired from the State Administration of Foreign Exchange by the China Investment Corporation for roughly $67 billion. [7] It manages more than two-thirds of CIC's assets. [4] : 87 Central Huijin functions as the "shareholder in chief" of the entire financial sector,a role that allows the state to participate in the market consistent with global norms of corporate ownership structure without letting go of state oversight of strategic enterprises and sectors. [4] : 14
Central Huijin indirectly supports the Belt and Road Initiative through its support of domestic financial institutions,such as policy banks or state-owned commercial banks,which in turn fund BRI projects. [4] : 124
In December 2019,Central Huijin bailed out Hengfeng Bank. [4] : 139
Initially,Guo Shuqing was the chairman of Central Huijin,and its general manager was Xie Ping ,a former chief of the PBC's Research Bureau and director of its Financial Stability Bureau (also established in 2003). [6] : 280–281 More recently under the CIC,the board of directors of Central Huijin has consisted of Ding Xuedong (Chairman &CEO),Li Jiange (Vice Chairman),and Bai Tao (Executive Director and President).[ citation needed ]
As of 31 December 2020,Central Huijin held shares in 17 financial institutions:China Development Bank,Industrial and Commercial Bank of China,Agricultural Bank of China,Bank of China,China Construction Bank,China Everbright Group,Hengfeng Bank,China Export &Credit Insurance Corporation,China Reinsurance (Group) Corporation,New China Life Insurance Co.,China Jianyin Investment Ltd.,China Galaxy Financial Holdings Co. Ltd.,Shenwan Hongyuan,China International Capital Corporation,China Securities,China Galaxy Asset Management Co. Ltd.,and Guotai Junan Investment Management Co. Ltd.[ citation needed ] Central Huijin requires that it be able to seat one third of the directors of the boards on its banks. [4] : 88
It owns majority stakes in all big four Chinese banks (Bank of China,Industrial and Commercial Bank of China,China Construction Bank,and Agricultural Bank of China),but does not own shares in the smaller joint-stock commercial banks which are largely owned by local governments.
As of 2023,Central Huijin is the largest shareholder of the vast majority of Chinese financial institutions. [4] : 23
Guotai Junan Securities Co.,Ltd.(GTJA) is one of the largest investment banks and securities companies in the People's Republic of China.
Bank of Shanghai Co.,Ltd. (BOSC) is an urban commercial bank based in Shanghai in China. The bank was ranked 73rd among 1000 banks around the world by The Banker in terms of their Tier 1 capital in 2020.
Fubon Bank Limited is a wholly owned subsidiary of Fubon Financial Holding Co.,Ltd.,one of the largest financial holding companies in Taiwan. Committed to becoming one of Asia’s first-class financial institutions,Fubon Financial Holdings has built a strong lineup of financial service companies. Fubon Bank operates 15 branches,3 SME Banking Services Centres,1 Offshore Banking Centre and 1 Securities Services Centre in Hong Kong,providing a wide range of financial services encompassing consumer and wholesale banking,wealth management,financial markets,securities brokerage and investment services. Fubon Bank holds an A-2 short-term,BBB+ long-term rating from Standard &Poor’s. The rating reflects Fubon Bank’s strong capitalization,good liquidity and sound asset quality.
The State Administration of Foreign Exchange (SAFE) of the People's Republic of China is an administrative agency under the State Council tasked with drafting rules and regulations governing foreign exchange market activities,and managing the state foreign-exchange reserves,which at the end of December 2016 stood at $3.01 trillion for the People's Bank of China. The current director is Zhu Hexin.
China Investment Corporation is a sovereign wealth fund that manages part of China's foreign exchange reserves. China's largest sovereign fund,CIC was established in 2007 with about US$200 billion of assets under management,a number that grew to US$1,200 billion in 2021 and US$1,350 billion in 2023.
China Pacific Insurance (Group) Co.,Ltd. (CPIC) known as Pacific Insurance,is a Chinese insurance company. It was established on the basis of the former China Pacific Insurance Corporation,which was founded in 1991 approved by the People's Bank of China. Its headquarters is in Shanghai.
China Everbright Bank Co.,Ltd. is one of twelve Chinese joint-stock commercial bank. Established in August 1992,it is a national joint-stock commercial bank approved by the State Council and approved by the People's Bank of China,headquartered in Beijing. It was ranked in 139th in 2016 Forbes Global 2000 publicly held companies. Sister company Everbright Securities ranked 862th.
China Everbright Limited is a Hong Kong-based financial services company in asset management,investment and merchant bank in the Greater China region,including Mainland China and Hong Kong. It is part of the China Everbright Group,a state-owned enterprise operated under the supervision of the State Council of the People's Republic of China.
China International Capital Corporation Limited is a Chinese partially state-owned multinational investment management and financial services company. Founded in China in 1995,CICC provides investment banking,securities and investment management services to corporations,institutions and individuals worldwide.
Shanghai International Group is a large state owned financial holding group of People's Republic of China. SIG has full financial licenses in China and engaged in Commercial Banking,Investment Banking,Mutual Fund,Insurance,Private Equity,Trust,Assets Management,etc. As of the end of 2012,according to the equity method accounting,the total assets on SIG's consolidated financial statements were RMB 129.723 billion yuan,the net assets RMB 89.756 billion yuan,and the total profit RMB 12.367 billion yuan. The data relevant to SIG's controlling and core investments shows that the assets managed by SIG had reached RMB 1118.487 billion yuan by the end of 2012.
China Investment Securities Co.,Ltd. (CISC) formerly known as China Jianyin Investment Securities Co.,Ltd. (CJIS) is a Chinese investment bank and brokerage firm based in Shenzhen. It was a subsidiary of China International Capital Corporation. The firm was founded by China Jianyin Investment on 29 September 2005 based on the good assets of China Southern Securities.
Everbright Securities Company Limited is a securities brokerage by assets in China,controlled by state-owned financial conglomerate,China Everbright Group. It was founded in 1996 and is based in Shanghai.
Securities industry in China is an article on the securities industry in mainland China.
Guosen Securities Company Limited is a Chinese state-owned financial services company headquartered in Shenzhen,China,with more than 70 branches and 11,500 employees nationwide. It has offices in 47 major cities in China including Shenzhen,Beijing,Guangzhou,Foshan,Nanjing,Shanghai,Tianjin and Hong Kong. Guosen Securities provides sales and trading,investment banking,research,asset management,private equity,and other financial services with both institutional and retail clients in China and Hong Kong. It also operates a trading platform called GuoXin TradingStation.
China Galaxy Securities Co.,Ltd. is a Chinese state-owned brokerage and investment bank.
China Everbright Group is a Chinese state-owned enterprise. Everbright Group was a subsidiary of Central Huijin Investment. The Ministry of Finance of China owned the rest of the stake,which Central Huijin acquired on 8 December 2014.
China Jianyin Investment Co.,Ltd. (JIC) is a Chinese investment company owned by the government of the People's Republic of China. Founded in 2004,it is a wholly-owned subsidiary of Central Huijin Investment and is an integrated investment group focused on equity investments. The group is headquartered in Beijing and owns more than 160 wholly-owned or holding enterprises and institutions in 29 Chinese provinces,autonomous regions,municipalities and Hong Kong SAR. It has also established affiliated agencies in Europe.
Everbright may refer to these sister companies:
CSC Financial Co.,Ltd. trading as China Securities,is a Chinese investment bank and brokerage firm established by CITIC Securities and China Jianyin Investment in 2005 in a 60–40 ratio,as a successor of bankrupted China Securities Co.,Ltd. (CSC). However,the firm now majority owned by Jianyin Investment's parent company Central Huijin Investment and an asset managing subsidiary of Beijing Municipal People's Government.
New China Life Insurance Co.,Ltd. also known as New China Insurance (NCI) or Xinhua Baoxian Jituan is a Chinese life insurance company based in Beijing. The Chinese government owns more than half of the shares of the company via sovereign fund Central Huijin,via state-owned enterprise Baosteel Group and a financial service company China Securities Finance.