About This Report
Reporting Scope
Reporting Period: Unless otherwise stated, the report covers the period between January 1 to December 31, 2019.
Organizational Boundary : The report discloses the information of the Head Office and all branches and sub-branches of Hua Xia Bank.
Reporting Cycle: The report is an annual report. The most recent report was issued on April 19, 2019.
Compilation Conformance
The report was prepared in accordance with theOpinions on Strengthening the Corporate Social Responsibility of Banking Institutions issued by former
China Banking Regulatory Commission (CBRC), theGuidelines on the Corporate Social Responsibility of Banking Institutions of China released by the
China Banking Association, and theNotice on Strengthening Listed Companies’Assumption of Social Responsibility and Guideline on Environmental
Information Disclosure by Listed Companies released by Shanghai Stock Exchange (SSE), and referred to theGuidelines on Corporate Social Responsibil-
ity Reporting for Chinese Enterprises (CASS-CSR 4.0) issued by the Research Center for Corporate Social Responsibility of the Chinese Academy of Social
Sciences,Guidance on Social Responsibility (ISO 26000:2010) issued by International Organization for Standardization (ISO),GRI Sustainability Reporting
Standards (GRI Standards) and GRI Financial Service Sector Supplemental Guidelines issued by Global Sustainability Standard Board (GSSB), and the
Environmental, Social and Governance Reporting Guide (HK-ESG) issued by Hong Kong Exchanges and Clearing Limited (HKEx).
Reference
For better readability, “Hua Xia Bank Co., Limited” is referred to as “Hua Xia Bank” or “The Bank” in the report.
Data Sources
The financial data in the report come from the audited Annual Report 2019 of Hua Xia Bank Co., Limited and other data come from internal documents
and statistics of Hua Xia Bank. Some contents and data can be traced back to previous years.
Languages of the Report
The report is available in simplified Chinese and English versions. In case of any discrepancy, the simplified Chinese version shall prevail.
Formats of the Report
The report is available in both print and electronic formats. The electronic format of the report can be downloaded at our official website (http://www.
hxb.com.cn).
Contact Information
Hua Xia Bank Co., Limited
Address: Hua Xia Bank Mansion, 22 Jianguomennei Street, Dongcheng District, Beijing
Postal code: 100005
Tel: 010-85237056
Fax: 010-85239000
E-mail: zhshzr@hxb.com.cn
Message from Chairman 03
Table of Contents Message from Chairman
The year 2019 was a critical year for realizing the first centenary goal of
building a moderately prosperous society in all respects and marked the 70th
Message from Chairman 03 anniversary of the founding of the People’Republic of China. In 2019, we re-
Message from President 04 mained true to our original aspiration, adhered to craftsmanship, and main-
tained perseverance in pursuing our goals. Guided by Xi Jinping Thought on
About Us 05 Socialism with Chinese Characteristics for a New Era, we strengthened and
improved Party leadership throughout the process of our reform and devel-
1 2
opment, aligned Hua Xia’s Dream with the Chinese Dream, made concerted
efforts to build the Bank into a “large and strong, stable and excellent”
modern financial group, and contributed to the sustainable development of
the economy, society, and environment.
A Brilliant Hua Xia for Value Creation 06 A Dedicated Hua Xia with Craftsmanship 22 We persevered in serving the real economy. Making active efforts to join
the economic mainstream, we shouldered the responsibility of providing
Corporate Governance 08 Spotlight: Providing Financial Support for the Fight 24 sound services for the coordinated development of the Beijing-Tianjin-He-
Against Poverty bei region, the integration of the Yangtze River Delta, and the construction
CSR Management 10
Supporting for the Coordinated Development of 28 of the Guangdong-Hong Kong-Macao Greater Bay Area and other national
CSR Performance 14 the Beijing-Tianjin-Hebei Region development strategies. By constantly strengthening our support for key
Green Development 16 areas of the real economy, such as industrial transformation and upgrading,
Serving the Real Economy 34
consumption, and the private sector, we helped create powerful new drivers
Developing Inclusive Finance 43 for the high-quality development of the real economy. “Green Growth for a Better Hua Xia”, contributing our financial expertise to
3 4
China’s pursuit of lucid waters and lush mountains.
Based in Beijing, we contributed to regional development. Adhering to
our position as a “bank for Beijing”, we worked harder to establish the Driven by innovations, we embraced FinTech. Based on our resource
Bank as a major financial service provider for the Beijing-Tianjin-Hebei re- endowments and development foundation, we promoted the overall digital
transformation and innovations in online banking. Through the application
A Digital Hua Xia Driven by Innovations A Prudent Hua Xia with Compliance
gion. We went all out to help promote the economic and social development
46 54 of Beijing and the coordinated development of the Beijing-Tianjin-Hebei of FinTech, we fostered differentiated competitive edges and created the
region so that Beijing can better fulfill its major tasks according to the strategy brand of Smart Finance and Digital Hua Xia for its blueprint for faster innova-
Fintech Development Full Compliance in Operations of building Beijing into the political center, cultural center, international com- tion-driven development.
48 56
Smart Applications for Better Business Development Strengthening Risk Management munication center, and technology innovation center of China, relocating its We remained prudent to control financial risks. Adhering to law-based
50 60
non-capital functions, and doing a better job in the construction of its sub- operations and compliance, we kept to strict risk management measures. By
ESG Investment Philosophy
6
52 center. continuously improving internal control and compliance management and
5
building up the comprehensive risk management system, we kept our focus
We made concerted efforts to promote inclusive finance. Devoted to
on risk prevention and control and completed all tasks properly to guard
serving SMEs, we pursued “professional services, branded business lines,
against and defuse financial risks.
A People-Centered Hua Xia featured operation, and refined management”, created a professional,
A Sincere Hua Xia with Quality Services 62 Pursuing Happiness for All 76 exclusive and targeted organizational structure, and vigorously endeavored A journey of ten thousand miles is ahead of us and we will forge ahead with
to “become a financial service provider for SMEs”. At the same time, we important tasks on our shoulders despite all challenges. As a people-oriented
thoroughly implemented the CPC Central Committee’decisions on the and responsible state-owned financial institution, Hua Xia Bank, under the
Protection of Customers’ Rights and Interests 64 Protecting Fundamental Rights and Interests of 78 decisive battle against poverty and continued to promote precision poverty strong leadership of the CPC Central Committee with Comrade Xi Jinping at
Employees
Better Customer Experience 67 alleviation in the financial sector, and have launched supporting credit poli- the core, has the confidence and determination to implement the decisions
Supporting Employee Development 79 and requirements of deepening the supply-side structural reform of the
Improvement in Corporate Banking Services cies based on our widely distributed outlets, and innovative comprehensive
73
Caring for Employees 80 financial products and services, striving to contribute to winning the decisive financial sector. We will make sure to reinforce our sense of political responsi-
battle against poverty. bility and shoulder our historical missions, press ahead in our reform and de-
Building a Better Society with Concerted Efforts 82 velopment resolutely despite all difficulties, and contribute to the realization
Outlook 84 We made green finance our calling card. We took the initiative to integrate of the Chinese Dream and the great rejuvenation of the Chinese nation.
green development into our business operations, developed new models
Reporting Index 86 for business management and financial service delivery, and strengthened
Independent Assurance Report 90 international cooperation. We stepped up our efforts to promote integration
between finance and various other industries and offered more support to
Feedback Form 92 industries related to energy conservation, environmental protection, clean
energy, and ecological governance. Thus, we created the financial brand of
Party Secretary and Chairman of Hua Xia Bank
04 Message from President About Us 05
Message from President About Us
Under the leadership of the Party, the People’ Republic of China has
gone through 70 extraordinary years. Especially since the launch of the Hua Xia Bank was founded in Beijing in October 1992 and
reform and opening up, China has made great changes and greatly im- became a national joint-stock commercial bank after restruc-
proved people’ living standards. Born out of the reform and opening-up, turing in March 1995. On September 12, 2003, the Bank went
Hua Xia Bank rode the tide of the times, advanced together with the public on Shanghai Stock Exchange (Stock Code: 600015), with
nation, and witnessed and played its part in the development of China’ registered capital of RMB 15.387 billion.
financial sector with a customer-centric service philosophy and a prudent
Since its inauguration, the Bank has been forging ahead and
approach towards corporate development.
made great achievements despite all difficulties. By the end of
In 2019, we focused on improving overall operations and promoted 2019, the Bank had a total asset of RMB 3,020,789 million, 42
corporate development with all-out efforts. Fully implementing the new Tier-1 branches, 73 Tier-2 branches, 1,025 outlets in 116 cities
development plan, we pursued breakthroughs in the six major strategic at or above the prefectural level nationwide, and nearly 40,000
priorities, achieved business expansion and further built up our capital employees, which had formed an institutional system of
strength. Our business structure and asset quality have improved and building presence in developed cities and reaching out to the
compliance management has strengthened. In 2019, we realized a net whole country. The Bank has set up Hong Kong branch as its
profit of RMB 22.115 billion, an average return on equity (ROE) of 10.61% first overseas branch, and 1,221 agencies in and out of China,
and a capital adequacy ratio of 13.89%. covering 380 cities in 116 countries on all five continents of the
world. Its settlement network covers all major trade areas in
In 2019, we adhered to the principle of serving the real economy and
imate rights and interests. To broaden their career development paths the world.
endeavored to increase investments in key areas such as the coordinated
and strengthen capacity building for them, we organized various cultural
development of the Beijing-Tianjin-Hebei region, the transformation and In The Banker’ Top 1000 world banks published in July 2019,
and sports activities, which facilitated full integration of employee growth
upgrading of industries, environmental protection and governance, and Hua Xia Bank ranked 56th by Tier-1 capital and 67th by total
with corporate development. In 2019, the Bank carried out 3,986 training
the relocation of Beijing’ non-capital functions. Throughout the year, we asset, respectively nine places and three places higher than the previous year. In the Forbes Global 2000 of 2019, the Bank ranked 265th, 24 places higher
sessions with around 260,000 participants. As an active participant in
provided a total of nearly RMB 80 billion of financing services for key pro- than the previous year.
public welfare undertakings, we organized many employee volunteer
jects related to the coordinated development of the Beijing-Tianjin-Hebei
activities to bring benefits to those in need. In 2019, we organized a total
region. We proactively aligned our businesses to major national devel-
of 1,977 volunteer service activities with 28,681 employee participants,
opment strategies for the Yangtze River Economic Belt and the Guang-
contributing 21,741.9 hours of volunteer services in total.
dong-Hong Kong-Macao Greater Bay Area, promoted the transformation
and upgrading of industrial structures, supported the country’ opening Looking into the future, socialism with Chinese characteristics is advanc-
up to the outside world, made every effort to improve people’ living ing into a new era. The banking industry has started major transforma-
Green
standards and well-being, and facilitated the development of the private tions and reforms, and Hua Xia Bank is marching towards a critical period Coordinated Open
sector and micro and small enterprises (MSEs). As of the end of 2019, the in its strategic transformation. Standing at a new starting point, we will
balances of loans for strategic emerging industries and MSEs were RMB adhere to the corporate culture of “integrity, standardization, efficiency, Actively pursue
81,229 million and RMB 396,387 million respectively. and enterprise”, and strive to do a better job in serving the real econo- Innovative innovative, coordinated, Shared
green, open and shared
my, guarding against financial risks, and improving quality and efficiency. development
In 2019, we pursued green development, green finance, and innova-
We will remain true to our original aspiration, keep our missions firmly
tions in green products. Through cooperation with the World Bank, we Focus on
in mind, carry forward all business operations with concrete efforts, and
promoted the largest single financing innovation project in China for air serving the real economy
contribute to the realization of the Chinese Dream and the great rejuvena- Strive to develop into a
pollution prevention in the Beijing-Tianjin-Hebei region, advanced the
tion of the Chinese nation.
China Renewable Energy and Battery Energy Storage Promotion Project, Focus on modern nancial group
and further built the financial brand of “Green Growth for a Better Hua creating value for customers and shareholders that is
Xia”. As of the end of 2019, the Bank’s balance of green credit reached
“large and strong,
RMB 79,844 million, an increase of RMB 23,145 million from the previous Follow the fundamental strategy of
stable and excellent”
year, up by 40.82% year on year. On March 19, 2019, the Asset Manage- “taking deposits as the foundation, building the
ment Department of Hua Xia Bank joined the United Nations (UN)-sup- Bank’s through FinTech and talents, and ensuring
ported Principles for Responsible Investment (PRI) and became the first stable operation through risk control”
asset management institution of a commercial bank in China to join that
organization. Following that, the Bank launched its environmental, social Keep to the direction of featured, digital,
and governance (ESG) strategy and integrated social responsibility into asset-ecient, specialized, comprehensive, and
its investment decisions to contribute to the high-quality development of world-oriented development
the financial sector.
In 2019, we stayed people-oriented and safeguarded employees’legit-
Deputy Party Secretary and President of Hua Xia Bank
A Brilliant Hua Xia for
Value Creation
SDG Practices
In 2019 As of the end of 2019
Held 2 Shareholders’General Meetings Balance of green credit:
and adopted 18 resolutions RMB 79.844 billion
Supported 194
protection projects
environmental Issued 3,127,500 ETC cards
A People-Centered
A Brilliant Hua Xia for A Dedicated Hua Xia A Digital Hua Xia A Prudent Hua Xia with A Sincere Hua Xia with Hua Xia Pursuing
08 Hua Xia Bank Co., Limited 2019 Social Responsibility Report
Value Creation with Craftsmanship Driven by Innovations Compliance Quality Services Happiness for All
09
Corporate Governance Following the lead of
Party building
The Bank has established a corporate gov- As of the end of 2019 In 2019
ernance structure mainly comprising of the
Shareholders’ General Meeting, the Board there were
The Bank has always remained true to its origi- Holding high the banner and strengthening theoretical and political
of Directors, the Board of Supervisors, and 15 directors in the Board of Directors
2 18 nal aspiration and forged ahead despite all diffi-
buildup
Shareholders’ General resolutions culties. In 2019, we strengthened Party building
the senior management. The Shareholders’
including Meetings were held adopted and fully exercised strict governance over The Bank has conscientiously studied Xi Jinping Thought on Socialism with Chinese Characteris-
General Meeting is the governing body, the tics for a New Era and carried out education activities with the theme of “Remaining True to Our
the Party under the guidance of Xi Jinping’s
Board of Directors is the decision-maker, 6 4 Original Aspiration and Keeping our Mission Firmly in Mind”. We formulated theImplementation
Executive Thought on Socialism with Chinese Character-
the Board of Supervisors serves supervision
Independent Plan of Hua Xia Bank on Holding Themed Education Activities of “Remaining True to Our Original
Directors Directors istics for a New Era. Besides, we have integrated Aspiration and Keeping our Mission Firmly in Mind” in the Whole Bank , and held various educa-
functions, and the senior management is in 7 68 Party leadership in the whole process of the tion activities such as seminars, reading the original works，visiting and learning. We enhanced
charge of execution. Board of Directors Meetings resolutions
reform and development of the whole Bank， our ideological work, and established a framework of “1+1+N” ideology and publicity regulation
there were
were held adopted systems.
The Bank has strengthened the statutory and accelerated its move towards a modern fi-
10 Supervisors in the Board of Supervisors
position of Party organizations in the corpo- nancial group that is “large and strong, stable
Consolidating the foundation through organizational construction
rate governance structure, coordinated well including and excellent”.
between the Party committee and the above 5 19 The Bank has always adhered to Party leadership, resolutely shouldered its responsibility for
4 4 Board of Supervisors resolutions strengthening Party discipline, achieved full coverage of Party organization and Party work, and
three parts of the corporate government External Employee
Meetings were held adopted In 2019 given full play to the crucial role of basic-level Party organizations. The Fourth CPC Congress of The
structure, and incorporated Party leadership Supervisors Supervisors Bank was held to identify the guiding thought, goals and work priorities for the next five years, and
in all parts of corporate governance, lending elect a new term of Party Committee, Standing Committee and Discipline Inspection Committee of
strong momentum to the reform and devel- the Head Office. The regular renewal of primary-level Party organizations was promoted to make
100 % of leaders throughout the Bank at all sure that all elections were completed at the expiration of office terms. The Bank carried out prima-
opment of the Bank.
levels signed letters of commitment for Party
ry-level research and inspection work, and implemented the “Three Meetings and One Lesson”
conduct and clean governance system, Thematic Party Day activities, lectures from the general secretary of Party organizations,
Governance structure Party member education and training ,etc. The Conference of Celebrating the 98th Anniversary
of the Founding of the Communist Party of China and the “Two Excellent and One Advanced”
Commendation were held, in an effort to select typical figures and cases and act as an outstanding
example of entrepreneurship.
Shareholders’ General Meeting
Improving Party conduct and discipline to create a clean environment
The Bank enforced full and strict discipline over the Party and implemented unswervingly the system
of accountability for Party conduct and clean governance. Based on the guiding principles of the CPC
Central Committee’s eight-point decision on improving Party and government conduct and the ac-
Board of Directors Board of Supervisors Oversight
tion against formalities performed for formalities’ sake, bureaucratism, hedonism, and extravagance,
committee
we formulated the Measures of Hua Xia Bank on Implementation the Eight Rules and Enforcement
Regulations , and revised the Measures of Hua Xia Bank on Implementing Decisions and Regulations of
Strategic Risk and Compliance Nomination Major Issues, Major Officials Appointment, Major Project Arrangements, and Use of Large-Volume Capi-
Management and Management Committee tal . The Bank organized a series of bank-wide inspection and evaluation activities on Party conduct and
Consumer Rights and Committee clean governance and a warning and education conference themed on “drawing lessons from and
Interests Protection
Oce of the Board Oce of the Board promoting rectification with typical cases”. The Leading Group of Hua Xia Bank for Strict Governance
Committee
Nomination of Directors of Supervisors over the Party and its office were set up. An annual task list for full and strict discipline was formulat-
Committee ed over the Party. The Bank organized Party organizations at all levels to draw up their own task lists
Audit Committee
accordingly, signed letters of commitment for full and strict discipline over the Party, and fulfill the
Related Party Remuneration commitments.
Transaction Control and Evaluation
Committee Committee Information disclosure Investor relations
Senior Management The Bank strictly complies with the reg- The Bank attaches great importance to investor relations and strictly implements theWorking Meas-
ulations on information disclosure and ures of Hua Xia Bank Co., Ltd. on Investor Relations , having a dedicated investor relations manager
standardizes the information disclosure and under the Office of the Board of Directors to take charge of relevant work.
Credit, Risk Manage- Information reporting processes. We actively fulfilled
Asset Liability Asset Risk Performance Product
Investment and ment and Credit Approval Technology The Bank worked to promote interactions and exchanges with investors through multiple channels
Management Disposal Management Management information disclosure obligations and con-
Financing Policy Internal Control Committee Management and in many ways, so as to disseminate the Bank’s culture and values. In 2019, the Bank organized
Committee Committee Committee Committee tinued to enhance transparency via channels
Committee Committee Committee shareholders’ general meetings, meetings for investors and analysts, online briefing on cash bo-
likeChina Securities Journal ,Shanghai Secu-
nus, open day of investor groups, themed seminars and other activities, made conscientious efforts
rities News , Securities Times, Shanghai Stock
to receive investors who would like to visit, and answered questions carefully on the SSE online
Headquarters Departments Branches and Sub-branches Exchange website, the official website of Hua
platform and through investor service hotline and mailbox.
Xia Bank, etc.
A People-Centered
A Brilliant Hua Xia for A Dedicated Hua Xia A Digital Hua Xia A Prudent Hua Xia with A Sincere Hua Xia with Hua Xia Pursuing
10 Hua Xia Bank Co., Limited 2019 Social Responsibility Report
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CSR Management
CSR management
Bearing in mind the vision of building a modern financial group that is “large and strong, stable and excellent”, the Bank worked to incorporate social
responsibility into every part of its work and its corporate culture, made constant efforts to improve its CSR management, steadily advanced its CSR With an improved CSR management system,
practices, and did all it could to create the maximal comprehensive value in economic, social and environmental aspects. the Bank made it clear that the General Office Striving to be a responsible bank and pursuing sustainable development
of the Head Office is in charge of coordinated
CSR management and daily work related to In September 2019, the United Nations Environment Programme published thePrinciples
CSR philosophy CSR fulfillment across the board. The Bank also for Responsible Banking, launching the most important partnership ever between banks
formulated CSR-related policies such as the around the world and the United Nations. Around 130 banks across the world signed
Guideline of Hua Xia Bank for Compiling Cor- document and Hua Xia Bank was one of them.
porate Social Responsibility Reports and the
For quite some time, the Bank, while pursuing high-quality development for itself, has
Corporate Social Responsibility Management
been striving to make its contribution to a kind of development that brings balanced bene-
Measures of Hua Xia Bank to facilitate standard-
fits to the economy, environment and society. As one of the first banks to sign thePrinci-
Vision of CSR fulllment ized CSR management.
ples for Responsible Banking and a financial institution committed to fulfilling corporate
Harmony brings a bright future and Hua Xia continues
social responsibility, the Bank made the commitment that it would align its corporate
with its public spirit:
strategies and operations with the Sustainable Development Goals and the Paris Agree-
China’ culture is at the core of the Bank’ development and prosperity, and the value created shall
be shared by all people of the Chinese nation. ment and it would fulfill this commitment through effective corporate governance and
responsible management practices, starting a new journey of high-quality and sustainable
development.
Harmony brings a bright future Hua Xia continues with its public spirit
The Bank pursues harmonious co-existence, open cooperation, Leveraging on its advantages in specialty, location and resources, the
sharing of benets with stakeholders, Bank takes the initiative to shoulder economic, environmental and
and works towards balance between economic, environmental social responsibilities,
and social benets, and strive to bring benets to every corner of China and every
making its contribution to a harmonious socialist society. member of the Chinese nation.
Analysis of material topics
Four principles in CSR fulllment Attaching great importance to the concerns of Matrix of material topics
stakeholders, the Bank collected material top-
ics through multiple channels and prioritized
Openness and transparency Cross-over thinking Resource integration Communication with stakeholders the topics based on how important they are to
the sustainable development of Hua Xia Bank Serving the real economy
and how important they are to stakeholders. Devoting more efforts to green finance Contributing to national strategies
Only those topics that were important for both Supporting community development Guarding against financial risks
Six priorities in CSR fulllment
the Bank and stakeholders were included in the
Caring for employees Promoting inclusive finance
final matrix of material topics.
Importance to stakeholders
Promoting financial knowledge Standardizing corporate governance
Serving the real Practicing inclusive Promoting Pursuing safe and Empowering Putting people
economy nance ecological progress steady development through FinTech rst Contributing to poverty alleviation
Three practices for CSR fulllment Pursuing FinTech innovations
Protecting customers’rights and
Practicing green operation
interests
Practices for economic responsibility Practices for environmental responsibility Practices for social responsibility Promoting industry development
Improving service quality
Helping employees grow
Two goals of CSR fulllment
Importance to the sustainable development of Hua Xia Bank
Maximizing comprehensive value Contributing to a harmonious society
A People-Centered
A Brilliant Hua Xia for A Dedicated Hua Xia A Digital Hua Xia A Prudent Hua Xia with A Sincere Hua Xia with Hua Xia Pursuing
12 Hua Xia Bank Co., Limited 2019 Social Responsibility Report
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Stakeholders management CSR awards and honors
Stakeholder Expectations and requirements Ways of communication China Banking Association China Securities Golden Bauhinia Award Organizing Committee
Best Contribution to Targeted Poverty Alleviation Award Best Socially Responsible Listed Company Award
Serving the development of the real economy
Daily communication Best Green Finance Achievement Award
Promoting social progress
Meetings
Paying taxes according to law
Government Information reporting
Targeted poverty alleviation
Compliance management Reporting on a regular basis
Financial News Global Finance
Standardizing corporate governance Holding special meetings
Regulatory authorities Tightening risk management Information reporting Best Green Financial Service Bank of the Year Best Bank for Green Energy Development
Guaranteeing outstanding performance Holding meetings with shareholders
Offering continuous and stable returns Reporting and announcements
Shareholders and investors Transparent operation Daily communication
Shanghai Securities News Guangdong Southern Media Corporation Limited
The Annual Award for Best Innovative Finance Products Listed company: 2019 Golden Sail Award for the Best Corporate Governance
Promoting green credit 2019 Golden Sail Award for Leadership in Excellent Listed Companies
Supporting environmental protection Maintaining close communication
Supporting energy saving and emission reduction Advocating environmental protection concepts
Environment Green offices
21 Century Business Herald Southern Weekly
Opening the 95577 service hotline
Asset preservation and appreciation
Customer satisfaction surveys Best Socially Responsible Bank in 2019 the Annual Charity Case Award
Providing innovative products
Customer interviews granted to the Growth of Sanitation Workers’ Children Program
Quality and efficient service
Customers Regular visits
Cooperation on a wider scope
Dedicated meetings The Economic Observer People.cn
Experience sharing
Daily communication
Fair procurement Green Finance Star Bank Award 2019 Annual Workmanship Brand Award
Sound procurement policies
Transparency Annual Case Award granted to the Growth of Sanitation
Strict tendering procedures Best Industry Model of ESG Responsible Investment
Partners Integrity Workers’ Children program
Protection of rights and interests Employees’ congress
Remuneration and benefits Seminars
Working environment Collection of opinions and suggestions China Financial Publishing House Sina Finance
Employees Career development Visits
CIFC Annual Case Special Award Best Bank for Responsible Investment
Best Asset Management Company for Responsible Investment
Financial knowledge Financial services delivered in communities
Support for community development Participation in community activities
Communities Participation in public welfare activities Participation in public welfare activities
Beijing Daily International Roadshow Center, Excellent IR
Regular reports
Regular information disclosure 2019 Financial Brand for “Benefiting the People” Best Case Award
Press conferences
Reports on major events 2019 Excellent Financial Service- Serving SOEs Contribution Award
Media Multi-channel communication
A People-Centered
A Brilliant Hua Xia for A Dedicated Hua Xia A Digital Hua Xia A Prudent Hua Xia with A Sincere Hua Xia with Hua Xia Pursuing
14 Hua Xia Bank Co., Limited 2019 Social Responsibility Report
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CSR Performance
Economic performance Social performance
Indicator Unit 2017 2018 2019 Indicator Unit 2017 2018 2019
Total asset RMB 100 million 25,089.27 26,805.80 30,207.89
Number of outlets / 968 1,022 1,025
Operating revenue RMB 100 million 663.84 722.27 847.34
Number of rural outlets / 85 102 106
Total profit RMB 100 million 262.53 267.83 275.63
Net profit RMB 100 million 199.33 209.86 221.15 Number of outlets in old revolutionary base areas, areas inhabited by ethnic
/ 72 79 81
minority groups, remote and border areas and poverty-stricken areas
Total deposits RMB 100 million 14,339.07 14,924.92 16,564.89
Number of community sub-branches / 193 192 177
Balance of loans to MSEs RMB 100 million 3,142.7 3,573.26 3,963.87
Growth of loans to MSEs RMB 100 million 428.51 430.56 390.62
Number of online corporate banking transactions 10 thousand 2,529.4 3,649.77 4,692.58
Number of countries and regions with Hua Xia agencies / 115 103 116
Number of cities with Hua Xia agencies / 384 344 380 Number of online personal banking transactions 10 thousand 4,071.04 4,538.94 3,682.81
RMB cross-border settlement RMB 100 million 440.9 371 442.4 Complaints and problems solved through the joint handling mechanism of the
/ 2,378 1,876 2,012
95577 customer service center
ROA % 0.82 0.81 0.78
Allowance-to-NPL ratio % 156.51 158.59 141.92 Settlement rate of complaints lodged through 95577 customer service center % 100.00 100.00 100.00
CAR % 12.37 13.19 13.89
Customer satisfaction rate for 95577 customer service center % 99.29 97.11 99.56
Shareholder equity RMB 100 million 1,694.98 2,187.15 2,693.37
ROE % 13.54 12.67 10.61
95577 call-backs / 39,961 69,411 42,604
Total loans RMB 100 million 13,940.82 16,135.16 18,726.02
Balance of loans in support of strategic emerging industries RMB 100 million 308.71 300.04 812.29 Total number of employees / 42,358 40,997 38,639
Balance of loans in support of cultural industries RMB 100 million 199.11 267.53 464.99
Total number of employees from ethnic minority groups / 1,854 1,750 1,683
Share of loans in support of cultural industries in the total balance of loans % 1.49 1.74 2.62
Share of female employees % 50.39 50.55 51.46
Number of employee training sessions / 3,675 3,889 3,986
Environmental performance Number of participants of employee training sessions / 210,652 224,911 261,106
Indicator Unit 2017 2018 2019 Number of AML training sessions / 2,962 3,145 3,046
Balance of green credit RMB 100 million 532.48 566.99 798.44
Number of participants of AML training sessions / 34,941 37,046 49,855
Loans to energy conservation and environmental protection projects RMB 100 million 446.46 494.92 668.16
Number of ETC cards 10 thousand 237.48 262.4 312.75
Number of legal training sessions / 176 186 213
Number of ETC card users 10 thousand 145.29 170.34 227.07
Participants of legal training sessions / 14,340 16,317 19,595
Total number of one-stop ETC service outlets / 319 382 820
Number of e-transactions 10 thousand 66,363.72 96,584.10 123,005.62
Total charitable donations RMB 10 thousand 972.6 1,234 1,825.6
Estimated carbon emissions reduction through e-transactions 10 thousand ton 132.73 193.17 246.01
A People-Centered
A Brilliant Hua Xia for A Dedicated Hua Xia A Digital Hua Xia A Prudent Hua Xia with A Sincere Hua Xia with Hua Xia Pursuing
16 Hua Xia Bank Co., Limited 2019 Social Responsibility Report
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Green Development
The Bank regards green finance as a major move to serve the green development of China and promote the high-quality development of itself. While Focusing on product innovation
actively encouraging innovations in business management and financial service models, we also support green travel, green transactions and green
operations, thereby contributing to green, low-carbon, and circular economic development. Targeting the four areas of energy efficiency
financing, clean energy financing, environmen- Supporting China’ largest non-interference geothermalheating project
tal protection financing, and green equipment
supply chain, the Bank continued to improve
In 2019, the Bank provided RMB 505 million of 12-year credit loan for a Shaanxi-based
its green financial product portfolio and diversi-
Dedication to green finance fy its green service solutions. We have created
energy development company to build a medium-depth non-interference geothermal
heating system. As the largest of its kind in China, the heating system can meet the energy
a product portfolio covering green credit,
needs of Xi’an Jiaotong University’ 23 state-level laboratories, 25,000 researchers and
green leasing, green investment, and green
10,000 faculty members. Compared with conventional heating, it cuts annual energy
As green finance is one of its six strategic prior- debt financing tool underwriting. A series of
consumption by 2,754.8 tons of standard coal, 36.01% of the total.
ities, the Bank has constantly increased green The Head Oce established the Green Finance Management Commit- featured products covering the refinancing of
actions in its business processes by building The tee to coordinate and manage green nance-related businesses and international financial organizations, collective
a green financial service system covering the Head Oce lead the whole bank in relevant aspects. It also established the Green financing of green projects, comprehensive ser-
entire industry chain through internal business Finance Center to promote green nance business. vices for the energy sector, photovoltaic loans,
structuring and product innovation efforts. By emission pledge financing, carbon financing,
Supporting procurement and operation of new energy buses
launching international partnerships, busi- and energy performance contracting financing,
Branches of the Bank set up green nance leading groups and
ness training and key projects, we have been have been developed to provide differentiated In 2019, the Bank put part of its wealth management fund into a special green asset
Branches professional teams headed by members of the top leadership of each
pushing forward the pilot program for featured and diversified green financial services for the support plan for Zhangzhou Changyun Group Co., Ltd.’s public transport operation
branch to do relevant coordination work and promote the business.
green finance business operation and have green development of the real economy. based on fare collection rights, RMB 27 million in total value. It was the first green bond
accumulated replicable experience and widely fund targeting non-financial institutions issued in Fujian Province. It was mainly used for
applicable practices which can be helpful to the the construction of bus stations and the procurement and operation of new energy buses.
For sub-branches, dedicated green nance branches and marketing
full launch of the green finance business, open- Replacing traditional diesel-powered buses with electric ones can reduce noise, energy
ing up a path towards featured green finance Sub-branches departments were set up with designated personnel responsible for As of the end of 2019 consumption, air pollution, and greenhouse gas emissions in the city. Meanwhile, the
green nance-related work in some regions.
development that meet the actual needs. buses can be charged during non-peak hours of electricity consumption such as late in the
night, thereby improving the overall efficiency of the power grid.
the Bank’s balance of green investment was
RMB 7,745 million, including:
Enhancing credit management
The Bank has successively formulated a As of the end of 2019 RMB 1,600 million of
number of special green credit regulations, industrial investment funds
includingMeasures for the Management of
Green Credit of Hua Xia Bank andGuiding the Bank’s balance of green credit this is equivalent to saving
RMB 3,043 million of
Opinions on Green Finance of Hua Xia Bank , to reached RMB 79.844 billion 1,130,900 tons of standard coal green finance bonds
channel more credit, investment, and financial
leasing resources to green finance; formed
cutting CO2 emissions by
a green credit system covering management RMB 151 million of green
regulations, business policies, green products, 2,714,200 tons asset-backed securities
an increase of RMB 23.145 billion
statistics rules, supporting IT systems, perfor-
mance-based incentives, internal audit, and or 40.82% over the beginning of
and reducing water use by RMB 2,951 million of green
dedicated training programs. the year
credit bonds
5,714,200 tons
In 2019
the Bank supported the balance of loans for energy conservation and environmental protection projects
194 environmental
protection projects was RMB 66.816 billion, a year-on-year increase of 35 %
A People-Centered
A Brilliant Hua Xia for A Dedicated Hua Xia A Digital Hua Xia A Prudent Hua Xia with A Sincere Hua Xia with Hua Xia Pursuing
18 Hua Xia Bank Co., Limited 2019 Social Responsibility Report
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As of the end of 2019, the Bank had
Steadily pressing ahead with the Innovative Financing Project for Air
introduced a total of USD billion of foreign
1 Pollution Control in the Beijing-Tianjin-Hebei Region
capital through on-lending programs
issued RMB 10.2billion of credit loans in The Innovative Financing Project for Air Pollution Control in the Beijing-Tianjin-Hebei
home and foreign currencies
Region is the largest pollution control project of the World Bank in China in terms of the
capital involved, and the Bank partnered with the World Bank for it. As of the end of 2019,
provided financing services for 90projects
27 sub-projects had been launched, with a total investment of EUR 184,373,200 and
in 17 provinces, municipalities and autono-
supporting funds of RMB 2,911 million. The project achieved all its targeted results ahead
mous regions across the country
of schedule and passed the World Bank’s mid-term review with a rating of “satisfacto-
ry”. It has also made outstanding contributions to the improvement of air quality in the
saving
Beijing-Tianjin-Hebei region.
3.47 million tons of standard coal annually
cutting CO2 emissions annually by
8.47 million tons Awards and Honors
In 2019, the Bank earned for itself a range of
cutting SO2 emissions annually by
honors and awards with outstanding perfor-
More information
28,300 tons mance in supporting clean energy development
through green finance. We won titles such as
Scan the QR code to
cutting NOx emissions annually by Best Green Finance Contribution Award from the
read more how the Bank
supported Mizuda’s 28,000 tons China Banking Association, Star Bank for Green
environmental efforts Finance fromThe Economic Observer , Best
Green Financial Service Bank of the Year of Gold
Wind power project supported by the Bank Medal Award of Chinese Financial Institutions -
The Golden Dragon Award from Financial News
(for the third time in a row), and Best Bank for
Green Energy Development, a world-renowned
award presented byGlobal Finance .
Polishing our image through
green finance Undertaking the World Bank’ largest energy storage project worldwide
The Bank had active exchanges and coopera-
In 2019, the Bank cooperated with the World Bank for the world’s largest energy storage
tion with the World Bank, the Asian Develop-
project—China Renewable Energy and Battery Storage Promotion Project. This is the
ment Bank and other international institutions
largest single project of the World Bank in East Asia in the fiscal year 2019, and it is also
in an effort to bring in low-cost international
the first financial product in China dedicated to energy storage projects. The total project
funds and green finance experience, and to
investment amounted to USD 750 million, of which USD 300 million was provided by
make green finance a calling card, hallmark
the World Bank, and the rest came from the Bank through an 18-year RMB-denominat-
and widely upheld philosophy of the Bank,
ed credit loan. The project funds large-scale energy storage systems, especially battery
polishing the green finance brand of “Green
storage systems, and supports innovative projects for the utilization of renewable energy
Growth for a Better Hua Xia”
to facilitate the development of China’s energy storage industry.
Photovoltaic project supported by the Bank
A People-Centered
A Brilliant Hua Xia for A Dedicated Hua Xia A Digital Hua Xia A Prudent Hua Xia with A Sincere Hua Xia with Hua Xia Pursuing
20 Hua Xia Bank Co., Limited 2019 Social Responsibility Report
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Services for green lifestyles Green operations
Paper consumption of the Head Office（Million
Supporting green travel Green office Electricity consumption of the Head Office（kWh）
pieces）
Launching ETC cooperation with the 2017 34,894,453.0 2017 6.67
The Bank actively cooperated with expressway management companies Devoted to integrating the concept of green
Highway Monitoring & Response Center of
and enterprises in the automotive service industry to promote ETC ser- development into the Bank’s daily operations 2018 37,985,485.3 2018 6.72
vices which offered both economic gains and convenience to users, and
the Ministry of Transport
and management, we have taken a series of 2019 43,626,786.8 2019 4.92
encourage more people to travel in environment-friendly ways. practical green office measures to reduce ener-
On July 24, 2019, the Bank and the Highway Monitoring & gy consumption and create a low-carbon and
Fuel consumption of office cars of the Head
As of the end of 2019 Response Center of the Ministry of Transport signed a memoran- green working environment. No environmental Office（Liter） Water consumption of the Head Office（Ton）
dum for ETC business cooperation to support the building of an law or regulation has a significant influence on
the Bank issued a total the Bank had 51,534.49
ETC card issuance platform. On August 8, 2019, the ETC business the Bank due to the nature of its businesses. 2017 2017 42,073.8
of 3,127,500 ETC cards 2,270,700 contracted ETC jointly provided by the two parties was officially launched and 2018 39,812.63 2018 41,410.6
service users
the Bank became the first joint-stock commercial bank to launch
2019 30,149.86 2019 40,809.6
such business.
an increase of 503,500 or an increase of 567,300
19.19% over the beginning of over the end of the
previous year
the year Hua Xia ETC cards promoting green travel Green procurement Lower energy consumption Water conservation
Online office
In 2019, the Bank launched Hua Xia virtual ETC card for car own- The Bank advocated water conser-
ers who would like to use ETC service. Without a physical card, An online office system was used Centralized procurement was car- Smart lighting systems were used vation by putting up signs remind-
to avoid unnecessary resource ried out to effectively reduce the to reduce energy consumption ing employees to turn off the tap
an application for such a card can be approved in real-time and
consumption. consumption of office supplies. and carbon emissions of offices. after using and report all cases of
issued very soon. Simplified application procedures pushed up water leakage from the tap.
Compared with manual toll collection, for an ordinary light vehicle,
service efficiency. The whole process from application, agree-
ETC reduces NOx emissions by 16.4%, CFCs by 71.2%, CO by 71.3% and
CO2 by 48.9%. ment signing, card issuance and connection with a Hua Xia cred-
it card can be completed within 30 minutes. Besides, all users of
this card are exempted from annual fees and loss reporting fees
Protecting the environment
for their credit cards and can enjoy a 5% discount on their toll
payment. New customers can also get an ETC e-tag for free and The Bank encouraged employees to participate in environmental protection activities, such as tree planting and low-carbon travel, and guides em-
enjoy other benefits. ployees to embrace energy-saving, low-carbon, green, responsible and healthy life and work styles starting from the little things, thus contributing to
environmental protection and ecological progress.
Promoting green transactions
The Bank actively promoted the construction of channels for electronic
and green transactions, streamlined e-banking procedures, and guided its
Paperless businesses processing at the counter
customers to get used to mobile financial transactions.
As of the end of 2019 Centering on promoting the use of electronic vouchers, the
Bank advanced the restructuring of its over-the-counter busi-
the total number of e-transac- cutting carbon emissions by ness processes and offered vouchers, customer signatures and
tions reached bank seals in electronic forms to reduce paper use. No paper is
2,460,100 tons
1,230,056,200 used throughout the business processes at the counter unless
customers require documents in printed forms. As of the end of
up by e-transactions accounted for 2019, 75% of our outlets have realized paperless operations.
264,215,200 or 27.36% 98.52% of the total
year on year
Xiamen Branch’ public welfare long walk to promote low-carbon and Changzhou Branch’s tree planting trip themed “Embracing the
environment-friendly lifestyles Beautiful Spring and Spreading the Seeds of a Green Lifestyle”
A Dedicated Hua Xia
with Craftsmanship
SDG Practices
In 2019 As of the end of 2019
Nearly RMB 80 billion of financing Balance of loans in support of strategic
services granted to key projects for the co- emerging industries:
ordinated development of the Beijing-Tian-
jin-Hebei region
RMB 81.229 billion
Fund for targeted poverty alleviation: Balance of loans to MSEs:
RMB 4,309,677,100 RMB 396.387 billion
(including credit funds and donations)
24 Hua Xia Bank Co., Limited Social Responsibility Report 2019 Spotlight: Providing Financial Support for the Fight Against Poverty 25
Spotlight
Providing Financial Support
for the Fight Against Poverty
As of the end of 2019 Pairing up with poor households: The Bank dispatched 20 outstanding officials to work as first
secretary of villagers’ committees in 14 poor villages and underdeveloped villages in 11 provinces,
municipalities and autonomous regions and they played important roles in strengthening village Party
the balance of loans to regions that partnered organizations, promoting income growth, serving the people, and improving local governance.
In line with the requirements set in the poverty alleviation plan for the 13th Five-Year Plan period with Beijing for poverty alleviation reached
Poverty alleviation in partner village assigned by Beijing municipal authorities: The Bank earnestly
(2016–2020) released by the State Council, the Bank focused on key provinces and autonomous regions RMB 4,118 million implemented the policy of the State-owned Assets Supervision and Administration Commission of
People’s Government of Beijing Municipality on pairing up each enterprise with one village for pov-
in Beijing’ poverty alleviation strategy, such as Inner Mongolia, Hebei, Tibet, Xinjiang, and Qinghai, to erty alleviation, and signed assistance agreement with Xinwangzhuang Village, Xitiangezhuang Town,
develop its credit policies and launch integrated financial products and services, so as to provide finan- an increase of RMB 1,451 million from the Miyun District. Following the logic of “funds for industrial development, industrial development for
employment, and employment for more income”, the Bank helped all local low-income households
cial support for the country’ fight against poverty. beginning of the year
out of poverty.
created 9,230 jobs for the local area
The Bank’ Party Committee took the lead in making donations and called upon all employees of the
Advanced technology to overcome difficulties in providing financial services: The Bank launched
e-commerce credit, an online credit product, to solve problems such as delayed acquisition of market
Bank join the Social Participation in Poverty Alleviation and Development of China program. By the end information and low distribution efficiency in the operation of agri-businesses.
of 2019, nearly 30,000 employees had followed the WeChat official account of the program, and donat- up 546 from the beginning of the year
Public welfare programs keep people motivated and educated
ed RMB 1.5 million.
helped secure jobs for 944 registered Donations to help people build confidence in poverty alleviation: Hohhot Branch provided RMB
low-income people in five relevant provinces 100,000 for five “love supermarkets” located in Baolige Village, Bayanhua Town, and Nantuguri Geg-
and autonomous regions acha, Balaqirude Sumu in Ar Horqin Banner, and other places and established a point-based reward
system to benefit the local poor population.
In 2019, the Bank Empowering poverty alleviation with a positive mindset
Poverty alleviation through education: the Bank provided RMB 3.5 million for the improvement of
The Bank has always taken poverty alleviation as a major political task, and strove to strengthen education infrastructure in Hotan, Xinjiang, supported the children of migrant workers in Dandelion
top-level design for poverty alleviation through finance, and formulatedHua Xia Bank Poverty Allevia- Middle School in Daxing District, Beijing, through the China Foundation for Development of Financial
provided RMB 4,309,677,100 for targeted tion Implementation Plan and Work Plan 2019 in accordance with actual conditions. Education, and made more donations to left-behind children in poverty-stricken areas.
poverty alleviation (including credits and dona-
tions) Accurate statistics support poverty alleviation evaluation
Good mechanisms maintain focus on poverty alleviation and facilitate progress
A precise statistics system for targeted poverty alleviation: Through the establishment of a complete and
provided financial services to a total of Coordination mechanism: The Bank established a leading group for poverty alleviation through
clear statistics system, the Bank designated responsible entities for industrial development, employment,
finance to make plans for and promote poverty alleviation tasks in a coordinated way, and to set clear
54,769 registered low-income people consumption, and public welfare activities for poverty alleviation, and they kept records of the number of
requirements, priorities and steps for targeted poverty alleviation.
poor people assisted by loan borrowers (including employment), and filed the recruitment of people from
impoverished backgrounds and the number of people lifted out of poverty by poverty alleviation efforts
granted loans totaling RMB 2,876,014,800 Collaboration mechanism: In line with the poverty alleviation policies of the state and regulatory
through public welfare initiatives and consumption, in order to guarantee the targeted financial services.
authorities, the Bank divided relevant tasks between various departments and ensure connection and
to support 57 projects of industrial develop- collaboration so that they could work in synergy.
ment for poverty alleviation Poverty alleviation loan supervision and monitoring: The Bank strengthened the monitoring and analysis
of credit granting and loan repayment to prevent excessive financing in the name of poverty alleviation.
Cooperation mechanism: The Bank brought in government risk compensation funds, fiscal funds for
provided RMB 366,355,000 of personal emergency mutual aids, and policy-based guarantee companies to combine the overall planning of
loans financial poverty alleviation with the actual situation of poverty-stricken villages.
issued credit card with a total credit line of RMB
Support mechanism: The Bank incorporated poverty alleviation into the Party building evaluation sys-
134,952,300 tem and set political discipline as the most important and fundamental discipline in targeted poverty
The Best Contribution Award for Targeted Poverty Alleviation at the Award Ceremony for Top 100 Performers of Social Responsibility held by China
alleviation, so as to achieve transparent and clean poverty alleviation.
Banking Association.
Industrial development ensures effectiveness of poverty alleviation Fixed-pointed poverty alleviation effort carried out by Urumqi Branch was rated “Good” in the assessment by the Leading Group for Poverty Allevia-
tion and Development of the Xinjiang Uygur Autonomous Region.
Industrial development projects for poverty alleviation: Hohhot Branch introduced the industrialized
meat sheep breeding demonstration project of Inner Mongolia Little Lamb Husbandry Company to Ar Shijiazhuang Branch’s village-based poverty alleviation team was rated “Excellent” by the Organization Department of the Hebei Provincial Com-
Horqin Banner according to local conditions.
mittee of the CPC; Song Xiyuan won the title of Excellent First Secretary of the village-based poverty alleviation team, and Gao Wenfeng was selected
Microcredit programs for poverty alleviation: The Bank increased support for registered poor house- as Excellent Member of the team.
holds, targeted micro loans precisely at projects that help poor households develop production or
at featured and advantaged industries that can effectively lift poor households out of poverty. It took Zhao Yongjun, an employee of Haikou Branch, was presented with the 2019 Excellent Individual for Poverty Alleviation from Hainan Financial
overall credit conditions and capacity to repay the loans as the main criteria for granting micro loans Sector by the Hainan Provincial Office of Poverty Alleviation and the Hainan Provincial Financial Supervision and Administration Bureau.
and took a prudent approach towards the renewal of loans without repayment of principal.
Chengdu Branch was presented with the award of Ten Best Branches in Targeted Poverty Alleviation by Modern Bankers in 2019.
26 Hua Xia Bank Co., Limited Social Responsibility Report 2019 Spotlight: Providing Financial Support for the Fight Against Poverty 27
Poverty alleviation through industrial development: Truly enabling people to bail themselves
out of poverty
Urumqi Branch assisted in initiating the establishment of the “Huaxia Farmer Agricultural Cooperative
in Arele, Hotan City”, using its own advantages to help villagers increase their income. 18 poor villagers
have bought shares with small loans in the cooperative, totaling RMB 680,000.
Lanzhou Branch reached out to cooperatives to help local farmers in Dingxi, Gansu Province, grow
potatoes. At the same time, it also reached out to a local leading company in deep processing of
agricultural products for the purchase of potatoes from poor households at prices higher than the
market level. This formed a new model of financial poverty alleviation featuring “government + bank
+ enterprise + cooperatives + farmers” which ensured the supply of raw materials for the purchasing
enterprise, protected the interests of local poor households and cooperatives, and promoted industri-
al development, corporate operation efficiency, and farmers’ income.
Lanzhou Branch donated tractors to Dingxi
Poverty Alleviation Office
Poverty alleviation through ecological development: Turning lucid waters and lush mountains
into invaluable assets
Haikou Branch adopted the “company + cooperative + poor households” model based on coopera-
tion with relevant companies to build a 498.75-kilowatt distributed photovoltaic power station in Puzai
Village. Once the project is completed and connected to the power grid, it will bring more than RMB
4,000 for each poor household in the village every year.
The Bank was presented with The Best Contribution Award for Targeted Poverty Alleviation by China Banking Association
Poverty alleviation through education: Securing a good starting line for poverty-stricken
children
Xi’an Branch bought 15 computers and five 60-inch flat-screen TVs for Donggou Elementary School
A modern chicken farm built in a fixed-point
and helped install these devices to ensure that the students can enjoy multimedia education as soon
poverty alleviation village with the support from
as possible.
Haikou Branch
Xining Branch donated RMB 100,000 to Shangbatang Village, Yushu Prefecture, which was mainly
used to purchase five tons of coal for heating at the village elementary school, 146 pieces of winter
clothing for students and teachers, 136 sets of school bags and school supplies, school canteen
supplies and some items of basic living needs for some poor families in the village.
Residents of Yunan Village preparing apples
purchased by Xi’an Branch
Poverty alleviation through consumption: Engaging more people in poverty alleviation
through purchases instead of donations
Taiyuan Branch purchased RMB 15,000 worth of agricultural products from the village which was
paired up with for poverty alleviation and donated them to sanitation workers of Taiyuan, and village
poverty alleviation team members dispatched by the branch helped local poor households sell RMB
31,700 of millet, eggs and corn grits.
On the National Poverty Relief Day, employees from Shijiazhuang Branch, visited Jinpo Village, An-
gezhuang Township, Yi County to purchase homegrown agricultural products such as peanuts, sweet
potatoes, persimmons and eggs, helping villagers create wealth for themselves through labor.
The Bank donated RMB 3.5 million to Hotan City for the expansion of Arele The village work team of Urumqi Branch donated clothing to local resi-
Primary School dents to bring them love and warmth The “love supermarket” of Taiyuan Bank opened
A People-Centered
A Brilliant Hua Xia for A Dedicated Hua Xia A Digital Hua Xia A Prudent Hua Xia with A Sincere Hua Xia with Hua Xia Pursuing
28 Hua Xia Bank Co., Limited 2019 Social Responsibility Report
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Supporting for the Coordinated Development
of the Beijing-Tianjin-Hebei Region
Positioned as the bank for Beijing, the Bank contributed to Beijing’s efforts to build itself into the political center, cultural center, international commu-
nication center, and technology innovation center of China, supported the construction of the city’s sub-center and the Xiongan New Area, and helped
with the relocation of Beijing’s non-capital functions, thus promoting the coordinated development of the Beijing-Tianjin-Hebei region.
Focusing on the construc-
tion of the capital city
Guided by Beijing’s development blueprint, In 2019
the Bank continued to enhance the financing
support for the capital’s economic develop-
the bank provided RMB 229.56 billion of loans for the Beijing area
ment and influence in technological innovation
and cultural spheres. Through such efforts, we
contributed to the economic transformation
including RMB 30,305 million for high-tech enterprises, RMB 21,742 million for cultural
and development of the capital.
and creative enterprises, and RMB 24,836 million for MSEs
the Bank’ financing services covered 84.91% of SOEs at the municipal and district levels in
Beijing
Supporting technological innovation
Centering on the innovation-driven development strategy, the Bank leveraged on its advantages in FinTech and Internet Plus initiatives, established ded-
icated organizations to provide services for technology-centered enterprises. Its Zhongguancun Management Department supported the development The Bank signed theStrategic Cooperation Agreement on Promoting the Time-Honored Brand of Beijing with Tong Ren Tang, Gongmei Cloisonne, Bei-
jing Fashion and Xianglong Group
of relevant technology companies intending to help create new FinTech business forms at Zhongguancun National Innovation Demonstration Park.
In 2019, together with guarantee institutions, venture capital institutions, and innovation incubators active in the Zhongguancun area, the Bank
launched special products such as the easy loan for start-ups, easy loan for high-tech companies, intellectual property loan, and investment linkage loan. Helping polish time-honored brands to carry forward and develop traditional Chinese culture
The products provided financial support for several original innovations with great influence in areas such as integrated circuits, new energy, biomedi-
cine, advanced manufacturing, and helped cultivate a batch of innovative enterprises with great potential and industry-leading enterprises.
The Bank launched its Time-Honored Brand All-round customized financial service packages for each brand
As of the end of 2019 Action Plan focusing on seven market seg-
Based on the characteristics of each brand, the Bank customized all-round financial
ments including renowned catering brands,
service packages and extended its services to the upstream and downstream sections of
traditional food, health care, traditional folk the relevant industry chain.
the Bank provided financing services for 282 technology companies and issued a total of RMB 8,776 million of loans costumes, cultural heritage, publishing and
in Beijing
media, and craftsmanship. The Bank carried
out all-round cooperation with Tong Ren Tang, Policy support for the Time-Honored Brand Action Plan
Gongmei Cloisonne, Donglaishun, Red Star, The Bank developed preferential policies for these time-honored brands, offering them
Contributing to cultural prosperity
Arctic Ocean, Wangzhihe, Wuyutai, and many loans with longer periods, more suitable repayment methods and preferential prices.
As of the end of 2019
other time-honored brands to facilitate innova- Besides, green channels were opened for them to expedite loan approval.
Focusing on building Beijing into the cultural center of China, the Bank tion-driven development of China’s outstand-
established the Center of Cultural and Creative Industries and the Beijing the Bank provided financing services for 404 cultural and creative ing traditional culture. As of the end of 2019,
companies in Beijing More comprehensive services as a way to shoulder responsibilities
Cultural and Creative Industries Management Department under its Head the Bank had established partnerships with 31
Office to speed up the development of related mechanisms and promote time-honored brands in Beijing and delivered The Bank carried out joint Party building, public welfare and brand building activities
product innovation. By actively responding to the financial needs of all-round customized financial service packag- with time-honored brands, provided consulting services with its rich resources and infor-
the balance of credit loans for such companies was RMB 10,783 mation, and cooperated with high-quality brands within the industry to build resource
cultural and creative companies, we contributed to the cultural prosperity es for 12 of them as the first batch.
million sharing platforms.
and development in the capital city.
A People-Centered
A Brilliant Hua Xia for A Dedicated Hua Xia A Digital Hua Xia A Prudent Hua Xia with A Sincere Hua Xia with Hua Xia Pursuing
30 Hua Xia Bank Co., Limited 2019 Social Responsibility Report
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Supporting a series of winter sporting events
In 2019, the Bank became one of the diamond partners of Experience Beijing – a series of winter sporting events, making its contribution to the
high-quality development of the sports and cultural industry in Beijing. In the future, the Bank will continue to provide all-round and high-qual-
ity financial services for the development and promotion of ice and snow sports in China.
Signing strategic cooperation agreements with enterprises to contribute to the economic development of
the capital city
On March 29, 2019, the Bank signed strategic partnership agreements with nine key enterprises under the administration of Beijing’s munic-
ipal government, including the State-owned Capital Operation and Management Center of Beijing, Beijing Infrastructure Investment Co., Ltd.,
Beijing Investment Group Co., Ltd., Beijing Huanwei, Beijing Capital Agribusiness & Food Group, Beijing Capital Highway Development Group
Co., Ltd., Beijing Municipal Road & Bridge Group Co., Ltd. (BMRB), Beijing Uni.-Construction Group Co., Ltd, and Beijing Orient Electronics Group
Co., Ltd. (BOE) under Beijing Electronic Holding Co., Ltd. Based on these agreements, the Bank provided quality financial services for key pro-
jects, enterprises, fields, and areas in the capital.
“The strategic partnership between Hua Xia Bank and nine municipal enterprises of Beijing is a major move that will promote the integrated
development of municipal financial institutions and municipal enterprises, give full play to the leading role of state-owned capital and enter-
prises in Beijing’s economic development, and lend momentum to the construction of the capital city and the coordinated development of
the Beijing-Tianjin-Hebei region.”
Zhang Guilin, Party Secretary and Director of the State-owned Assets Supervision and
Administration Commission of People’s Government of Beijing Municipality
Support for the balanced development of Beijing ’ sub-center and Xiongan New Area
Promoting economic development
The Bank deepened its strategic cooperation with the authorities of In 2019, the Bank The Bank offered strong support to the construction of Beijing’ sub-center and Xiongan New Area as the two wings for Beijing’ overall development. This
various districts and counties, as well as many state-owned enterprises helps with the relocation of the non-capital functions of Beijing and contributes to the coordinated development of the Beijing-Tianjin-Hebei region.
in Beijing. By proactively learning about and identifying their specific
financial needs, we established a service platform featuring connection supported
Supporting the construction of Establishing more outlets Enhancing cooperation with platform enterprises
provided RMB 34.3 billion of credit loans to 70 mu-
and coordination between the Head Office, branches and sub-branches the headquarters and subsidiaries of munici- the sub-center of Beijing
nicipal key credit The Bank set up three sub-branches and outlets The Bank granted nearly RMB 10 billion in credit to
to better work with key enterprises and promote the rapid and steady
pal enterprises The Bank made active efforts to channel and put in place more than 40 smart counters Beijing Investment Group Co., Ltd. to support the
economic development of Beijing. Such partnerships formed a synergy projects with over and other self-service machines. The Bank has construction of 52 infrastructure projects related to
high-quality financial resources to the sub-center
with the headquarters economy in Beijing, bringing benefits for all parties also received approval for opening its Tongzhou the construction of the Tongzhou New Town and
of Beijing. In line with the development plan for
involved. RMB 30 billion of Branch from Beijing Bureau of China Banking the demolition and reconstruction work of Taihu
the new urban area in Tongzhou District, the Bank and Insurance Regulatory Commission, and the Town and its surrounding areas.
signed strategic cooperation agreements funds
In 2019, the Bank formulated thePlan of Hua Xia Bank for Delivering Good approved and granted loans to more construction branch will be the second Tier-1 branch in the
Financial Services for the Economic Development of the Capital to Have
16 municipal enterprises, 2 govern-
with projects in Tongzhou, effectively facilitating the sub-center once it opens its door.
ment departments, and 1 private enterprise orderly relocation of the non-capital functions of
a Good Start . According to the plan, the Bank strengthened services for Providing support for relocation Allocating more resources
district-level state-owned assets management centers, financial affairs Beijing.
offices, and platform companies. More financial support was offered to The Bank took an active part in supporting the Since 2015, the Bank has provided more than
key areas such as Daxing, Chaoyang and Haidian districts and major local relocation of municipal authorities and public in- RMB 37.3 billion of credit and financing for the
stitutions to the sub-center and launched special development of Tongzhou District, which was used
companies such as BAIC Group, Beijing Investment Group Co., Ltd., State-
financial products including Hua Xia Elite Loan, to support key projects of the district, including
owned Capital Operation and Management Center of Beijing, Beijing Hua Xia Express Card, and Global Elite Credit the demolition and reconstruction of the cultural
Capital Highway Development Group Co., Ltd., and BBMG Corporation Ltd. Card for the more than 50,000 employees of 118 tourism zone, Tongzhou Yunduan Industrial Park,
organizations directly affiliated to the municipal Universal Studios Beijing, and shanty town recon-
government. struction project in Lucheng Town.
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Supporting the construction of Supporting transportation inte-
Xiongan New Area Becoming the first to join a blockchain project management platform gration in the Beijing-Tianjin- Supporting the construction of Daxing Airport Express
of Xiongan New Area Hebei region
Based on the needs of Xiongan New Area, the
In 2019, Beijing Daxing International Airport was put into use, which further improved the
Bank developed special preferential policies,
The Bank is the first national joint-stock bank to join the blockchain project management In light of the transportation development transportation system of the Beijing-Tianjin-Hebei region. Beijing Branch actively support-
and set high targets for the development and
platform of Xiongan New Area. The Bank moved its cash management products into the plan for the Beijing-Tianjin-Hebei region, which ed the construction of the Daxing Airport Express, which was key to a modern rapid transit
delivery of products and services, as well as for
platform to provide transfer and payment, review and authorization and financing services features four vertical lines, four horizontal lines, system and helped transform how people travel in the local area. Beijing Branch had grant-
relevant innovation efforts and work efficiency,
on it. This enabled authorities of Xiongan New Area to manage contracts and contract ful- and a loop line, the Bank increased support for ed a total of RMB 565 million of credit loans to the project.
making its contribution to the construction of
fillment, allocate fund and monitor fund use for various construction projects. It has served projects critical to transportation integration
Xiongan New Area. In 2019, the Bank received
21 enterprises, including China Xiongan Group Co., Ltd., and projects involved included the in the Beijing-Tianjin-Hebei region, including
approval to start preparation for Xiongan
Millennium Forest project, Tanghe Sewage Reservoir project, and other key projects in the rail transit, highway, port and transportation
Branch.
area. hub projects, based on considerations of both
economic and social benefits, promoting con-
venient inter-city connections in the region.
Contribution to the coordinated development of the Beijing-Tianjin-Hebei region
To be a major financial service provider for the Beijing-Tianjin-Hebei region, the Bank set up a dedicated working group for the coordinated develop-
ment of the Beijing-Tianjin-Hebei region, which was headed by the President. The goal is to build a dedicated financial service platform for the region by
establishing relevant systems, mechanisms and launching relevant businesses and products. By doing so, the Bank will contribute to the coordinated
development of the Beijing-Tianjin-Hebei region with its advantages in financial innovation.
Supporting ecological environ-
In 2019, focusing on transportation integration, ecological environment protection, industrial transfer, and upgrading and other key fields, the Bank ment governance in the
provided strong support for projects such as the Daxing Airport Express, the city sub-center museum, the Tongzhou organic matter resource ecological
Beijing-Tianjin-Hebei region
treatment station, the infrastructure project of Caofeidian Coordinated Development Demonstration Zone, Baiyangdian water pollution control and
blockchain fund management platform. With approval received successively for its Tongzhou Branch and Xiongan Branch, the Bank basically formed an The Bank continued to enhance cooperation As of the end of 2019 In 2019
outlet network covering all key areas for the coordinated development of the Beijing-Tianjin-Hebei region. with international financial organizations such
as the World Bank to provide financial support
the Beijing-Tianjin-Hebei region joined the Bank provided nearly RMB 14billion of
In 2019, the Bank for key projects related to air pollution control,
hands with the World Bank for the Innovative loans to green development projects in the
water pollution control, and clean energy de- Beijing-Tianjin-Hebei region
Financing for Air Pollution Control in Beijing-
velopment, as well as energy conservation and
provided nearly RMB 80 billion of financing services for key projects re- Tianjin-Hebei Program, under which 6 sub-
had a total of 159 outlets in the Beijing-Tianjin-Hebei region environmental protection enterprises. In 2019,
lated to the coordinated development of the Beijing-Tianjin-Hebei region projects were already launched
the Bank funded the distributed photovoltaic
power generation projects at Qinghe wastewa-
ter treatment plant, Huanghua Huanan wind
Supporting the integration of public services in farm, and some other high-quality energy-sav-
the Beijing-Tianjin-Hebei region ing, environmental protection and clean
energy projects.
To build a financial service circle for the greater Beijing area, the Bank has As of the end of 2019
launched special products, including Hua Xia Elite Loan, Fund Loan, and
Foreclosure Loan to meet the financial needs of residents in Beijing, Tian- Launching strategic cooperation with Zhangjiakou for green and innovation-driven development
the Bank had issued a total of 2,139,600 cards themed on the coordi-
jin and Hebei in consumption, travel, relocation, decoration, and so on.
nated development of the Beijing-Tianjin-Hebei region
The Bank issued the first debit card in the banking industry with the co- To promote the construction of Zhangjiakou as the water source conservation area and the ecological buffer zone of Beijing, the Bank signed
ordinated development of the Beijing-Tianjin-Hebei region as the theme, a strategic cooperation agreement with the municipal government of Zhangjiakou to pursue innovation in green finance and promote the
an increase of 369,300 or 20.86 % from the end of the
which provides a significant platform for the Bank to serve customers, development of green industries in the city. By the end of 2019, through the Innovative Financing for Air Pollution Control in Beijing-Tianjin-He-
previous year
develop businesses, and increase market share in the region, thus driving bei Program and other green financial products, the Bank had provided a total of RMB 520 million of green financial products for Zhangjiakou,
the development of public services. effectively promoting green, low-carbon and environment-friendly development of the city.
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Serving the Real Economy
Continuing to give priority to serving the real economy, the Bank actively aligned its businesses to national development strategies and regional devel-
opment plans, promoted the transformation and upgrading of the industrial structure, fully supported the improvement of people’ living standards Infusing vitality to the development of the Guangdong-Hong
and well-being, and provided efficient, convenient and all-round financial services to support China’ opening up. Kong-Macao Greater Bay Area
Guangzhou Branch joined hands with various parties in society to create a livable, busi-
Supporting national regional development strategy ness-friendly and tourist-friendly life circle and world-class city cluster in the Greater Bay
Area.
Based on its expertise, the Bank launched credit, investment, and financing policies to fully align its businesses to major national strategies for regional
development. It paid attention to urban renewal
It provided low-cost financing services
projects and provided high-quality
for key local construction projects in
financial services for real estate com-
the forms of project loans, syndicated
Boosting the development of loans, funds, etc.
panies for the renovation of old towns,
the Yangtze River Economic Belt Supporting the development of the Yangtze River Economic Belt factories, and villages.
Paying close attention to the development
In strict accordance with the Yangtze River Golden Channel Development Plan, Hefei
Based on the rapid transport network
of the Yangtze River Economic Belt, the Bank
Branch strengthened support for industrial transformation and upgrading initiatives, as It launched featured consumer finan- consisted of high-speed railways, in-
provided continuous and high-quality financial
well as enterprises and projects engaged in environmental protection and innovation. The cial products and provided special ser- ter-city rails, and high-grade highways,
services for related infrastructure construction vices for retail customers in the Greater it launched ETC services for Class-II ac-
Branch worked to play its part in meeting the financial needs of the integrated multidi-
projects, industrial transformation and upgrad- Bay Area. counts to contribute to the connectivity
mensional transportation corridor along the Yangtze River Economic Belt and selected
ing efforts and new urbanization initiatives, of the Greater Bay Area.
and supported outstanding projects related to regional industrial upgrading and transfer.
making its contribution to the development of
Starting from demonstration zones for industrial relocation, such as Wanjiang Economic
Yangtze River Economic Belt.
Zone, Anhui, Hefei Branch provided financial services for promising transferred companies
and projects that met the requirements set in its credit, investment and financing policies,
and thus offered strong support for the development of the Yangtze River Economic Belt.
As of the end of 2019, Hefei Branch’ balance of loans in support of the development of
Supporting the development of The Bank actively promoted the The Bank built professional teams and
the Yangtze River Economic Belt was RMB 19,978 million, and a total of 476 customers had establishment of various organiza- established a dedicated expert panel
Free Trade Zones tions in FTZs, with 17 branches setting to vigorously promote steady business
benefited from these loans.
up 30 organizations as of the end of development in FTZs.
The Bank made strategic attempts at financial 2019.
services free trade zones (FTZs). By continuous-
1 2
ly improving its service models and mecha-
Boosting the development of Ganjiang New Area nisms, the Bank infused lasting vitality to the
financial reform of FTZs. Based on the “commercial banking 3 4 The Bank continued to improve the
+ investment banking” service mod- working mechanism for its organ-
As a state-level new area, Ganjiang New Area is of great significance to the economic devel-
el, the Bank continuously pushed izations within FTZs and establish
opment of the Yangtze River Economic Belt, the rise of central China, and the development up the share of FTZ customers in its sound communication mechanisms
and opening-up of inland areas of China. Nanchang Branch established the Ganjiang New customer base and the proportion for them. It collected information on
Area Sub-Branch to provide high-quality financial services for local economic devel- of capital financial services in all regulatory policies, the latest trends
serivces. It built its own character- in the industry, and product innova-
opment. By the end of 2019, a total of RMB 1,645 million of loans had been provided to
istics,and delivered differentiated tions monthly, shared the information
enterprises in the Ganjiang New Area.
services in FTZs. among institutions within FTZs, and
facilitated mutual learning.
Supporting the development of
the Guangdong- Hong Kong-Ma- Establishing Hong Kong Branch to provide financial services for the
cao Greater Bay Area development of the Guangdong- Hong Kong-Macao Greater Bay Area
Developing the blockchain technology to serve the construction of Tianjin Free Trade Zone
The Bank improved its organizational structure
On September 26, 2019, the Bank’ Hong Kong Branch Preparation Team received a
and mechanism to better support the con-
banking license from the Hong Kong Monetary Authority and the Hong Kong Branch was Through cooperation with the first blockchain cross-border trading platform of China, i.e. the TCB Trade Express Platform jointly built by Tianjin
struction of the Guangdong-Hong Kong-Ma-
officially established. In the future, it will actively respond to national strategies, continue Customs and Tianjin Bureau of Commerce, Tianjin Branch provided customized financial products for the sound development of cross-border
cao Greater Bay Area and helped accelerate
to provide modern financial services with the characteristics of Hua Xia Bank to support trade enterprises in Tianjin. As of the end of 2019, Tianjin Branch, with the help of the blockchain technology, realized cross-validation of data
integrated development.
the construction of the Guangdong-Hong Kong-Macao Greater Bay Area. on cargo flow . The Branch completed cross-border payments totaling USD 5.5 million. The platform enabled whole-process cargo monitoring
and exchange of data on cross-border capital transactions and contributed to a close-loop business ecology that improved itself constantly.
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36 Hua Xia Bank Co., Limited 2019 Social Responsibility Report
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Promoting industrial
transformation and
upgrading
Supporting strategic emerging
In line with national policies on industrial up- industries
grading, the Bank used financial instruments to In 2019, the Bank issued RMB 40 billion of perpetual bonds to add to its Tier-1 capital, further en-
hancing its ability and potential to enhance supply-side structural reforms of the financial sector. The Bank actively responds to national strat-
guide and support the transformation of tradi-
tional industries, the development of strategic egies for supporting the development of stra-
emerging industries, and the modernization of tegic emerging industries, and has increased
agriculture. Through such efforts, the Bank con- financial support for key industries and areas.
tributed to the shift towards more sustainable
Boosting the transformation and development of the blue economy By the end of 2019, the balance of loans for sup-
economic growth. porting strategic emerging industries was RMB
Shandong Jiejing Group Corporation is the oldest company in the integrated algae prod- 81.229 billion.
Supporting the transformation
ucts processing business in China and a leader in the industry. In recent years, Qingdao A customer manager of Shaoxing Branch visited the construction site of Shaoxing Metro to see
Branch has actively provided credit support to this company to help it transform from a what the customer needed
of traditional industries traditional production and processing enterprise to a new enterprise featuring high-caliber
Guided by relevant industrial policies and the talents, advanced technologies and excellent products, contributing to the high-quality
development of the blue economy.
distribution of various industries, the Bank Supporting the development of China’s manufacturing industry
stepped up its support for the creation new
economic drivers, helped with strict control
According to the Made in China 2025 Implementation Plan of Shaoxing and the characteristics of the advanced equipment manufacturing
over and the elimination of backward produc-
industry in Shaoxing, Shaoxing Branch provided financial services mainly for key leading enterprises supported by the municipal government,
tion capacities, and promoted the mutually
listed companies and their core subsidiaries, companies about to go public, or equipment manufacturing companies with advanced technolo-
beneficial and integrated development of the
gies, clear competitive edges, and good business performance. In the first half of 2019, the branch extended a total of RMB 940 million of credit
financial industry and traditional industries,
to 10 equipment manufacturing companies.
thus facilitating the transformation and upgrad-
ing of traditional industries.
Supporting the modern agriculture
Supporting China United Cement Corporation’s transformation and upgrading
Through differentiated credit management, financial product innovation, service model innovation and other approaches, the Bank promoted the
healthy development of agriculture-related enterprises and the supply-side structural reform of agriculture sector.
Providing better targeted, stronger, and more reliable financial services for agricultural projects
Kulongtai Vegetable Wholesale Market in Beizhen City, Liaoning Province, is one of the first leading enterprises of China for agricultural indus-
trialization, a state-level central wholesale market, and a key part under the Non-Staple Food Project in Jinzhou City. To help the market solve
a series of problems, including difficulties in collecting receivables, completing
settlements, making payments, and conducting reconciliation, Shenyang Branch
carried out in-depth cooperation with the market on fund settlement, digital
financial platform building, and innovation in agriculture-related financial prod-
ucts. Specifically, it helped the market launch an account system that combined
dedicated deposit accounts and internal bookkeeping, and realized multiple
functions such as the deposit and management of funds, fund flow monitoring,
payment, internal bookkeeping and interest calculation. Since the launch of the
system in August 2019, 140,000 transactions had been completed through the
system, involving a total value of RMB 300 million. The branch’s excellent perfor-
mance was highly praised by related enterprises.
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Supporting private
enterprises
The Bank earnestly implemented the major
decisions and arrangements of the CPC Central Lauching inclusive financial products for private enterprises to solve
Committee and the State Council on supporting their financing difficulties
private enterprises and the private sector, and
came up with a series of measures, including al-
Given that private enterprises and MSEs usually borrow short-term small loans frequently and
locating dedicated credit resources, shortening
urgently, the Bank created a dedicated financial service package for them, that is Hua Xia in-
the financing chains for enterprises, and low-
clusive package for private enterprises. The package includes three series of products, namely
ering the financing costs for private enterprises
Rongyitong, Ronghuitong, and Rongjietong, and they together provide private enterprises and
and MSEs, to provide strong financial support
MSEs with well-targeted financial service solutions, to meet their differentiated needs and help
for the development of private enterprises.
them solve financing difficulties in three aspects, three major problems that pushing up their
financing costs, and three sore points in using financial services.
1 1 1
Insufficient credit High-cost bridging loans Insufficient credit line
2 2 2
Lack of guarantees High-cost short-term loans Occupation of funds
Working with Shenzhen High-tech Investment to promote the implementation of the “Four Hundred Billion” plan
3 3 3
To offer more support to the implemen-
High interest rates for the
Low effciency Difficulty in getting services tation of the “Four Hundred Billion”
occupation of funds
plan of Shenzhen to promote the healthy
Financing difficulties in Three causes of high
Three sore points development of the private sector, on
three aspects financing cost
July 17, 2019, Shenzhen Branch signed
Rongyitong Ronghuitong Rongjietong
theStrategic Cooperation Agreement on
1 1 1 Financing Support for Private Enterpris-
es in Shenzhen with Shenzhen High-
Start-up Loan, Intellectual tech Investment & Guaranty Co., Ltd.
Property Loan, High-tech (Shenzhen High-tech Investment), and
Loan, Cultural and Creative
Yongxu Express, Annual Full Amount Loan, introduced more powerful, targeted, and
Loan, Rent Loan, Market
Review Loan Credit Value-added Loan practical measures to fuel the develop-
Loan, Villager Loan, Fisher
Loan, Mountain Farming ment of the private sector of Shenzhen.
Loan
2 2 2
Shenzhen Branch cooperated with Shenzhen Branch By increasing the credit line for Shen- Through in-depth cooperation in
Shenzhen High-tech Investment to provided no less than zhen High-tech Investment, Shenzhen the fields of cloud computing, big
Yinbao Tong, Yinshui Tong, Order Loan, Government
House Loan Express, Factory provide subsidy loans and govern- RMB 30 billion of special Branch issued no less than RMB 30 data, and artificial intelligence,
Invoice Loan, POS Loan, Procurement Loan,
Mortgage Loan ment procurement loans for 300 pri- credit loans to private billion to support private enterprises in Shenzhen Branch provided
Photovoltaic Loan E-Supply Chain Series
vate enterprises that have received enterprises in Shenzhen. Shenzhen to issue bonds. By applying 30,000 MSE owners in Shenzhen
3 3 3 government tax cuts, and provided products in the underwriting pool of the with a total of RMB 300,000 in
them with relevant fee reductions. Head Office, Shenzhen branch provided credit loans through its mobile
high-quality private enterprises with full- banking platform where lending
Financing E Loan, Hua Xia
Flexible Loan, Circular Loan MSE Card, Dragon E Express amount bond underwriting services. can be approved immediately.
Express Loan
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Contributing to the
improvement of
Supporting China’ opening-up people’ living standards
In line with the trend of economic globalization and the basic national policy of opening-up to the outside world, the Bank actively expanded its overseas Based on its strengths in coordinating financial Optimizing personal financial service system
business, built international presence with steady steps, and provided support for the Belt and Road Initiative and the going global campaign of Chinese resources, the Bank worked to serve people’
Expanding the consumer credit business
enterprises. pursuit for a better life through measures such
as launching more financial products, creating Based on customers’needs, the Bank vigorously promoted consumption loans for different
innovative service models, and conducting consumption scenarios.
Supporting the Belt and Road As of the end of 2019 differentiated credit management. In accordance with related national policies and the principle of market-based pricing, the
Bank took targeted measures according to the characteristics of each city and selected
Initiative high-quality projects to accelerate the granting of personal housing loans.
the Bank had established corre-
645 accounting for % of all correspondent
53 With the support of FinTech, the Bank actively developed online loans by enhancing innova-
The Bank actively expanded its financial spondent banks along the Belt and Road banks of the Bank tion and cooperation with head platforms.
network and opened up financial service The Bank explored personal loan securitization, successively issuing Longju personal housing
channels to improve the quality and efficiency more than 50 % of the correspondent banks established in 2019 were located along the Belt mortgage loan ABS products and personal loan NPAS products.
of financial services in support of the Belt and and Road
Road Initiative. Strengthening wealth management Improving payment and acquiring businesses
The Bank improved its six-tier wealth man- The Bank vigorously expanded its ETC busi-
agement customer classification system, ness and implemented the demonstration
Helping build Sihanoukville Special Economic Zone into a win-win project of the Belt and Road Initiative dividing wealth management customers project of mobile payment for the conveni-
into inclusive, basic, VIP, wealth, high-val- ence of the people. The Bank promoted the
Hodo Group is one of the 120 pilot enterprises for deepening reform designated by the State Council, and it is also a demonstration enterprise ue, and private banking customer groups, integration of FinTech with retail business,
and continuously optimized its business made payment and acquiring business more
for the implementation of the trademark strategy as approved by the State Administration for Industry & Commerce. It took the lead in the de-
structure in accordance with regulatory scenario-based, and pursued more innova-
velopment of the Sihanoukville Special Economic Zone in Cambodia, and thus contributed to deepening China-Cambodia economic and trade
requirements for asset management busi- tions in payment.
cooperation under the Belt and Road Initiative. Wuxi Branch provided a credit line of RMB 630 million for the Group, of which RMB 430 million nesses.
had been used. Such financial support helped accelerate the construction of the Sihanoukville Special Economic Zone and made the project
an excellent example of win-win cooperation and friendship along the Belt and Road.
Serving the going global Expanding channels for global service Supporting Renminbi internationalization
campaign of Chinese enterprises delivery
The Bank continued to contribute to the
The Bank continued to build its overseas pres- The Bank actively developed correspondent internationalization of Renminbi by forming the
banks at home and abroad, so as to provide cus- four product systems of cross-border account
ence, strengthen international cooperation,
tomers with fully integrated financial services at services, cross-border settlement products,
create innovative products for the international cross-border financing products, and capital
home and abroad. By the end of 2019, the Bank
market, and support the internationalization of projects. These product systems cover tradi-
had set up 1,221 correspondent banks at home
Renminbi, providing reliable financial support and abroad in 380 cities of 116 countries and tional products, such as remittances and letters
for the going global campaign of Chinese enter- regions on all five continents of the world. of credit, as well as innovative products such
as cross-border two-way RMB fund pools. With
prises.
these products, the Bank aims to help customers
carry out cross-border settlement and financ-
ing businesses using Renminbi. By the end of
Creating innovative products for the
2019, the Bank had handled RMB 44.24 billion of
international market cross-border RMB transactions.
Through the R&D of secondary market risk participation forfaiting products and payment guarantee
forfaiting products, the Bank further enriched its trade and financial product portfolio, application
scenarios, and business channels. As of the end of 2019, the Bank had completed transactions RMB 1.44
billion in total value for secondary market risk participation forfaiting products and RMB 100 million for
payment guarantee forfaiting products.
The Bank also worked to build up its RMB-foreign exchange derivatives series, and promoted the launch
of RMB-foreign currency swap products. As of the end of 2019, the Bank had signed contracts for over
USD 109.81 million of RMB-foreign currency swap products. The Bank organized the marketing day activities themed “One Hundred Cities and Ten Thousand Households”(I)
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Developing Inclusive Finance
Strengthening business management
To meet the financial needs of SMEs, the Bank persevered in providing specialized services, building brands, fostering special features in operation, and
continuously refining its management. By continuously improving top-level design, enhancing organizational structure and management mechanism,
pursuing better resource allocation, and strengthening risk control, the Bank continuously improved its inclusive financial services, aiming to be “a
financial service provider for SMEs”. It has fulfilled all MSE-related regulatory indicators for ten consecutive years since 2010.
Towards featured inclusive finance
Action plans to support private enterprises and MSEs 1 6 Sound risk control with featured control models
The Bank developed action plans to comprehensively strengthen The Bank strengthened the guiding role of risk management and
and improve financial services for private enterprises and MSEs. strictly adhered to rigid rules in relevant policies, steered loan
Concerted efforts were made across the whole bank to promote granting in accordance with the trends of industrial restructuring, the
The Bank organized the marketing day activities themed “One Hundred Cities and Ten Thousand Households”(II) financial services for MSEs. economic mainstream, and the direction of industrial development,
and worked hard to guide customer classification and industry-
based management.
A better organizational structure to accommodate 2 The Bank stepped up its efforts to expand its MSE customer base in
dedicated inclusive financial service institutions
Anju Leye e-Life for a better life areas with a more developed private sector, devoted more resources
to the Beijing-Tianjin-Hebei region, the Yangtze River Delta and the
The Bank restructured the Inclusive Finance Department, estab-
Pearl River Delta, did more to analyze credit customers with high
lished the retail and inclusive finance division, completed the
The Bank provided comprehensive, default rates, and improved credit customer classification and
Anju (literally “happy life” E-Life inclusive finance restructuring at the branch level, and enhanced
eligibility requirements.
multi-level, specialized financial products collaboration between all business lines of the bank to jointly pro-
This part of the portfolio gives priority to the The Bank gradually extended its loans to Based on the overall economic development and credit
and services to meet customers’ different vide services for MSEs.
credit needs of home buyers, i.e. those who cover comprehensive personal consumption environment in each specific region, the Bank established a
needs related to basic life, entrepreneur- purchase ordinary commercial residential for home furnishing, tourism, healthcare, differentiated authorization mechanism based on total amount
ship and employment, healthcare and units, first-time home buyers and upgraders. etc., providing more support to people’s Better mechanisms for a culture daring and willing 3 control, level-based management, and dynamic monitoring, so as to
to lend
elderly care, and tourism and recreation. spending in new hotspots of consumption. guard against region-specific risks.
In line with the national development
The Bank set and improved key points for risk control regarding
By creating and upgrading the personal strategy of developing the Guangdong-Hong The Bank upgraded its Elite E-Loan and Hua A better performance evaluation mechanism: The Bank included
FinTech innovations, and strengthened the dedicated review and
loan brand of Anju Leye e-Life, the Bank Kong-Macau Greater Bay Area, the Bank Xia E Loan products to align its financial MSE business target fulfillment and implementation of relevant
approval teams with continuous efforts.
launched dedicated housing loan products products better to customers’ needs regulatory policies in the performance evaluation and promotion
endeavored to strengthen its support for
for the Greater Bay Area so as to make it and provide customers with efficient and of branch and sub-branch leaders, so as to motivate leaders to do a
consumption upgrading. 5 Assistance to help private enterprises and
easier for Hong Kong and Macao residents to convenient consumer financial services. better job in serving MSEs.
MSEs out of difficulties
purchase housing in mainland cities in the A better NPL tolerance evaluation mechanism: The Bank followed
Adhering to technological innovation, relevant regulatory requirements of China Banking and Insurance
Greater Bay Area. Outstanding loan renewal service: The Bank went all out to promote
the Bank stepped up its efforts to provide Regulatory Commission in performance evaluation related to the the annual review system for loans, actively renewed loans without
As of the end of 2019, the Bank’s balance of financial services in the field of auto finance, tolerance for non-performing loans for MSEs. repayment of principal, and vigorously promoted Yongxu Express
personal housing loans reached RMB 185.9 and worked with PICC P&C to create Hua A sound mechanism for exemption from accountability based on loans.
billion, an increase of RMB 39.3 billion over Xia Cheyidai, providing customers with due diligence: The Bank formulatedHua Xia Bank Credit, Invest- Assistance to help enterprises out of difficulties: For MSEs who were
the beginning of the year. innovative, convenient, and intelligent auto ment, and Financing Policy for 2019 and Hua Xia Bank Standards in temporary difficulties but had marketable products and a good
financial services along the whole chain. for Due Diligence on Credit Granting . prospect, the Bank did not stop lending, withdraw loans, or cut
As of the end of 2019 Leye (literally “satisfactory job” off credit supply blindly, but worked to help them out. The Bank
As of the end of 2019, the Bank’s balance of
This part of the portfolio provides loans comprehensive consumption loans reached implemented a series of measures to lower interest rates and service
the Bank’ balance of personal consump- charges and improve the efficiency of review and approval, thus
for the purchase of business premises and RMB 56.1 billion.
tion loans was RMB 270.4 billion construction machinery and vehicles by shortening the financing chain, improving financing efficiency, and
individuals so as to help start-ups. 4 reducing financing costs.
an increase of RMB 60 billion, or 28.51 % As of the end of 2019, the Bank’s balance
Better resource allocation for enhanced
from the beginning of the year of personal business premise purchasing support for private enterprises and MSEs
loans totaled RMB 28.5 billion, with 59,000
customers. The Bank worked harder to ensure sufficient credit resources and gave priority to MSEs in credit granting.
The Bank formulated more preferential policies for internal funds transfer pricing, and counted the value-added tax exempted for interest income on eligible
loans to MSEs as part of branches’profits in relevant performance evaluations.
The Bank allocated more funds for MSEs as it successfully issued RMB 40 billion of perpetual bonds.
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Launching innovative and
featured products and ser-
As of the end of 2019
vices
The Bank continued to strengthen product Online loan product series
balance of loans in support of MSEs:
and service innovation, built a service system
The Bank launched innovative online loan products, including the Long Business Loan and Invoice
RMB 396.387 billion that combines online and offline delivery, and Loan series relying on big data for risk control, the Long Concessional Loan series for key enterprises,
provided financing services in more flexible the Long e Loan provided jointly with insurance companies, etc.
loans to MSEs increased by
and efficient ways to facilitate the development
RMB 39.062 billion Scenario-based and business form-specific services
of private enterprises and MSEs.
the balance of loans to MSEs accounted for The Bank adopted internet-based means to improve services for MSEs and increase efficiency. It
developed innovative cash management products, such as Finance Pass, Bidding Pass and Underwrit-
22.36 % of the total loans of the Bank In 2019
ing Pass, to provide complete personalized fund management services to 165 private enterprises and
MSEs. Given that private enterprise and MSE owners are generally more accustomed to working on
featured products for MSEs: mobile devices, the Bank developed a mobile corporate banking system which encompasses service
24 functions such as payment and settlement, inquiry and account checking, and wealth management, as
well as feature functions for business management such as clocking-in, meeting management, and risk
reporting.
Hefei Branch gave a presentation on MSE-related products and services to some MSEs
As of the end of 2019
balance of loans for online businesses of MSEs:
Online: Empowered by FinTech
RMB 12.244 billion
Intensifying efforts in inclusive finance, demonstrating a great sense of responsibility number of MSE customers of online
Offline: Rolling out more featured products and services
businesses:
In 2019, working towards the targets regarding increasing credits to MSEs and serving more MSE customers, Changzhou Branch made targeted 54,705
efforts in inclusive finance, showing a great sense of responsibility. Speed
The Bank improved its House Loan Express, launched Hua Xia Express Loan, and carried out online
Guiding operations with improved performance Strengthening services with enhanced management collateral evaluation and e-contract signing on the basis of centralized online credit record keeping.
evaluation mechanisms to support the development of inclusive finance
Covenience
For business units, the balance of eligible loans and the The Branch formulated detailed rules on inclusive finance man- The Bank upgraded annually reviewed loans, launched Yongxu Express based loan renewal without
increase of relevant accounts were taken as indicators in the agement to clarify the work mechanisms at each level and had repayment of principal to extend terms of loans for eligible lenders, providing more convenience for
performance evaluation for bonuses. designated personnel for follow-up and progress monitoring. MSEs in regard to re-lending and loan renewal. The Bank also improved the procedures for MSE credit
For the leadership of the branch, these indicators were included extension and built a MSE credit factory to deliver services to MSEs with higher efficiency.
The Branch required daily monitoring, monthly reports, and
in the performance evaluation and linked to the salary of the quarterly evaluations to ensure attainment targets regarding MSE
president. loans and accounts and promote the growth of eligible loans. Targeting sore points
For customer managers, eligible loans had a coefficient of 3 The Branch integrated into local economic development through The Bank launched Private Enterprise Express and MSE card to provide featured services for private
instead of 1.5 in management evaluation, and the weight of rel- Changzhou Branch visited the self-employed
activities, such as 100 Banks Entering 10,000 Enterprises, and enterprises and MSEs.
evant indicators increased from 70% to 80% in KPI evaluation. business owners in Changzhou Knitting City
targeted poverty alleviation, to enhance the marketing effect in
areas under the strong support of the branch.
Time-bound competitions were held to guide business units
and customer managers to work in accordance with the deci-
sions and arrangements of the branch. Rewards were offered to
those who worked hard and achieved greatly, while those with
poor performance were punished.
Launching MSE Card to help customers out of “growing pains”
On August 9, 2019, Hua Xia Bank launched Hua Xia Inclusive Corporate Financial Card for MSEs in Shaoxing, Zhejiang. At the event, the Bank
launched the MSE card to provide an array of featured services, such as cash deposit and withdrawal, transfer, settlement, payment, financing,
insurance, legal consulting, etc., meeting the diverse financial needs of the self-employed individuals, small business owners and legal repre-
sentatives of small businesses.
Technology patents of the Bank: 2 Issued 11
series of ESG thematic wealth
management products
Information emergency drills: 75 Raised RMB
funds
10.068 billion of
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FinTech Development
Making concrete progress in FinTech platform building The Bank intensified financial information Guard against user privacy risks
security protection. It formulated regulations Intensifying production data management
and standards for whole-lifecycle financial in-
The Bank implemented its digitalization strategy and fully launched 15 key FinTech projects, covering cash management, payment integration, targeted The Bank revised theDetailed Rules for Management of Production Data of Information System ,
formation management and conducted regular
proposing rigorous requirements on operations and downloading involving sensitive data so as to
marketing, digital credit and other fields. As of the end of 2019, 88% of these key projects had achieved preliminary results and 13 technology platforms checks at points prone to information leakage,
prevent unauthorized data retrieval, tampering, disclosure and damage.
had been put into use, pushing the Bank into the forefront of the industry in this respect. so as to protect financial data assets and pre-
vent risks of financial information leakage. Carrying out inspections on personal information protection
Inspections were carried out on personal information protection across the Bank to detect hidden
risks of information leakage.
15 Key FinTech Projects
Enhancing cybersecurity protection and ensuring data integrity
Smart multi-purpose cloud data center
Architecture reshaping project Targeted marketing support platform
construction project The Bank worked to identify and fix system security vulnerabilities, enhanced system security mon-
itoring and proactive prevention and control, intensified end security management and control,
required regular disposal of downloaded production data, and checked for weak passwords for
Integrated information security risk
Connection and integration project Smart outlet transformation project terminals and production key backup, etc.
awareness platform
Strictly controlling data use to ensure security related to data flow and transfer
Internet banking technology support
Integrated payment platform Big data integration platform
platform The Bank took vigorous measures to control the scope of data processing, keep the computer
network, telecommunications network and broadcasting network separate, analyze production
problems within production and quasi-production environments, and gradually realize the closed-
Digital credit service platform Mobile platform for employees Robo-adviser platform loop management of sensitive data. It also enhanced production data operation management and
deployed the audit system to achieve recording, auditing and tracing of system operations.
Operational process digitalization
Cash management platform Basic platform for smart services Facilitating upgrading of
enhancement project
the industrial Internet
through integration of
industries and finance
Preventing
FinTech-related risks
The Bank actively promoted exchanges
and cooperation with peers on FinTech. It co- Joining hands with Huawei “Kunpeng” to build an open bank
While launching new businesses and applying The Bank worked to improve its system security management framework, financial network security operated with Internet companies, FinTech platform
new technologies, the Bank made all-out efforts emergency response system and disaster preparedness system, and enhanced the continuity of the companies and Internet banks to develop
financial IT system. It built instrumental platforms for better situation awareness, risk perception across scenario-based business solutions, moved
to prevent systemic financial risks. It contin- In 2019, the Bank cooperated with Huawei Innovation Lab to make an overall strategic plan for the
the board, risk prediction and early warning, improved the Bank’s ability to respond to major cyber
ued to improve its FinTech risk management ahead towards digitalization and intelligenti- transformation of its information system architecture and design the IT architecture of an open
threats, disasters and emergencies, thus ensuring the safe and stable operation of its IT systems.
system, and use technologies to identify and zation, and worked to create a new model of banking platform. This is the first open banking platform based on stack cloud built on Kunpeng
eliminate hazards, ensuring secure and highly value creation featuring integration, connec- processor with safe and open basic components. This cooperation ensured business security and
efficient use of FinTech. tivity and strategic planning. stable operation for the Bank, and enhanced its control in various related aspects.
Continuously improved its oper- Reinforced business continuity
ation and maintenance manage- management and further improved
ment system to control risks of real-time disaster preparedness
changes switch drills
Signing an agreement with Hundsun Electronics to create a new growth driver
Ensuring safe and
stable operation of Hundsun Electronics is the first technology company in China to provide commercial banks’ wealth management subsidiaries with integrated
IT system solutions in response to the new regulations on assets management. The company rolled out complete solutions for personal wealth management,
Advanced the improvement of
operation and maintenance tools corporate assets management, and institutional assets management. In 2019, the Bank signed theAgreement of Comprehensive Cooperation on
to form an automated, mobile, Enhanced the improvement of Assets Management Technology with Hundsun. According to the agreement, both parties would cooperate in all aspects of assets management
visualized and smart operation and cloud data centers and reinforce
technology and the Bank would be able to improve its customer services, investment management, and operation support.
maintenance system the foundation of operations
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Smart Applications for Better Business Development
Moving ahead with retail
Using FinTech to better
digitalization with
serve SMEs
technology
With FinTech, the Bank created new service
The Bank continued to increase resource Accelerating the building of online loan platforms Building an independent risk control model for models and streamlined the lending procedure
personal online loans Digital small business service platform improves service capability
investment in FinTech development, made to better serve small and medium-sized enter-
active efforts to create a customer-centered, The mobile marketing platform for personal The digital credit risk control system enables ef- prises (SMEs). It used technologies to solve the
loans allows users to apply for and get loans on fective prevention and control of high-risk frauds The digital small business credit service platform allows small businesses to register as new
data-enabled, and technology-driven smart problem of risk assessment for SMEs, reduced
a tablet, helps the Bank improve marketing and and credit risks related to personal online loans. customers of the Bank, apply for loans and receive them after review and approval, and
retail business system, so as to promote the financial risks and improved financial service
service capabilities, efficiency, and customer manage the loan afterwards. All these can be done online and this helps solving financing
digitalization and upgrading of retailing and experience. accessibility.
difficulties for SMEs and considerably improves SME financing efficiency.
realize sustained, robust, and high-quality
development of retailing business. Procedures Data
Identification technology verifies users’ The system takes internal and external data
identity and enhances loan security; the as the basis of online credit application
Internet, big data and other technologies review and approval, and post-loan mon-
Launching robo-adviser system and private
Advancing mobile payment support online analysis and automatic itoring. Analysis results are automatically
banking and wealth management system
generation of various documents, signifi- generated to provide strong support for
The Bank launched basic financial through the The robo-adviser system changes the traditional cantly increasing efficiency. multiple business models and better risk
sales model for wealth management products.
“Smile to Pay”builds new mobile QuickPass app, continuously improved control.
the card-binding verification elements and im- With cloud computing, big data analytics and
ecology of smart payment prove mobile payment quality, and adjusted the other technologies, the system produces user
transaction limit to improve settlement efficiency persona and automatically generate advice on an
in collaboration with UnionPay. Meanwhile, the investor’ assets portfolio, delivering customized
“Smile to Pay” face recognition
Bank successively launched mobile QuickPass investment adviser service that combines active
payment is the Bank’s featured
products on mobile devices, such as Samsung and passive investment strategies. The private
new technological product created banking system contributes to smart private
Watch, Oppo Pay, Vivo Pay and Mi Band, further Long Business Loan: a new model of inclusive finance
on the basis of biometrics. It ena- enriching its mobile payment product system. banking, helps the Bank manage VIP private
bles customers to make payments banking customers in a hierarchical way, present
products in shelf style, and provide private bank- Hua Xia Bank’s “Long Business Loan” is a featured financial product developed in cooperation with Tencent. Based on cutting-edge
in a safe, well-regulated, convenient
ing and wealth management customers with technologies such as cloud computing, big data and artificial intelligence, the product contains key technological modules for customer ID
and efficient way. After registration
investment advice and planning services. verification, biometrics, OCR, and big data-based risk control, building a highly efficient system that put together functions such as marketing,
on the Bank’s mobile banking app
risk control, and loan granting. This product ensures the security of users’ funds and information, and realizes the whole-process automated
or on mobile QuickPass, users can
online operation, bringing more diverse financial services and more efficient and convenient financial experiences to customers.
pay at designated merchants such
as supermarkets, restaurants, gas
stations, convenience stores, etc.
simply through face recognition and
a password, needing no physical
bank card. This greatly improved Online auto financing delivers services across regions
user’ experience.
To meet the growing demand customers in Tier-3 and Tier-4 cities for auto financing, Shanghai Branch cooperated with Shengshi Dalian Finan-
cial Leasing (Shanghai) Co., Ltd. to break geographical limits with technologies and provide convenient online financing services for customers
in need of auto financial leasing.
This product allows for automated online review and approval, credit granting and loan delivery, breaking the barriers of time and space. While
providing highly efficient and convenient financing services for car owners-to-be nationwide, the Bank used Internet technologies to bring
more customers to brick-and-mortar auto service outlets, securing benefits for multiple parties.
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ESG Investment Philosophy
The Bank fulfilled responsibility and earnestly implemented an ESG investment philosophy and aligned its overall strategy for assets management to
Launching ESG-themed wealth management products
this philosophy. The Asset Management Department of the Bank joined the United Nations-supported Principles for Responsible Investment (PRI),
and promoted the ESG philosophy through strategic research, ESG database building, themed wealth management products, and themed activities.
Besides, the Bank held the first ESG Investing Forum for Asset Management in China. In 2019, the Assets Management Department of the Bank launched ESG-themed net-value-oriented wealth management products centering on beautiful
China with lucid waters and lush mountains and CSR performance for a better life for the people. Since the first of these was launch on April 15, the Bank
had issued 11 of them in total and raised RMB 10.068 billion of funds.
Joining PRI
Holding the 1st ESG Investing Forum for Asset Management in China and releasing ESG Index
In March 2019, the Bank’s Assets Management Department joined the United Nations-supported Principles for Responsible Investment (PRI) and
became the first asset management institution of a commercial bank in China to join the organization.
On December 14, 2019, the Bank held the first ESG Investing Forum for Asset Management in China. At the forum, participants from the
Bank and representatives of associations and financial institutions shared their opinions and insights on topics such as “ESG Investment
and Development Vision” and “Financing for Sustainable Development”. The CSI Hua Xia Bank ESG Index that the Bank launched jointly
with China Securities Index Co. Ltd.(CSI), was also released on the event.
PRI
Principles for Responsible Investment (PRI) is a United Nations-supported international non-profit organization jointly initiated by the UNEP FI and
the UN Global Compact. In early 2005, the former United Nations Secretary-General Kofi Annan invited a group of the world’s largest institutional
investors and stakeholders to develop the Principles for Responsible Investment. The Principles were launched in 2006 at the New York Stock Ex-
change. It works to help investors understand the investment implications of environmental, social and governance (ESG) factors and to support its
international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-
term interests of its signatories, of the financial markets and economies in which they operate.
Developing ESG investment
strategies
To advance ESG strategy research and 3
promotion and to disseminate the ESG The Bank explored the appli-
investment principles in China’s asset cation of natural language pro-
management industry, the Bank developed cessing technology in ESG data
research, planned to take ESG
the guidelines for implementation of ESG 2
factors as data points to build a
strategies in wealth management and in- The Bank established commu- knowledge graph for fast data
vestment, active and passive ESG strategies, nication and exchange mecha- collection and analysis, and to
1 nisms with research institutes
and clarified internal and external evaluation expand the analysis scope to
The Bank carried out independ- and education institutions at supply chains and participating
standards. It also established an ESG strategy
ent research on the ESG analysis home and abroad, worked and controlling shareholders.
research team to conduct in-depth research
framework and evaluation further to identify the key indus- The ultimate goal is to gener-
on ESG investment practices and underlying trial factors that are material,
system to better understand ate ESG data that serves the
assets. enterprises’ESG performance, comparable and accessible, needs of different types of
improve asset allocation and and continuously enhanced the investment, including stocks,
incorporate ESG analysis into guiding role of ESG strategies on bonds, non-standardized debts,
the decision-making process. investment decisions. equities, etc.
Improving ESG investment Developing a three-tier ESG
Conducting ESG data research
research system factor system
Compliance education sessions: Non-performing loan (NPL) ratio:
3,636 1.83%
Anti-money laundering(AML) training Allowance-to-NPL ratio:
sessions: 3,046
141.92%
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Full Compliance in Operations
The Bank adhered to fully law-based and compliance operation, constantly improved its internal control and compliance management system, pro-
moted law-based governance across the board, improved business management processes and systems, gave play to the role of money laundering risk Promoting law-based governance bank-wide
management and case risk prevention and control, ensured full compliance with all regulatory requirements for all business and management activities,
and saw no major negative incident.
The Bank stepped up its efforts to promote law-based governance, implemented the2017–2020 Implementation Plan of Hua Xia Bank for Developing
Rule of Law , actively improved legal risk management and continuously strengthened legal review to guide the identification and control of legal risks
In 2019
in a systematic manner and ensure business operation with full compliance. In addition, it took various measures to improve publicity and education on
the rule of law, worked hard to foster a culture of compliance with laws, regulations and disciplines, and nurture a healthy atmosphere of integrity within
compliance education sessions: participants in the compliance education： training sessions or lectures on anti-financial the Bank.
3,636 163,222 crimes: 635
participants in the training sessions or training sessions on anti-money laundering: participants in the training ses-
Strengthening the culture of the rule of law
lectures on anti-financial crimes: 21,444 3,046 sions on anti-money laundering:
49,855 Five sessions of Hua Xia Bank Lectures on the Rule of Law were organized. In view of the areas prone to legal risks, the Bank disseminated legal knowledge to
raise employees’ awareness and build their capacity to comply with the law. Over 8,000 people across the Bank participated.
Throughout the year, a total of 208 training sessions on the rule of law were organized , covering leaders at all levels, employees across business sectors, as
well as legal professionals.
Launching a campaign to reinforce good market order and boost compliance
In its legal affairs management system, the Bank opened columns on legal interpretation and rule of law, providing 14 legal interpretations and typical cases
and 319 legal work trends to share experience in the rule of law and legal risk management across the Bank.
The Bank actively implemented the requirements of the China Banking and Insurance Regulatory Commission（CBIRC）, launched the campaign to
reinforce good market order and boost compliance cum the Year of Compliance Management Promotion, sorted out and improved its internal control The Bank also organized employees to watch publicity videos of the Constitution and the rule of law-themed films and review the oath of allegiance to the
system, and organized the self-inspection and self-rectification activities within departments as well as random on-site inspection along business Constitution. Employees were encouraged to participate in online legal knowledge competitions and stage art shows, do knowledge quizzes, and visit cor-
rectional facilities, to cultivate a favorable atmosphere for legal awareness raising across the Bank.
lines, focusing on key points of problem rectification in key areas. The Bank thus found and eliminated all kinds of hidden risks in time, and truly
realized fully law-based operation.
Intensifying legal risk control
Improving internal control system
By improving its legal affairs management system with information technologies, the Bank constantly pushed up the efficiency of and standardized legal
affairs management in all aspects, including contracts, authorization, litigation, counsel services, intellectual property rights, law publicity and education, etc.
The Bank formulated guidelines on contracts of asset management and trusteeship, and issued contract templates covering financial management, retail,
corporate business, international business, bond underwriting, advertising and other businesses. These efforts solved, once and for all, problems in contract
The Bank continued to strengthen its internal control system by promoting professional inspections, rectification of identified problems, and compli-
drafting and quality, and efficiency in related business areas, and systematically enhanced the capacity of legal risk prevention and control.
ance audit. It also worked hard to restore good order on the financial market, and comprehensively improved internal control and compliance manage-
ment, providing strong support for the Bank’ lean management and high-quality development.
The Bank revised theArticles of Association of Hua Xia Bank Co.,
The Internal Control and Compliance Department and the De-
Limited to strengthen Party building and equity management. The
partment of Legal Affairs were merged to form the Legal Compli-
Bank also established theList of Compliance Matters for the Board
ance Department and shoulder six more items of responsibilities
of Directors of Listed Banks , aiming to strengthen the compliance
including due diligence for non-compliance credit granting.
mechanisms for the Board of Directors to perform its duties.
Improving corporate governance structure Adjusting the organizational framework for management
Improving the mechanism of rectifying problems Unifying criteria for non-compliance accountability
TheAdministrative Measures for the Problem Rectification Work The Bank revised theAdministrative Measures for Employee
of Internal and External Inspection of Hua Xia Bank was revised to Errors and Non-compliance Points of Hua Xia Bank , unified the
streamline the workflow of problem rectification and clarify relevant standards for employee errors and non-compliance points in all
responsibilities. All business sectors of the Bank worked in an all- branches and business sectors, and intensified investigation and
round way to identify existing problems , analyze the fundamental punishment for violations of laws and regulations, especially
causes of the problems, and develop targeted countermeasures repeated violations.
through a cycle of inspection, rectification and verification.
The Bank held the “Year of Promotion of Compliance Management” theme activity
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Strengthening AML Strengthening case risk
management prevention and control
The Bank continued to improve its AML-related Conducting in-depth AML publicity Continuing to improve the mechanism The Bank maintained a tough stance against case Implementing regulatory requirements and Strengthening case risk prevention training to
internal control system and operating mech- and training risks. The Bank carried out in-depth case-based strengthening risk checks consolidate the foundation of compliance
The Bank revised theAdministrative Meas- operation
anisms by upgrading the AML information The Bank carried out a series of AML ures for Anti-Money Laundering of Hua Xia warning and education, and increased checks
The Bank implemented the requirements of the The Bank clarified the contents and requirements
system, strengthening control over high-risk publicity activities to raise public awareness Bank , theAdministrative Measures for Cus- for case risks and employees with abnormal
Circular of CBIRC General Office on Conducting of case risk prevention training, and guided and
businesses, and launching AML publicity activi- of AML. Special posters were distributed tomer Identification and the Preservation behaviors with an aim to resolutely forestall risks Investigation and Rectification Activities Against supervised various departments to carry out
ties. These pushed up the quality and efficiency
among the public and employees, and four of Customer Identity Data and Transaction related to financial crime cases. Illegal Fund-Raising Risk by Insurance Institutions , such training and education activities. Various
consecutive AML publicity cartoons were Records of Hua Xia Bank , theWorking Rules theCircular of CBIRC on Launching the Special branches organized relevant activities in a wide
of the Bank’ AML work in an all-round way. released on our WeChat official account and of the Leading Group on Anti-Money Laun- Campaign Against Gang Crimes by Banking and range of form including compliance and case risk
viewed for 65,000 times. dering of Hua Xia Bank , theAdministrative Insurance Institutions , and theCircular of CBIRC prevention knowledge competitions, compli-
Measures for Reporting Large and Suspi- General Office on Preventing and Combating ance-themed lectures, etc. to foster a culture of
The Bank also strengthened AML team
cious Transactions of Hua Xia Bank , and the Illegal Fund-Raising, Illegal Loan Granting and sound internal control.
building by organizing multiple levels of AML
Business Process of Reporting Large and Financial Fraud by Banking and Insurance Insti-
training sessions for directors, supervisors,
Suspicious Transactions of Hua Xia Bank , tutions , formulated dedicated work plans to fight
senior management members, employees
with a view to clarifying AML standards Formulating code of conduct for employees to
and branches, reaching 49,000 times. against gang crimes and illegal activities across the
across the Bank. better ensure compliance
bank. The Bank also enhanced risk investigation,
The risk management system against mon- reported relevant clues as required, and imposed
controls in a timely manner. The Bank formulated the Code of Conduct for
ey laundering was further improved and
Employees of Hua Xia Bank and theConduct Ban
institutional money laundering risk assess-
for Employees of Hua Xia Bank , and incorporated
ment was launched to achieve well-targeted
Continuing to conduct external publicity them into the daily training for employees and
and effective identification and control of
activities to maintain a harmonious and stable the orientation training for new recruits. The Bank
money laundering risks.
financial environment also required all staff members to put in practice
the corporate culture of integrity, standardization,
The Bank launched dedicated campaigns to
efficiency and progress.
crack down on illegal fund-raising, illegal loan
granting, and financial fraud so as to strengthen
publicity and education for the general public
Clarifying duties on case risk prevention consoli-
Giving full play to technologies and the staff, and to enhance public awareness date the achievements in this regard
and capability to understand and resist illegal
The Bank developed or improved its suspi- financial activities. The Target-based Responsibility List for Case
cious transaction monitoring models for tax
Risk Prevention of Hua Xia Ban k was revised
crime, export tax rebate fraud, gambling,
and signed by employees bank-wide. The Bank
telecommunications fraud, etc., to cover all
also organized tests on the content of the list,
types of money laundering crimes.
so as to ensure that employees were fully aware
Jinan Branch launched the AML publicity campaign
Attempts were made at the application of the responsibility for case risk prevention for
of AI in AML to improve the accuracy and each position and the detailed rules to follow to
effectiveness of suspicious transaction maintain professionalism.
monitoring.
Protecting intellectual property rights effectively
The Bank strictly abides by the relevant laws and regulations on intellectual property right (IPR) protection. It has put in place the prevention and manage-
ment mechanisms, behavior control mechanism, and coordination and handling mechanisms for IPR infringement and relevant disputes, as well as punish-
ment and accountability mechanisms. In addition, the Bank also provide tools and methods for right holder verification so as to systematically standardize
employees’ behavior of using intellectual properties in the possession of others.
Zhengzhou Branch’s AML publicity campaign themed on Cracking down on the Money Laun-
dering Crime to Safeguard Financial Security
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Strengthening Risk Management
The Bank improved its risk management system and went all out to cultivate a risk management culture in the Bank, in a bid to provide reliable support
for the sound, balanced, sustained and rapid development of all businesses of the Bank.
Improving the risk Strengthening compre-
management system hensive risk management
The Bank steadily moved forward with the The Bank adjusted the organizational structure The Bank continued to enhance its capacity to Credit risk management Market risk management
reform of its comprehensive risk management and departmental responsibilities according to identify, measure, monitor, control and report
The Bank formulated theCredit, Investment Based on the risk management strategy of
system, actively advanced the implementation theReform Plan of Comprehensive Risk Man- all kinds of risks in its business operations,
and Financing Policy of Hua Xia Bank in the year, the Bank strictly implemented its
of various regulatory systems and regulations, agement System , and strove for a professional, in a bid to eliminate hidden dangers in key 2019 , in which environmental protection set market risk preference, and kept track
refined, flexible and responsible risk control
and constantly improved the risk management business areas and links and ensure effective and poverty alleviation projects were given of and analyzed the impact of major events
mechanism.
procedures to ensure that utmost management risk management throughout the process of priorities for investment, in order to offer on the market risks of relevant businesses
more support to eco-friendly enterprises, of the Bank, so as to strengthen risk-based
effectiveness. decision-making, execution to supervision.
The Bank evaluated and updated its risk and better meet the financing needs of quota management, themed analysis of key
preference and formulated its risk management poverty-stricken areas. businesses and early warning for risks.
As of the end of 2019
strategy accordingly, so as to clearly define risk
control objectives and approaches for the year.
the NPL ratio amounted to 1.83% The Bank enabled its Risk Management and
Internal Control Committee, Credit, Investment
and Financing Policy Committee, and Asset Operational risk management Business continuity management
Risk Disposal Committee to fully play their roles
the Allowance-to-NPL ratio reached 141.92% The Bank strengthened the identification of The Bank completed 59 business continuity
to improve the quality and efficiency of their
operational risks to prevent such risks from the drills and carried out 100% of its drill plans.
review and decision-making processes.
source.
The drills were done with emphasis given
The Bank focused on comprehensive risk eval-
The Bank enhanced the monitoring and to manual business handling in emergency,
uation at branches, performance evaluation for
analysis of operational risks, improved its key switch to standby operation sites, featuring
regional chief risk officers, and the assessment
risk indicator system, did more to analyze the coordination between technological and
of implementation of credit, investment and
indicators and give reminders and early warn- business divisions, and cooperation between
financing policies, to continue to improve risk
ing when necessary. the Head Office and branches. This made the
management of the Bank.
drills all the more realistic.
Self-evaluation was carried out throughout the
Bank, covering all main business sectors, the
Head Office and various branches to produce
maps of operational risks for each key business
process.
The Bank revised theCompilation Manual of
Important Operational Risks and Preventive
Optimizing “eight mechanisms” to improve the risk management model Measures of Hua Xia Bank , issued theCollec-
tion of Typical Operational Risk Cases (2019) ,
and organized a competition for operational
Shanghai Branch put “process management, inelastic planning, goal achievement and compliance supervision” to every risk management risk management identification.
post, every business link and every credit business customer, in order to hold firm to the red line of major risk events and the lifeline of asset
quality.
The coordination mecha-
The risk concentration manage- The field inspection mech-
nism between credit approv- The coordinated management
ment index system and monitor- anism of key risk control
al and corporate business mechanism of credit operation
ing mechanism of the branches customers
credit project
The application mechanism of The comprehensive coverage The working mechanism of The quick disposal and
monitoring and analysis results mechanism for operational weekly training for customer response mechanism of risk
of the credit operation risk management managers events
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A Sincere Hua Xia
with Quality Services
SDG Practices
In 2019 As of the end of 2019
Invested RMB 3,493,800
106 outlets in rural areas
in public education
81 outlets in old revolutionary base
areas, areas inhabited by ethnic minority
Complaint handling satisfaction rate:
groups, remote and border areas and
99.90% poverty-stricken areas
100% of customer complaints settled
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Protection of Customers’Rights and Interests
Intensifying management
of consumer rights and Disseminating
interests protection financial knowledge
As a response to social concerns and financial Major measures
The Bank resolutely implements the require- Improving organizational structure Building the capability of employees
service issues, the Bank conducted educational
ments of regulatory authorities and incorporate The Bank set up the Department of Con- The Bank organized training sessions and Active participation in the consumer education campaigns organized by the People’ Bank of China
campaigns to popularize financial knowledge
the protection of consumers’rights and inter- sumer Rights and Interests Protection and tests for employees according to the annual and China Banking and Insurance Regulatory Commission
a service team to protect consumers’rights work plan for consumer rights and interests and enhanced consumers’understanding of
ests into its corporate governance system and The Bank organized consumer education activities such as “315” consumer education week,
and interests. protection. financial products, services and their safety
corporate strategies. We keep improving our education against illegal fundraising, “Financial Knowledge for Safety of your ‘Pocket’” awareness
Improving internal control systems Implementing whole-process supervision awareness through interaction with the public raising event, “Great Journey for Popularizing Financial Knowledge”, “Financial Knowledge Popular-
organizational structure and working mecha-
The Bank improved its internal control Intensifying prior review, process control and in schools, CBDs and communities, creating ization Month, Financial Knowledge Entering Thousands of Families, Striving to be Rational Investors,
nism, with more efforts on personnel training,
systems in nine aspects such as disclosure post supervision.The Bank incorporated the a sound financial ecology and serving as a Striving to be Good Financial Netizens” and other educational campaigns.
and carry out whole-process supervision and of information on financial products and requirements of the consumer rights and
disseminator of financial knowledge.
special inspections. By taking active steps to services and inquiry of financial products and interests protection into its product design
Campaigns to popularize financial knowledge initiated and held by the Bank
enhance institutional, implementation and reg- services. processes . All marketing promotion behaviors
were under control and all relevant regulations
ulatory efforts, we have protected consumers’ Improving working mechanisms The Bank carried out special publicity activities themed on the 70th anniversary of the founding of
on financial products and services in special
rights and interests in all respects. The Board of Directors, along with its Stra- the People’s Republic of China, the new RMB banknotes, the fight against frauds, the smart bank
and key areas were strictly implemented,
tegic Management and Consumer Rights counter, etc.
and merchants were managed and trained in In 2019, the Bank
and Interests Protection Commission, held
relation to consumer protection. The Bank also
meetings on consumer rights and interests
adjusted product and service rules for which invested around
protection to formulate strategies, and im- Main channels
consumers raised extensive concerns to better
prove relevant code of conduct. RMB 3,493,800 in public education ser-
protect consumers’rights and interests.
vice
Offline channels
organized Outlets disseminated financial knowledge with big screens in the lobby, flyers on counters, face-to-face
communication at information desks, dedicated public education areas, etc. We also reached out to
21,021 public education activities
Ensuring financial safety communities, school campuses and business districts and other sites to further disseminate financial
knowledge.
covered over
Giving high priority to keeping customers’ Measures for the protection of consumers’ property 9,993,700 people with its public educa- Online channels
tion efforts
funds and information safe, the Bank strictly Intensifying internal training Cracking down on telecommu-
Providing more reminders to The Bank provided financial knowledge in reader-friendly ways via its official website, WeChat public
implements various supervision requirements, and exchange to improve risk nication frauds and building the
help customers avoid risks handed out approximately account, Weibo, Douyin, SMS, etc. On the official website, there is a dedicated column for security alerts
and adopts rigorous measures such as en- identification and prevention fraud prevention system
to release information on typical risks and countermeasures. The Bank also released anti-fraud tips on a
hanced business risk warning and technologies The Bank enhanced the The Bank kept up with all The Bank connected its fraud 3,551,300 copies of publicity materials to dedicated “Prevention of Fraud” WeChat official account.
risk management related to changes in regulatory rules, handling platform with the the public
upgrading to prevent information leakage,
strengthen safety protection, and guide cus- phone number verification collected information on police fraud management
for card activation;Statement typical cases from peer banks, platform of the Ministry engaged over
tomers to avoid risks, safeguarding custom-
of Hua Xia Bank on Risks of and released risk briefs on the of Public Security to form
ers’ financial safety. Online Financial Services was shared platform. synergy against telecommu-
51,945 of its employees in these activities
presented; Staff members nication frauds, and created
remind customers of risks. an anti-fraud system and set
up an early warning and re-
sponse system for suspicious
transactions.
Measures to ensure consumers’ information security
Reinforcing relevant systems Intensifying data management
The Bank formulated privacy policies applicable to its online finance apps. The Bank managed all operations and downloads related to sensitive data with
stringent measures.
Conducting special checks Kunming Branch held a publicity activity under Yinchuan Branch’ Financial Knowledge Pub-
Ensuring cybersecurity
the theme of “Putting Consumer First and licity Month campaign
The Bank carefully checked for cases where the scope of personal informa- The Bank checked for and fixed security vulnerabilities in its system and Improving Services”
tion collection was unclear or where collected personal information was enhanced security management and control.
used for purposes other than those clearly stated.
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Better Customer Experience
Expanding
service channels
The Bank made active efforts to improve its
outlet network and promote the transformation
towards smart outlets. In response to the nation-
al urbanization and new countryside construc-
tion campaigns, the Bank improved its network
at the county level to provide better financial
services for less-developed areas, delivering
quality services to more people.
Beijing Branch carried out educational campaign to popularize financial knowledge in a school
As of the end of 2019
Knowledge contest on the new Law on the Protection of Consumer Rights and Interests 1,025 outlets in total
In March 2019, “the Finals and Awarding Ceremony of 2018–2019 Hua Xia Bank Cup Knowledge Contest on the Law on the Protection of
31 outlets were opened in 2019
Consumer Rights and Interests” was successfully held, with the Bank as the exclusive title sponsor. Zhang Jianhua, President of the Bank,
made a speech and expressed the Bank’ dedication to protecting financial consumers’ legitimate rights and interests, and safeguarding a covering all provincial capitals and
prosper and stable financial market and financial safety. The contestants gained a better understanding of the new law on consumer rights and large and medium-sized cities across
116
interests protection and knew more about consumer rights protection. With the influence of the Contest and the “315” consumer rights and the country (except Lhasa)
interests protection week, we joined hands with the organizers to carry out offline activities on campuses and launch online follow-up activi-
ties, so as to further disseminate relevant knowledge of consumer rights protection and integrate the knowledge into daily life. Shanghai Branch’ lobby
106 outlets in rural areas
81 outlets in old revolutionary base areas, are-
as inhabited by ethnic minority groups, remote
and border areas and poverty-stricken areas
In 2019
4 new branches and sub-branches opened
in Central, West and Northeast China
4 county-level sub-branches opened
Zhengzhou Branch created nice-looking lobby to deliver thoughtful services to customers
Zhang Jianhua, President of the Bank, delivered a speech at the finals and awarding ceremony of the contest
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Innovating
financial products
Measures to develop smart counters
More convenience
The Bank made innovations in its financial Online Elite Loan 2.0 ETC services for easier travelling
More convenience: Smart counters took over many frequently used per- products and services to meet the diverse Online Elite Loan 2.0 allows users to use their Customer can link WeChat mini program“Hua
sonal banking procedures and delivered the services in a scenario-based financial demands of personal banking credits online in a recycling manner and transfer Xia E-Transport” with Hua Xia credit cards and
funds across banks automatically, and it also then apply for an ETC e-tag on the program.
manner with standardized processes, improving both service delivery customers for consumption transformation
has functions such as credit review, e-signature, After receiving, putting in place, and activating
efficiency and customer experience. and upgrading, assets preservation and value
etc., providing customers with a wide variety of the e-tag by themselves, users can use the ETC
creation. The Bank also promoted innovations convenient services. services wherever they go.
Enhanced security
in technologies, products and procedures, and
Hua Xia e-Loan 2.0 Online automobile purchase loan
Enhanced security: Facial recognition was required for transactions at optimized products operation, scenario ecology
Hua Xia e-Loan was improved into version 2.0 Credit service is embedded into the auto con-
smart counters to ensure security. and customer experience to provide custom-
adding to it a white list function. Customers sumption scenario. The auto loan application,
Exploring intelligent finance on the Opening Day of SOEs ized financial products, delivering outstanding on the white list can apply for loans via mobile review and approval are completed online,
customer experience in the industry. banking and the smart review and approval which improves efficiency and simplifies cus-
system will complete the review and grant tomers’ auto loan application process.
The Bank continuously improved its online service channels and added diverse functions to its online banking products such as mobile banking, person- loans based on a differentiated model.
al online banking and telephone banking, providing customers with better and convenient financial services.
Support for
Services for car owners
Personal online banking Telephone banking consumption upgrading
Business processes were improved. Longying robo-advisor service and AI customer service robot “i Xiaoxia” was introduced to provide
Assets preservation and
phone number-based payment were launched to produce smart invest- services including scenario-based transaction assistance, function Convenient payment
ment strategies and improve customers’ online payment experience. navigation and business consultation, further improving customer value creation
experience by making self-service easier for them.
Personal large-sum deposit 3.0 Three-in-One Code of Hua Xia e-cashier counter
The new version incorporated more functions, The Bank Developed the integrated payment
especially a white list function and a printed de- product “Hua Xia e-cashier counter” to put
posit certificate function. Special products could together the three payment channels of Union-
Mobile banking 5.0 provides smart, pleasant, high-tech and secure services be launched for special target customer groups Pay, AliPay, and WeChat Payment and improve
so that customers can have more options. customers’payment experience.
In 2019, the Bank developed its Mobile Banking 5.0 to deliver all-round smart financial services to users with a nice design, high technology, and
a leading security system. Based on Mobile Banking 5.0, a set of urban service ecosystems were built, covering Taobao Group Purchase, food
delivery, entertainment, online campus payment, financial services for overseas students, etc.
Mobile Banking 5.0 provides customers with smart financial services with six smart functions: smart
Smart recommendations, smart customer assistants, smart prompts, smart transfer, smart wealth man-
agement and smart ecosystem.
Co-branded credit card with Toutiao.com creating personalized
Visualization, color blocks, customizable function combinations, and ads-free options provides financial service experience
Pleasant
more satisfactory customer experience through details the of the design.
As the younger generation became the mainstay of the consumer population, plain credit
Mobile Banking 5.0 is firmly based on biometrics, big data analysis, machine learning and other card designs could no longer meet customers’ demand for personalized experience. The
High-tech technologies, as well as an advanced homegrown mobile development platform to achieve higher Bank collaborated with Toutiao.com to issue the “IN City” co-branded credit card. With the
efficiency and better user experience.
3D card making technology, the card design featured landmarks, cultural and historic sites,
representative flora, and impressionist symbols of ten most popular cities in China to present
Mobile Banking 5.0 contains a first-of-its-kind security mechanism to help customers guard against
risks related to large-sum transfers and electronic pickpocket. A special sequence prompts warn- the beauty and charm of Chinese cities and offer users personalized experience.
Secure
ings and initiates fraud block in real time, fully protecting customers assets.
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Improving service quality
and efficiency
The Bank organized diverse cultural activities and
Raising service standards offered more value-added services to customers.
While improving service delivery channels, we
The Bank held service work The Bank improved its
also upgraded its service management system,
meetings to formulate service internal training team to
strengthened training for employees, and car-
management plans, regula- provide better targeted and
ried out supervision and inspection activities,
tions and rules. service-oriented training for
so as to provide customers with better services.
Major measures employees.
The Bank carried out service The Bank advanced the
inspections, regular checks evaluation and selection
and spot checks to monitor of TOP 100 and star-rated
and control service delivery. outlets. Providing quality services for customers
In 2019 Serving special customer groups
The Bank fully considered the actual needs Huacai Life service brand for the elderly
71 star-rated outlets including 13 three-star outlets, 36 four-star 2 Top 100 model outlets of different groups at the community level
outlets, and 22 five-star outlets The Bank endeavored to build its the financial product series specially designed for the elderly. Based
and provided well-targeted, convenient and
on elderly customers’ demand for security, liquidity and profitability, the Bank created financial
thoughtful financial services for the elderly, product packages for them by putting together government bonds, anti-cancer insurance policies and
servicemen and veterans, migrant workers, and other suitable products.
various other special customer groups.
The Bank provided convenient services for Huacai Life card holders. There were reserved counters for
Valuing customers’opinions The Bank established a sound The Bank maintained channels
them at outlets and some frequently used supplies were available free of charge.
As of the end of 2019, the Bank
system and a complete set of open for complaints and known The Bank organized activities for the elderly in communities. With a wide variety of training courses,
The Bank paid high attention to customer rules for handling complaints, to customers by putting up customers can learn financial knowledge and other skills to better enjoy their lives.
complaints. We improved customer satisfaction and formulated relevant man- clearly visible signs containing
had
by smoothening channels for lodging com- agement measures so as to all relevant information in all
ensure sufficient attention to all outlets. The Bank created a payroll credit mechanism for migrant workers
plaints, improving mechanisms for handling 4,029,700 elderly customers,
customer with good institution-
complaints, conducting complaint analysis, The Bank improved the com- In response to the demands of different parties such as regulators, construction companies and mi-
al arrangements.
and truly solving problems for customers. In Improvement of plaint handling and responsed an increase of 702,600 or 21%, over the grant workers, the Bank proposed a payroll credit plan for the payment of migrant workers’ wages.
complaint han- mechanisms and implemented beginning of the year By connecting to governmental platforms, the Bank launched payroll credit service, as well as fund
2019, the Bank received 19,751 complaints and
a system where the one who monitoring, and payment data submission to government authorities. This helped tackle problems
suggestions and 100% were properly handled, dling mechanisms
first receives a complaint such as delayed wage payment to migrant workers and repurposing of relevant funds.
with a customer satisfaction rate of 99.90%. No The Bank organized customer set up reserved counters at 918 outlets
must remain responsible for
dispute arose throughout the year due to refus- complaint analysis meetings handling it till the very end, all
regularly to review compli- The Bank provided dedicated financial service scheme for veterans
al to handle or delayed handling of complaints. complaints must be properly put in place accessible entrances at
cated complaints, identify handled within a set time limit,
typical cases, and propose clear The Bank provided Huaxia Veteran debit card for veterans, offered various fee discounts and exemp-
and handling strategies must 949 outlets tions for holders and provided customized financial services such as deposits, wealth management
requirements for improvement be based on categorization of
accordingly. and start-up loans. Huaxia Veteran Card was issued in Shanghai, Jinan, Hangzhou and some other
complaints.
places, winning high praise from customers.
In 2019, the 95577 Customer Service Center
The Bank provided services outside of its own premises for customers with mobility
difficulties
initiated the service coordination mechanism properly handled and made
The Bank launched special service delivery plans for in-patients and other customers with mobility
for 2,012 complicated cases 100% of the customer complaints 42,604 call-backs to customers difficulties to help them complete urgently needed transactions.
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Improvement in Corporate Banking Services
Creating
new service models
Taking multiple measures to ensure wage payment to migrant workers
The Bank worked to reinforce the position of cor- Service platform building
porate financial services as a pillar business division
Nanning Branch actively provided support for the Department of Housing and Urban-Rural Development of Guangxi to secure wage payment Mobile corporate banking
and set up service platforms to create a well-con-
for migrant workers. The branch joined banks with its partner bank to issue the Guijiantong wage card for migrant workers in the construc-
nected business environment. For customers in
tion industry. Companies who use these cards to pay the wages are exempted from relevant commissions and charges . The functions of the The mobile corporate banking platform provides functions such as transfer, account checking
different sectors, we provided customized products
card was designed based on the model of existing cash management products to meet the needs of construction enterprises.. The Bank also and mobile authorization, as well as platform-based and tool-based services such as adminis-
and services, created a corporate financial service tration and interaction with specific business districts.
offered Jiangongbao for construction project sub-contractors to help solve problems when relevant labor companies fail to make timely pay-
system that covers assets management, invest-
ments. As of the end of 2019, a total of 29,100 Guijiantong wage cards had been issued and 49 payroll credit accounts had been established.
ment banking and large-sum transactions in their It delivers enterprises’ messages to specific parties. The platform allows users to check
broader senses, and worked to pool resources from business research reports from external contributors, look for quality business partners, and
identify risks of their partner enterprises, solving important problems for SMEs.
. various channels for better financial services.
Smart community ecosystem delivering better services to communities It serves as a mobile assistant for entrepreneurs. Wherever they are, entrepreneurs can com-
plete authorization for financial affairs on the platform. Mobile office apps may be embed-
ded to put financial affairs together with administrative work.
The Bank is committed to meeting the financial service demands of common residents in communities. Focusing on merchant services, Launching Platform Express It works as a financial risk control officer on the go. When bound up with a terminal, the
property management services, and convenience services for community residents, we brought together a number of relevant functions on Pal to meet the diverse platform offers a diversity of ways to ensure utmost security.
Hua Xia e-community app to build a closed-loop service network for a smart community ecosystem. As of the end of 2019, the Bank had 1.08
demands of customers It can be used to manage services across Multiple channels. The app is well-connected to
million active users in its smart community ecosystem.
the online banking system with accounts, verification and authorization systems all shared,
In 2019, Guangzhou Branch cooper- so customers may feel relaxed and reassured to use it.
ated with Foshan UCA Supply Chain
Service Co., Ltd. (UCA) to launch
Platform Express Pal. The system is
Diverse financial services Convenient services for daily life linked with UCA’s fund depository
and management system, to provide Online corporate banking
Qiyue finance and asset management
a convenient payment channel for platform for cash management
Multiple e-payment methods are provid- Convenient Shopping A closed life circle was developed, where The Bank continuously improved the basic
payment platforms and their users. The system
ed to create secure, convenient and fast people’s needs for clothing, food, accom- functions of its online corporate banking
payment services. modation, transportation, entertainment, boasts account functions such as system, developed standardized service in- The platform provides highly efficient
shopping and travel were all attended management, settlement, clearing terfaces for transfer and payroll services, and whole-process integrated account and
to. The Bank collaborated with over largely reduced the development workload fund management services to solve
and statistics analysis, offering more
600 third-party organizations, including of enterprises. The system is connected with problems such as complex operations,
standardized and effective trade fund
shopping malls, catering and e-commerce the non-tax central finance system to simplify unorganized account checking and
Customers can use the management. Besides, Guangzhou management difficulties for enterpris-
businesses to offer hundreds of thousands non-tax payment procedures , providing
Bank’s app to make of commodities and various convenient Branch also launched the same ser- more convenient and efficient online banking es. There are ZhiHui Cash Sweep,
appointments with account services for customers. vice in collaboration with Guangdong services for customers. Financial Account Express, Tendering
managers for off-site financial Express and other specific products
Equity Exchange and two other enter-
service delivery. They can Efficient on the platform to meet the needs of
Paymentand Huaxia e-payment covers prises to effectively meet customers’
also search for the location of advisor different categories of customers.The
toppingup 571 fee-collecting institu-
certain outlets using the app services demands for fund management, platform had covered 223 core enter-
tions in 86 cities, so custom-
or make inquiries over the clearing and settlement. prises and over 2,300 accounts.
ers can complete payment Platform Express Pal
phone.
and top up on their mobile
phone with great conveni-
Smart community Platform Express Pal provides financial
ence.
ecosystem services such as online payment, cash
Robo-advisors analyzes customer demands settlement, separate account accounting
and recommend a targeted financial and online financing. The platform is built
product package for customers, making cus- Based on customers’ demand for ETC
for diverse business scenarios and creates
tomized financial services accessible. services, the Bank collaborated with a
an interconnected business ecosystem for
third-party auto service platform to pro-
Robo-Advisor Services for enterprises. It had provided financial services
services car owners vide various kinds of auto-related services.
for 138 enterprises and merchants.
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For high-tech start-ups, the Bank launched For MSEs, the Bank provided featured products The potentials of high-tech start-ups were released
featured products to help them solve financing such as annually-reviewed loans, House Loan
by active efforts
difficulties, including Start-up Easy Loan, High- Express, Hua Xia Fast Loan and Long Concessional
tech Easy Loan, IP Loan, and Equity + Credit Loan, to meet customers’ financing demand and
Investment products. improve service efficiency. In 2019, Appotronics, as a world-leading high-tech laser display
Innovations
company, became one of the first companies listed on the sci-
in products
ence and technology innovation board. The company opened its
For cultural and creative enterprises, the Bank and services For the going global of Chinese enterprises, the fund-raising regulatory account in Shenzhen Branch and RMB 330
launched four product series: Cultural & Creative Bank launched products for forfeiting, credit
Loan, Cultural & Creative Financing, Cultural& million of funds raised has been collected to the account. Shenzhen
insurance financing, international factoring with
Creative Investing,, and Cultural & Creative Trade, recourse, financing guarantee, non-financing Branch has been actively supporting high-tech start-ups. It estab-
and released LongyingIP Express to promote guarantee, etc. lished cooperation with the company in 2015. The branch issued
the development of cultural start-ups.
loans, increased the credit line, and provided the bank’s accept-
ance bill service for Appotronics. Shenzhen Branch had served 354
hightech start-ups. In the past three years, the branch provided
credit support worth over RMB 30 billion for high-tech start-ups.
LongyingIP Express revitalizing IP of cultural enterprises
Shenzhen Branch visited Appotronics
In August 2019, the Bank unveiled LongyingIP Express. Patents, copyrights, trademarks and other intellectual properties were treated as
bottom assets. the Bank provided financial support for cultural enterprises, either by investing in securitized products of such assets as an
underwriter or investor, or by providing funds for them as a lender. A whole range of financial services in the “commercial bank + investment
banking” model was offered. At present, the Bank has invested in the first IP-based financial leasing ABC project and the first IP shelf offering Carrying out strategic
ABS project of China. cooperation
The Bank attached high importance to key
Jiangsu Tech Loan fueling intelligent manufacturing in China sectors and key enterprises that are strategic Securing cooperation with Beijing Infrastructure Investment to foster
pillars to the national economy in its busi- bank-enterprise industry-finance collaboration
ness operations. It accelerated the building
Jiangsu Tech Loan is targeted at high-tech MSEs in Jiangsu Province, with the provincial government providing some guarantee fund while Nan-
of a “3-3-1-1” service system for strategic
jing Branch issues liquidity loans. The Branch It learned through prior investigation that Nanjing Lvjinren Rubber and Plastic High-tech Co., Ltd., In 2019, the Bank signed a strategic cooperation agreement with Beijing Infrastructure
and key customer groups and adhered to the
who entered a stage of rapid development, was in need of financial support. In response, the sub-branch helped the company communicate Investment Co., Ltd . According to the agreement, Beijing Infrastructure Investment will
principle of being firmly market-based, real
with Nanjing High-tech Zone Production Promotion Center and immediately granted RMB 3 million after confirming the company’ eligibility serve as a major private investor for the construction of Shaoxing Urban Rail Transit Line
economy-oriented and mainstream.
to “Jiangsu Tech Loan”, offering strong support for intelligent manufacturing of China. 1. For this project, the Bank provided full play on the basis of the advantages as a national
As of the end of 2019 joint-stock commercial bank and through effective and efficient coordination between
its Head Office and relevant branches. To meet the demand of Beijing Infrastructure
the Bank had around Investment, the Bank provided a high-quality integrated financial service package, highly
567,300 corporate
clients efficient services and a replicable model, earning high praise from both Jingtou Invest-
Long Concessional Loan supporting enterprises ment and the public-private partnership (PPP) project company in Shaoxing. The project
around 36,600 of which were new clients cemented the Bank’s strategic partnership with Beijing Infrastructure Investment with
served in 2019
effective business collaboration that brought benefits to all parties involved.
Long Concessional Loan project is the first 100% online project launched by Hangzhou Branch for MSEs. The project adopted the loan process-
ing model where all procedures were completed online, automated, smart and efficient. It built risk identification models to serve as the basis
In 2019
of credit granting and set the credit line. Based on MSEs’ financing demands and habits, the branch launched options for borrowers such as
average principal plus interest repayment, revolving credit, one-off credit, etc. Users of Long Concessional Loan come from different provinces including:
of the country and from different industries and sectors. As of the end of 2019, loans had been approved for 5,997 MSEs with RMB 1,782 million the Bank has signed the “HQ to HQ” strategic 6 government authorities 2 central SOEs including State Grid Corporation of
of loans granted and a loan balance of RMB 800 million. cooperation agreements with China and China General Technology
29 customers 17 local SOEs including Beijing Infrastructure
Investment Co., LTD, and the Northern Investment 4 private enterprises including Suning Holdings Group
Group Co., Ltd.
51.46%
employees
of the staff were female
3,986 training sessions
Total charitable donations:
1,683 employees from ethnic
RMB 18.256 million
minority groups
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Protecting Fundamental Rights and Interests of Supporting Employee Development
Employees
Attaching great importance to build the overall Employee training
In strict accordance with relevant laws and regulations including the In 2019
capabilities of employees, the Bank made con-
Labor Law of the People’s Republic of China and theLabor Contract
tinuous efforts to improve its employee training Working harder to develop the Bank’s training courses：Customer managers’ manuals and col-
Law of the People’s Republic of China , the Bank constantly improved its
the Bank had labor contracts the social insurance coverage system tailored to the needs of the Bank’s lection of corporate banking marketing cases were compiled as training materials to accumulate good
employment systems and safeguarded the legitimate rights and interests practices and valuable experience, and helped employees solve problems by combining theories and
with 100 % of its employees rate was also 100 % business development and management.
of employees for harmonious and stable labor relations. practices.
By organizing training programs at all levels
Offering more online training opportunities：The Bank sped up the dissemination of knowledge
and for all business sectors, The Bank has pro-
Adhering to equal employment
through live streaming of training courses, online micro-courses, contests and examinations, all de-
vided employees with opportunities to learn, livered on the mobile app Hua Xia Academy. It launched and improved a new column titled “Wealth
broaden their horizons, and improved their Management Knowledge Center”, held the Second Micro Course Design Contest, and purchased the
professional skills in various aspects. courseware Blockchain Technology and Its Application in the Financial Sector to enrich the content of
The Bank strictly prohibits all forms of employment discrimination and the online training system.
forced labor. It is committed to equal treatment for all employees regard-
Education background of employees Updating professional financial knowledge：Through training delivered by leaders in various fields,
less of their ethnicity, gender and cultural backgrounds. At the same time,
overseas training courses, lectures, rotation training for customer manager and various other forms of
The Bank continuously improved paid leave system, strictly implement- In 2019 training, the Bank kept up with the latest macroeconomic and industrial policies, as well as trends in
Master’ degree or higher 13.70%
ed regulations on maternity leave and breastfeeding breaks for female FinTech development and digital transformation, Internet finance and asset management, and helped
employees, protecting the legitimate rights of employees. Bachelor’ degree 65.67% employees update knowledge promptly.
the Bank organized 3,986 internal training
Junior college or lower 20.63% sessions
In 2019 reaching 261,106 person-times
among them
51.46 % were female Age structure of employees 628 training sessions were about corporate
social responsibility
the Bank had a total of
35 and below 66.69%
38,639 employees reaching 50,576 person-times
36–45 22.33%
of whom
5,996 were new
1,683 were from ethnic 46–55 9.93%
minority groups
56 and above 1.05%
Promoting democratic management
Professional marketing skills training
The Bank constantly improved its democratic corporate management In 2019
system based on the Employees’ Congress, and ensured that employees
can exercise their rights concerning democratic management in accord- the Bank held a total of with employee
168 8,252
ance with the law. By holding meetings with staff members, soliciting employees’ congresses representatives participating
constructive suggestions from employees, and having an email box for
opinions from employees, the Bank maintained smooth information
exchange and communication channels with staff members. and received 94 % of which were adopted
256 proposals
and implemented
The Bank held the 2019 Employees’ Congress on June 11, 2019, and par- and constructive
1,479
suggestions from employees
ticipants adopted proposals related to salary and labor contracts, such
as theMeasures of Rank-based Remuneration of Hua Xia Bank and the
Revised Plan of Enterprise Annuity of Hua Xia Bank . These proposals were
also explained and publicized among all employees so that they enjoy there were 396 staff meetings
the rights to know, participate, express their opinions, and supervise. with 7,434 first-line employees
The Bank held the Brand Management Training Course
A People-Centered
A Brilliant Hua Xia for A Dedicated Hua Xia A Digital Hua Xia A Prudent Hua Xia with A Sincere Hua Xia with Hua Xia Pursuing
80 Hua Xia Bank Co., Limited 2019 Social Responsibility Report
Value Creation with Craftsmanship Driven by Innovations Compliance Quality Services Happiness for All
81
Caring for Employees
Building
Organizing cultural and sports activities Home of Employees
The Bank continued to build its Home of Employ-
The Bank always advocating work-life balance, organized a wide range of sports and cultural activities, and created favorable and healthy environment
ees. The aim is to create spaces where employees
for employees. By forming interest groups such as badminton, tennis and dance, and organizing competitions and other events, The Bank enriches the
can learn, seek entrepreneurship opportunities,
spiritual and cultural life of employees, encourage interactions, thus boost employees’energy for work.
exercise their democratic rights and feel happy
and cared for. The Home of Employees has fitness
equipment, TV sets, reading space, lounges, etc.It
is a place where employees can do some exercise,
read books, and rest up. In 2019, there were a total
of 920 such spaces across the Bank and 59 of them
were named model Homes of Employees.
Staffs arranged the Home of Employees to be warm and creative
Helping
employees in need
Besides a sound medical assistance system for
employees, the Bank also allocated funds to
help employees in need. On special occasions,
representatives of the Bank would also visit
Employee basketball and table tennis match “Me and My Motherland” Award Conference for Model Workers and Final of the First Singing employees in difficulties and bring them care.
Contest in Celebration of the 70th Anniversary of the Founding of the People’s Republic of China These are the manifestation of the Bank’s
people-oriented philosophy.
In 2019
the Bank helped 596 needy employees
with RMB 3.48 million of living allowances
and RMB 457,700 of medical subsidies Nanning Branch donated medical expenses for employees who suffer from acute leukemia
“Singing on the Party’ Day” of Xiamen Branch Singing contest of Hohhot Branch
A People-Centered
A Brilliant Hua Xia for A Dedicated Hua Xia A Digital Hua Xia A Prudent Hua Xia with A Sincere Hua Xia with Hua Xia Pursuing
82 Hua Xia Bank Co., Limited 2019 Social Responsibility Report
Value Creation with Craftsmanship Driven by Innovations Compliance Quality Services Happiness for All
83
Participating in public welfare activities
To serve and give back to society, the Bank
organized all kinds of public welfare and volun-
Volunteer service at Beijing Dandelion School
teer activities, including blood donation, care
for the elderly, student aid and visits to veterans
In January 2019, volunteers of the Bank visited Beijing Dandelion School in Daxing District
and vulnerable groups.
and presented writing brushes, ink, calligraphy paper, ink stones, penholders, and other
stationery items to the students as gifts. The hope is to open up a path for the kids to try
their hands at arts and live an enriched life.
Building a Better Society with Concerted Efforts
Besides, the Bank had made donations to the school through China Foundation for Develop-
ment of Financial Education for two consecutive years, providing special support for teachers
to participate in R&D and learning programs to improve the teaching skills.
Celebrating the 70th anniversary of the founding of the People’ Republic of China Volunteers from Zhengzhou Branch visited a
welfare home
Since its inauguration in 1992, the Bank has been growing together with our motherland and played important roles in China’ economic development. Summer Camp for Children of Sanitation Workers
On the occasion of the 70th anniversary of the founding of the People’ Republic of China in 2019, the Bank held celebrations and offered every possible
support to all commemoration activities in society. In 2014, the Bank cooperated with Beijing Women & Children’ Development Foundation to
establish the Hua Xia Bank Foundation for the Growth of Children of Sanitation Workers. The
Foundation provides financial support for children of poor sanitation workers so that they can
afford education, and has organized a series of public welfare activities to build the capacities
and care for the growth of children of sanitation workers. Over the past six years, the Bank’
donation totaled RMB 7.5 million.
Participating in National Day parade Dalian Branch launched a campaign to help
In July 2019, a summer camp for these children opened at Shijia Hutong Museum under the
children with autism
theme of Hua Xia Bank’ Efforts to Safeguard Our Future: 2019 Growth Program for Children
On October 1, 2019, after over three months of basic training, joint rehearsals and field rehearsals, 170 employees of the Bank fulfilled their of Sanitation Workers. Participants visited a waste collection station in Beijing and China Mete-
tasks as part of the National Day parade with great success. Their performance received wide attention and was highly acclaimed by the media orological Administration to understand the impact of waste on the environment. They shot
and the general public alike. garbage classification videos, learned experts’views on it, and spread the knowledge they
learned, becoming real practitioners of environmental protection.
The Environmental lecture for children of sani-
tation workers
Scan the QR code to read the article about the
staff and customer representatives of the Bank
gathered at the Great Wall to celebrate the 70th
anniversary of the founding
of the People’ Republic of
China
Summer Camp for children of sanitation work-
ers was successfully concluded
84 Hua Xia Bank Co., Limited 2019 Social Responsibility Report Outlook 85
Outlook Serving the real economy Guaranteeing safe and stable develop-
ment
Focusing on the strategy of building Beijing into four centers, we will
support the release of Beijing’s noncapital functions, contribute to We will promote the construction of a long-term mechanism for com-
the construction of the capital sub-center, and promote the collabo- pliance management, strictly prevent risks, and maintain financial
The year 2020 is the year to achieve the first
rated development of Beijing-Tianjin-Hebei region, thus serving the security and stability.
centenary goal of building a moderately
socio-economic development of Beijing.
prosperous society in all respects and the
Keeping up with national strategies on regional development and
last year of the 13th Five-year Plan. It is also
focusing on deepening the supply-side structural reform, we will ear-
the last year of Hua Xia Bank’ four-year
nestly serve and support the restructuring of key areas.
development plan and the year for a plan
We endeavor to expand financial services concerning the private sector,
for the next years. Adhering to the guidance
consumption and people’s livelihoods.
of Xi Jinping Thought on Socialism with
Chinese Characteristics for a New Era, we will
Practicing inclusive finance Empowering finance with technologies
seize every minute to make progress with
innovation, assume economic, social and
environmental responsibilities, and open up
As a move to strengthen our role as a “provider of financial services We will accelerate the construction of 15 key FinTech projects for the
new prospects for the development of Hua
for SMEs”, we will improve our financial services for micro and small establishment of an information technology platform.
Xia Bank.
enterprises with wider coverage and better satisfaction. We will innovate in our financial service models, striving to realize the
We will deepen the implementation of the targeted poverty alleviation corporate vision of A “Smart Finance, Digital Hua Xia”.
strategy and enhance targeted poverty alleviation through financial
services.
Supporting ecological progress Staying people-oriented
We will improve the green finance service system, increase our support We will comprehensively safeguard the rights and interests of employ-
for green, low-carbon, and circular economy, strengthen international ees and help employees grow in multiple aspects.
cooperation in green finance, and boost the influence of the green We will pay attention to employee care and enrich their inner life.
finance brand of “Green Growth for a Better Hua Xia”. We will strengthen the education and publicity on financial knowledge
We will launch special green travel products and promote the estab- and improve the public’s financial literacy.
lishment of green transaction channels. We will actively participate in public welfare undertakings and work
We will strengthen green operations, promote green purchase, and with the people to create a better life.
engage in green public welfare.
86 Hua Xia Bank Co., Limited 2019 Social Responsibility Report Reporting Index 87
Reporting Index Standard number and description
102-40 List of stakeholder groups
Page
P12
Note
102-41 Collective bargaining agreements
Stakeholder engagement 102-42 Identifying and selecting stakeholders P11-12
GRI Content Index 102-43 Approach to stakeholder engagement P12
102-44 Key topics and concerns raised P11-12
102-45 Entities included in the consolidated financial statements P1
Standard number and description Page Note 102-46 Defining report content and topic Boundaries P1
GRI 101: Foundation 102-47 List of material topics P11
GRI 102: General disclosures No infor-
102-1 Name of the organization P5 102-48 Restatements of information P86-89 mation is
restated.
102-2 Activities, brands, products, and services P5
There were
102-3 Location of headquarters P5 no major
102-4 Location of operations P5 changes in
102-49 Changes in reporting P86-89
102-5 Ownership and legal form P3 Reporting practices topics dis-
closed in
102-6 Market served P5 the report.
Organization profile 102-7 Scale of the organization P5 102-50 Reporting period P1
102-8 Information on employees and other workers P5 102-51 Date of most recent report P1
102-9 Supply chain 102-52 Reporting cycle P1
102-10 Significant changes to the organization and its supply chain 102-53 Contact point for questions regarding the report P92
102-11 Precautionary Principle or approach P54-61 102-54 Claims of reporting in accordance with the GRI Standards P86-89
102-12 External initiatives P11 102-55 GRI content index P86-89
102-13 Membership of associations P11、P52 102-56 External assurance P90-91
102-14 Statement from senior decision-maker P3-4 P11、P22-
Strategy GRI 200 Economic topics 103-1 Explanation of the material topic and its boundary
102-15 Key impacts, risks, and opportunities P56-61 45
GRI 103 Management ap-
102-16 Values, principles, standards, and norms of behavior P5、P10-11 103-2 The management approach and its components P22-45
Ethics and integrity proach
102-17 Mechanisms for advice and concerns about ethics P10 103-3 Evaluation of the management approach P22-45
102-18 Governance structure P8 201-1 Direct economic value generated and distributed P14-15
102-19 Delegating authority P11 201-2 Financial implications and other risks and opportunities due
GRI 201 Economic perfor- P16-21
102-20 Executive-level responsibility for economic, environmental, and to climate change
P10-15 mance
social topics 201-3 Defined benefit plan obligations and other retirement plans
102-21 Consulting stakeholders on economic, environmental, and social 201-4 Financial assistance received from government
P11-12
topics 202-1 Ratios of standard entry level wage by gender compared to
102-22 Composition of the highest governance body and its committees P8 GRI 202 Market presence local minimum wage
102-23 Chair of the highest governance body P3 202-2 Proportion of senior management hired from the local community
102-24 Nominating and selecting the highest governance body GRI 203 Indirect economic 203-1 Infrastructure investments and services supported P22-45
102-25 Conflicts of interest impacts 203-2 Significant indirect economic impacts P22-45
102-26 Role of highest governance body in setting purpose, values, GRI 204 Procurement prac- 103-1 Explanation of the material topic and its boundary P21
P8-9
and strategy tices 103-2 The management approach and its components P21
102-27 Collective knowledge of highest governance body GRI 103 Management ap- 103-3 Evaluation of the management approach P21
Governance proach
102-28 Evaluating the highest governance body’s performance 204-1 Proportion of spending on local suppliers
102-29 Identifying and managing economic, environmental, and 103-1 Explanation of the material topic and its boundary
P11-12
social impacts 103-2 The management approach and its components P58
102-30 Effectiveness of risk management processes P60-61 GRI 205 Anti-corruption 103-3 Evaluation of the management approach
102-31 Review of economic, environmental, and social topics P11-12 GRI 103 Management ap- 205-1 Operations assessed for risks related to corruption P58
102-32 Highest governance body’s role in sustainability reporting P11 proach 205-2 Communication and training about anti-corruption policies
P58
102-33 Communicating critical concerns P12 and procedures
102-34 Nature and total number of critical concerns P11-12 205-3 Confirmed incidents of corruption and actions taken
102-35 Remuneration policies GRI 206 Anti-competitive 206-1 Legal actions for anti-competitive behavior, anti-trust, and
102-36 Process for determining remuneration behavior monopoly practices
102-37 Stakeholders’ involvement in remuneration GRI 300 Environmental top- 103-1 Explanation of the material topic and its boundary P11、P16-21
102-38 Annual total compensation ratio ics 103-2 The management approach and its components P16-21
GRI 103 Management ap-
102-39 Percentage increase in annual total compensation ratio 103-3 Evaluation of the management approach P16-21
proach
88 Hua Xia Bank Co., Limited 2019 Social Responsibility Report Reporting Index 89
Standard number and description Page Note Standard number and description Page Note
301-1 Materials used by weight or volume GRI 404 Training and 404-3 Percentage of employees receiving regular performance and
GRI 301 Materials 301-2 Recycled input materials used education career development reviews
301-3 Reclaimed products and their packaging materials 103-1 Explanation of the material topic and its boundary
302-1 Energy consumption within the organization P21 GRI 405 Diversity and equal 103-2 The management approach and its components P78
302-2 Energy consumption outside of the organization GRI 103 Management ap- 103-3 Evaluation of the management approach P78
GRI 302 Energy 302-3 Energy intensity proach 405-1 Diversity of governance bodies and employees P78
302-4 Reduction of energy consumption P21 405-2 Ratio of basic salary and remuneration of women to men
302-5 Reductions in energy requirements of products and services P20、P68 GRI 406 Non-discrimination 406-1 Incidents of discrimination and corrective actions taken
303-1 Water withdrawal by source GRI 407 Freedom of associa- 103-1 Explanation of the material topic and its boundary
GRI 303 Water 303-2 Water sources significantly affected by withdrawal of water tion and collective bargain- 103-2 The management approach and its components
303-3 Water recycled and reused ing 103-3 Evaluation of the management approach
304-1 Operational sites owned, leased, managed in, or adjacent to, pro- GRI 103 Management ap- 407-1 Operations and suppliers in which the right to freedom of
tected areas and areas of high biodiversity value outside protected areas proach association and collective bargaining may be at risk
304-2 Significant impacts of activities, products, and services on biodiversity GRI 408 Child labor 408-1 Operations and suppliers at significant risk for incidents of child labor
GRI 304 Biodiversity
304-3 Habitats protected or restored GRI 409 Forced or compulso- 409-1 Operations and suppliers at significant risk for incidents of
304-4 IUCN Red List species and national conservation list species ry labor forced or compulsory labor
with habitats in areas affected by operations GRI 410 Security Practices 410-1 Security personnel trained in human rights policies or procedures
305-1 Direct (Scope 1) GHG emissions GRI 411 Rights of indigenous
411-1 Incidents of violations involving rights of indigenous peoples
305-2 Energy indirect (Scope 2) GHG emissions peoples
305-3 Other indirect (Scope 3) GHG emissions 412-1 Operations that have been subject to human rights reviews
or impact assessments
305-4 GHG emissions intensity
GRI 305 Emissions GRI 412 Human rights as- 412-2 Employee training on human rights policies or procedures
305-5 Reduction of GHG emissions
sessment 412-3 Significant investment agreements and contracts that
305-6 Emissions of ozone-depleting substances (ODS)
include human rights clauses or that underwent human rights
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other signifi-
screening
cant air emissions
103-1 Explanation of the material topic and its boundary P82-83
306-1 Water discharge by quality and destination
103-2 The management approach and its components P82-83
306-2 Waste by type and disposal method GRI 413 Local communi-
103-3 Evaluation of the management approach P82-83
GRI 306 Effluents and waste 306-3 Significant spills ties
GRI 103 Management ap- 413-1 Operations with local community engagement, impact as-
306-4 Transport of hazardous waste
proach sessments, and development programs
306-5 Water bodies affected by water discharges and/or runoff
413-2 Operations with significant actual and potential negative
GRI 307 Environmental Com- impacts on local communities
307-1 Non-compliance with environmental laws and regulations
pliance
GRI 414 Supplier social as- 414-1 New suppliers that were screened using social criteria
GRI 308 Supplier environ- 308-1 New suppliers that were screened using environmental criteria sessment 414-2 Negative social impacts in the supply chain and actions taken
mental assessment 308-2 Negative environmental impacts in the supply chain and actions taken
GRI 415 Public policy 415-1 Political contributions
GRI 400 Social topics 103-1 Explanation of the material topic and its boundary P11、P76-83
103-1 Explanation of the material topic and its boundary P62-75
GRI 103 Management ap- 103-2 The management approach and its components P76-83
103-2 The management approach and its components P62-75
proach 103-3 Evaluation of the management approach P76-83 GRI 416 Customer health
103-3 Evaluation of the management approach P62-75
401-1 New employee hires and employee turnover P78 and safety
GRI 103 Management ap- 416-1 Assessment of the health and safety impacts of product and
401-2 Benefits provided to full-time employees that are not provid- P64
GRI 401 Employment P78 proach service categories
ed to temporary or part-time employees
416-2 Incidents of non-compliance concerning the health and safe-
401-3 Parental leave P78 ty impacts of products and services
GRI 402 Labor/Management 417-1 Requirements for product and service information and labeling P64、P70
402-1 Minimum notice periods regarding operational changes
relations
417-2 Incidents of non-compliance concerning product and service
403-1 Workers representation in formal joint management–worker GRI 417 Marketing and labe-
information and labeling
health and safety committees ling
417-3 Incidents of non-compliance concerning marketing commu-
403-2 Types of injury and rates of injury, occupational diseases, nications
P81
GRI 403 Occupational Health lost days, and absenteeism, and number of work-related fatalities 418-1 Substantiated complaints regarding concerning breaches of
and Safety 403-3 Workers with high incidence or high risk of diseases related GRI 418 Customer Privacy
customer privacy and losses of customer data
to their occupation
103-1 Explanation of the material topic and its boundary
403-4 Health and safety topics covered in formal agreements with GRI 419 Socioeconomic
103-2 The management approach and its components
trade unions compliance
103-3 Evaluation of the management approach
404-1 Average hours of training per year per employee GRI 103 Management ap-
GRI 404 Training and educa- proach 419-1 Non-compliance with laws and regulations in the social and
404-2 Programs for upgrading employee skills and transition assis-
tion P79 economic area
tance programs
90 Hua Xia Bank Co., Limited 2019 Social Responsibility Report Independent Assurance Report 91
Independent Assurance Report
Feedback Form
Thank you for reading the Hua Xia Bank Co., Limited 2019 Social Responsibility Report. In order to provide you and other stakeholders with more
valuable information and improve our ability and level of CSR fulfillment, we would love for you to share your comments on this report and send your
feedback as follows:
Tel: 010-85237056
Fax: 010-85239000
Email: zhshzr@hxb.com.cn
Postal code: 100005
Address: Hua Xia Bank Mansion, 22 Jianguomennei Street, Dongcheng District, Beijing
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