HUA XIA BANK CO., LIMITED
Social Responsibility Report 2022
2022
HUA XIA BANK CO., LIMITED
Address:22 Jianguomennei Street, Dongcheng District, Beijing
Tel:010-85237056
Website:www.hxb.com.cn
Fax:010-85239000
Postal code:100005
Social Responsibility Report
Email:zhshzr@hxb.com.cn
Stock code:600015 Scan the QR code
for more information
About This Report
Reporting Scope
Reporting Period:Unless otherwise stated, the report covers the period between January 1 to December 31, 2022.
Organizational Boundary:The report discloses the information of the Head Office and all branches and sub-branches of Hua Xia Bank.
Release Cycle:This is an annual report. The most recent report was issued on April 30, 2022
Preparation Basis
The report was prepared in accordance with the Guidelines on Environmental Information Disclosure for Financial Institutions issued by the
People's Bank of China, the Opinions on Strengthening the Corporate Social Responsibility of Banking Institutions issued by former Banking
Regulatory Commission (CBRC), the Guidelines on Environmental Information Disclosure for Financial Institutions issued by the People’s Bank
of China, and Guidelines No.1 for Self-Regulation of Listed Companies- Standardized Operation issued by Shanghai Stock Exchange (SSE), and
referred to the Principles for Responsible Banking(PEB) issued by United Nations Environment Programme, Guidance on Social Responsibility
(ISO 26000:2010) issued by International Organization for Standardization (ISO), GRI Sustainability Reporting Standards (GRI Standards)
issued by Global Sustainability Standards Board (GSSB)and the Recommendations of the Task Force on Climate-related Financial Disclosures.
Reference
For better readability, "Hua Xia Bank Co., Limited" is referred to as "Hua Xia Bank" , "the Bank" or "We" in the report
Data Sources
The financial data in the report come from the audited Annual Report 2022 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
The report is available in simplified Chinese and English versions. In case of any discrepancy, the simplified Chinese version shall prevail
Formats
The report is available in both printed and electronic formats. The electronic version can be downloaded at our official website (http:// www.
hxb.com.cn)
Contact Information
Hua Xia Bank Co., Limited
Address: 22 Jianguomennei Street, Dongcheng District, Beijing
Postal code: 100005
Tel: 010-85237056
Fax: 010-85239000
E-mail: zhshzr@hxb.com.cn
Scan the QR code to watch
image publicity film of the bank
CONTENTS
36 56 68
Message from the Chairman 4
About Us 6 Serving the Real Economy Offering High-Quality Focusing on Innovation to
CSR Management 11 under the Guidance of Our Services in Inclusive Accelerate Empowering
CSR Performance 15 Original Aspiration Finance through Technology
38 Facilitating the Development of National Strategic Development 58 Supporting the Development of MSEs 70 Accelerating Digital Transformation
52 Accelerating Industrial Transformation and Upgrading 62 Supporting Rural Vitalization 73 Upgrading Corporate Banking Services
54 Serving China’s Opening-up 66 Offering Financial Services to Benefit the People 75 Improving Service Quality and Efficiency
Spotlight
Forging ahead in Three
Decades to Strive for a
New Hua Xia with One
78 90 102
Heart 22
Guarding and Operating Honestly Building a Harmonious
Practicing the Green to Achieve Sound Society Through Joint
Philosophy Development Efforts with Loving Care
Outlook 112
80 Developing Green Finance 92 Ensuring Compliance 104 Paying Close Attention to Employees Rights
Appendix 114
84 Addressing Climate Change 96 Building a Firm Defense Line 106 Caring About Employee Development
Reporting Index 114 86 Protecting Biodiversity 107 Caring About Employee Well-being
98 Protecting customer rights and interests
Independent Assurance Report 118 87 Building Greener Life 110 Engaging in Public Welfare Undertakings
Feedback Form 121 88 Practicing Green Operations
04 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 05
Message from the Chairman
In 2022, the 20th CPC National Congress concluded successfully, strengthened the integration of scenarios and ecosystems, which
marking a new milestone for the Party and the Country in the new ensured our efficient and smart financial services are tangible and
era. Hua Xia Bank celebrated its 30th anniversary and rose to the accessible. To enhance the ability of digital finance to serve the real
rank of the top 50 world banks. This motivated our employees to economy, we innovated in our industrial digital system, FinTech, to meet
strive towards greater heights in financial exploration to better serve the specific financial needs of different industrial ecosystems. Through
national strategies, the real economy, and a better life. With national digital transformation, we are able to meet the diversified needs of
development as our ultimate aim, we gave play to the leading role of our customers and provide them with a high-quality financial service
Party building and actively responded to the national calls to stabilize experience.
the economy for a paradigm of new developments. We also continued
to serve the real economy with greater efficiency with more concerted We embraced wholeheartedly to safeguard and accelerate the
efforts, as we achieve the tasks set out in the three-year action plan development of green finance. Seizing the opportunity presented by
for SOE reform. We strive to fulfill our responsibilities as a state-owned China’s ecological conservation and the 3060 Decarbonization Goal,
financial enterprise for China’s economic and social development to we further drove innovation within our green financing. We transformed
meet the people’s growing expectations for quality financial services. our credit structure and accelerated the development of a “climate-
friendly bank”, incorporating the ESG philosophy to create new features
We remained steadfast in our commitment as a financial player and advantages. In 2022, the growth rate of our green loans surpassed
serving the real economy. We improved the quality and efficiency the average growth rate of all loans in our Bank. This proportion of
of our services and are committed to high-quality development in green loans was also among the highest within the industry. We jointly
our nation. We put in significant efforts and mobilized many financial issued a “Joint Declaration of the Banking Sector to Support Biodiversity
resources to build Beijing into an integrated national center for political, Conservation ” with China Banking Association, in support of building a
cultural, international communication, and technological innovation. community of life on Earth.
Meanwhile, we continued with our regional development strategies and
deepened our differentiated regional development strategy of “Three We commit to honest operations for safe and steady
Zones, Two lines, Multiple outlets”. We placed our focus on setting development. By adhering to prudent operation and risk management,
up the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the we improved our long-term risk management mechanism, strengthened
Guangdong-Hong Kong-Macao Greater Bay Area as the pacesetters for our risk prevention and resolution in key areas, with enhanced internal
development. By reinforcing and upgrading weak links in the industrial control. We reinforced our collective legal risk management to cultivate
chain, we improved the quality and efficiency of our services to better a clean workplace. We also accelerated the digitalization of our risk
support new-type infrastructure construction, manufacturing, strategic control system and fostered a culture of risk awareness to improve
emerging, and other industries. We also actively integrated ourselves our overall control of risks. With such high-quality risk control and
into the dual circulation of domestic and overseas markets to contribute management, we facilitated stable operations to protect financial
to high-quality opening up. stability and security. Our strict adherence to customer protection
requirements ensured better protection of their rights and interests.
We focused on delivering high-quality services and hence
expanded our scope of inclusive financial services. To deepen our We at Hua Xia Bank seize every moment, braving and riding the
position as a financial service provider for small and medium enterprises waves and the winds that come our way. As we embark on a new
(SMEs), we explored various development models for inclusive finance. journey of building a modern socialist country in all respects, Hua
By prioritizing product innovation and improving service quality, we Xia Bank remains committed to financial development with Chinese
implemented measures to alleviate the difficulties faced by SMEs characteristics guided by the principles of the 20th CPC National
and supported the stable long-term development of micro, small, and Congress and aims to integrate political consciousness and a people-
medium-sized enterprises (MSEs). These contributed to the stabilizing centered philosophy within our work. As an active contributor to high-
of the market and its entities. We also boosted personal consumption quality development, we strive tirelessly to become a large and robust
and supported projects that are vital to people’s well-being. Services for modern financial group with stable and outstanding performances. Our
“agriculture, rural areas, and farmers” were improved with enhanced concerted efforts shall contribute to our Chinese modernization and
allocation of financial resources to rural areas, thus promoting the national rejuvenation on all fronts.
rural vitalization. Such a wide coverage of financial services to anyone
anywhere contributed significantly to the revitalization of the rural
areas.
Li Minji
We have taken the lead in innovation by enhancing our
quality and services with technology. To facilitate our digital
transformation, we embraced the digital era with the development
of the digital economy. We improved our digital infrastructure and Party Secretary and Chairman of Hua Xia Bank
06 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 07
About Us
Company Profile Corporate Governance
Hua Xia Bank Co., Limited was founded in Beijing The Bank implements the concept of sustainability in corporate governance, advances modernized corporate governance, and continues to optimize
in October 1992 and became a national joint-stock governance structures, mechanisms, and policies. Under the leadership of the Party Committee, we have established a corporate governance structure
commercial bank after restructuring in March 1995. mainly comprising of the Shareholders’ Meeting, the Board of Directors (the Board), the Board of Supervisors, and the senior management. The Party
On September 12, 2003, the Bank went public on Committee provides leadership, the Board is the decision-maker, the Board of Supervisors serves strict supervision functions, and the management is in
Shanghai Stock Exchange (Stock Code: 600015), with charge of the operation.
registered capital of RMB 15.387 billion.
Since its inauguration, the Bank has been forging As of the end of 2022
ahead and made great achievements despite all
difficulties. By the end of 2022, the Bank had a total
asset of RMB 3,900.167 billion, 44 Tier-1 branches,
78 Tier-2 branches, 987 outlets in 122 cities at or
above the prefectural level nationwide, and 39,938 17 4 6 7
among them
employees, which had formed an institutional system Directors in the Board ExecutiveDirectors Non-executiveDirectors Independent Directors
of building presence in developed cities and reaching
out to the whole country. The Bank has set up 1,189
agencies in and out of China, covering 305 cities in
98 countries on all five continents of the world. Its settlement network covers all major trade areas in the world.
Hua Xia Bank was ranked 46th in The Banker’s top 1000 world banks ranking published in July 2022, in terms of Tier 1 capital. This was an improvement
of five places from the previous year, signifying the Bank's position as one of the top 50 world banks.
9 2 4 3
among them
Supervisors in the Boar Shareholder Supervisors External Supervisors Employee Supervisors
of Supervisors
Development Vision Basic Principles
Innovative,coordinated, green, open and Serving the overall interests of the
shared development country, staying market-oriented, following
strategies, promoting reform and innovation, In 2022
creating value, and developing strengths to
making up for weaknesses
Focus
Serving the real economy and creating
Development Directions
Keeping to the direction of featured, digital,
3 14 8
Shareholders' Meetings Board meetings held Board of Supervisors
value for customers and shareholder asset-efficient, specialized, comprehensive, held Meetings held
and world-oriented developmentl
19 77 26
Resolutions adopted Resolutions adopted Resolutions adopted
Strategic Points Corporate Development Vision
Taking deposits as the foundation, Strive to develop into a modern financial
building the Bank's through FinTech and group that is "large and strong with stable
talents, and ensuring stable operation and excellent performance"
through risk contro
08 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 09
Branches and Sub-branches
Strategy and Asset Management Committee
Risk Compliance and Consumer Rights Protection Committee Shareholders' Meeting
Related Party Transaction Control Committee
Nomination and Compensation Assessment Committee
Oversight Committee
Nomination Committee Board of Directors Board of Supervisors
Nomination Committee
Asset Liability Management Committee
Office of the Board of Directors
Office of the Board of Supervisors
Credit, Investment and Financing Policy Committee (Securities Affairs Department)
nformation Technology Management Committee
Risk Management and Internal Control Committee
Performance Management Committee
Credit Approval Committee
Consignment Management Committee
Asset Risk Disposal Committee Senior Management
Online Loan Project Management Committee
Product Management Committee
Digital Product Innovation Committee
Green Finance Management Committee
Centralized Procurement Committee
Audit Department
Headquarters Departments Branches and Sub-branches
Investor Relations Information Disclosure
To strengthen investor relations management, the Bank strictly meetings and activities such as the Shareholders’ Meeting and The Bank abides by the regulations to improve the timeliness and Bank. In 2022, we prepared and disclosed four regular reports and 64
implements the Working Measures of Hua Xia Bank Co ., Ltd. on Investor the performance briefing to showcase our results of high-quality effectiveness of information disclosure. We have formulated the interim announcements, informing investors of significant information
Relations, and designated a dedicated investor relations manager under development. We have won the Best Shareholder Relations Award in the Administrative Measures for Information Disclosure to standardize the such as changes in directors, supervisors, and senior management,
the Office of the Board of Directors to take charge of relevant work. Fifth China IR Annual Awards. information disclosure and reporting process. To enhance the depth as well as the operation of the Shareholders’ Meeting, the Board of
and breadth of information disclosure, we have fulfilled information Directors and the Board of Supervisors, earnings guidance, profit
The Bank has promoted interactions and exchanges with investors disclosure obligations via various channels, including China Securities distribution, the progress of refinancing, related party transactions, and
and analysts through various channels and forms. We have organized Journal, Shanghai Securities News, Securities Times, Securities Daily, asset purchases.
Shanghai Stock Exchange website, and the official website of Hua Xia
10 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 11
Party Upholding the philosophy of exercising full and strict Party discipline, placing the Party’s political
building at the forefront, and arming ourselves with the Party’s theories to effectively improve Party CSR As one of the initial signatories to the Principles for Responsible Banking issued by the United
Nations Environment Programme and a strong supporter of the Task Force on Climate-related
Building as a conduct, build a clean government, promote the high-quality development of Party building, and
cultivate a positive and healthy intraparty political culture. Management Financial Disclosures (TCFD), we uphold our brand philosophy of “Sustainability for a Better
Future” under which we prioritize achieving sustainable operations to maximize our economic,
Leading Role environmental, and social values. The Head Office takes the role to manage CSR affairs. Our CSR
management architecture the management performance continues to improve. With outstanding
Studying and implementing the guiding principles of the 20th CSR practices, we aim to realize the vision of “harmony brings a bright future and Hua Xia continues
with its public spirit” while striving to develop into a modern financial group that is large and strong
CPC National Congress with stable and excellent performance.
We hold meetings to deploy and promote the studying of the guiding principles from the 20th CPC
National Congress, uphold the highest standard, with the aim of gaining a deep understanding of the
In 2022
decisive significance of establishing Comrade Xi Jinping's core position on the Party Central Committee
and in the Party as a whole, as well as the guiding role of Xi Jinping Thought on Socialism with Chinese
CSR Philosophy
Characteristics for a New Era. We organize Party organizations at all levels, coordinate Party officials, and
employees to carry out special training and study the guiding principles of the key speech. We have issued
20 briefings to fulfill publicity work so that the guiding principles are thoroughly studied and implemented,
and coordinated primary-level Party branches to carry out the Party Day events to promote the high- Brand philosophy
Issues of Party conduct and quality development of the whole bank.
clean governance education Sustainable, Wonderful
Strengthening ideological and political building
12 We have intensified our efforts to strengthen the ideological and political building of the leadership
team and established a dedicated study plan. We have enhanced the accountability system for
Sustainable
It is an action guide that incorporates the concept of
Wonderful
It is the goal to realize people's aspirations for a
Posts of clean governance on sustainability into business activities better life through financial services to promote
ideological work, implemented the “1+1+N” system for ideological and publicity work, and conducted
WeChat
investigations into ideological risks. we have launched initiatives to promote a civilized society, common prosperity
established a "Volunteer of the Capital" image, and promoted high-quality Party building through the
integration of theory and practice. Vision of CSR fulfillmen
2 Stepping up efforts to improve Party conduct Harmony brings a bright future and Hua Xia continues with its public spirit
Training sessions on fighting China's culture is at the core of the Bank's development and prosperity, and the value created shall be shared by all
In strict compliance with the central Party leadership’s eight-point decision on improving work
corruption
conduct and instructions of the Municipal Party Committee, we continue to crack down on
people of the Chinese nation
formalities, bureaucracy, hedonism, and extravagance. We have formulated the Measures for
9,000
Strengthening the Building of a Clean Financial Culture, held education conferences to instill
the importance of honesty and integrity among our staff. In addition, we have strengthened the
Harmony brings a bright future Hua Xia continues with its public spirit
assessment of full and rigorous discipline over the Party and conducted complete inspections to The Bank pursues harmonious co-existence, open Leveraging on its advantages in specialty, location and
Participants invovled
ensure that we fulfill our due responsibilities. cooperation, sharing of benefits with stakeholders, resources, the Bank takes the initiative to shoulder
and works towards balance between economic, economic, environmental and social responsibilities,
Strengthening the building of a talent team environmental and social benefits, making its and strives to bring benefits to every corner of China
contribution to a harmonious socialist society and every Chinese
63 We remain committed to improving the political capacity and specialized skills of the talent team,
deepening the construction of the talent training system, optimizing the incentive and restraint
Employees reported to the mechanism, and improving market-based competitive selection. We have organized talent pool CSR goals
talent pool in 2022 recruitments to invigorate more talents.
Maximizing comprehensive value, Contributing to a harmonious society
CSR practices
Practices for economic responsibility, Practices for environmental responsibility, Practices for social responsibility
CSR principles
Openness and transparency, Cross-over thinking, Resource integration, Stakeholder Communication
CSR priorities
Serving the real economy, Practicing inclusive finance, Promoting ecological progress, Pursuing safe and steady
development, Empowering through FinTech, Putting people first
Ningbo Branch carries out the theme Party Day events
12 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 13
Analysis of Substantial Issues Matrix of substantial issues
Stakeholder Communication
We prioritize the interests of our stakeholders
and continue to identify, assess, screen, and Stakeholder Core Expectations Main Response
update related issues. We prioritize issues
based on two dimensions: the importance of Addressing climate change Serving the real economy
sustainable development to Hua Xia Bank and Devoting more efforts to green finance Contributing to national strategies Serving coordinated regional development
the importance to stakeholders. Through this Supporting community development Guarding against financial risks Serving the real economy Supporting national strategy Supporting the growth of private micro- and small-sized
process, we identify substantive issues that Caring for employees Promoting inclusive finance Developing inclusive finance enterprises
are important to both Hua Xia Bank and its Government
Promoting financial knowledge Standardizing corporate governance Supporting rural vitalization Supporting China’s opening-up
stakeholders. Contributing to rural vitalization Paying tax in full according to law Advancing rural vitalization
Importance to stakeholders
Implementing regulatory policies
Compliance
Regulatory authorities Receiving supervision
Strict risk management
Strengthening risk prevention
Dedicating to charity Pursuing FinTech innovations
Practicing green operation Protecting customers' rights and Improving corporate governance Improving corporate governance
Promoting industry development interests Shareholders and Ensuring sustained and stable return Realizing stable operation
Improving service quality investors Protecting shareholders’ rights and interests Creating values for shareholders
Helping employees grow Achieving transparent operation Strengthening information disclosure
Developing green finance
Focusing on climate change
Importance to the sustainable development of Hua Xia Bank Environment Promoting green offices
Facilitating green development
Participating in eco-friendly public activities
UN SDGs Safeguarding customer rights
Strengthening the protection of consumer rights
Providing high-quality and efficient services
Customers Improving customer experience
Enhancing financial innovation
Accelerating product innovation
In September 2015, the United Nations Sustainable Development Summit adopted the 2030 Agenda for Sustainable Development. The agenda covers 17 Advancing digital transformation
Sustainable Development Goals (SDGs), pointing out the direction for countries and enterprises globally to promote sustainable development. Focusing on
the vision of building a modern financial group that is large and strong with stable and excellent performance, the Bank evaluates from two dimensions
of materiality and importance, distinguishes 9 core goals and 8 related goals, and devotes resources to core targets to realize sustainable development
goals. Fairness and transparency
Strengthening exchanges and cooperation
Partners Contract fulfillment with integrity
Improving procurement management
Win-win cooperation
Core goals
Protection of rights and interests Protecting the basic rights and interests of employees
Remuneration and benefits Facilitating career development channels
Employees
Working environment Providing job skills training
Career development Carrying out diverse cultural and sports activities
related goals
Financial knowledge popularization
Publicizing financial knowledge
Communities Support for community development
Participating in charitable activities
Engagement in public welfare undertakings
14 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 15
CSR Honor CSR Performance
The Green Credit Committee of China Banking Association
Advanced Unit of Green Bank Economic
China Banking Association Total asset Unit:RMB billion Operating revenue Unit:RMB billion Total profit Unit:RMB billion
2022 “Inclusive Finance” Good News Award
3,900.167 95.870
33.583
3,676.287
China Financial Certification Authority (CFCA) 95.309 31.493
3,399.816 93.808 27.153
Best Business Innovation Award of Digital Finance
China Digital Finance Forum
Technology Application Scenario Innovation Award of China Financial Industry
China Banking and Insurance News 2020 2021 2022 2020 2021 2022 2020 2021 2022
Golden Commitment China Financial Annual Excellent Social Responsibility Project - "Experience
the Charm of Green Sustainability with Us" 2021 Sanitation Workers’ Children Growth Plan
Securities Daily
2022 Digital Economy Pioneers Summit - Digital Transformation of Listed Companies Case of Net profit Unit:RMB billion Total deposits Unit:RMB billion Total loans Unit:RMB billion
Excellent Application Products
25.490 1,904.363 2,063.874
2,272.973
china.com 23.903 2,213.529
21.568 1,818.330 2,108.993
Outstanding Case of Corporate Governance in the Banking Industry in 2022
Trade Finance
12th Golden Trade Award - Best Trade Financing Bank
Beijing Evening News 2020 2021 2022 2020 2021 2022 2020 2021 2022
Outstanding Contributions to Green Finance
21st Century Business Herald Balance of
2022 Brand Building Bank loans in support
of strategic
Balance of Growth of loans emerging
The Economic Observer loans to MSEs Unit:RMB billion to MSEs Unit:RMB billion industrie Unit:RMB billion
The 11th Outstanding Financial Enterprise - Annual Outstanding Social Contribution Bank
104.587
565.470 74.721
97.321
Sina 490.749 60.024
79.689
Bank for Responsible Investing of China ESG Golden Award 2022 456.412
34.337
Hexun
Annual Social Responsibility Pioneer Bank of the 20th Financial List
National Business Daily 2020 2021 2022 2020 2021 2022 2020 2021 2022
The 13th Golden Tripod Awards-Annual Inclusive Finance Award
16 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 17
Balance of loans in support Balance of
of manufacturing industry Unit:RMB billion agriculturerelated loans Unit:RMB billion ROA Unit:% ROE Unit:%
210.406 271.538 0.67 0.67 0.67 9.04 9.00
8.64
255.980
192.254 249.421
190.744
2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022
International settlement Unit:Dollar billion RMB cross-border settlement Unit:RMB billion Shareholder equity Unit:RMB billion
164.667 162.105 323.322
140.878
300.702
142.855 282.655
70.134
46.314
2020 2021 2022 2020 2021 2022 2020 2021 2022
Environmental Performance
CAR Unit:% Allowance-to-NPL ratio Unit:% Balance of green loans Unit:RMB billion Number of ETC cards users Unit:10,000
13.27 159.88 247.035 261.79
150.99 208.477
13.08 254.81
147.22 180.043
12.82 244.01
2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022
18 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 19
Number of online personal Settlement rate of complaints lodged
Number of ETC cards Unit:10,000 Number of e-transactions Unit:10,000 banking transactions Unit:10,000 through 95577 customer service center Unit:%
327.74 327.88 405,259.04 2,344.73 100.00 100.00 100.00
322,655.98
325.62
1,651.14
114,719.26 1,597.29
2020 2021 2022 2020 2021 2022 2020 2021 2022
2020 2021 2022
The data of green loan balance in 2020 was based on the Special Statistics System of Green Loan revised by the People's Bank of China in December 2019
Social Performance
Customer satisfaction rate for
Number of outlets Unit:/ Number of rural outlets Unit:/ 95577 call-backs Unit:/ 95577 customer service center Unit:%
1,022 109 109 580,710 99.66
1,008
99.63
987 107 99.61
130,559 130,637
2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022
Outlets in old revolutionary base areas, areas
inhabited by ethnic minority groups, remote Number of online corporate Complaints and problems solved through
and border areas and povertystricken areas Unit:/ banking transactions Unit:10,000 the joint handling mechanism of the 95577
customer service center
Unit:/
83 3,018.07
81 82
27,502
2,759.33
2,661.08
14,931
13,126
2020 2021 2022 2020 2021 2022
2020 2021 2022
20 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 21
Number of participants of
Number of employee training sessions Unit:/ employee training sessions Unit:/ Percentage of female employees Unit:% Total charitable donations Unit:RMB 10,000
8,023.3
6,913 640,050
51.43
531,553 51.39
5,200 51.14
370,748 2,138.53
4,365
1,451.5
2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022
Number of participants of legal
Total number of employees Unit:/ Number of legal training sessions Unit:/ training sessions Unit:/
2020 39,284 227
39,741
200
190
2021 39,175
31,803
2022 39,938 28,005
2020 2021 2022 2020 2021 2022
Total number of employees from ethnic minority groups Unit:/ Number of participants
Number of AML training sessions Unit:/ of AML training sessions Unit:/
2020 1,785
4,722 137,755
2021 1,912
135,000
2022 1,962 3,734
98,710
1,210
2020 2021 2022 2020 2021 2022
Spotlight HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 Spotlight
Forging ahead in Three Decades to Strive
SPOTLIGHT
As a state-owned financial institution founded in the era of reform and opening up, Hua Xia Bank is committed to
the customer-centered business philosophy and fulfilling its mission of utilizing financial services to serve the real
for a New Hua Xia with One Heart
economy. By aligning with the national strategy and collaborating closely with stakeholders, we have embarked on
a sustainable development path with our own characteristics.
Spotlight HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 Spotlight
At 15:48, May 17,
Three Decades of Dedication 2001
2001, Hua Xia
Bank completed
its first online
business, marking
the beginning of its
Internet era.
We launched new practices to Hua Xia Bank was established in the spring of 1992 as a wholly-owned subsidiary of the Shougang
develop a national joint-stock Group. The Bank was entrusted with the important mission of serving as a demonstration unit for
commercial bank. China's financial reform and played a key role in building a socialist market economy with Chinese
characteristics. While pursuing greater opening up, Hua Xia Bank strived to build itself into a
modern commercial bank.
1992 In 1992, during a visit to Shougang Group, Comrade Deng Xiaoping expressed his support for building a subsidiary bank. Zhu 2002 In 2002, the first
Rongji, then Vice Premier of the State Council, also visited and encouraged the construction of Hua Xia Bank. CPC Congress of
Hua Xia Bank was
held in Beijing.
Li Peng, then Premier
of the State Council,
attended the ribbon-
cutting ceremony for
Hua Xia Bank.
We step into a new era where the Since 2003, Hua Xia Bank has been actively implementing a series of major decisions and
reform- and innovation-driven arrangements of the CPC Central Committee and State Council to optimize the socialist market
development of listed banks economy system. Our unwavering focus on stable operations, standardized management, and
pursuit of higher quality, efficiency, speed, and architecture have enabled us to facilitate public
remains our priority.
trading, and international expansion, thus promising a modern commercial bank with impressive
comprehensive strengths and unique brand features.
1995 In 1995, Hua Xia 2003 On September 12,
Bank held its founding 2003, Hua Xia
assembly and first Bank made its initial
general meeting of public offering by
stakeholders at the issuing ordinary
G r e at H a l l o f t h e shares worth RMB 1
People. During this billion and became
meeting, the Bank the fifth listed
underwent joint-stock bank in China, with
reform to modernize its shares listed
and commercialize its on the Shanghai
operations. Stock Exchange
(600015).
Spotlight HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 Spotlight
2005 In 2005, Hua Xia Bank We has entered a new era Since 2017, the Bank has been committed to the guiding principle of Xi Jinping Thought on
attracted international where we strive to build Hua Socialism with Chinese Characteristics for a New Era and practicing the new development
strategic investors and signed Xia Bank into a modern, large philosophy in a complete, precise and comprehensive manner. We focus on serving the real
an Agreement on Long- economy, preventing financial risks, and promoting financial reform. With the goal of building
and strong financial group
term Comprehensive ourselves into a modern, large and strong financial group with stable and excellent performance, we
with stable and excellent
Strategic Cooperation redouble effort to move from quality development to high-quality development.
with Deutsche Bank in performance.
Berlin, Germany. This
significant event was
witnessed by Hu Jintao,
then State President and
General Secretary of the
CPC Central Committee,
2017 In 2017, the Bank established Anxin Branch, the first financial agency in Xiong’an New Area since the Area was set.
and Horst Khler, then
German President.
2019 In 2019, Hua Xia Bank became the first commercial bank to join the Principles for Responsible Investment Association (PRI),
one of the 130 signatories to the Principles for Responsible Banking issued by the United Nations Environment Programme
and a diamond partner in a series of winter sporting events of the “Experience Beijing” program.
2014 In 2014, the first debit
card themed on the
coordinated development
of the Beijing-Tianjin- From 2017 to
Hebei region was 2020, the Bank
2020
specifically issued in provided paired-up
China as part of our assistance for poor
efforts to support the counties in Inner
initiative. Mongolia, Xinjiang
and Qinghai that
were designated to
Beijing, investing
RMB 1.06 million
in targeted poverty
alleviation and
helping 195,000
people in difficulty
and enabling them
to register in the
national poverty
alleviation network.
2016 In 2016, we successfully
undertook the Innovative
Financing Project for China Renewable
Atmospheric Pollution Energy and Battery
Control in the Beijing- Energy Storage
Tianjin-Hebei Region Promotion Project
from the World Bank, of the World Bank
which was then the undertaken by the
World Bank's largest Bank came into
single loan project in force.
China.
Spotlight HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 Spotlight
2021 In 2021, the Bank became a supporter of the Task Force on Climate-related Financial Disclosures (TCFD) and signed the
Common Action Plan for Banking Sector to Support Biodiversity Conservation issued by China Banking Association. We also
joined the Biodiversity Finance Initiative (BIOFIN) and put forward the brand concept of “Sustainability for a better future”.
On December 28, the Ceremony Marking the 30th Anniversary of Hua Xia Bank was held in Beijing. The participants witnessed the glorious history of
Hua Xia Bank and embarked on a new journey together.
Advances in Party We follow the unified guidance of the Party on the financial sector while integrating the Party leadership in
Building the modern business architecture and our operation and development. In 2017, we placed great importance
on both Party building and corporate growth. We firmly believe in the overall Party leadership of Hua Xia
Bank and strive towards the goal of building a modern financial group that is “large and strong with stable
and excellent performance”.
Higher quality and With national development being our ultimate aim, we act in compliance with major national strategies to
efficiency of serving fulfill the due mission and responsibility we carry as a financial institution, better serving the country in a
the real economy new era. Our brand concept of “Sustainability for a better future” reflects our commitment to serving the
national strategy for regional development by mapping out the layout for “three regions, two lines, and
several spots” and developing comprehensive finance, science and innovation-driven finance, and green
2022 In 2022, Hua Xia Bank, 46th in the Tier1 Capital ranking, was first listed among the Top 50 of "The Top 1000 World finance. By doing so, we aim to improve the quality and efficiency of real economic finance, provide intensive
Banks" ranking published by the Banker. support for rural vitalization, and underpin high-quality national social and economic development.
Support for To align with the reform and opening up, we continue to optimize our business structure through major actions,
Upgrading through including joint-stock reform, listing and attraction of foreign investment. Our focus is on serving market-oriented
Financial Reforms development, inheriting corporate strategy, driving innovation, and creating value. We leverage our strengths
while mitigating our weaknesses and always keep the bigger picture in mind. Furthermore, we employ integrated
financial services to consolidate our corporate banking services and foster new drivers for digital and retail
businesses and new features for green finance and wealth management.
Remarkable We proactively respond to dynamic changes in both internal and external risks with effective prevention measures.
Achievements in Our asset quality management is implemented effectively across the entire cycle, involving industry selection,
Risk and Compliance customer access, product design and service mode to realize the full-lifecycle management of asset quality based
on better risk governance system and avoid potential risks. We have established a compliance management
Management
structure at the Group level and continuously strengthen internal control and compliance management. The audit
system reform has been implemented to further improve internal audit system.
Improved Over the past 30 years, Hua Xia Bank has grown into a national joint-stock commercial bank with unique features,
Integrated a competitive edge, and quality service. We keep developing integrated management to provide customers with
Management integrated financial services such as deposit and loan, investment banks, trade finance, consumer finance, etc. We
also prioritize making progress in the coordinated development of financial businesses, asset management, and
and Corporate
asset custody. We continuously improve our service channels, and have established a full-channel service system
Structure
that covers the whole country, centers on economic central cities, and connects the whole world.
Spotlight HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 Spotlight
The official mascot “RICH” of On October 18, 2022, Hua Xia Bank ‘s mascot was unveiled in Beijing, marking the first time A series of activities As Hua Xia Bank celebrates its 30th anniversary, we organized a series of brand publicity activities
Hua Xia Bank unveiled in the Bank’s history that the company has introduced a mascot representing its brand image to celebrate the 30th themed “Striving for a Better Future” throughout the year where we communicated with different
called “RICH”. Li Minji, Party Secretary and Chairman of the Bank, delivered a speech at the press anniversary of Hua Xia Bank stakeholders including the government, regulators, shareholders and investors, customers,
conference held in the lobby on the first floor of the Head Office Hua Xia Bank. He, together with partners, employees, social media, the public and communities and shared the joy of growth. The
Wang Minglan, Deputy Party Secretary and Chairman of the Board of Supervisors of the Bank, Bank will proceed with its journey to sustainable development on the new path it has blazed.
hung the brand logo of Bank on "RICH", introducing the mascot, which holds the vision and carries
Scan to review the the meaning of prosperity and auspiciousness, to the guests on site. The three-day event was a
press conference joyous occasion where the Bank's leaders and employees got together to celebrate this momentous
moment.
Scan to know more
our wishes
In January 2022, we organized employees to join in the
campaign of “Make Wishes for a Better Future – Support
for Sustainable Development”. Nearly 300 employees
participated in the first celebration to mark the 30th
anniversary of Hua Xia Bank.
Scan to review the
event
Bank officials take photos with staff of the press conference of mascot RUIQI
The six-day event themed “Three-decade Endeavor
to Build a New Future with One Heart”, was held on
2022 China International Fair for Trade in Services.
The event witnessed near 10,000 attendees who
interacted with each other and took photos to share
the joy for the 30th anniversary of Hua Xia Bank.
The prototype of the mascot “RICH” is the mythical beast in traditional
Chinese culture - Qilin. It combines the traditional cultural features of
the Chinese nation with modern aesthetic characteristics, reflecting
auspicious blessings implied in traditional Chinese culture. As a state-
owned financial enterprise, built on the strengths of Chinese traditional
culture, the Bank is exploring new ways in which traditional Chinese Scan to know more
Scan to watch how our wishes
culture can be transformed and developed creatively and revitalized the RICH was born
through the spirit of the times. The mascot “RICH” serves as a bridge
and link for Hua Xia Bank to deliver financial services to customers.
RICH In September, the key visuals to celebrate the 30th
anniversary of Hua Xia Bank were released.
Spotlight HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 Spotlight
Scan to review
video
Scan to see
employees’ growth.
The Bank’s publicity film “Be a Better Self” was
released, which in the perspective of new hires We held “You make Hua Xia Better”
showed the Bank’s care for staff that drives their photo competition that centered
growth through setbacks and obstacles. on the development history of
Hua Xia Bank. Based on three
topics of “stories of time”, “sincere
services” and “Hua Xia moments”,
we collected 22,944 exquisite
photographs from all walks of life,
which showed the monumental
moments of Hua Xia Bank in its
three decades.
Scan to listen to
the song.
Scan to see the
highlights
The music video of our original song “Be Your Hero” was
released. Sung by employees of Hua Xia Bank, the lyrics
expressed their gratitude for each other’s company in the
Bank’s three-decade development, reviving the touching The “History of Hua Xia” was
moments between staff and customers. drawn by hand for stakeholders
to review the Bank’s three-
decade development.
Scan to relay Scan to listen to the
together story of Hua Xia
The 10,957 days of growth since
the Bank’s establishment owe much
to the hard work of generations of
Hua Xia staff who seek to make
Hua Xia better with customers.
Employees and customers were
The “Hua Xia in Rhythms” campaign was launched invited to share their indelible
to gather the best wishes of staff from 44 branches experience in “Stories with Hua Xia”
nationwide for the 30th anniversary of the Bank. event.
Spotlight HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 Spotlight
The “Promotional Video for the 30th Anniversary of Hua Xia Bank” was released, showcasing the Bank's dedication
to reform, Party leadership, founding aspiration, and inclusive finance, as well as the efforts in risk control and
A New Journey to Glorious Dreams
innovation. It pays tribute to those who have grown with the Bank for thirty years.
Turning 30 marks maturity, greater responsibilities and the beginning of a better future. The 20th CPC National Congress marked the
beginning of a new journey towards achieving the great rejuvenation of the Chinese nation through the path of Chinese modernization. It provided a clear direction
for Hua Xia Bank to achieve high-quality development and served as fundamental guidance for financial development with Chinese characteristics.
Scan to watch the series of
activities to mark the 30th
We will remain committed to our founding principles and continue to move forward. As we embark on a new journey, Hua Xia Bank will adhere to the financial
anniversary of the Bank
requirements of the Chinese path to modernization, fully implement the new development philosophy in a comprehensive, accurate, and systematic way, and strive to
integrate ourselves into the new development paradigm. Our ultimate goal is to become a key contributor to social and economic development. We will work tirelessly
towards achieving our corporate mission and contribute to building a modern socialist country in all aspects, while also creating new milestones in the history of Hua
Xia Bank.
Guided by major national strategies, Hua Xia Bank actively integrates into
ECONOMY UNDER
SERVING THE REAL
the new development pattern of the capital. Our approach is guided by the
regional development strategy of "Three Zones, Two Lines, Multiple Outlets"
with a focus on the Beijing-Tianjin-Hebei region, Yangtze River Delta, and
the Guangdong-Hong Kong-Macao Greater Bay Area as key areas. Our
the Guidance of Our Original Aspiration
goal is to support the transformation and upgrading of the manufacturing
industry, support China's high-quality transformation of industries and serve
its opening up to the world. We remain committed to making contributions to
the high-quality development of the real economy.
Sustainability practices
Serving major national strategies and promoting coordinated
development of key regions
Making every effort to build Beijing into the national political,
cultural, international communication and technological
innovation center and providing stronger financial support for the
development of key fields in the capital
Increasing support for the manufacturing industry to drive
transformation and upgrading of the industry
Introducing innovative trade finance products in response to the
Belt and Road Initiative
As of the end of 2022
RMB 560.897 billion
Balance of loans issued in the Beijing-Tianjin-
Hebei region
RMB 661.87 billion
Balance of loans issued in the Yangtze River
Delta
RMB 242.127 billion
Balance of loans issued in Guangdong, Hong
Kong, and Macau
RMB 104.587 billion
Balance of loans issued to strategic emerging industries
626
Correspondent banks opened in BRI markets
In 2022
RMB 300.265 billion
Investment and financing services for Beijing
38 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 39
Facilitating the Hua Xia Bank is dedicated to serving the strategic needs of the nation and actively contributes
to the development of Beijing as the national political, cultural, international communication and We have launched the Farmer
Development of technological innovation center. In addition, we strive to support the Beijing-Tianjin-Hebei region,
the Yangtze River Delta region, and Guangdong, Hong Kong, and Macau in becoming new highlands
and Commerce Loan (Hui Nong
Xing Shang Loan), the Bank
National Strategic for development. Through the formation of a collaborative and coordinated development pattern
covering “Three Zones, Two Lines, Multiple Outlets,” and we have taken measures to support the
Guarantee Loan (Yin Dan Loan),
and the Market Loan (Shi Chang
The Bank has strengthened
Development high-quality development of the real economy. Designing Serving MSEs Improving communication with the Beijing
Loan) for MSEs, and promoted
innovative and farmers in service quality Financial Loan Service Center to
the Inclusive Agricultural Loan.
products Beijing and efficiency expand the coverage of inclusive
Farmers in the capital can apply
Serving the overall development of the capital for loans online, and we aim
finance.
to review and approve their
Hua Xia Bank resolutely fulfills its responsibilities and missions. In line with this, we have applications on the same day
formulated the Hua Xia Bank 2022 Work Plan for Serving the Economy in the Capital and and issue the loan online.
Coordinated Development of the Beijing-Tianjin-Hebei Region . The plan is designed to advance
the development of Beijing as the national political, cultural, international communication
and technological innovation center, and provide financial support for the capital’s economic
development, technological innovation, cultural prosperity, international exchanges, among other
key areas. By doing so, we are paving the way for the capital's high-quality development.
In 2022
Supporting economic development
In 2022
Focusing on key areas of the capital’s economic development, the Bank continues to promote the RMB 36.179 billion RMB 3.09 billion RMB 35.458 billion
R&D of innovative products and services. We aim to increase financial support for key enterprises In investment and financing services provided for key Local government bonds in Beijing Financing services provided for MSEs in
RMB 300.265 billion and projects, strengthen credit extension for entities in the capital, and provide targeted services
to private small businesses and farmers. Through these efforts, we strive to enhance the economic
projects related to the coordinated development of
Beijing-Tianjin-Hebei region, with a focus on industrial
underwritten Beijing
Investment and financing services provided development of the capital. park construction, infrastructure, green environmental
for Beijing protection, and other fields
Serving central SOEs in Beijing. The Bank communicates and partners with the headquarters of key
14.63%
enterprises in the capital, including China National Agricultural Development Group Co., Ltd., State Grid
Corporation of China, China Poly Group Corporation Ltd. and China Chengtong Holdings Group Ltd.
Supporting municipal-level SOEs. We signed a strategic cooperation agreement with Beijing State-owned
Year-on-year increase Capital Operation and Management Company Limited to deepen our cooperation with Beijing Environment
Sanitation Engineering Group Co., Ltd., BBMG Corporation Ltd., Beijing Energy Holding Co., Ltd.; signed strategic
cooperation agreements with 7 Hong Kong-based SOEs under the control of Beijing Municipality, as part of the
“Beijing-Hong Kong Cooperation for a Better Future” campaign.
5
SOEs and
1
Strengthening financial support
for key enterprises in the capital
government organization in Beijing
signed strategic cooperation agreements Serving key projects and
with the Bank enterprises in Beijing
Strengthening financial services
for key projects in the capital
Supporting government-subsidized housing and urban renewal projects in the capital. The Bank has
compiled and distributed the Work Plan of Hua Xia Bank for Providing Financial Support for Beijing to Accelerate
the Development of Government-Subsidized Rental Housing Projects and Hua Xia Bank Administrative Measures
for Urban Renewal Loans . support various projects, including the rental housing project on collectively-owned
land in Lugouqiao, Fengtai District, and Beijing, as well as publicly traded REITs based on government-subsidized Strategic cooperation with the Beijing Stock Exchange
housing projects in Beijing, and infrastructure REITs projects of Beijing Energy Holding Co., Ltd.
40 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 41
In 2022 Boosting technological development Driving cultural development In 2022
RMB 32.942 billion Hua Xia Bank is dedicated to enhancing financial support for high-tech sectors. To achieve this, we
have made consistent efforts to improve our financial services by strengthening our top-level design
To build Beijing into a national cultural center, the Bank works to develop financial products and
services for the cultural and creative sectors. We take the initiative to serve national time-honored RMB 20.152 billion
Investment and financing services provided and developing more innovative products. We have supported the construction of the International brands. Through supporting key cultural and tourism enterprises and projects in Beijing, we aim to Financing services provided for cultural and
for 489 tech companies Beijing Center for Science & Technology Innovation in Beijing, and are committed to assisting Beijing in strengthen the capital’s role as a magnificent center of traditional Chinese culture. creative enterprises in the capital
becoming a benchmark city for the global digital economy.
To enhance financial support for specialized and sophisticated enterprises, we have issued
the Process of Hua Xia Bank for Issuing Loans to Specialized and Sophisticated MSEs, which
emphasizes one scheme for one client and accelerated approval.
We have facilitated re-lending to high-tech companies in Beijing and have increased the FTP tilt We issued a syndicated We invested in the first
based on the central bank's special re-lending instruments. loan for the Universal cultural and creative
Beijing Resort project. parks rental housing
REITs project.
Improving
the top-level design
Supporting the
construction of Supporting key cultural
the International and tourism enterprises
Center for Science & and projects in the capital
Technology Innovation
Deepening in Beijing Designing We provide credit
As the first financial
strategic innovative support for leading
institution to register on
cooperation products film and television
the China Cultural and
Creative Industry Public
broadcasting companies
Service Platform, Hua
such as Poly Culture,
Xia Bank signed a joint
New Classics Media, and
We have signed a strategic cooperation The Bank has issued the Hua Xia Bank construction agreement
Perfect World.
agreement with the Beijing Stock Exchange and Administrative Measures for Option Loans (Trial) with the platform.
the National Equities Exchange and Quotations to promote the R&D of investment-oriented loan
(NEEQ) to develop targeted private equity products.
strategic investment products. We have intensified our efforts in researching,
We have established comprehensive cooperation developing, and promoting featured products.
with CAS Holdings under the Chinese Academy of These include upgrading the Science and
Sciences to support competitive tech companies Technology Innovation Financial Service Package
and serve people working in the high-tech industry 2.0 for the Capital, and increasing the maximum
in Beijing. credit line of Smart Loan 2.0 (Zhirongbao 2.0) to
The Bank provided credit support for ZGC Group RMB 20 million. Case Financing the first project of intellectual property securitization through patent licensing
and launched the Zhongguancun International
Syndicated Loan. Beijing Branch, in collaboration with China Technology Exchange, has provided intellectual property
financing for high-tech enterprises. This has filled the gap in Beijing for securitization products
based on patents, which is of great practical significance for promoting the innovation of financial
products based on intellectual property rights.
Supporting Beijing in building a benchmark
city for the global digital economy
Case Continuing to implement the Time-Honored Brand Action Plan
Boosting innovation in industrial Accelerating the full-scenario Strengthening the construction
digital FinTech application of digital RMB of intelligent service terminals Focusing on enterprises operating in consumer sectors such as foods, drinks, and daily necessities,
We have completed the development of all functions We have introduced functions such as digital RMB In Beijing, we have piloted new functions such as the we actively promote the Hua Xia Craftsmanship (Hua Xia Jiang Pin) series of products, and take the
of the first phase of the industrial digital FinTech wallets for enterprises and an anti-overreach merchant ecosystem and WeChat queuing functions initiative to serve national and local time-honored brands, as well as well-known companies cultural
platform and launched the digital factoring project mechanism for digital currency APPs, and signed to enhance intelligent services at our outlets. Besides, heritage and development potential. Our comprehensive financial services cover payment and
of CCCC Fourth Highway Engineering Co., Ltd. which digital RMB cooperation agreements with the four to improve remote services, we have launched an settlement, cash management, investment and financing, and other customized solutions to meet
has started to issue loans. major banks: Industrial and Commercial Bank of online appointment booking service that covers all the unique needs of time-honored enterprises.
China, Agricultural Bank of China, Bank of China, and businesses for corporate clients.
China Construction Bank.
42 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 43
Supporting international exchanges Case Accelerating the relocation of the Head Office to the Beijing Municipal Administrative Center
Hua Xia Bank has actively supported and implemented the Municipal Party Committee and the Municipal Government's decision to relocate the Head
As part of our contribution towards building Beijing into an international exchange center, we have Office to the Beijing Municipal Administrative Center. In the same year, we completed the land acquisition and started construction. The new headquarters
improved the organization of free trade zones and developed distinctive trade and financial services building, located on the north bank of the North Canal in Tongzhou, covers an area of about 30,000 m2 and a total above-ground floor area of 120,000
to support enterprises in the capital to go global. m2. The whole building is constructed in accordance with the 3-star green building standard. We aim to complete the new headquarters by October
2026. The relocation of the Bank's headquarters is a significant achievement in Beijing's efforts to relocate high-quality resources such as non-capital
functions and the headquarters of municipal-level SOEs to the Beijing Municipal Administrative Center.
Accelerating organizational improvements of free trade zones in Beijing, Tianjin,
and Hebei. We have set up a Sub-branch in the High-End Industry Area of the China
(Beijing) Pilot Free Trade Zone.
Supporting the capital in going global
Optimizing cross-border financial services. We provide support for international
settlement and trade financing, and promote cross-border RMB.
Increasing external communication efforts. In 2022, we sponsored the 2022
Zhongguancun Forum, and participated in the 2022 China International Fair for
Trade in Services and the Financial Street Forum, striving to publicize distinctive
trade and finance services.
Serving the development of the Beijing Municipal
Administrative Center
As of the end of 2022 We support Beijing in relieving its functions non-essential to its role as China’s capital, and
enhance financial support for the coordinated development of the “one core and two wings,” thus
contributing to the high-quality construction of the Beijing Municipal Administrative Center.
RMB 5.7 billion
Credit balance in total after providing
financing for 200 enterprises in Tongzhou
District
We recently established Xinhua East Street Sub-branch and promoted the green
transformation of Yunhe Sub-branch.
Supporting the
development of the
We signed a cooperation agreement with the Industry Fund of the Beijing
Beijing Municipal
Municipal Administrative Center for custody business.
Administrative
Center
We provide credit support for investment and state-run companies in Tongzhou,
and support the construction of key projects, including transportation hubs and the
Zhangjiawan section in Tongzhou District.
Rendering of the new headquarters building of Hua Xia Bank( New Tongzhou Tower)
44 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 45
In 2022 Facilitating the coordinated development of the Beijing- Facilitating integrated transportation As of the end of 2022
Tianjin-Hebei region
RMB 75.945 billion We push forward with the Hua Xia Bank Action Plan for the Development of the Beijing-Tianjin-
Focusing on key projects related to the integrated transportation of the Beijing-Tianjin-Hebei
region, we have been providing financing support for companies such as Beijing Capital Highway 2.6212 million
Investment and financing services Hebei Region 2021-2025 . Positioning ourselves to be “a major financial service provider for the Development Group Co., Ltd. (DCHD), Shijiazhuang Metro, Tianjin Rail Transit, and Handan Traffic Debit cards themed on the
provided for key projects critical to the Beijing-Tianjin-Hebei region,” we have improved comprehensive financing services for key areas Construction, promoting interconnectivity of transportation in the Beijing-Tianjin-Hebei region. coordinated development of the
coordinated development of the Beijing- such as Xiongan New Area, and enhanced our support for the relocation of industries and integrated Beijing-Tianjin-Hebei region issued
Tianjin-Hebei region transportation, thereby injecting new impetus into the coordinated development of the Beijing- Assisting Binhai New Area in accelerating the integrated transportation of
Tianjin-Hebei region. Case
the Beijing-Tianjin-Hebei region
Supporting the development of Xiongan New Area
In 2022, Tianjin Branch has successfully completed the issuance of the second medium-term note
of an investment group limited company in Binhai New Area, Tianjin. The funds raised will facilitate
1.3337 million
ETC cards users in the region
As of the end of 2022 To facilitate the high-quality development of Xiongan New Area, a pacesetter that relieves Beijing the construction of transportation and infrastructure projects in the Beijing-Tianjin-Hebei region.
functions non-essential to its role as China’s capital, Hua Xia Bank has increased financial support
for construction entities in the Area, explored a new model of optimized development in densely
RMB 560.897 billion populated areas, and cultivated new drivers through innovation-driven development.
Conducting ecological governance As of the end of 2022
Balance of loans to the Beijing-Tianjin-
Hebei region
RMB 42.318 billion
We provided credit services for China Xiongan Group and credit Leveraging our expertise in green finance, we have provided comprehensive financial services for
support for CCCC Xiong’an Financial Leasing Co., Ltd environmental projects focusing on regional air pollution control, water pollution control, as well as
for enterprises engaging in energy conservation and environmental protection, thereby promoting Balance of green loans of our branches
156 the integrated development of green finance and the green industry in the Beijing-Tianjin-Hebei
region.
in the Beijing-Tianjin-Hebei region
Outlets established in the Beijing- Supporting the
Tianjin-Hebei region development of
Xiongan New Area Supporting marine ecological conservation
We obtained the qualifications to We provided financial services Case
regulate pre-sale funds for new to residents who have relocated
commercial housing projects and to Xiongan New Area and Tianjin Branch provided a total of over RMB 1.9 billion in loans to a development limited company in
for financial fund payments in participated in the payment Lingang, Tianjin. to support the comprehensive improvement of sea areas, coastal zones, and islands. This
Xiongan New Area in 2022 processes for resettlement financing will contribute to the efforts to improve the marine environment in the region.
housing in the area
Case Providing financial support for residents in resettlement areas
Xiongan Branch actively provides financial services to relocated residents in the Rongdong and
Rongxi resettlement areas. The branch has provided financial support for five batches of relocated
residents in the Xiongan New Area and ensured their livelihood.
Empowering the development of key functional zones
The Bank has stepped up efforts to develop the “2+4+N” functional zones for strategic cooperation
and platforms for industry relocation, providing financing support for business entities in various
regions including Tianjin, Caofeidian, Cangzhou, Handan, etc.
Supporting the construction of the platform for undertaking relocation of
Case
industries in Wuqing District, Tianjin
In 2022, Tianjin Branch has completed the issuance of the first targeted debt financing instrument
for an investment limited company in Wuqing, Tianjin. This funding will support Wuqing District's
efforts to relocate industries from Beijing and relieve Beijing functions non-essential to its role as
China’s capital.
Shijiazhuang Branch supports ecological restoration of Beijing-Hangzhou Canal
46 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 47
Contributing to the integration of the Yangtze River Delta region Case Supporting the construction of the Shanghai International Financial Center
As of the end of 2022 Hua Xia Bank has capitalized on the development opportunities in the Yangtze River Delta region Shanghai Branch has played a crucial role as the exclusive domestic coordinator in supporting the issuance of USD 150 million offshore bonds by a high-
by providing financial support to key sectors, including public services, infrastructure construction, tech (group) limited company in Shanghai. in the free trade zone. This marked China's first US dollar-certified structured offshore bond in a free trade
RMB 661.87 billion
and environmental protection, and implemented various measures to promote the integrated zone, and has effectively promoted the development of the Shanghai International Financial Center.
development of the Yangtze River Delta.
Balance of loans issued in the Yangtze
River Delta region Promoting the integrated development of the Yangtze River Delta Case Providing financial support for key projects in the eight cities of the Yangtze River Delta region
7.25%
Based on the strategy for integrated development of the Yangtze River Delta, Hefei Branch has actively provided financial support for key construction
projects in eight cities, including Hefei, Wuhu, Chuzhou, Ma’anshan, Tongling, Chizhou, Anqing, and Xuancheng, that have been incorporated into the
Integrating into the mainstream of innovation-driven development strategy. As of the end of 2022, the balance of on- and off-balance sheet credit business for these eight cities totaled over RMB 23 billion.
Year-on-year increase
Building a new model for offering financial services to sci-tech innovation. We have participated in sci-
tech events initiated by the “Yangtze River Delta G60 Science and Innovation Corridor Financial Service
Alliance,” and provided exclusive products and services for sci-tech companies while improving our service Case Boosting infrastructure construction
RMB 615.362 billion
capabilities.
Exploring incentive mechanisms for innovation. We have swiftly implemented the “equipment renewal” and Shaoxing Branch was the only national joint-stock commercial bank that participated in the credit signing meeting for the city's infrastructure projects
“technological innovation” policies. In doing so, we have introduced a range of incentive policies aimed at organized by the Shaoxing Municipal Government. During the meeting, the branch signed an RMB 1.5 billion credit cooperation agreement with a
Deposit balance promoting loans for science and technology, and providing increased support through relevant resources. construction group limited in Shaoxing City to fully support the construction of Area B in Phase I of the Shaoxing International Convention and Exhibition
Center, as well as other significant infrastructure projects in the area. By doing so, Shaoxing Branch is making a valuable contribution to the high-quality
8.04%
integrated development of the Yangtze River Delta region.
Creating new competitive edges in “commercial banking + investment banking”
Year-on-year increase Promoting the construction of an “industry + customer” hierarchical and classification system. To better
serve strategic emerging industry clusters, as well as specialized and sophisticated SMEs, we have refined Case Supporting the comprehensive governance of Taihu Lake’s water environment
our marketing directions and strategies for assets business.
Expanding the “commercial banking + investment banking” business. We have explored the “commercial The national pilot project for comprehensive governance and sustainable development of the water environment in the Taogu area, located in the upper
banking + investment banking” cooperation mechanism as well as the bank-government cooperation model reaches of Taihu Lake, was a key provincial project of Jiangsu in 2022. Changzhou Branch raised funds through wealth management projects for a group
to strengthen regional resource linkage, and improve the joint loan mechanism in the Yangtze River Delta limited company in Jiangsu, the entity which undertook the project. The financial support provided by the branch has significantly contributed to the safety
region. of Taihu Lake's water and the high-quality integrated development of the Yangtze River Delta region.
Accelerating the construction of a new pattern of retail transformation
Facilitating access to consumer financing scenarios. We have expanded our services to cover various
scenarios such as transportation, health, and consumption, promoted the development of consumer
financing, and carried out cross-regional services to facilitate the inflow of funds between regions.
Building a bridgehead for off-shore banking business.
Actively promoting the development of innovative bond business. We have participated in the issuance of
regional free trade bonds to facilitate the development of cross-border financial products and free trade
derivatives. We leverage our free trade platform to provide comprehensive services to companies engaged
in overseas businesses.
Deeply integrating into the development of a “green and beautiful Yangtze River Delta”
Promoting the development of key green projects. Leveraging the strengths of our branch in the Lin-gang
Special Area of China (Shanghai) Pilot Free Trade Zone, we have pooled our resources to support initiatives
such as the “project of doubling wind and solar power generation capacities” to promote the development
of green manufacturing and renewable energy. Furthermore, we have developed innovative models for Wuxi Branch signs a strategic cooperation agreement with the Wuxi High-Tech Huai’an Sub-branch, affiliated with Nanjing Branch, signs a strategic cooperation
cooperation in green finance. Industrial Development Zone to ease the difficulties of businesses. agreement with the Lianshui County Government.
48 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 49
Boosting the development of the Guangdong-Hong Kong-Macao Case Promoting the construction of large-scale projects in the Greater Bay Area
Greater Bay Area Hong Kong Branch has extended a loan of HKD 2 billion to New World Development Company Limited to promote economic growth in the Guangdong-
Hong Kong-Macao Greater Bay Area. New World Development has played an active role in the construction of the Greater Bay Area through the
As of the end of 2022 With a focus on the strategic locations of the Guangdong-Hong Kong-Macao Greater Bay Area, development of a number of iconic large-scale projects, including the Hanxi Changlong land site in Guangzhou and the Prince Bay Project in Shenzhen.
Hua Xia Bank has increased support for the development of local high-end industries, and improved
financial services to assist the Greater Bay Area in becoming a world-class bay area and city
RMB 242.127 billion cluster.
Case Supporting the intercity railway construction project in the Pearl River Delta
Balance of loans for the Guangdong-Hong
To promote the development of high-end An intercity railway limited liability company in
Kong-Macao Greater Bay Area manufacturing, Shenzhen Branch has successfully Guangdong is responsible for the operation and
issued the first scientific and technological management of the urban rail transit system
innovation bill worth RMB 440 million in the
10.54%
between Guangzhou and Zhuhai, and has taken on
Greater Bay Area. the important task of accelerating the construction
Building a “commercial Shenzhen Branch has issued Hua Xia Bank’s first of the rail transit system in the Greater Bay Area.
Year-on-year increase banking + investment risk disposal type M&A loan to support the stable Guangzhou Branch has maintained long-term
banking + private banking” development of the real estate market. cooperation with the company to support the
value chain Shenzhen Branch’s private banking center has transportation infrastructure construction in the
been put into operation, while Hong Kong Branch Greater Bay Area.
has obtained the qualification for expanding
its wealth management and private banking
Boosting the development of the Guangdong-Hong Kong-Macao Greater Bay Area
business.
Intercity railway construction
project in the Pearl River Delta
Guangzhou Branch has completed Hua Xia Bank’s
Case Improving financial services for the sci-tech industry in the Greater Bay Area
first domestic Letter of Credit (L/C) forfaiting
asset cross-border transfer transactions.
Guangzhou Branch signed a strategic cooperation
Achieving innovative Hong Kong Branch has launched agency foreign
agreement with a certain group limited company
breakthroughs in exchange (FX) spot, forward and swap trading,
in Guangzhou Development District during
trade finance agency cross-currency swap trading, agency
the signing ceremony of industry and finance
interest rate swap trading, and agency bond
integration projects at the 11th China (Guangzhou)
trading, and completed an annual agency trading
International Finance Expo, demonstrating Hua Xia
volume exceeding HKD 12 billion.
Bank's focus on providing financial services for the
sci-tech industry in the Greater Bay Area.
Guangzhou Branch has completed the first
battery energy storage financing project of the
Focusing on China’s World Bank in the Greater Bay Area, and invested The signing ceremony of industry and finance integration projects at the 11th China (Guangzhou) International
3060 Decarbonization in innovative businesses such as green bonds Finance Expo
Goal while developing through wealth management funds.
green finance The proportion of green loans at Shenzhen Branch
exceeds the average level of the banking industry
in the city.
Hong Kong Branch completed 73 overseas debt
underwriting transactions in 2022, with a total
Actively integrating issuance amount of over HKD 131.8 billion for
into the international bond projects; improved the clearing channels
financial market for three foreign currencies, including US dollars,
euros, and Japanese yen, and established agent
bank relationships with 134 banks in total.
Hong Kong Branch’s 2nd Anniversary Celebration & “Signing Ceremony of Strategic Shenzhen Branch receives the title of “Shenzhen Green Financial Institution”
Cooperation Agreements with Beijing-Affiliated Companies in Hong Kong” from the Shenzhen Municipal Financial Regulatory Bureau.
50 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 51
Serving the development of the Yangtze River Economic Belt Case Supporting the high-quality development of Ganjiang New District
The development of Ganjiang New District, the 18th state-level new area in China, is a significant part of the future of the entire Yangtze River Economic
The Bank is dedicated to staying abreast of the latest developments in the Yangtze River Economic Belt and the Chengdu-Chongqing economic circle, by Belt. Following the government’s policies, Nanchang Branch has set up an institution in Ganjiang New District to serve the local economy. As of the end of
providing increased support for key infrastructure construction projects, promoting the transfer of coastal industries and facilitating the development of 2022, Nanchang Branch had provided a total of over RMB 2.4 billion in credit support for the new district.
new urban areas. Our goal is to foster high-quality development of the Yangtze River Economic Belt.
Case Issuing the first “Yangtze River Economic Belt” asset-backed security (ABS) based on port revenues in China
Nanjing Branch has completed the issuance of the first “Yangtze River Economic Belt” asset-backed security (ABS) based on port revenues in China
as well as Hua Xia Bank’s first ABS on infrastructure, with a total amount of RMB 653 million. Hua Xia Wealth Management Co., Ltd. acted as the
cornerstone investor in the issuance. This issuance marks the first time that Nanjing Branch has issued ABS based on port revenues under the new rule
system, setting an innovative financing model for port enterprises.
Case Boosting agricultural development in the Yangtze River Economic Belt
Wuhan Branch actively responds to the central government’s development strategies for the Yangtze River Economic Belt. In collaboration with a leading
agricultural investment firm in Hubei Province, the branch has launched its first agricultural loan. As of the end of 2022, Wuhan Branch has extended a
total of nearly RMB 300 million in loans.
Chengdu Branch Signing strategic cooperation agreements in a financing meeting for the city’s key projects in housing construction, transportation, ecological conservation, and
environmental protection.
Nanjing Branch supports port construction and operation
52 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 53
Accelerating Implementing the national policies on industrial structure adjustment and following the National
Catalogue for Guiding Industry Restructuring , Hua Xia Bank has increased support for industrial
Facilitating the transformation of the manufacturing industry
Industrial transformation and upgrading in its annual credit and investment policies. The Bank is committed
to playing a greater role in supporting key sectors, such as new infrastructure, manufacturing,
We increase support for the manufacturing industry, promote the transformation and upgrading of high-quality enterprises in the manufacturing
industry and their upstream and downstream enterprises in the industrial chain, injecting financial momentum into the high-quality development of the
Transformation and and strategic emerging industries, and pooling resources to promote industrial transformation and
upgrading.
manufacturing industry.
Upgrading Case Boosting the upgrading of the furniture manufacturing industry
Boosting infrastructure construction A home furnishing manufacturer in Deqing, Huzhou, has been included in the list
To strengthen the economy through infrastructure development and accelerate the construction of of candidates for medium to long-term loans in Zhejiang Province (the fourth
infrastructure projects, we provide support for new infrastructure and new urbanization initiatives, batch), is therefore qualified to apply for medium to long-term loans for key
as well as major projects and urban renewal projects, and upgrade the “commercial banking + companies in the manufacturing industry based on the National Development
investment banking” service model. and Reform Commission (NDRC). Hangzhou Branch provided an RMB 7 million
medium to long-term loan to the furniture company, supporting its capacity
upgrading. This was also the first time that Huzhou Branch extended a medium to
As of the end of 2022 Case Supporting the urban renewal project long-term loan to a company on the list.
Xiamen Branch strives to integrate into the “Great Improvement on the Island, and Great
RMB 210.406 billion Development Outside the Island” initiative of Xiamen. The branch has extended syndicated loans to
an investment limited company in Xiamen. The funds are dedicated to the Phase I Urban Renewal
Case Supporting the green development of the new materials industry
Balance of loans to manufacturing project of the Cross-Strait Regional Financial Center Area in Xiamen. A new materials limited company in Xinjiang applied for the "Green Low-
Carbon Upgrading Project," a subsidized medium to long-term loan project
for the manufacturing industry feedbacked by the National Development and
Case Supporting hydropower station construction Reform Commission (NDRC). Urumqi Branch completed project approval and
loan disbursement preparation in just 13 working days after receiving feedback
RMB 104.587 billion
Chongqing Branch visiting a new energy vehicle manufacturer.
Nanchang Branch provided Longtoushan Navigation-Power Junction Investment and Development from the NDRC's list. The loan amount of RMB 300 million has been utilized for
Co., Ltd. in Jiangxi with a 17-year loan of RMB 2.147 billion to support the Longtoushan hydropower purchasing equipment for the company's green and low-carbon upgrading project.
Balance of loans to strategic emerging infrastructure project. This loan marks the largest and longest-term loan issued by Nanchang
industries Branch since its establishment.
Advancing industrial modernization
Focusing on key areas such as specialized and sophisticated SMEs, and strategic emerging industries, our commitment extends to the development of
industries in Beijing, Shenzhen, Shanghai, Guangzhou, and other strategic emerging industry clusters, as we strive to accelerate the modernization of the
industrial system.
Case Boosting the development of cultural tourism
Nanchang Branch has extended a ten-year RMB 500 million fixed asset loan to
an investment holding group limited in Jingdezhen City, marking the largest loan
issued by a banking institution in Jiangxi Province that is dedicated to equipment
upgrading and renovation. The loan has been used for equipment upgrading and
renovation in seven cultural and tourist attractions, including the Jingdezhen
International Ceramic Culture Expo Tourism Exchange Center, which will
effectively promote the development of the local cultural tourism industry.
Shaoxing Branch showing supports for the development of optoelectronic
enterprises.
Case Promoting the development of the intelligent industry
Kunming Branch has issued loans to a big data industrial development limited
company in Yunnan for equipment upgrading and renovation, making it the
largest equipment upgrade loan ever issued in Yunnan Province. Kunming Branch
has been commended by the State Council’s inspection team for its contributions
Kunming Branch supports Yunnan Provincial Energy Investment Group in constructing an overseas hydropower station. to market entities in accelerating important equipment upgrading and renovation
projects. Ningbo Branch providing services at a high-tech company.
54 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 55
Serving China’s As China opens up at a high level to the world, Hua Xia Bank has actively integrated into the
domestic-international dual circulation and supported Chinese enterprises seeking to expand their
Supporting the development of free trade zones
Opening-up presence overseas in response to the Belt and Road Initiative (BRI). Hua Xia Bank is dedicated to optimizing its institutional layout in free trade zones, both within and outside of China, to create a unique product system.
The Bank has also utilized products such as free trade zone bonds to provide fast and professional financial support to Chinese enterprises looking to
expand overseas, multinationals, and foreign institutions.
Integrating into the BRI Issuing the first free trade zone offshore bond in central and western China
Case
As of the end of 2022 Hua Xia Bank closely follows national strategies and actively responds to the BRI. The Bank has
been optimizing its correspondent bank network in BRI partner countries and developing new trade The Hong Kong, Urumqi, and Shanghai branches of Hua Xia Bank have collaborated to issue the first offshore bond in central and western China with a
626
finance products, debt instruments, and interbank investment services to contribute to the high- total value of RMB 780 million. This issuance represents China's inaugural free trade zone offshore bond that includes foreign investors and serves as a
quality development of the BRI. successful example of providing exceptional cross-border financial services.
Correspondent banks in BRI
markets opened
Supporting the development of the core area on the Silk Road Economic Belt
Improving cross-border services
Case
1,189
The Bank has stepped up efforts to build an all-dimensional, tiered cross-border comprehensive financial service system. We actively serve domestic and
Urumqi Branch fully supports the development of the core area on the Silk Road Economic Belt, with foreign markets by leveraging our advantages in the linkage between onshore and offshore RMB, domestic and overseas markets, as well as local and
Correspondent banks set up, a special focus on the construction of key infrastructure projects for trade, logistics, transportation, foreign currencies. Meanwhile, we are committed to innovation in trade finance products and the implementation of the Renminbi internationalization
covering and green finance. In Khorgos, Alashankou, Urumqi Comprehensive Bonded Area and other key strategy, with the goal of providing convenient and efficient financial services for Chinese enterprises seeking to expand overseas.
areas, the Branch has supported infrastructure construction and enterprise trade financing needs,
improved port infrastructure construction, and promoted the development of domestic and foreign
305 cities
two-way trade. Expanding global service channels Innovating in trade finance
The Bank has promoted the development of domestic and overseas Partnering with the General Administration of Customs, we have
in 98 countries and regions
Supporting the development of the a cold chain storage center of an international correspondent bank networks to offer customers integrated launched the single-window cross-border payment and settlement
across the world
Case land port in Yunnan international financial services in RMB and foreign currencies. service, which is designed to meet the payment and settlement needs
of import-export companies.
Kunming Branch is dedicated to responding to the BRI, and has led the issuance of a consortium
loan of RMB 200 million to a cold chain storage center of an international land port in Yunnan ,
Improving cross-
which is striving to become a zone with the most comprehensive facilities serving the ASEAN and
border services
international markets. This issuance not only supports the development of the land port, but also Enhancing online service capabilities Supporting Renminbi internationalization
helps Yunnan Province to achieve its goal of becoming a hub for China's opening-up to South and
Southeast Asia. Hua Xia Bank has continued to improve the electronic channel We have vigorously promoted convenient cross-border RMB settlement
functions for services such as letters of credit and foreign currency to provide higher-level services for eligible enterprises and new
In 2022 remittances, and improved the online service capability of cross-border formats of international trade.
payment and settlement.
RMB 140.878 billion
Cross-border RMB transactions handled
Supporting Chinese enterprises
Supporting cross-
seeking to expand overseas
While deepening traditional trade services, Hua Xia Bank has actively provided capital and financial services to support
border project
outbound investment projects in line with national policies.
investment
USD 162.105 billion The Bank has intensified its efforts to promote import-export trade financing and cross-border guarantee products,
International settlements completed Strengthening catering to the demands of Chinese enterprises seeking to expand in international markets. Our comprehensive range
trade financing of services includes trade financing and credit enhancement in both domestic and foreign currencies. We have also
guarantees strengthened the application of products such as financing under export credit insurance, international factoring, and
cross-border guarantees to help those companies reduce costs and increase efficiency.
Case Empowering the development of cross-border business
Prioritizing the Nanning and Qinzhou Free Trade Zones, Nanning Branch provides cross-border trade financial services to companies across Guangxi,
including cross-border settlement, international trade financing, foreign exchange derivatives, supply chain products, etc., supporting their expansion into
international markets.
While exploring more development models for inclusive finance, Hua Xia
QUALITY
OFFERING HIGH-
Bank has implemented measures to effectively alleviate their difficulties. The
Bank is also committed to promoting all-around rural revitalization, which
aims to facilitate people's livelihood projects, promote financial services for
people's lives, and create a new era of prosperity in rural areas.
Services in Inclusive Finance
Sustainability practices
Deepening product innovation and enhancing service quality and
efficiency to boost the long-term stable development of MSEs
Solving MSEs’ pain points in development and helping them
overcome difficulties
Improving services for “agriculture, rural areas, and farmers” to
contribute to rural vitalization
Offering financial services beneficial to the people to boost
personal consumption and support projects vital to people’s well-
being
As of the end of 2022
RMB 565.47 billion
Balance of loans for MSEs
RMB 74.721 billion
Increased over the figure of the year before
670,100
Customers who received loans to MSEs with a
maximum of RMB 10 million
RMB 160.904 billion
Balance of loans to MSEs with a maximum of RMB 10
million
RMB 18.774 billion
Balance of inclusive finance loans related to “agriculture,
rural areas and farmers”
RMB 520.312 billion
Balance of personal loans(excluding credit card)
58 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 59
Supporting the We continue to deepen our strategic positioning as “a financial service provider for SMEs,” and
provide inclusive financial services with the distinctive characteristics of Hua Xia Bank to MSMEs
Upgrading services
Development of and private enterprises to support their healthy development. To boost the development of MSEs in the private sector, the Bank has comprehensively improved
its service capabilities, increased efforts in product innovation, and utilized financial technology to As of the end of 2021
MSEs expand its service scope while enhancing the quality and efficiency of financial services.
As of the end of 2022 We have reviewed the marketing “whitelist” of loans for sci-tech enterprises, and implemented We have launched four series of inclusive loans to businesses in the private sector, including the “Ding Hui Loan, 25
the latest review standards of the People's Bank of China that give priority to these enterprises; Zhuan Hui Loan, Ju Hui Loan, and Smart Loan.” Products targeting MSEs
RMB 565.47 billion
meanwhile, we have increased support for high-quality clients and key projects in science and With the “Loans for Specialized and Sophisticated SMEs,” we offer special financing services to outstanding SMEs
technology, and started the application for the People’s Bank of China’s re-lending program for as well as SMEs recognized by provincial governments.
RMB 26.741 billion
scientific and technological innovation. We have launched the latest version of the House Loan Express inclusive loan which comes that includes new
Balance of loans for MSEs ,
features such as in vivo detection, credit contracts confirmed by clients, loan contracts, and online contract
accounting for
signing, etc. In addition, we have extended the loan term up to a maximum of 30 years and increased the
Balance of online business loans for
maximum loan amount to RMB 30 million.
MSEs
26.58% Leveraging policies
and product
705,400
Innovating in financial products
of the total loans issued by the Bank advantages
MSE customers of online business loans
RMB 74.721 billion Increasing Improving service quality and
27
support for MSEs efficiency
Balance of loans for MSEs increased Accelerating credit Increasing
delivery to high- authorization support Outlets providing inclusive financial
quality MSEs in the for specialized and services for MSEs
manufacturing industry sophisticated SMEs Supporting MSEs’ supply chain Creating an exclusive account
development for inclusive finance
We have launched the “Smart Supply Chain The Bank has created a new WeChat official
We have made adjustments to the credit rating for We have delegated more authority to certain
Product under the Hua Xia Bank Inclusive account - the Hua Xia Bank Inclusive Financial
granting credit to MSE clients in the manufacturing branches for approving pledged loans for specialized
Financial Services for Private Enterprises,” Services for Private Enterprises. Through
industry that have been included in the assessment of and sophisticated SMEs, and opened the approval
realizing the deep integration of “digital finance + intelligent identity recognition, assistance from
the increase in inclusive finance lending to micro and access path of the Department of Inclusive Finance
scenario-based service.” external risk control data, electronic signature,
small business, optimized the repayment methods at the headquarters for these branches. In addition,
The Bank has launched its first dual platform etc., we provide customers with online services
for medium to long-term loans, and increased the we have conducted research on the development of
for “Business Management of Financial Services covering applications, guarantees, withdrawals,
proportion of loans for manufacturing MSEs as well as exclusive “Loans for Specialized and Sophisticated
for Private Enterprises,” to achieve full-process etc.
medium to long-term loans. SMEs.”
risk management and control. The dual platform
allows the Bank to stay up-to-date on business
operations progress, while core enterprises can
stay informed on the supply chain's upstream and
downstream dynamics in real-time.
Shaoxing Branch offers financial services to SMEs which are also members of the Shaoxing Hubei Chamber of Kunming Branch explaining the Flower Grower Loan (Hua Hui Loan) to a customer. Changchun Branch upgrades "specialized and sophisticated" support services
Commerce.
60 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 61
Easing the difficulties of businesses
As of the end of 2022 The Bank implements national policies aimed at easing the difficulties of businesses and stabilizing
the market. By leveraging inclusive financial products for MSEs, and offering services such as Case Issuing the first loan for easing the difficulties of businesses in the Xi’an National Civil Aerospace Industrial Base
RMB 160.904 billion
deferral of principal and interest payments, we have managed to alleviate the challenges faced by
enterprises in accessing affordable financing, and played a positive role in maintaining the stable A construction company in Shaanxi has gained an RMB 4.5 million loan dedicated to easing the difficulties of the businesses from Xi’an Branch. This
Balance of loans to MSEs with a maximum operations of market entities. marks the first instance of Hua Xia Bank issuing such loans to companies operating in the Xi'an National Civil Aerospace Industrial Base. The loan, also
of RMB 10 million referred to as the "Aerospace Industrial Base Bailout Loan," “Aerospace Industrial Base Bailout Loan,” targets MSMEs operating in the aerospace industrial
base area who require funding. The program boasts several advantages including high approval limits, fast processing times, low interest rates, and long-
term maturities.
16.56%
Increased from the beginning of the year Launching products and services to support the resumption of work and
Case Offering mortgages for MSEs
production
The Bank has launched a variety of digital financial products to assist businesses in
accessing financing, such as the Unity Loan (Zhong Zhi Loan), Production Resumption Nanjing Branch has increased its support for manufacturing MSEs by offering mortgage loans. For instance, a local limited company specializing in
12.90 percentage points
Loan (Fu Gong Loan), and Credit Enhancement Loan. automation engineering faced a shortage of funds that prevented them from purchasing a new factory building. After learning of their situation, Nanjing
We have specially set up 18 MSE financial service centers in Beijing to enhance Branch provided them with a factory loan that only required a 30% down payment, helping the company overcome its financial challenges.
communication with the loan service center and the loan renewal center in the city.
higher than the average growth rate of all
loans of the Bank
Improving the mechanism for deferral of principal and interest payments.
Easing the difficulties of
We require each branch to investigate the assess the status of loans due or extended
for MSE clients; meanwhile, we negotiate with MSEs, self-employed individuals, truck
businesses
drivers, etc. in accordance with market-based principles, and provide them with
reasonable loan extension services.
As part of our efforts to support MSEs, we have implemented time-limited interest rate
cuts for eligible borrowers. Our branches and relevant departments have conducted
a thorough verification process to identify eligible customers and determine the
appropriate reduction amounts for selected loans.
Proactively lowering fees
We have waived 24 fees for MSE clients, including commitment fees and transaction
processing fees.
We have launched functions such as the optimized imaging system service fee
transaction for MSEs, ensuring the payment of financing costs, validation of bills, and
registration of data through technological means.
Case Providing MSEs with loan renewal services without repaying principal
Hangzhou Branch has implemented a loan renewal product system to alleviate the pressure of loan
transfer on MSEs. This system has been improved based on Hua Xia Bank's "annually reviewed" loan
product system, and provides loan renewal services to MSEs without requiring them to repay the
principal. As of the end of 2022, Hangzhou Branch has extended loans to a total of 1,043 clients,
amounting to RMB 3.298 billion.
Wenzhou Branch visiting a local curtain shop owner.
62 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 63
Supporting Rural As a major participant in promoting rural vitalization through financial services, Hua Xia Bank is
committed to implementing the central government’s decisions and plans. We constantly innovate
Consolidating and expanding the achievements in poverty alleviation
Vitalization our targeted assistance models to consolidate and expand the achievements in poverty alleviation.
Additionally, we continue to improve the quality of our financial services, and are dedicated to
Hua Xia Bank is actively participating in the national effort to align poverty alleviation and rural vitalization.
The bank has taken concrete actions to consolidate and expand the achievements in poverty alleviation
providing more financial support for all-around rural vitalization and contributing even greater while promoting rural vitalization. For instance, we have made steady progress in offering paired assistance
efforts toward achieving common prosperity. to counties and prefectures in Inner Mongolia, Xinjiang, and Qinghai, and innovated in the sustainable
assistance model.
Enhancing rural vitalization systems and mechanisms
As of the end of 2022 The Bank has set up a rural vitalization leading group headed by Li Minji, Party Secretary and
Chairman of the Bank. This group is tasked with defining the responsibilities of each member unit
RMB 271.538 billion
of the rural vitalization working group and coordinating the overall rural vitalization efforts of the
Bank. We have issued the Hua Xia Bank Implementation Plan for Comprehensively Promoting
Balance of agriculture-related loans Rural Vitalization in 2022 to ensure the effective implementation of related measures. We have
also dispatched competent officials to rural areas to support poverty alleviation, conducted special
training on rural vitalization, and implemented an assessment mechanism for supporting industries
related to agriculture, thereby injecting new impetus into rural vitalization.
RMB 18.774 billion
Balance of inclusive agriculture-related loans Chongqing Branch dispatches the First Secretary to assist in industrial vitalization
RMB 2.038 billion Boosting local
industries
Increasing sales
of local products
Improving public
welfare
Increased over the figure at the beginning of
We have developed We h a v e h e l p e d t o We h ave a ct i v el y
the year
distinctive local increase the sales of local supported the
12.18%
businesses to increase agricultural products by local community
the local incomes of implementing a series in addressing their
collective economies of measures, such daily life concerns,
Increase percentage and further enhance as purchasing goods such as education,
the self-sufficiency locally, buying trade medical service,
8.52 percentage points of areas receiving
assistance.
union delivery cards,
purchasing goods from
and employment
through various
higher than the average loan growth rate of the Beijing Consumption measures. These
the Bank Assistance Center, include contributing
as well as contacting to local infrastructure
e-commerce platforms projects, making Chengdu Branch cooperates with Junyi Village in toilet renovation
109
to provide support for donations, paying
secondary processing and visits, and offering
advertising shooting, and skills training, etc.
Rural outlets utilizing new media for
promotion. As of the end of 2022
83 RMB 6.227 billion
Loans extended to counties and
Outlets opened in old revolutionary base
prefectures in Inner Mongolia,
areas, areas inhabited by ethnic minority
Xinjiang, and Qinghai receiving
groups, remote and border areas, and
paired assistance from Beijing
poverty-stricken areas
26,400
Job opportunities created for locals
Urumqi Branch donates funds to support the reconstruction and expansion of vocational schools in Xinjiang Zhengzhou Branch promoting the sales of unsold agricultural products.
64 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 65
Improving the environment for rural vitalization Services Creating innovative financial products for rural vitalization
We continue to introduce innovative management methods and increase resource allocation to support inclusive finance, thereby making financial services Hua Xia Bank has utilized its rich and unique resources as a financial institution to cater to the financial needs of different regions for rural construction.
in rural areas more accessible and convenient. Our efforts to further optimize the rural financial ecosystem, have helped to boost the supply of financial By creating innovative financial services and products, the Bank has supported rural vitalization and bolstered the development of specialty industries in
services for rural vitalization. rural areas. This has provided significant financial support for local rural vitalization work.
We continue to implement preferential interest rates
In order to promote digital finance in rural areas, we
for loans related to “agriculture, rural areas and
have introduced self-service card issuance machines,
farmers.”
mobile banking, online banking, direct banks, and other Case Supporting the development of rural MSEs with Farmer and Commerce Loan (Hui Nong Xing Shang Loan)
We have set up an express service channel for loans
facilities and channels to continuously expand basic
related to “agriculture, rural areas and farmers.” Hua Xia Bank has partnered with Beijing Agricultural Guarantee Co., Ltd. to launch the Farmer and Commerce Loan (Hui Nong Xing Shang Loan), which offers two types of loans -
financial services to towns and villages.
Through this channel, we expedite the credit approval “Bank-Guaranteed Loans” and “Market Loans”. The product is designed to cater to the financial needs of MSEs that specialize in animal husbandry, agriculture, and the production
By continuously exploring users’ needs and opening
process, maximize the line of credit, and issue loans as and distribution of agricultural products in the Beijing-Tianjin-Hebei region, with the goal of fueling their growth.
Increasing credit more county-level outlets and community branches,
fast as possible. Enhancing the
support for Hua Xia Bank has been expanding its services to reach
We have made significant strides in extending personal accessibility of
“agriculture, rural lower-tier markets to provide greater access to our
loans to borrowers from poverty-stricken areas. We financial services Case Supporting local agricultural development through the “Hua Nong Loan”
areas, and farmers” services and expand our service coverage.
have diversified the credit enhancement methods for
To enhance financial literacy in rural areas, Hua Xia
loans related to “agriculture, rural areas and farmers” Changzhou Branch has introduced the "Hua Nong Loan," a new online financing service model for farmers, family farms, and cooperatives to access funds and make repayment
Bank has provided training sessions such as the
have been constantly diversified to provide targeted easily through credit or guarantee security methods. This model has resolved the challenges of meeting high bank access and guarantee requirements, as well as complicated loan
Consultation Desk, the Financial Culture Wall, and
lending to as many borrowers as possible. This procedures faced by farmers, thereby greatly satisfying their financial needs during the transformation towards modern agriculture. As of the end of 2022, Changzhou Branch has
the Financial Knowledge Lecture, and by distributing
approach has not only enabled us to extend mutual granted a total of RMB 36.08 million in the “Hua Nong Loan” to 116 clients.
brochures, we teach financial knowledge such as
assistance to farmers, but also promoted collaboration
payment and settlement, credit-related business, etc.
between the Bank, enterprises and farmers.
Case Extending credit to the whole village to promote the development of rural industries with loans
To promote the development of local industries, Yinchuan Branch and Xiji County Rural Vitalization Bureau entered into a strategic cooperation agreement on extending credit to the
whole village. The Bank provided RMB 5 million in loans to targeted assistance village, Zhangqi Village, to support their economic activities.
Boosting the development of the local specialty
Case industry with a new guarantee model
Shaoxing Branch's "Yirong Tong" loan product provides financial support for planting farmers
Changsha Branch has been exploring new guarantee models and
working closely with guarantee companies to provide working funds
for fishery enterprises and farmers. The branch has applied the
“bank + guarantee + leading enterprises + upstream and downstream
cooperation” model to introduce mature fish breeding and fingerling
Increasing financial supply for key areas
cultivation technology, driving the development of the local specialty We have increased our financial support for key areas, such as grain and cotton production, and supported the development of agricultural sectors,
industry. The branch has issued RMB 10 million in loans to Fumin including forestry, fruit growing, and livestock farming. While comprehensively enhancing the allocation of financial resources to rural areas, we strive to
Aquatic Products and Aquaculture Co., Ltd. in Xiangyin County. meet the credit needs in key areas in rural modernization, such as road transportation, logistics and transportation, communication, clean energy, water
supply, and power supply.
Case Supportting and driving dairy industry chain development
Hohhot Branch has played an active role in providing financial support for local businesses and increasing the issuance of agriculture-related loans, contributing to the economic
growth of Inner Mongolia. For example, the branch has underwritten the ultra-short-term financing bonds of a dairy group, which were mainly used for facilitating the modernization,
expansion, and standardization of ranches in Inner Mongolia. Through cooperation with a dairy group, the branch has provided unsecured loans to MSEs on the group’s supply chain. In
addition, the branch has extended loans to leading companies in poverty alleviation, such as a livestock company in Inner Mongolia, a livestock company in Xilingol League, and a dairy
company in Inner Mongolia These efforts have effectively driven the development of the dairy industry chain cluster in Inner Mongolia, contributing to consolidating the achievements
in poverty alleviation and rural vitalization.
Changsha Branch promoting the “One Village, One Agency” financial education program
66 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 67
Offering Financial Oriented toward the needs of the people, we have continually innovated our product offerings and
expanded the scope of our inclusive financial services. Through these efforts, we strive to support
Case Developing standardized processes for private banking investment advisory services
Services to Benefit individuals in their aspirations towards a better quality of life. Hua Xia Bank has launched the innovative “CREATE” five-step cyclic working method for investment advisory services, and expanded the depth and breadth of its professional
services by standardizing the service process. We have created the “Smart” series product and service toolbox for private banking clients to meet the investment and financing
the People
needs of high-net-worth clients and their families, as well as businesses. The toolbox includes four major product and service sequences: “Smart Investment, Smart Financing, Smart
Innovation, and Smart Enjoyment.” Moreover, we have built a “commercial banking + investment banking + private banking” professional service toolbox to provide services in areas
Serving personal consumption such as enterprise investment and financing, client and family wealth planning, equity services, etc. By offering comprehensive financial services that cover "individuals, families,
businesses, and society" throughout their entire lifecycle, the bank is able to meet the diverse needs of its clients.
As of the end of 2022 Following the trend of personal consumption upgrading, the Bank has upgraded consumer financial
products, and transformed its service channels from traditional banking outlets to an “online +
RMB 520.312 billion
offline” multi-channel service system. Through this approach, we have extended our financial
services to benefit a wider range of customers.
Supporting projects vital to people’s well-being
Balance of personal loans(excluding To meet customers’ needs for consumption Focusing on the new demands of citizens for In response to the reform of the social security system and the upgrade of retirement consumption, and to support first-time home buyers and people in
credit card) and financing, Hua Xia Bank has launched consumption and funds, we have optimized the improving their housing situation, Hua Xia Bank provides customers with a package of affordable and convenient financial and lifestyle services through
its online consumer loan product - the Elite features for the Hua Xia e Loan to promote the organic flexible and diverse business models.
E Loan (Jing Ying E Loan), which offers integration of credit products and new consumption
services such as online application, direct scenarios. We support the policy formulated by the Ministry
connection to provident fund, intelligent risk of Housing and Urban-Rural Development on Hua Xia Bank has established an office dedicated to
control, etc. promoting a diversified housing supply, and have providing financial services to clients in the elderly
explored financial services in the rental market. care market, and provided comprehensive financial
We have established reasonable loan standards services to them through the “Hua Xia Yi Yang”
for first-time homebuyers among new urban product portfolio.
Product residents. In addition, we conduct scientific Offering financial The Bank has launched the private pension
upgrading Meeting people’s
credit evaluations, and continue to enhance the services for business system to provide third-pillar private
housing needs.
convenience of borrowing and repayment, making elderly care. pension services to customers.
Supporting the process more accessible and user-friendly. The Bank has provided comprehensive services
consumption We have implemented differentiated housing loan based on private pension accounts, and launched a
upgrading policies, and dynamically adjusted housing loan series of financial products for elderly care to fully
Service Scenario strategies while prioritizing the support for first build its own financial service brand in the elderly
upgrading upgrading time home buyers or people in improving their care market.
housing situation.
To reduce the cost of consumer loans, we have The Bank has created specialized consumer Case Supporting the development of the health care and elderly care industry
increased our support for consumer credit. For finance scenarios such as home decoration and
example, we have launched preferential interest parking, and provided flexible combinations of Nanjing Branch of Hua Xia Bank has extended a loan of RMB 1.9 billion to a Nanjing-based construction company, which is an affiliate of the Nanjing Municipal State-owned Assets
rate coupons for consumer loans, and improved consumer finance products and scenarios through Supervision and Administration Commission. The company is mainly engaged in the development and operation of health care and elderly care projects, including the demonstration
the customer experience on our online channels. products such as the Decoration Loan (Zhuang Xiu project of the Nanjing Elderly Care Center. The loan was provided to facilitate the elderly care project of the company, utilizing the insurance debt investment plan.
We have implemented policies for loan repayment Loan) and the Parking Space Loan (Che Wei Loan).
deferral, and participated in the government- We have also supported popular consumer
initiated action of “ensuring the delivery of service scenarios, and increased the distribution
housing, people’s livelihoods, and stability” with of consumer loans to meet customers’ demand
efforts made to ensure that our personal loan for financial services during promotional events
repayment deferral service remains accessible to on e-commerce platforms, such as the “Double Case Undertaking the project for paying wage arrears owed to rural migrant workers
those in need. Eleven” and “Double Twelve” events.
The “payment of wage arrears owed to rural migrant workers” program is an important
plan formulated by the Party Central Committee and the State Council to protect the
rights and interests of rural migrant workers. After communicating with the Jingmen
Supporting the development of consumption scenarios for the Beijing 2022 Municipal Labor Security Supervision Bureau, Wuhan Branch has gained access to the
Case Winter Olympics “Jingmen Real-name Management Information System for the Construction Filed,” to
monitor the funds in the special account for migrant workers’ wages, thus promoting the
Hua Xia Bank proactively undertook the project to enhance the payment environment for brick-and-mortar stores resolution of wage arrears owed to rural migrant workers.
located in key blocks of the Beijing 2022 Winter Olympics, offering transaction services for foreign bank cards
and UnionPay. Through the “smart payment + smart operation” service model, we successfully completed the
improvement of payment terminals and the construction of payment scenarios in key blocks and business areas of
the Beijing 2022 Winter Olympics.
Wuhan Branch paying wages to rural migrant workers.
We continue to pursue technology-driven innovation, constantly improving
INNOVATION
FOCUSING ON
our digital infrastructure and upgrading our services in accordance with
specific needs of our customers. We have expanded our service scenarios
with an emphasis on the online and offline dual-drive approach, to enhance
the overall financial service experience for our customers.
Technology
to Accelerate Empowering through
Sustainability practices
Accelerating business optimization and innovation-driven
transformation to promote the development of digital finance.
Strengthening financial service capability to improve the
accessibility of financial services.
In 2022
82.7939 million
Transactions handled by the mobile banking
app
As of the end of 2021
926
Outlets set up priority counters for vulnerable
groups
924
Outlets with accessible facilitiesw
70 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 71
Accelerating We continue to promote innovation in industry-specific digital finance, integrating industrial
services with financial services to provide customers with a more efficient and intelligent
Optimizing resource allocation
Digital experience in a broader range of financial scenarios. Our digital transformation efforts are focused
on providing customers with more efficient, intelligent and high-quality services.
Transformation Strengthen employees' digital capability
With digital capability building as the core, we built a multi-tiered digital training system focusing on digital professional competence, application skills, and
Improving top-level design general knowledge.
In response to China’s digital economy development strategy, the Bank, guided by the Hua Xia Bank Increasing support for digital innovation
2021-2025 Digital Transformation Action Plan, aims to become a leading smart and eco bank
that promotes both the industry-wide digital ecosystem and the consumption digital ecosystem. We introduced the horse racing mechanism of "three groups and nine lines" to improve the benefit-sharing mechanism and facilitate resource integration.
We have set six themes, namely the open ecosystem, precision marketing, smart operation,
smart risk control, legal compliance, and value management, and reshaped our data-driven and
technology-driven capabilities as well as capabilities in building a flexible organization and talent Enhancing the application of digital information
team. Additionally, we have established six mechanisms for incentives and fault tolerance to build a
corporate-level agile organizational structure. We established smart application scenarios such as digital audits after integrating internal resources, so that management efficiency could be improved.
Promoting data governance
We have enhanced our data governance and digital asset management by reinforcing data control
Achieving win-win cooperation
from source to application and unlocking the value of data resources to achieve data transformation We have strengthened communication and exchange with upstream and downstream partners and research institutions through digital transformation.
and value realization. By utilizing advanced technology theories and methods, we aim to facilitate the commercialization of sci-tech achievements and promote multilateral
cooperation, and achieve win-win benefits for all parties involved.
Assuring the quality of source data
We have signed a strategic cooperation agreement with the Beijing
Academy of Blockchain and Edge Computing to promote research
We strive to improve the quality of our source data by focusing on 20 key tasks in important data
on the establishment of "blockchain + supply chain" application
application scenarios such as retail and operation management.
scenarios.
Reshaping the data governance structure Conducting research
cooperation
We rebuilt the three-tiered pyramid organizational structure containing planning, business application,
and technical support.
Building data and information platforms We have worked in collaboration with leading steel Serving the Building a In cooperation with institutions such as XMXYG
companies such as HBIS Group and Jianlong Steel real economy collaborative circle Corporation, we have established a collaborative
We planned to build a corporate-level data center that utilizes the "four horizontal and two vertical" data to explore the use of digital technologies such as big of partners network of partners integrating warehousing,
architecture and "two warehouses and two lakes" technology foundation. In addition, we are planning to data, IoT, 5G, as well as digital assets accumulated warehousing supervision, logistics, finance and
launch our corporate-level blockchain technology service platform and privacy computing platform. by them. other services, to enhance trade digitalization and
commodity circulation efficiency.
Strengthening data management capability
We promoted the establishment of corporate-level and project-level data management standards to
identify and narrow gaps accordingly.
Designing data application scenarios
We designed a framework for data application scenarios based on the four themes of "precision
marketing, smart operation, smart risk control, and legal compliance".
Hua Xia Bank attending the 5th China Digital Inclusive Finance Conference (CDIFC)
72 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 73
Protecting information security Upgrading By utilizing financial technologies, we have expanded the coverage of corporate financial services,
and boosted platform development, which promoted product and service innovation and created an
The Bank intensified its efforts in cybersecurity to ensure stable operations of information systems, protecting customer privacy and assets. In 2022, all
important information systems of the Bank maintained stable operations, achieving an overall availability rate of 100% during main business hours. Corporate Banking interconnected and intelligent service ecosystem for enterprises.
Services
Advancing platform development
Putting into use a new intra- Building a distributed and Consolidating the security We have accelerated the use of technology to empower corporate banking services and further
city data center, with a total intelligent operation and protection boundaries of upgraded digital platforms such as the cloud platform for intermediary service, the corporate-
capacity that can meet the maintenance structure with 4 three centers in two places, level audio and video platform, and the dual platform of inclusive financial services for private
needs of the Bank for 5-10 tiers, 3 domains, and 1 center optimizing the cybersecurity enterprises. These efforts have enabled us to achieve full-chain business risk control and provide
years. to enhance the capability protection strategy, and customers with convenient and secure corporate banking services.
of mobile and intelligent establishing a comprehensive
operation and maintenance. cybersecurity protection
system to eliminate hidden
system operation risks.
Facilitating product and service innovation
The Bank offers systematic service solutions to industries such as logistics, construction, steel,
energy, chemicals, government procurement and etc. Through a focus on the diverse transaction
Expanding storage Improving the operation and maintenance system Establishing protection systems
scenarios across industry chains, the Bank provides targeted products and optimized services to
enhance digital finance's ability to serve the real economy.
Launching industry-
specific digital
Ensuring system finance 3.0 products Launching services
operation such as the financing such as interbank
of commodity fund management,
digital warehouse electronic letter
receipts, railway of confirmation,
Digital product and service innovation
freight loans, and electronic letter of
digital government guarantee, purchase
procurement loans. and payment of
Becoming the first foreign exchange and
in the industry etc., on the corporate
Product Service
to launch the online banking
Protecting innovation innovation
commodity financing channel
customer
product Launching e-CNY
information
Launching the corporate wallets
Smart Supply Chain on online channels
Product of Hua including mobile
Xia Bank Inclusive corporate banking.
Financial Services for Launching automatic
Institutional arrangement Security review Technical support Cybersecurity publicity Private Enterprises payment on bank-
to achieve deep customs connectivity
integration of "digital product
Revising the Implementation Conducting risk assessment Strengthening the Participating in the China finance + scenario-
Rules of Classified Data a n d s e c u rity re v iew, t o detection and remediation Cybersecurity Week campaign, based services".
Security Management improve emergency response of vulnerabilities, and and organizing various
of Hua Xia Bank and the plans and prevent any system conducting cybersecurity publicity activities such as
Implementation Rules of operation risks and customer penetration testing. cybersecurity knowledge
External Data Introduction information leakage. competitions, lectures, and
Management of Hua Xia Bank cloud exhibitions. Case The first pledge loan against digital warehouse receipt
to clarify the requirements for
data security management in Wuhan Branch has established a collaboration with an online supply chain management platform, to initiate a
every aspect. pioneering pledge mechanism for digital warehouse receipts against liquid petrochemical products using advanced
technologies such as 5G, the Internet of Things, blockchain, big data, and digital twins. This marks a significant
milestone in the Bank's industry-specific digital finance 3.0 mode, and serves as a benchmark for the development of
the Bank's industry-specific digital finance business.
74 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 75
Strengthening strategic cooperation Improving Service At Hua Xia Bank, we are committed to providing customer-centric financial services that are
convenient, efficient, and comprehensive. We continuously strive to improve our services by actively
We have built and consolidated the "headquarters-to-headquarters" communication platform to support the reform and development of key companies.
In 2022, the Bank signed strategic cooperation agreements with 8 enterprises and government agencies, including China Chengtong, Beijing Stock Quality and listening to and responding to customer feedback and suggestions. Our focus on high-quality
services is driven by our dedication to meeting the diverse financial needs of our customers and
Exchange, National Equities Exchange and Quotations, Xinjiang Production and Construction Corps, Beijing Municipal Medical Insurance Bureau, China
National Agricultural Development Group, Beijing State-owned Capital Operation and Management Company Limited, and China Overseas. These Efficiency helping them achieve their life goals.
partnerships aim to establish strategic cooperation and provide financial services to keycompanies more effectively.
Accelerating outlet transformation
As of the end of 2022 With the goal of improving customer experience and creating value, we are fully committed to
promoting the transformation and upgrading of our outlets from 1.0 to 2.0. Focusing on digital
987
empowerment and scenario incubation, we accelerate the transformation and upgrading of our
outlet services towards scenario-based eco-services, integrating comprehensive and characteristic
Branches in total financial and non-financial businesses. By the end of 2022, the Bank has carried out outlet
transformation in 27 branches and reopened 42 outlets after renovation.
122 The Bank has optimized its self-service banking systems, transferring over 90% of frequent
personal counter services on the systems. The improved equipment performance and customer
Cities above prefecture level service capabilities have significantly enhanced customer experience and accelerated the digital
covering all provincial capitals transformation of outlets. This has effectively reduced counter services and prevented operational
(except for Tibet) across the risks.
country
917
Self-service banking facilities
3,054
Self-service banking machines
Hua Xia Bank signing the strategic cooperation agreement with China Chengtong in Beijing
3.09
Machines for each outlet on
average
Transformed and upgraded the outlet of Kunming Branch
Hua Xia Bank signing the strategic cooperation agreement with China National Agricultural Development Group in Beijing Self-service banking facilities at Zhengzhou Branch
76 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 77
Improving service efficiency
As a customer-oriented financial institution, we strive to enhance the sense of security, trust, and satisfaction of our customers. To achieve this, we have
consolidated our service foundation, improved our service system, and optimized our service modes.
Expanding We have improved intelligent service scenarios to enable customers to modify relevant information through WeChat
service Bank and the mobile APP. We have added new functions such as ETC detail inquiry to facilitate customer consultations,
channels complaints, and feedback.
Expanding We have explored new practices of customer-friendly and well-regulated service, and deeply integrated the evaluation
service of these practices into the construction and management of our outlets. while meeting the diversified needs of
coverage customers.
Nanjing Branch establishes a mobile financial service team Wuxi Branch improves service experience for special groups
Strengthening
We have strengthened the management of operation personnel in outlets by issuing differentiated management
the professional
guidance for operation personnel in outlets and carrying out targeted training on products and services.
ability of the
service team
Customer satisfaction management As of the end of 2022
Optimizing customer service
Our focus has always been on providing customer-centric services that create value. We are dedicated to continuously improving the quality, efficiency,
and overall satisfaction of our services, as well as making every effort to offer considerate financial services.
We conduct regular surveys on customer satisfaction to gauge customer satisfaction with our
services, and actively collect customer feedback and suggestions. By closely monitoring and 924
responding to changes in customer demands, we strive to continuously improve our services and Outlets with accessible facilities
enhance customer satisfaction. In 2022, customer satisfaction with the Bank's 95577 hotline was put in place
Valuing customer experience 99.63%.
We have strengthened our services across different fields and customer groups to deliver superior products and services that are both convenient and
efficient, thus ensuring an enhanced customer experience.
Serving customers with special needs 926
Outlets with priority counters
We prioritize the needs of customers with special requirements by providing tailored financial for vulnerable groups set up
services and enhancing our care for the elderly, infirm, sick, disabled, and pregnant individuals, to
comprehensively improve customer services.
We have built a digital ecosystem of customer
services and drawn customer portraits through
We have built a unified value-added services
We have created a barrier-free environment with accessible passageways and
5.2938 million
and rights system based on the customer Elderly clients
big data, which allows us to develop customized convenient service facilities such as magnifying glasses, first-aid kits, and priority seats
lifecycle for all outlets, upgraded the personal
strategies for differentiated customer service. Developing Building the in outlets
customer points and rights system and launched
We have also launched special products and differentiated customer activities such as the Lantern Festival Poetry Providing supporting services
activities targeting three customer groups, customer points and Congress and the Earth Day Challenge. In 2022,
including senior citizens, new citizens and car services rights system the points and rights system received over 48
owners. We have also expanded our financial million visits, and over 2.3 million customers
services in multiple dimensions to benefit Setting accessible channels
redeemed their points.
customers' work and life.
To provide better services for customers with special needs, we have set up priority
counters and offer one-on-one services for vulnerable groups such as the elderly, infirm,
sick, disabled, and pregnant. We have optimized our mobile and internet applications to
make them more friendly for the elderly. Additionally, we provide extended services for
customers with special needs.
To deepen our green finance strategy that supports China's goal of carbon
PRACTICING
GUARDING AND
peak and carbon neutrality, we make every effort to promote ecological
progress, develop green finance as a new characteristic and a new edge. Our
aim is to become a leading player in the green finance sector during China's
low-carbon era.
the Green Philosophy
Sustainability practices
Promoting green finance by diverting the stream of financial
resources to greener and cleaner sectors
Strengthening our climate risk management, and establishing
systems and procedures for environmental risk management
Enhancing biodiversity conservation and publicity
Conducting green procurement, promoting green offices and
engaging in a variety of eco-friendly public activities
As of the end of 2022
RMB 247.035 billion
Balance of green loans
RMB 252.145 billion
Balance of climate-related financing business
RMB 28.969 billion
Accumulative value of ESG-themed assets
under management
2.6179 million
ETC cards users in total
80 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 81
Developing The Bank highly values the development of green finance and aims to put forward the strategic
goal of “making every effort to develop green finance as a new characteristic”. To this end, we have
Green adopted measures to transform the credit structure, increase green investments, innovate green
products, practice ESG philosophy and enhance international cooperation. We aim to maximize
Finance the positive impact of green finance on promoting social and economic green transformation, and
amplify the external positive impact of our investments and financing activities on the environment.
Supporting green credit
In line with the Bank's commitment to supporting national goals of carbon peak and carbon
neutrality, we have implemented credit and financing policies aimed at advancing our green finance
As of the end of 2022 strategy. This has included a strong focus on industry policies and regulatory supervision of the
green finance sector, as well as ongoing efforts to improve management practices and leverage the
latest technologies to capitalize on the current momentum in the national green finance movement.
RMB 247.035 billion
Balance of green loans
Case Green loans facilitate energy conservation and carbon reduction
RMB 38.558 billion Shaoxing Branch is engaged in practicing the green development idea. It offers customized financing services and
solutions for businesses with high energy consumption, such as a packaging limited company and its associated
Increase from the beginning of the year
enterprises. Through green loans, the businesses were able to introduce the most advanced packaging production line Guangzhou Branch facilitates the intelligent manufacturing of new energy vehicles
18.49%
in China and complete their technical transformation for energy conservation and carbon reduction two years ahead
of schedule, thus promoting their green transformation.
Increase percentage Developing innovative green products
We continue to develop distinctive investment businesses for green finance, strengthen the green As of the end of 2022
Equals to application of financial products and interaction with our branches and other businesses, and strive
1.175 million tons for innovative green finance products and business patterns.
Standard coal equivalent saved
Case Boosting energy efficiency and utilization rate by upgrading
Shijiazhuang Branch formulated a comprehensive green finance plan for an energy comprehensive development
RMB 21.111 billion
Balance of green investment
2.786 million tons
limited company in Hebei Province, and provided it with working capital loans worth RMB 100 million to cover the Case Fujian SOEs witness the first green bonds denominated in USD
expenses of desulfurization and denitration. The Branch’s financial support of the place where the company is located
in improving energy efficiency and building a greener environment has yielded significant environmental and social Xiamen Branch and Hong Kong Branch jointly supported the Traffic Group in issuing the first green USD bonds for
CO2 reduced
benefits. Fujian SOEs and Fujian Zhanglong Group Co., Ltd, the first investment-grade green sustainability-linked overseas
11.214 million tons
bonds in Fujian Province Each bond is worth USD 500 million and has a bond maturity of 3 years.
Water saved
Issuing the first green sustainability-linked USD bonds under “dual-ESG
Case Offering green loans to underpin sewage treatment Case architecture”
Shenyang Branch focused on supporting the construction of a sewage treatment plant in a chemical industry park in Kunming Branch issued the first green sustainable USD bonds under a “dual-ESG architecture”, raising USD 230
Liaoning Province. The total investment of the project was RMB 383 million and RMB 243 million was borrowed by million and investing USD 30 million. These bonds are unique as they are the first to have dual-ESG certificates, which
the Bank. The loan was used primarily for Phase I of the construction project, which aimed to reduce pollution around are not seen in SDG finance both domestically and internationally.
tributaries and minimize the impact of pollution on surface and underground water.
Case Issuing sustainability-linked bonds
Zhengzhou Branch supported Pingdingshan Tianan Coal Mining Co., Ltd to issue sustainability-linked bonds worth
RMB 1 billion with a 3-year bond maturity.
82 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 83
Practicing ESG philosophy Facilitating international cooperation
The Bank integrates ESG factors (environment, society and governance) into the entire investment We continue to facilitate international cooperation on green finance and foster close partnerships with organizations such as the World Bank, Asian
In 2022 and decision-making process. We are committed to implementing the ESG philosophy throughout Development Bank, Agence Franaise de Développement and other international financial organizations. We continue to optimize policies and improve our
the Bank, strengthening our efforts towards the informatization of green finance, improving our professional capacity, project management and executive capacity to better leverage our role in promoting high-quality development via green finance.
standardized management, and actively participating in ESG-related research and exchanges.
RMB 2.631 billion Through these initiatives, we aim to reinforce our commitment to building climate banking systems.
ESG-themed assets under Case Improving the environment with various parties
management
The Beijing-Tianjin-Hebei Air Pollution Control Financing Innovation Project, our relending project from international financial organizations, has taken effect. This project involves
Case Hua Xia Wealth Management Co., Ltd. continues to tap into SDG finance the largest amount of capital in the history of China's cooperation with the World Bank and marks the World Bank's first energy project that uses the results-based financing
approach. We have provided strong financing support to the sub-projects to boost energy efficiency, promote renewable energy and control pollution in the Beijing-Tianjin-Hebei
As of the end of 2022 Since 2020, Hua Xia Wealth Management Co., Ltd. has been a signatory of the United Nations-supported Principles Region.
for Responsible Investment Association, and as such, actively promotes responsible investment principles across the
RMB 28.969 billion
country.
In 2022, Hua Xia Wealth Management Co., Ltd. and the Chinese University of Hong Kong, Shenzhen released Annual
Accumulative value of ESG-themed Report on ESG Investing in China’s Asset Management Industry 2022 for the third consecutive year. It also joined
assets under management hands with the Climate Initiative Bonds (CBI) and the Chinese University of Hong Kong, Shenzhen to release the
Report on Research Results of China's transition in Finance. Hua Xia Wealth Management Co., Ltd. was also involved
in developing three national ESG group standards that have already been issued. It was invited by the Ministry
of Finance of the People’s Republic of China, Beijing Municipal Administrative Center, Principles for Responsible
Investment Association and other organizations to share its TCFD and ESG practices, demonstrating its contribution
towards building a climate banking system.
Case The 4th ESG Investing Forum for Asset Management in China
On December 29, Hua Xia Wealth Management Co., Ltd. held the 4th ESG Investing Forum for Asset Management
in China virtually. The forum focused on the national carbon goals and discussed the future trends of economic
development, leading-edge policies of carbon peak and carbon neutrality, and the new paradigm for ESG investment.
The event attracted over 3.23 million online viewers.
Tianjin Branch distributes green loans to support the PV generation project of a central SOE.
Cultivating green culture
Regarding green finance as a major development target, the Bank makes every effort to pursue “Green Growth for a Better China”. To achieve this, we
have increased publicity for green finance to raise staff awareness and help them foster the value of eco-friendliness. We champion a green lifestyle and
Assisting in demonstration project of the rooftop distributed photovoltaic and new energy vehicle photovoltaic consider offering green financial services to customers as a code of conduct for our employees. By doing so, we aim to cultivate and prioritize a green
storage and charging of Yuhuan Commercial Exhibition Center in Taizhou culture within the Bank.
84 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 85
Addressing In line with China’s domestic development dynamics and in compliance with the requirements
of supervision under the market and government, the Bank is committed to deepening its green
Risk management
Climate Change finance development strategy and continuously improves its environmental and climate risk
management practices to support the goals of carbon peak and carbon neutrality. In 2022, the
Giving priority to environmental risk management, we identify, measure, monitor and manage the environmental risks in the credit business. We carry
out stress tests to quantify environmental and climate risks. In line with the principles of full coverage, classified management, and dynamic control, we
Bank issued the Report on 2021 Environmental Information Disclosure, the first head office-level continue to improve our environmental risk management mechanism throughout the entire process. Our objective is to improve our capacity to manage
environmental information disclosure report among national joint-stock commercial banks that met environmental and climate risks.
the disclosure requirements of the People's Bank of China and the Task Force on Climate-Related
Financial Disclosure (TCFD).
Governance architecture Full coverage principle
Physical risk
The Bank continues to improve its governance architecture for green finance, including the The risk management practices cover the entire process
management of environmental and climate risks, and strives to establish a sound system for the limate disasters such as floods, of credit business for legal persons from non-financial
development and management of green finance. typhoons and super heat waves; rising institutions.
temperatures and sea level
Identification Principle of classified management
Principles of
The Board of Directors establishes our green credit of
environmental We put in place differentiated management strategies to
development strategy and tightens the supervision of its environmental
risk address various degrees of environmental risks.
implementation and reviews the green credit objectives and climate
Transformation risk management.
formulated by the senior management department and the Board of risks
Strategies
green financial reports. Directors Principle of dynamic control
Carbon pricing and environmental
It formulates risk management policies for environmental
litigation; green technological
risks and climate risks, and assesses the status of risk We pay constant attention to customers’ environmental
transformation; selection of investors
management. performance as long as their credit businesses are effective.
and customers; negative public opinions
The Green Finance Management Committee ensures a
coordinated approach to implementing the green finance
strategy and reviews plans related to green finance. The Green
Comprehensive It works to ensure coordinated cooperation among sectors on Finance
management green finance and sound implementation of relending projects Management
from international organizations. Committee
It coordinates corporate affairs concerning environmental risk
management. Targets
The Head Office Green Finance Center sets development
targets and plans for green finance, and improves relevant
systems and processes. The Head Office
It manages corporate affairs including green financial Green Finance We will strengthen our support for the green industry and continue to
business, marketing procedures, product research and Center improve the proportion of green loans and the total amount of green
Forging ahead development and brand management.
financial business.
It conducts environmental and social risk management.
15 key branches have green finance departments. Green finance
The departments are responsible for branches’ green finance departments
operations and management, marketing procedures and at different
environmental risk management. branches
Policies
We operate in accordance with the guidelines of the CPC Central Committee and the State Council,
and have established systems and mechanisms for green finance as well as environmental and Targets
climate risk management.
The 2021-2025 Development Plan of Hua Xia Bank aims to “make every effort to develop
green finance as a new characteristic”, showing our growing support for the green industry. We
formulated the Rules of Green Finance Management of Hua Xia Bank, Guiding Opinions on the
Credit Business Environment and Social Risk Management for Legal Persons from Non-financial We will strengthen environmental risk management We will practice green operations, implement low-
Institutions of Hua Xia Bank, and Green Code of Conduct in Hua Xia Bank. The policies clarify to avoid credit business losses caused by poor carbon management and strive to achieve our own
governance responsibilities and help optimize our environmental and social risk management environmental and climate risk management. carbon neutrality by 2025.
mechanisms. We have also built an assessment system for green finance in an attempt to promote
green offices and sustainable development within the Bank.
86 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 87
Protecting We fulfill our social responsibility by contributing to the conservation of biodiversity and managing
the risks associated with our investment and financing activities. To our corporate ecological value, Building We uphold green travel and green transactions and call upon the public to foster a green lifestyle
and raise environmental awareness.
Biodiversity we develop sustainable financial products and provide stronger financial support for biodiversity
conservation. Greener Life
In 2022 in the second phase of COP15 held in Montreal, Canada, the Bank issued the Common
Action Plan for Banking Sector to Support Biodiversity Conservation in cooperation with China
Banking Association and domestic and foreign financial institutions, which positioned the Bank as
Encouraging green travel
one of the first batch of businesses that have registered in the “Environmentally and Financially In accordance with national policies, we have introduced electronic toll collection on expressways
Supported Project Management System” developed by the Ministry of Ecology and Environment and bridges, allowing customers to save transit time, relieve traffic congestion, reduce air pollution,
of the People’s Republic of China. We further increased project reserves and innovated new and promote green travel.
approaches to loan distribution to provide more sustainable financial products.
As of the end of 2022
2.6179 million 69,800 3.2788 million
Case Protecting Chinese alligators
The Chinese alligator is one of the top 20 most endangered animals in the world and is under first-class state
protection in China. Hangzhou Branch provided a loan of RMB 19 million to Zhejiang Chinese Alligator Reserve ETC card users signed Increase over the end of 2021 ETC cards issued in total
Management Co., Ltd. to replenish its floating capital. This loan will enable the company to allocate more funds toward
biodiversity conservation.
It is estimated that an LDV on ETC driveways instead of on manual toll driveways can realize
16.4% 71.2% 71.3% 48.9%
Framework Agreement on Bank-government Cooperation on Marine Fisheries NOx reduction Carbide reduction CO reduction CO2 reduction
Case signed with Fujian Provincial Department of Ecology and Environment
Fuzhou Branch and the Fujian Provincial Department of Ecology and Environment signed the Framework Agreement
on Bank-government Cooperation on Marine Fisheries. This agreement aims to provide financial support for the
construction of major environmental projects, the pilot model of environmental protection-oriented EOD, green
circular economic development, and other sectors. By working together, our customers in the environmental sector in
Fujian Province will have access to better services, and we can help Fujian Province build itself into a green economic
zone.
Facilitating green transactions
With a focuse on the paperless transformation of the counter, we continuously promote the
comprehensive integration of counter transactions, achieving the digitization of paper vouchers,
customer signatures, and bank seals, and further deepening green and low-carbon financial
services.
As of the end of 2022
4,052,590,400 826,030,600
Electronic transactions completed Transactions increased over the beginning of
the year
99.42%
Services handled via main e-channels
Fuzhou Branch and Fujian Provincial Department of Ecology and Environment sign the Framework Agreement on
Bank-government Cooperation of the Department of Marine Fisheries.
88 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 89
Practicing We acknowledge the impact of our corporate operations on the environment and promote green
offices and green procurement. We actively engage in eco-friendly public activities to reduce
Green procurement
Green resource consumption, improve energy utilization rates, and decrease harmful emissions, thereby
cultivating a culture of green and low-carbon living.
We conducted centralized procurement and established over 10 policies such as the Administrative Measures for Centralized Procurement, Administrative
Measures for Tendering, Bidding and Procurement and Working Rules of the Centralized Procurement Committee, aiming to improve the transparency
Operations and standardization of our procurement work and promote green procurement.
Green office The Rules define the parameters for suppliers who wish to
do business with us, including their green capacity and social
Professional management departments are encouraged to
prioritize the procurement of innovative and green products.
Adhering to green philosophy, the Bank upholds green production to reduce energy consumption, responsibility performance.
and seeks to raise staff awareness of frugality, environmental protection and a sense of
responsibility. By taking small steps towards greener workplace culture, we aim to foster a healthy
and sustainable work environment. Green requirements
in centralized
procurement system
Energy conservation We have installed LED bulbs Green travel We strictly implemented requirements
and other energy-efficient consumer equipment to manage company-financed vehicles and deployed Project accreditation index and index weight design should Suppliers failing to fulfill their social responsibilities and
in our green offices. To save energy, we introduce the vehicles reasonably. We encouraged employees consider the elements of environmental protection. denounced will not but admitted to our supplier base.
measures to ensure lights and taps are turned off if to commute by bus, subway or bike or on foot, thus
not used, and reduce printers and materials. contributing to fewer exhaust emissions by motor
vehicles.
Green charity
We organize various eco-friendly public activities to engage employees in environmental protection, such as volunteering at garbage collection stations in
target communities, signing a letter of commitment on waste sorting, cleaning up community garbage, and conducting voluntary tree planting. By actively
reducing carbon emissions and promoting green initiatives, we strive to contribute to building a greener and more eco-friendly country for all.
Energy Green
conservation travel
“Clean your Waste
plate” campaign sorting
“Clean your plate” campaign Our staff canteens Waste sorting Waste sorting facilities were set up in
restricted food quota to reduce kitchen waste and offices. Specifications were in place for employees
the staff was encouraged to eat at home or outside. to sort waste, improving waste sorting efficiency.
Indicators 2020 2021 2022
Total water consumption of Nanjing Branch holds a themed public welfare activity on Tree-planting Day.
33,193.13 34,423.6 35,248.58
Head Office (ton)
Total power consumption of Case Voluntary sanitary service
51,340,078.62 60,577,508.3 64,336,569.73
Head Office (kWh)
On March 4, Chongqing Branch joined hands with the volunteer team of the Chongqing Youth League and the community to provide voluntary sanitary
Total fuel consumption from services. The volunteers were organized to collect the garbage scattered around Binjiang River Dam, exemplifying Lei Feng's spirit through practical
company-financed vehicles of 24,607.26 27,808.22 18,589.04 actions. The service helped enhance employees’ awareness of labor, environment, and social responsibility, taking a step forward toward sustainable
Head Office (litre) development.
Total paper consumption of
20.83 20.89 17.61
Head Office (ton)
For more information on green finance and the environment, please refer to the Environmental Information Disclosure Report.
To pursue high-quality development while maintaining prudent operation,
HONESTLY
OPERATING
we comprehensively promote the construction of long-term mechanisms for
compliance management and operations, enhance risk prevention capability,
and protect consumers’ legitimate rights and interests.
to Achieve Sound Development
Sustainability practices
Ensuring compliance in operations while following laws and
regulations, improving the internal control and compliance
management mechanisms, and promoting a culture of the rule of law
Strengthening risk prevention and control, improving the long-
term risk management mechanism, and pursuing professional risk
management
Safeguarding the legitimate rights and interests of customers and
carrying out financial knowledge publicity and education activities.
In 2022
3,624
Training sessions on compliance held
3,734
Training sessions on anti-money laundering
28,453
Public education sessions
As of the end of 2022
1.75%
Non-performing loan (NPL) ratio
158.99%
Provision coverage ratio (PCR)
92 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 93
Ensuring To safeguard the bottom line of compliance, the Bank improves its internal control and compliance
management mechanisms, prevents illegal financial activities, provides precedents to promote
Compliance vigilance, and fosters a culture of the rule of law and compliance to ensure honest and compliant
operations.
Improving the internal control and compliance system
To achieve sound development, we ensure compliance in operations by improving an internal
mechanism for compliance management and promoting the construction of a compliance
management system based on the requirements of regulators.
The Bank has revised the Measures for As we promote the digital empowerment
Risk Management for Compliance, and of business system management, we
established a joint review mechanism have built an enterprise-level policy
for compliance risks under the co- framework for businesses, constructed
management of the first and second lines a database for group businesses, and
of defense. We have also consolidated facilitated the integration of the policy
the primary responsibility of business framework with business development.
lines and exercised gate-keeping for
Shenzhen Branch’s activity on “Pursuing Long-term Development in Stability with Full Compliance”
business lines with compliance, to
enhance the prevention and control of
risks from the source. t
ins
Es at
tab th
In 2022 a
ag e Promoting the rule of law
lis e e
sri k ianc
hin nte
g pl
g p rp
gin m
3,624
oli rise
na a n-co
cy le
The Bank promotes the rule of law in various ways. In addition to strengthening our legal risk control, we organize educational seminars on the rule of law,
M no
fra ve
Improving the advance the construction of our legal professional team, and reinforce our collectivized legal risk management to foster a workplace culture of integrity.
me l
wo
Training sessions on compliance internal control
rk
held and compliance
system and The Bank prioritizes compliance with laws and regulations in managing
118,533 ion
En nduc
ver is
important matters of major projects.
ha t m
co
nc a
p n
ing na
su ctio
iot ng spe
em gem
Participants in total
plo en
m in
o We conduct special inspections on the prevention,
ye t
Pr
e
control, and resolution of major risks of our subsidiaries
With a focus on the legal risk prevention and control
496 We revised the Measures for the We have established a grid supervision to promote the Group's risk management strategy, urging
needs across various business areas, we have formulated
Management of Employee Conduct and and inspection mechanism covering our subsidiaries to abide by the law and prevent risks, and
and issued judicial interpretations and actual business
Lectures and training sessions on have implemented the corporate culture the Head Office and Branches at enhancing their legal risk management capabilities.
operations, thereby enhancing our foresight in prevention
anti-financial crimes organized concept of “integrity, standardization, the operation management level by and control. Optimizing
efficiency and progress” to promote an strengthening the "second line of control system
32,573
honest and upright financial culture. defense" and improving the quality and for legal risks
efficiency of the "first line of defense".
Participants in total Special inspections have been conducted to supervise We have promoted the improvement of a training and
the effective implementation of various legal risk control incentive mechanism for legal professionals to ensure the
requirements. coverage of the professional legal team in all branches.
3,734
The Bank launches campaigns of “Pursing Long-term Development in
Case Stability with Full Compliance” and “the Comeback Year of Authenticity of
Credit Business”.
AML training sessions held We enhance the Bank’s legal risk prevention and control capability, we
To improve the compliance operations of the Bank, we organized activities of various themes, such have organized special training on Personal Information Protection Law
137,755 as optimization of systems, case presentation, compliance information quizzes, and management of
authenticity problems of credit business. We conducted 1,413 case presentations at different levels
and the Civil Code of the People's Republic of China.
Participants in total and categories, covering over 44,400 participants; 26,939 people studied and participated in the
legal compliance information quizzes; 1,835 people were alerted to be compliant; 738 problems
were detected in the examination of the authenticity of credit business, thereby effectively
improving the compliance operation of the Bank. Through these programs, we encourage employees Protecting intellectual property rights. The Bank is committed to protecting the legitimate rights of its own intellectual property rights and and defending
to operate in accordance with the law and raise awareness of compliance to contribute to a its brand reputation and service quality. We regulate the use of intellectual property rights, and prevent and control the risk of infringing others'
compliance culture. intellectual property rights, thereby demonstrating our responsibility for fair competition in the market.
94 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 95
Ramping up to guard against crime risks Reinforcing money laundering risk management
Among our efforts to consolidate risk prevention and control defenses, Hua Xia Bank actively prevents illegal financial activities by investigating We continue to improve the internal control system for anti-money laundering. By strengthening self-examination and intensifying publicity efforts, the
employees’ abnormal behavior, deepening the accountability system and showing precedents to promote vigilance. Bank comprehensively enhances its awareness of money-laundering risks and improves the quality and efficiency of its management.
Refining the internal control Strengthening money laundering
system for anti-money laundering risk management
We have effectively prevented hidden risks by implementing a risk-examination mechanism, improving the verification of irregular behaviors, and
investigating serious illegal and irregular problems such as illegal lending and improper capital transactions with customers.
We have revised five systems, including the method for To enhance the effectiveness of our AML management
To improve compliance and crime prevention awareness, we have strengthened the risk warning in business areas such as inter-bank deposits,
handling customer money laundering behaviors, risk system, we conduct self-assessments of money
counter business, and elderly customer service.
assessment and classification for terrorist financing, laundering and terrorist financing risks for institutions,
Strengthening the and the business procedure for risk classification develop self-assessment models, evaluate risky
risk prevention of customers involved in money laundering, further situations and the effectiveness of relevant control
and control strengthening the foundation of our anti-money measures, and identify areas for improvement.
mechanism laundering management.
Reinforcing money
We have carried out regular anti-crime efforts by strengthening credit management and enhancing the gate-keeping, laundering risk
monitoring, and evaluation of cooperative institutions. management
Preventing We have established a close collaborative working mechanism to prevent and combat illegal financial activities such as Improving the quality and effectiveness Carrying out publicity and
illegal financial illegal fundraising, illegal lending, and financial fraud. of anti-money laundering tasks training activities
activities We launch the publicity on the Anti-organized Crime Law of the People’s Republic of China.
We have organized a special agenda to reinforce our We take measures to enhance our anti-money laundering
AML efforts, thoroughly identifying weaknesses and training system, strengthen the construction of its anti-
formulating optimization plans to improve our AML money laundering team, and cultivate the idea that
management. “preventing money laundering is a shared responsibility”
To promote this idea, we have organized a series of four-
in-one publicity activities in “ lobby + outdoor + media +
Examining We conduct regular and comprehensive troubleshooting with 100% coverage.
Internet”.
the abnormal We have strengthened our special investigation of "flying bills" (the practice of a sales clerk processing orders
behavior of through other companies rather than their own), which is conducive to preventing fraudulent activities.
employees We have optimized the monitoring system and model for abnormal transactions in employees' accounts to improve
the scope and accuracy of monitoring and warning.
Improving
accountability We optimize the accountability system and deter employees from committing financial crimes through accountability and
management education, creating a strict atmosphere of accountability.
We have issued notices on accountability, analyzed common problems and specified the requirements for accountability
management.
We conduct a self-examination of irregularities in investment responsibility operations to strengthen the accountability
arrangements.
Strengthening
publicity and
education on the
rule of law We organize the “Guard Your Money to Ensure a Happy Family” campaign to prevent illegal fund-raising.
We have won the Organization of Excellence in the “Fighting Fraud and Boosting Compliance” Financial Fraud Prevention Knowledge Quiz.
To encourage the effective prevention of risky behaviors and enhance risk prevention awareness, we have established the Award for Stopping
Financial Crimes and Handling Risk Events.
Nanjing Branch raises the public awareness of AML at the entrance of its sub-branch. Hangzhou Branch conducts AML promotion especially for elderly customers.
96 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 97
Building a Firm The Bank fully implements the decisions and deployments of the Central Party and government
authorities and complies with national policies. Guided by our aim to serve the real economy
Case “Dragon Shield”- Intelligent Risk Control guards against business risks dynamically
Defense Line and prevent financial risks, we have improved our risk management systems, strengthened risk
prevention and control in key areas and key links, enhancing professional management of specific
We have enhanced the capabilities of the big data risk identification and early
warning system – “Dragon Shield” to promote the utilization of big data in
risks. We have also accelerated the digitalization of our risk control system and fostered a culture customer marketing, credit investigation, examination and approval, post-loan
of risk awareness. We are committed to guarding against systemic risks and ensuring high-quality inspection, and asset preservation. This deepens our implementation of big data
development. in credit and risk control, leading to improved efficiency and accuracy in risk
management. The "Dragon Shield" system was awarded the Financial Insights
Innovation Awards - FIIA by IDC China Digital Finance Forum.
Strengthening Enterprise Risk Management
As of the end of 2022 Hua Xia Bank has enhanced the comprehensiveness, effectiveness, and advancement of its risk “Dragon Shield” wins Financial Insights Innovation Awards - FIIA
management efforts by refining its long-term risk management mechanism, upgrading its tools
1.75%
for risk control, accelerating the application of digital technologies, and fostering a culture of risk
awareness.
Non-performing loan (NPL) ratio Preventing and Controlling Specific Risks in Key Areas
The Bank has been continuously strengthening risk prevention and resolution in key areas to secure overall control of various risks.
159.88% We have built a quantitative transmission mechanism for risk preference, To improve the asset lifecycle management, we have actively worked to strengthen the formulation We closely monitor changes in the market to better
Provision coverage ratio (PCR) established a quantitative index system for risk appetite and expected revenue, and implementation of policy systems, and optimized business structure, ensuring continued stability understand market changes and related risks. We have
Strengthening and implemented risk preference assessment in a quantitative manner. By and improvement of asset quality. improved the identification, and reporting mechanisms
all-round risk improving our annual risk management strategies and clarifying our annual risk The Bank traces and interprets important national policies and economic operation to timely refine its for market risks, which has helped strengthen our risk
coordination control targets, we have strengthened our control over bank-wide operations policies and measures; We also orderly review and update the regional credit granting strategies, and prevention and management efforts.
and management, leading them in the correct direction. We have also tightened continue to guide branches to effectively support the development of local real economy. Hua Xia Bank has optimized setting methods and indicator
quota management, such as concentration risk, country risk, and online loan We enhance our post-loan management by broadening our warning monitoring dimensions and systems for quotas to strengthen quota monitoring and
business, to prevent major risks. establish normalized monitoring and analysis to manage the access and monitoring in key areas, control.
effectively preventing new risks. By launching a market risk management system and
We improve the asset preservation operation management mechanism, strengthen the centralized refining the counterparty credit risk measurement system,
and classified management of non-performing assets, greatly promoting the quality and efficiency of the Bank has multiplied its market risk measurement
collection and disposal. capability.
In line with the Measures for the Administration of the Large Capital Exposures of Commercial Banks,
Through the initiation of "The Year of Digitalization of Risk Control" activities, we actively strengthen the management of large capital exposures and monitor and report all the
we have completed and promoted previous projects for the digitalization of risk details on a quarterly basis, in order to steadily promote the establishment of the large capital exposure
Accelerating
control, such as industrial digital finance. Additionally, we have created digital system. The risk control of key accounts at the headquarters and branches has been continuously
digitalization of
credit and risk control models, and integrated data internally and externally. By strengthened.
risk control
deepening the application of big data in the field of credit and risk control, we
have enhanced the efficiency and accuracy of our risk control measures.
Credit risk management Market risk management
Reputation risk Optimizing operational
management risk management
The Bank has launched special actions to promote a culture against risks,
Advancing which includes the proactive promotion of a culture of “pursuing progress in
a culture steadiness”, and the enhancement of a unified concept and code of conduct for The Bank has optimized systems and mechanisms by improving the We have refined our assessment standards as well as audit and verification mechanisms to
against risks risks. To strengthen the establishment of a professional training system for risk reputation risk management system and mechanism and workflow for improve the quality and effectiveness of operational risk and self-assessment.
management, we have raised the risk control awareness and professional ability disposition. Covering risks in key risk areas and key links, our management has improved the indicator
of all staff. The Bank raises risk awareness, maintains a focus on problem system for key risks fir early warning, so as to . improve our operational risk monitoring
identification, and fosters a culture that prioritizes reputation risk capability.
mitigation. The Bank has also upgraded the management mechanism for operational risk events, and
The Bank places significant emphasis on strengthening operational made adjustment to the operational risk management system's functions, including the
work, consolidating primary responsibilities, enhancing risk warning cleaning and replenishment of lost historical data. These measures have adequately prepared
mechanisms, and taking proactive measures to mitigate reputation us for the official implementation of the new standard law.
risks, thereby effectively improving management practices.
98 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 99
Protecting Hua Xia Bank places significant emphasis on safeguarding customer rights by strictly adhering
to various requirements for customer protection. This approach ensures that customer rights and
customer rights interests are protected in an orderly manner.
and interests Putting people first, the Bank complies with relevant policies and regulations, and actively
implements the requirements of the Board of Directors (Supervisors) and the senior management. Creating our own education and
We remain committed to enhancing comprehensive customer rights protection and services publicity brand to strengthen
by involving all employees across business lines and processes. Our efforts focus on improving risk education
customer rights protection in areas including top-level design, business operation, customer
protection review, public education, internal training, supervision and inspection, information
We have diligently followed the relevant requirements set by regulatory authorities and industry associations regarding customer protection
disclosure, complaint and dispute handling, performance evaluation, etc.
education and publicity. As part of our institutionalized and diversified efforts to provide long-term and effective customer protection education
and publicity, we established a Branch Manager's Lecture on Customer Protection program, which serves as an education and publicity brand.
Additionally, we created various forms of public education and publicity, and improved our online and offline risk warning systems. All these
measures are part of our efforts to fulfill our responsibility of education and publicity for customer protection.
Promoting the awareness and
customer protection mechanisms
Strengthening customer
protection training and
The Bank remains highly vigilant about customer rights protection and has successfully integrated it into the improving the training content
corporate governance, culture, and business development strategies. As a result, we have strengthened the
customer rights protection mechanisms by deeply embedding them into our operations.
The Bank strictly adheres to regulatory requirements and tailors training content for different participants. We
also conduct special training on issues found in the dynamic management, and promote multiform, multi-channel
customer protection training in online +offline, centralized +self-study, and special +joint forms. By combining the
theoretical foundation of customer protection with business operations, we aim to enhance our ability to protect
customer rights and interests.
Promoting the comprehensive
implementation of customer protection
tasks in an innovative way
Unblocking complaint handling
channels to assume the responsibility
Functional departments responsible for customer protection at all levels have reinforced their duties to improve the of complaint handling
management of customer rights protection. We have also strengthened coordination and supervision, and improved the
management of key links. Through fulfilling our management responsibility, promoting the integration of business lines, and
facilitating the implementation of key tasks, we ensure the construction and effectiveness of a comprehensive customer We continuously improve the construction of our customer complaint handling systems, clearing complaint channels and
protection system across all business lines and processes. handling customer complaints in a proper and active manner. We use mediation mechanisms to resolve customer disputes
and put emphasis on assessing customer complaints, while strengthening accountability, traceability and rectification.
Through these measures, we are effectively fulfilling our responsibility of complaint handling, improving the management
of customer complaints, and utilizing customer complaints positively to improve corporate governance, promote business
development, and enhance financial services.
Promoting the management of the customer Strengthening service quality and
protection review system and strengthening efficiency to support each other to
control and management at the source improve customer protection
We attach great importance to the implementation of customer protection reviews and have strictly controlled the integration of customer Through exploring new practices of customer-friendly and well-regulated service, we have incorporated the customer-friendly and well-
protection into product design, business systems, and marketing promotion. We have further enhanced the embedding of customer protection regulated service evaluation system into the construction and management of outlets’ services to meet the diverse needs of financial customers.
into all business lines to build both online and offline customer protection review mechanisms that bring risk threshold forward. This enables the Bank to better serve the diverse needs of financial customers, expand the coverage and depth of its financial services, and
facilitate the integration of well-regulated service and customer rights protection.
100 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 101
Responding to customer complaints Carrying out public education on finance
The Bank has always attached great importance to the management channels and further strengthened the management and application To actively implement the requirements of regulatory authorities and industry associations such as By the end of 2022,
of financial customer complaints. Guided by regulatory authorities and of complaint data. Throughout 2022, the Bank received a total of the People's Bank of China and the China Banking and Insurance Regulatory Commission, we have the Bank had
led by the Party Committee of the Bank, the Board of Directors, and 112,980 customer complaints (including all complaints received by the strengthened public education and publicity on customer rights and interest protection. Through
RMB 5,443,500
the management team, Hua Xia Bank has always regarded complaint Head Office, the credit card center, and all branches, and through the a variety of channels such as online and offline lectures, social media platforms, and financial
management as a key task in applying the people-centered development customer feedback worksheets). We completed the handling of 99.99% education events, we aim to help key and vulnerable groups improve their understanding of financial
philosophy as an SOE. of customer complaints within 15 days, and resolved all customer knowledge and skills, and increase their risk prevention awareness and ability. Invested in public education
complaints we received in 2022, achieving a 98.04% customer
We continuously improve the construction of our customer complaint satisfaction rate for complaint handling.
555
handling systems, clearing complaint channels and handling customer Case The first finance-themed train in Henan Province co-created by Zhengzhou
complaints in a proper and active manner. We use mediation mechanisms Complaints concerning credit cards were mainly from Guangdong,
to resolve customer disputes and put emphasis on assessing customer Shandong, and Henan, and complaints involving other banking services On September 26th, the first finance-themed train co-created by Zhengzhou Branch in Henan
complaints, while strengthening accountability, traceability and were mainly from Beijing, Jiangsu, Guangdong, and Tianjin. Due to the Province was launched. The train carriage was decorated with original customer protection posters Themed activities held
rectification. Through these measures, we are effectively fulfilling our economic challenges in 2022, complaints were mainly related to loan and slogans, and the branch's original customer protection cartoons were played on the TV. On the
responsibility of complaint handling, improving the management of repayment consultation, repayment of personal loans (mainly mortgage day of the launch of the train, Zhengzhou Branch organized its employees to disseminate financial
customer complaints, and utilizing customer complaints positively to
improve corporate governance, promote business development, and
loans and online loans), debt collection, credit adjustment services,
and product returns related to wealth management and other financial
knowledge to passengers on the train by distributing leaflets, centralized lectures, and award-
winning Q&A. This practice not only fulfilled the Bank's social responsibility, but also improved the 28,453
enhance financial services. products. In response to the above situation, while receiving and financial literacy of the public. Activities held in 2022
handling complaints in a proper manner, the Bank focused on complaint
We handle complaints in a timely and proper manner, strictly following analysis and source control, and urged the continuous optimization of
32 million
the established procedures and never rejecting any complaint without banking processes or services, leveraging the positive role of complaint
justifiable reasons. In 2022, the Bank further strengthened the management to provide better services for financial customers.
identification and early warning of complaint data. Based on the principle Attendees in total
of accepting all possible complaints, we have expanded complaint
3,605,900
Copies of brochures and leaflets
distributed
The first finance-themed train in Henan Province co-created by Zhengzhou Branch
Branch Manager’s Lecture on Customer Protection organized by Wenzhou Branch Financial knowledge publicity in rural areas by Guangzhou Branch
Always being people-oriented, we prioritize the well-being and career
HARMONIOUS
BUILDING A
development of our employees. In addition to providing platforms for self-
development, we work to build a team of outstanding financial talents.
Through our active participation in social welfare activities with employees,
we fulfill our social responsibility, demonstrating our commitment to making
Loving Care
Society Through Joint Efforts with
a positive impact.
Sustainability practices
Safeguarding employee’s basic rights and ensuring equal
employment and democratic management
Empowering employee’s career development and building a multi-
level and full-coverage training system
Protecting employee’s physical and mental health and striving for
employees’ satisfaction and happiness
Engaging in community-based charity and improving people’s
well-being
As of the end of 2022
6,913
Employee training sessions organized
261
Employees in need received assistance
RMB 21.3853 million
Charitable donations
104 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 105
Paying Close We abide by the Labor Law, Labor Contract Law and other Chinese laws and regulations strictly.
Following the principles of transparency, fairness, and impartiality, we have established a diversified
Advancing democratic management
Attention to talent recruitment system that fosters an equal working environment where employees respect one
another and their basic rights are protected.
In 2021 We have deepened our democratic management mechanism to respect the rights of employees to
discuss and express their opinions. We provide unimpeded channels for employee feedback through
Employees Rights various forms, such as the Employees’ Congress, and the Homes of Employees and staff meetings,
450 to better understand employee needs and demands.
Promoting equal employment Constructive suggestions received
100%
Strictly abiding by relevant laws and regulations such as the Employment Promotion Law, the Bank
provides equal and transparent employment opportunities to workers and fights against any form
of discrimination regardless of race, gender, religious belief and cultural background, forging a adopted and implemented
diversified, harmonious and inclusive labor relationship.
106
Employees’ Congress meetings
regarding the held
regarding the
educational
5,395
structure
background
Participants in total
81
Chongqing Branch holds a staff meeting for young employees
14.49% 63.61% 54.52% 32.74%
of the employees held a a bachelor’s degree of them were aged 35 and aged 36-45
master’s degree or above Proposals received
below
213
21.90% 11.37% 1.37%
As of the end of 2022 an associate degree or aged 46-55 aged 55 and above
below
Staff meetings held
39,938
Employees in total Improving compensation and benefits 2,134
Hua Xia Bank has optimized its compensation management system. In line with the performance- Grassroots employees attended
51.39% based pay structure,we correlate employees’ compensation with their performance appraisal. This
system incentivizes continuous personal development and improvement among employees.
Percentage of female employees
The Bank signs collective
1,962 contracts, collective
contracts on salary, and
The Bank constantly
optimizes the assessment
Ethnic minorities labor contracts with
and incentive mechanism
employees in accordance
and salary distribution
with the law, and ensures
system. Employees of Wenzhou Branch cast their votes at the Employees’ Congress
timely and full payment of
100%
We strengthen the
various social insurances Performance
Compensation assessment of the
for employees. evaluation
and benefits protection of consumer
Labor contract signing rate The Bank sets reasonable
rights.
working hours and
The bank has incorporated
ensures timely and full
social responsibilities
100%
payment of remuneration
such as serving the real
to employees.
economy, MSE services,
Every employee is entitled
Social insurance coverage rate and agriculture-related
to statutory holidays and
and rural vitalization
paid leave.
into its performance
evaluation.
106 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 107
Caring About Hua Xia Bank remains committed to its strategy of enhancing the Bank through a high-quality
workforce. To support the development of key talents and a professional team, the Bank has built Caring About We place importance on the physical and mental health of employees, enrich their spiritual life,
and improve their physique and create a good workplace by introducing new cultural and sports
Employee a well-rounded and multi-level training system. This system offers customized courses to meet the
needs of employees at different levels and in various roles, promoting their career advancement. Employee activities, building Homes of Employees, etc.
Development Well-being
Keeping a work-life balance
As an advocate of a healthy lifestyle, we organize and upgrade cultural and sports activities, enrich
the cultural life of employees, and provide a platform for employees to demonstrate their talents,
cultivating a relaxed working environment.
To expand employees’ vision,
enrich their work
To enhance employees’
experience, and build a
professional knowledge
composite talent team,
and skills, the Bank has
the Bank has carried
organized professional Enhancing Strengthening
out exchanges between
training sessions in five professional abilities and
officials, launched a talent
major areas: digitalization, skills competencies
market, implemented staff
retail finance, corporate
rotation, and enabled fresh
finance, financial markets
graduates to gain practical
and risk management.
experience by shadowing
senior employees.
As of the end of 2022
6,913 The Hong Kong Branch holds badminton matches
Employee training sessions held Case Guangzhou Branch organizes “Young Hawk Training Program”
640,050
Guangzhou Branch organized the third phase of the “Young Hawk Training Program” and
mentorship for new employees over a period of three weeks. The training program aimed to assist
new employees in adapting to their workplace by focusing on five themes: “building self-image”,
Participants in total “following the rules”, “learning business procedure”, “improving skills” and “expanding horizons”.
As a participant in the Second National HR Innovation Competition, the program won the Talent
Development Innovation Brand Award.
1,269
Training sessions on CSR, with
153,804
Participants in total
126
Training sessions on environmental
protection, with
7,400
Participants in total
New employees of Guangzhou Branch participates in “the Young Hawk Training Program” Wuhan Branch sets up a Running Association.
108 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 109
Building home of employees Visiting and helping employees
As of the end of 2022 The Bank keeps building the Home of Employees, equipped with fitness equipment, reading rooms, As of the end of 2022 The Bank has established an employee relief fund to provide assistance and support to employees
lounges, and other amenities. This is a reflection of our commitment to creating a democratic, in need, particularly during major festivals. Our focus on the diverse needs of employees and our
809 261
happy, and caring environment that serves as a place for learning and business startups. commitment to humanistic care have led us to establish channels for delivering aid to employees in
need. We also carry out activities on different topics, to show our concern for retirees and female
Homes of Employees built in total, Employees in need helped employees and meet the diverse needs of employees.
including
125 RMB 844,000
Models of Homes of Employees Living allowances distributed
584
Qualified Homes of Employees RMB 324,100
Medical subsidies distributed
RMB 309,000
Disaster relief subsidies distributed
Representatives of Wuxi Branch visit and show support to employees in need.
Employees of Hangzhou Branch read in the reading room of Home of Employees.
Female employees of Wenzhou Branch cultivate potted-plant on Women’s Day.
The activity room of the Home of Employees of Xining Branch
Shijiazhuang Branch launches visits during Spring Festival.
110 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 111
Engaging in The Bank promotes volunteerism by establishing a volunteer service system that is “based in Beijing
and serves the whole country”. We have carried out various public welfare activities.
Case We have carried out various public welfare activities that is based in Beijing and serves the whole country
Public Welfare With Beijing as the main base of the youth’s voluntary service, the Bank organizes young volunteers to actively carry out voluntary services such as “giving
way to pedestrians at zebra crossings”, “garbage sorting” and “sending warmth in winter”. We also implemented the "With Bright Love-Happy Journey"
Undertakings Participating in the Beijing 2022
project, accompanying orphaned children and children with special needs in Beijing's Bright Love School. The Bank and the volunteers were honored with
the outstanding organization and volunteers in Beijing on the Centenary of the Founding of the Youth League.
As of the end of 2022 The Bank pursues volunteerism by actively taking on urgent and difficult tasks, making
contributions to important events such as the Games, and supporting security efforts.
1,756
Volunteer activities organized Case Volunteering for the Beijing 2022
Hua Xia Bank was acknowledged for its efforts during the
17,523
Beijing 2022. The Bank received a letter of appreciation
from the supporting group of the opening and closing
ceremonies. Selected young employees played a vital role
Employees involved in the supporting work of the Organising Committee for the
Olympic Winter Games Beijing 2022 on-site, efficiently
handling the organization and trace-tracking of more
18,625 hours than 60,000 spectators through programming scripts,
examining the data of more than 40,000 spectators, and
Volunteer activities offered conducting on-the-spot surveys four times. With a "10,000
people participate, 1,000 cars involved, respond in the
shortest possible time" approach, the Bank demonstrated
its courageous and selfless dedication. Beijing 2022 volunteers
Volunteers from the Head Office carry out voluntary service activities.
Supporting charity The Bank organizes voluntary services within its branches across the country. For instance, the Shenzhen Branch carried out poverty alleviation activities
Committed to public welfare, the Bank encourages employee participation in volunteer under the theme of “caring for stay-at-home children”; the Youth League Committee of Shijiazhuang Branch created the program of “how much love has
activities. We continue to carry out various initiatives such as providing care for the elderly and the inch-long grass” to provide warmth and care to local elderly widows and orphans; the Youth League Committee of Taiyuan Branch joined hands with
underprivileged children, and charitable donations, contributing to the promotion of a harmonious the Taiyuan Education Bureau to set up the “House with Love” public welfare brand.
and civilized society.
Case Launching “Plan for the Growth of Children of Sanitation Workers”
The Bank continues to place emphasis on the growth of children of sanitation workers and has
launched the “Biodiversity - Embrace a Sustainable and Better Future” - Hua Xia Bank “2022 Plan
for the Growth of Children of Sanitation Workers” on August 22. Through remote live broadcasting
and interacting with others, the program provides an opportunity for the children to learn about
biodiversity conservation from a global perspective, and the concept of sustainable development
was upgraded from sanitation and environmental protection, reflecting the Bank’s determination to
protect the environment and care for the children of sanitation workers, and spreading the concept
of “the more sustainable and the better”.
Volunteers from our branches carry out voluntary service activities.
112 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 113
Outlook
The year 2023 marks the beginning of a new journey towards high-quality development and the
full implementation of the guiding principles of the 20th CPC National Congress. Standing at the
starting point of the new era, the Bank will adhere to the theme of “Serving a New Era and Building
a New Hua Xia Bank”, firmly executing the concept of sustainable development. We will continue
to prioritize our mission of serving the real economy, while also deepening inclusive finance and
promoting green finance. As we move forward, we will remain dedicated to fulfilling our economic,
environmental, and social responsibilities, ensuring that the benefits of financial development reach
more people and contributing our efforts to the new development stage.
114 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 115
Appendix
Reporting Index
GRI Content Index
GRI Disclosure item Page Remarks GRI Disclosure item Page Remarks
standard standard
GRI 1:Foundation 2021 205-1 Operations assessed for risks related to corruption P94-95
GRI 2:General disclosures 2021 205-2 Communication and training about anti-corruption policies and procedures P94-95
2-1 Organizational details P6 GRI 207: Tax 2019
2-2 Entities included in the organization’s sustainability reporting P1 207-1 Approach to tax P13
2-3 Reporting period, frequency and contact point P1 207-3 Stakeholder engagement and management of concerns related P13
2-4 Restatements of information P114-115 No information Environmental
is restated
GRI 302 Energy 2016
2-5 External assurance P119-120
302-1 Energy consumption within the organization P88
2-6 Activities, value chain and other business relationships P6
302-4 Reduction of energy consumption P80、87
2-7 Employees P6、P104
302-5 Reductions in energy requirements of products and services P80、87
2-9 Governance structure and composition P7-9
GRI 304 Biodiversity 2016
2-11 Chair of the highest governance body P4-5
304-3 Habitats protected or restored P86
2-12 Role of the highest governance body in overseeing the management of impacts P11
GRI 305: Emissions 2016
2-13 Delegation of responsibility for managing impacts P11
305-5 Reduction of GHG emissions P80、87
2-14 Role of the highest governance body in sustainability reporting P12
GRI 308: Supplier Environmental Assessment 2016
2-16 Communication of critical concerns P13
308-1 New suppliers that were screened using environmental criteria P89
2-22 Statement on sustainable development strategy P4-5
Social
2-23 Policy commitments P11
GRI 401: Employment 2016
2-24 Embedding policy commitments P4-5
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees P107-109
2-28 Membership associations P11
GRI 404: Training and Education 2016
2-29 Approach to stakeholder engagement P13
404-1 Average hours of training per year per employee P106
2-30 Collective bargaining agreements P104
404-2 Programs for upgrading employee skills and transition assistance programs P106
GRI 3: Material Topics 2021
GRI 405: Diversity and Equal Opportunity 2016
3-1 Process to determine material topics P12
405-1 Diversity of governance bodies and employees P104
3-2 List of material topics P12
405-2 Ratio of basic salary and remuneration of women to men P104
3-3 Management of material topics P12
GRI 413: Local Communities 2016
Economic
413-1 Operations with local community engagement, impact assessments, and development programs P66-67、P101
GRI 201 Economic Performance 2016
GRI 414: Supplier Social Assessment 2016
201-1 Direct economic value generated and distributed P15
414-1 New suppliers that were screened using social criteria P89
201-2 Financial implications and other risks and opportunities due to climate change P82
414-2 Negative social impacts in the supply chain and actions taken P89
GRI 203 Indirect Economic Impacts 2016
GRI 416: Customer Health and Safety 2016
203-1 Infrastructure investments and services supported P38-43
416-1 Assessment of the health and safety impacts of product and service categories P98-99
203-2 Significant indirect economic impacts P44-51
GRI 417: Marketing and Labeling 2016
GRI 205 Anti-corruption 2016
417-1 Requirements for product and service information and labeling P98-99
116 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 117
PRB Content Index
Principles for Reporting and Self-Assessment Requirements Page Note Principles for Reporting and Self-Assessment Requirements Page Note
Responsible Responsible
Banking Banking
Business model 4.1 Stakeholder identification and consultation
Describe (high-level) your bank’s business model, including the main P5 Message from the Chairman Please describe which stakeholders (or groups/types of stakeholders)
customer segments served, types of products and services provided, P6 About Us you have identified, consulted, engaged, collaborated or partnered with
Principle 4:
the main sectors and types of activities across the main geographies P11-14 CSR Management for the purpose of implementing the Principles and improving your P13 CSR Management
Stakeholders
in which your bank operates or provides products and services. Please P15-18 CSR Performance bank’s impacts. This should include a high-level overview of how your
also quantify the information by disclosing e.g. the distribution of P37 Serving the Real Economy under the Guidance of bank has identified relevant stakeholders, what issues were addressed/
your bank’s portfolio (%) in terms of geographies, segments (i.e. by Our Original Aspiration results achieved and how they fed into the action planning process.
Principle 1: balance sheet and/or off-balance sheet) or by disclosing the number of P57 Offering High-Quality Services in Inclusive
Alignment customers and clients served. Finance 5.1 Governance Structure for Implementation of the Principles
P69 Focusing on Innovation to Accelerate Please describe the relevant governance structures, policies and
Strategy alignment Empowering through Technology procedures your bank has in place/is planning to put in place to manage
Does your corporate strategy identify and reflect sustainability as P79 Guarding and Practicing the Green Philosophy significant positive and negative (potential) impacts and support the
strategic priority/ies for your bank?Please describe how your bank has P91 Operating Honestly to Achieve Sound effective implementation of the Principles.. P7-10 About Us
aligned and/or is planning to align its strategy to be consistent with the Development P11-14 CSR Management
Sustainable Development Goals (SDGs), the Paris Climate Agreement, P103 Building a Harmonious Society Through Joint P80-83 Developing Green Finance
Efforts with Loving Care 5.2 Promoting a culture of responsible banking: P84-85 Addressing Climate Change
and relevant national and regional frameworks.
Describe the initiatives and measures of your bank to foster a culture of P86 Protecting Biodiversity
Principle 5:
responsible banking among its employees. P87 Building Greener Life
Governance &
2.2 Impact Analysis P88-89 Practicing Green Operations
Culture
Show that your bank has performed an impact analysis of its portfolio/ P92-95 Ensuring Compliance
5.3 Policies and due diligence processes
s to identify its most significant impact areas and determine priority P96-97 Building a Firm Defense Line
P5 Message from the Chairman Please describe what due diligence processes your bank has installed
areas for target-setting. P98-101 Protecting customer rights and interests
P11-14 CSR Management to identify and manage environmental and social risks associated
P15-21 CSR Performance with your portfolio. This can include aspects such as identification of P106 Caring About Employee Development
Principle 2: 2.2 Target Setting P58-61 Supporting the Development of MSEs significant/salient risks, environmental and social risks mitigation and
Impact and Show that your bank has set and published a minimum of two targets P80-83 Developing Green Finance definition of action plans, monitoring and reporting on risks and any
Target Setting which address at least two different areas of most significant impact P84-85 Addressing Climate Change existing grievance mechanism, as well as the governance structures
that you identified in your impact analysis. P86 Protecting Biodiversity you have in place to oversee these risks.
P87 Building Greener Life
P88-89 Practicing Green Operations
2.3 Plans for Target Implementation and Monitoring 6.1 Assurance
For each target separately: show that your bank has implemented the Has this publicly disclosed information on your PRB commitments been
actions it had previously defined to meet the set target. assured by an independent assurer.
3.1 Client engagement P38-51 Facilitating the Development of National 6.2 Reporting on other frameworks
Describe how your bank has worked with and/or is planning to work Strategic Development Does your bank disclose sustainability information in any standards and P1 About This Report
with its clients and customers to encourage sustainable practices and P52-53 Accelerating Industrial Transformation and frameworks such as GRI, SASB and CDP. P70-72 Accelerating Digital Transformation
Principle 6:
enable sustainable economic activities. Upgrading P80-83 Developing Green Finance
Transparency &
P54-55 Serving China’s Opening-up P84-85 Addressing Climate Change
Accountability 6.3 Outlook
P58-61 Supporting the Development of MSEs P113 Outlook
Principle 3: What are the next steps your bank will undertake in next 12 month- P118-120 Independent Assurance Report
P62-65 Supporting Rural Vitalization
Clients and reporting period.
3.2 Business opportunities P66-67 Offering Financial Services to Benefit the People
Customers
Describe what strategic business opportunities in relation to the P73-74 Upgrading Corporate Banking Services
increase of positive and the reduction of negative impacts your bank P75-77 Improving Service Quality and Efficiency 6.4 Challenges
has identified and/or how you have worked on these in the reporting P80-83 Developing Green Finance What challenges have you prioritized to address when implementing
period. P84-85 Addressing Climate Change the Principles for Responsible Banking.
P86 Protecting Biodiversity
P87 Building Greener Life
118 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 119
Independent Assurance Report
120 HUA XIA BANK CO., LIMITED Social Responsibility Report 2022 121
Feedback Form
Thank you for reading the Hua Xia Bank Co., Limited Social Responsibility Report 2022. In order to provide you and other stakeholders with more valuable
information and improve our CSR fulfillment, we sincerely invite 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: 22 Jianguomennei Street, Dongcheng District, Beijing
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