Interview: China Construction Bank chairman Guo Shuqing
China Construction Bank’s Guo Shuqing confronts FX exposure
• China Construction Bank (CCB) chairman Guo Shuqing revealed his greatest concern is foreign currency exposure
• Guo expects CCB to maintain 2008 loan growth of around 17% in 2009
• CCB ready to launch fourth annual business plan with Bank of America
In an exclusive interview with The Asian Banker in Beijing, China Construction Bank (CCB) chairman, Guo Shuqing, addressed at length some of the critical issues facing the largely state-owned giant and the financial services industry in China. A full transcript of the interview is available on the organisation’s website www.theasianbanker.com.
China Construction Bank (CCB) chairman Guo Shuqing revealed his greatest concern is foreign currency exposure
“[CCB has] suffered some in this financial crisis, mainly related to foreign exchange because we have some portfolio investments in the US and Europe.” said Guo. These investments were made after the bank’s $22.5 billion recapitalisation in foreign currencies in 2004 and subsequent US dollar Hong Kong IPO in 2005, which raised $9.2 billion. Guo indicated they are now CCB’s most important issue.
Guo expects CCB to maintain 2008 loan growth of around 17% in 2009
Guo noted that CCB’s loan growth is still strong, but will weaken this year. “The profitability should not be so high,” he said. “As you know, the central bank lowered the interest rate and there is a narrower margin. This affects profits... Small business banking for us is a strategic area because the profit margin can be very high.”
CCB ready to launch fourth annual business plan with Bank of America
Guo was positive about CCB’s cooperation with Bank of America (BoA), having launched over 100 projects since 2006. “We have just launched the fourth year’s programme: IT, human resources, e-banking, wealth management, risk management; there are quite a lot [of areas]… BOA has big problems now, but that doesn’t mean all things are wrong. They still are very strong in many respects.”
