China Rural Commercial Bank Report, 2008
By the end of 2007, the total assets of China rural commercial banks have reached CNY609.67 billion, accounting for 1.16% of the total assets of banks, and the total liabilities have reached CNY576.7 billion, amounting to 1.16% of the total. Meanwhile, the value of owners' equity has stood at CNY32.96 billion; accounting for 1.09% of the total, and the post-tax profit was CNY4.28 billion, amounting to 0.96% of the total.
Business operation of China rural commercial banks is aimed at serving agriculture, rural areas and farmers. By the end of 2007, the outstanding loans of all rural commercial banks have reached CNY23.63 billion. In addition, China rural commercial banks are different from the majority of rural credit cooperatives, whose business operation is focused only on agriculture, rural areas and farmers, they also regard small- and medium-sized enterprises (SMEs) as their key clients to provide them with lending service. By the end of 2007, their total outstanding loans to SMEs reached CNY97.64 billion.
The total assets, liabilities and owner's equity value of China rural commercial banks continue rising, and their business operation improves gradually. The capital adequacy ratio of China rural commercial banks is also on the upward trend, but the non-performing loan ratio is on the downward trend.
The proportions of agriculture loan and small business loan of the rural commercial banks are both high, and the banks will continue to make more efforts in strengthening the development of the two kinds of loan. In December 2007, Zhangjiagang Rural Commercial Bank has obtained the approval from China Banking Regulatory Commission to be stock listed. It will be a general trend that more good quality rural commercial banks to be stock listed.
Based on the statistics of the China Banking Regulatory Commission and the State Information Center, the report makes a thorough study on the current situation, investment opportunities and risks of China's rural commercial banks, and also makes a development forecasts.
1. CHINA RURAL FINANCIAL MARKET
1.1 China's Rural Financial Organization System and Its Development
1.1.1 Formal Financial Institutions
1.1.2 Informal Financial Institutions
1.2 Fundraising and Existing Problems in Rural Financial Market
1.2.1 Features of Rural Financial Service Demand
1.2.2 Rural Financial Service Demand
1.2.3 Rural Financial Services
1.2.4 Flaws of Rural Financial Market
1.3 Three Modes of Rural Financial Reform
1.4 Foreign Investment in Rural Financial Market
2. DEVELOPMENT CHARACTERISTICS OF CHINA RURAL COMMERCIAL BANKS
2.1 Establishment Background
2.1.1 Rapid Economic Growth in Prefectures and Counties
2.1.2 Reform of Rural Credit Cooperatives
2.2 Conditions for Establishing Rural Commercial Banks
2.2.1 Establishment Requirements
2.2.2 Difference between Rural Commercial Banks & Rural Cooperative Banks
2.3 Three Growth Stages of Rural Commercial Banks
2.3.1 First Trials of Rural Credit Cooperative System Reform
2.3.2 Experiment of Deepening System Reform
2.3.3 Establishment of Provincial Rural Commercial Banks
2.4 Development of Rural Commercial Banks
2.4.1 Regional Development Characteristics
2.4.2 Business Characteristics
2.4.3 Operation
2.4.4 Competition Position in the Industry
3. CHINA RURAL COMMERCIAL BANK DEVELOPMENT
3.1 Zhangjiagang Rural Commercial Bank
3.2 Jiangyin Rural Commercial Bank
3.3 Changshu Rural Commercial Bank
3.4 Shanghai Rural Commercial Bank
3.5 Beijing Rural Commercial Bank
3.6 Shenzhen Rural Commercial Bank
3.7 Wujiang Rural Commercial Bank
3.8 Taicang Rural Commercial Bank
3.9 Wujin Rural Commercial Bank
3.10 Xizhou Rural Commercial Bank
3.11 Kunshan Rural Commercial Bank
3.12 Dongwu Rural Commercial Bank
3.13 Wuhu Yangzi Rural Commercial Bank
3.14 Hefei Science & Technology Rural Commercial Bank
3.15 Erdos Dongsheng Rural Commercial Bank
3.16 Chizhou Jiuhua Rural Commercial Bank
3.17 Tianjin Binhai Rural Commercial Bank
3.18 Jiangsu Sheyang Rural Commercial Bank
3.19 Chongqing Rural Commercial Bank
4. INVESTMENT OPPORTUNITY OF CHINA RURAL COMMERCIAL BANKS
4.1 Favorable Factors for China Rural Commercial Bank Development
4.1.1 Support of National Policies
4.1.2 Capital Demand of New Rural Construction
4.1.3 Strong Interest of Foreign Fund
4.2 Investment Opportunities
4.2.1 Filling in Gaps in Commercial Bank Market
4.2.2 Reform of Rural Credit Cooperatives
4.2.3 Developing Small-Sum Credit Business
4.2.4 Take the Road of Financial Modernization
5. SUMMARY
LIST OF TABLES AND FIGURES
Organizational Structure of China's Rural Financial System
Assets Structure of China Banking Industry, Dec. 2007
Distribution of Rural Commercial Banks' Outlets by Region, May 2008
Total Assets & Total Liabilities of China Rural Commercial Banks, 2003-2007
Changes in Owners' Equities of China Rural Commercial Banks, 2003-2007
Outstanding Loans of Zhangjiagang Rural Commercial Bank, 2001-2007
Outstanding Loans of Beijing Rural Commercial Bank (before Reform Included), 2003-June 2008
Outstanding Deposits of Beijing Rural Commercial Bank (before Reform included), 2003-June 2008
Growth of Owners' Equity of China's Rural Commercial Bank, 2003-2007
Profit Growth of Shenzhen Rural Commercial Bank (before Reform Included), 2003-May 2008
Proportions of Agriculture Loans of Rural Commercial Bank by Region, May 2008
Ratios of Small Business Loans of Rural Commercial Bank by Region, May 2008
Establishment of New Rural Financial Institutions
China Top 10 Counties, 2003-2008
Summary of China Rural Commercial Banks
Ratios of SME Loans & Agriculture Loans of Some Banks to the Total, Dec. 2007
Total Assets of Some Rural Commercial Banks
Capital Adequacy Ratios of Some Rural Commercial Banks, Dec. 2007
NPL Ratios of Some Rural Commercial Banks, Dec. 2007
Rankings of China Banks in Top 1000 Global Banks of The Banker by Tier 1 Capital, 2005-2006
Rankings of China Banks in Top 10 Banks of Top 1000 Global Banks of The Banker by Tier 1 Capital, 2007
Key Accounting Data of Jiangyin Rural Commercial Bank, 2006-2007
Key Accounting Data & Indices of Changshu Rural Commercial Bank, 2005-2007
Key Accounting Data & Indices of Wujiang Rural Commercial Bank, 2004-2007
Key Accounting Data & Indices of Taicang Rural Commercial Bank, 2005-2007
Key Accounting Data & Indices of Jinzhou Rural Commercial Bank, 2004-2007
Key Accounting Data & Indices of Kunshan Rural Commercial Bank, 2004-2007
Key Accounting Data of Hefei Sci & Tech Rural Commercial Bank, 2006-2007
Agriculture Loan Amount of China Rural Commercial Banks by Region, May 2008
Number of Rural Outlets of China Banking Financial Institutions, July 2008
Small Business Loan Amount of Rural Commercial Banks by Region, May 2008
