Icbc business Review

Asset Management Services
1.Wealth Management Services. The Bank improved its product system structure and successfully created a number of main product lines. It actively facilitated the construction of its wealth management subsidiary — ICBC Wealth Management. At the end of 2019, the balance of non-principal-guaranteed wealth management products stood at RMB2,642,057 million.
2.Asset Custody Services. The Bank achieved sustained and stable development of custody business by actively seizing the development opportunities in the occupational annuity, pension insurance fund, enterprise annuity, public offering fund and insurance markets. The Bank was awarded the “Best Mega Custodian Bank in China” by The Asian Banker and the “Best Insurance Custodian, China” by The Asset. At the end of 2019, the net value of assets under the Bank’s custody reached RMB16.5 trillion.
3.Pension Services. At the end of 2019, the pension funds under the Bank’s trusteeship amounted to RMB197.8 billion; the Bank managed 10.76 million individual enterprise annuity accounts, and the pension funds under the Bank’s custody totaled RMB631.7 billion. The Bank led other domestic banks in terms of the scale of enterprise annuity funds under the Bank’s trusteeship, number of individual enterprise annuity accounts and enterprise annuity funds under the Bank’s custody.
Financial Market Business
1.Money Market Activities. The Bank took the following actions in the RMB money market: actively increasing inquiry frequency, tapping deep into customer demand, and adopting other measures to operate funds with intensified efforts and enhanced efficiency; and swiftly responding to the increasingly fierce peer competition and continuously stepping up efforts to develop bond lending business. In relation to the foreign exchange money market: the Bank seized market opportunities and took multiple measures to increase yields and efficiency from foreign fund operation; introduced more types of non-banking counterparty engaged in foreign-currency interbank funding business and expanded the business size and customer base simultaneously, thus giving a strong impetus to the development of real economy; cooperated with China Foreign Exchange Trading System to seek for business innovation, as a move to further consolidate its leading position in the Chinese foreign-currency money market business; and launched as one of the first Chinese banks the foreign-currency bond repurchase transaction in the interbank market and the foreign-currency bond repurchase business accepting RMB bonds as collateral, in a bid to further diversify the mix of foreign-currency financing instruments.
2.Investment. With respect to RMB bond investment, the Bank considered the investment value, yield rate and comprehensive contribution of bonds in each type as a whole before scaling up investments in high-value bonds; as per the bond issue plan, it coordinated efforts to forestall investment value and interest rate risks, and control the holistic interest rate risk of each investment portfolio by arranging the term structure reasonably. In terms of foreign-currency bond investment, the Bank worked hard to study and predict market trends, carried out investment activities in more places and currency types, lengthened terms to a proper extent, and scaled up investment volume at a steady pace.
3.Financing. The Bank reasonably arranged the scale and structure of liabilities including interbank borrowing, structured deposits and large-denomination CDs in order to enhance the supporting capacity of diverse liabilities to asset business growth.
4.Franchise Treasury Business. In the aspect of franchise foreign exchange settlement and sales and foreign exchange trading, the Bank strove to serve enterprises’ needs for money exchange and exchange rate hedging, with a focus on serving the real economy and in active response to China’s Belt and Road Initiative. Besides, it creatively unveiled the RMB foreign exchange currency swap business pegged to the LPR floating rate. With respect to paper commodity trading, the Bank provided value-added services for paper commodity trading customers, satisfying customers’ demand for information and increasing customer loyalty.
5.Asset Securitization Business. The asset securitization business effectively supported the Bank in disposing of non-performing assets, revitalizing stock assets and optimizing credit structure. In 2019, the Bank issued 18 tranches of credit asset securitization programs totaling RMB140,680 million in the mainland.
6.Precious Metal Business. The Bank, as the first Chinese commercial bank, launched a precious metal customization platform that could link creative design enterprises (on the B end) and retail customers (on the C end) in the name of “ICBC (Online Precious Metal) Customized Service”, thus enabling custom-made services to be rendered in a systematic and large-scaled way. In 2019, the Bank ranked No.1 among all SGE members in agent trading volume and clearing volume.