China Central Huijin

Central Huijin Investment Ltd. (Chinese: 中央汇金投资有限责任公司; pinyin: ZhōngYāng HuìJīn TóuZī YǒuXiàn ZéRèn Gōng Sī) is a Chinese investment company owned by the government of the People's Republic of China. It is a wholly owned subsidiary of China Investment Corporation, with its own Board of Directors and Board of Supervisors. Central Huijin's principal shareholder rights are exercised by the State Council. 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.^[1]

History

Central Huijin Investment was acquired from the State Administration of Foreign Exchange by the China Investment Corporation for roughly $67 billion.^[2]

Governance

Board of Directors

• Lou Jiwei (Chairman)
• Li Jiange (Vice Chairman)
• Xie Ping (Executive Director and President)
• Wu Xiaoling (Independent Director)
• Jin Lianshu (Independent Director)

Board of Supervisors

• Jin Liqun (Chairman)
• Cui Guangqing (Supervisor)
• Ge Rongrong (Employee Supervisor)

Senior Management

• Xie Ping (Executive Director and President)
• Chen You'an (Executive Vice President)

Investments

Currently, Central Huijin holds shares in several financial institutions: China Development Bank, Industrial and Commercial Bank of China, Bank of China, China Construction Bank Corporation, China Everbright Bank Co., China Reinsurance (Group) Corporation, China Jianyin Investment Limited, China Galaxy Financial Holding Co., Shenyin & Wanguo Securities Co., and Guotai Junan Securities Co.

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 June 7, 2006, the ownership of 'H' shares in the Bank of China (SEHK:3988) is:

• Central Huijin Investment: 69.265% (171,325,404,740 shares)
• RBS China: 8.467% (20,942,736,236 shares)
• AFH: 4.765% (11,785,825,118 shares)
• SSF: 4.576% (11,317,729,129 shares)
• UBS AG: 1.366% (3,377,860,684 shares)
• ADB: 0.205% (506,679,102 shares)
• Other (including private) investors: 11.356% (28,089,421,000 shares)

References