China Construction Bank (Kínai Építési Bank, CCB), which is the second largest credit institution in the world based on its assets, has opened a branch in Hungary – it was announced on Wednesday at the ceremonial opening in Pesti Vigadó.
Minister of Economic Development Márton Nagy congratulated the establishment of the branch, which he hopes will open the way for further developments. The China Construction Bank helps Hungarian companies enter the Chinese market and Chinese investments appear in Hungary, he added.
CCB President Tien Kuo-li emphasized: the friendship between China and Hungary has a long history, solid and deep. According to their expectation, the financial institution can contribute to the further expansion of Sino-Hungarian economic, financial and trade relations.
Márton Nagy emphasized: Sino-Hungarian relations are primarily determined by peace and mutual respect.
He explained: compared to 2010, there are already one and a half times more, about 18 thousand Chinese citizens, living in peace in Hungary, which is a sign of the strengthening of trust.
China will be a dominant player in the world economy for a long time, after the crisis caused by the epidemic, it quickly restored its economic growth, and this year’s growth may be 6.4 percent. This also means that China will remain one of the main driving forces of the world economy, he said.
China accounts for more than 4 percent of Hungary’s total foreign trade and is the country’s 9th most important trading partner and the largest outside of Europe. Last year, China ranked 10th among the largest foreign investors. Investments amounting to HUF 144 billion have already been implemented in the country, which was implemented by Chinese companies with Hungarian state support – he emphasized.
Three of the world’s four largest credit institutions with total assets are already present in Hungary, he pointed out. In the economic situation affected by the war and sanctions, resources and capital are needed, there is no economic growth without credit, and they count on the China Construction Bank for this, he added.
The minister thanked the bank for its solidarity during the coronavirus epidemic, as it donated a large number of masks to Hungary during the critical phase of the epidemic and supported the procurement of medical aids from China. He expressed his hope that Chinese-Hungarian economic relations will be fruitful for both parties in the future.
According to Mihály Patai, the vice president of the Hungarian National Bank, the opening of the new Chinese branch is the result of the ever-closer connection between the Hungarian and Chinese financial systems. Bank of China established itself in Hungary in 2014. The central bank takes an active role in strengthening the financial relations between the two countries, and with CCB’s representation in Hungary, the already successful cooperation will be even closer, he said.
President Tien Kuo-li emphasized: the friendship between China and Hungary has a long history, is solid and deep. According to their expectation, the financial institution can contribute to the further expansion of Sino-Hungarian economic, financial and trade relations. The establishment of CCB’s branch in Hungary further encourages financial cooperation between the two countries and provides higher quality financial services for the economic and trade cooperation between China and Hungary.
According to their plans, they will create a fintech lab to develop financial-technological innovations. It was also announced that the branch will donate HUF 20 million to the Hungarian-Chinese Bilingual Primary School and High School, to build the school’s workshops and to support children’s summer camp activities.
Yang Chao, the charge d’affaires of the Chinese Embassy in Hungary, said that CCB is a leading company in the Chinese banking sector and an important player in the world’s financial system. The cooperation between the two countries is constantly deepening, and the branch office will be a good bridge and connecting link for businesses. Hungary plays a pioneering role in China’s One Belt, One Road (New Silk Road) initiative, and due to its unique location, it is a strategically important location, he said.
According to the prospectus, CCB is among the world’s largest banks in terms of asset size, profit level, capital adequacy ratio and willingness to take risks. The bank was founded to finance infrastructure projects.
At the end of last year, CCB Group had a total balance sheet total of 34.60 trillion renminbi (RMB, 1 RMB 49.93 forints), a net profit of 323.166 billion RMB, an operating income of 822.473 billion RMB, a capital adequacy ratio of 18.42 percent, and a ratio of non-performing loans of 1.38 percent. In recent years, CCB has already covered 30 countries and regions, building a global financial service network that operates across time zones, geographies, multiple currencies and 24 hours a day.
MTI
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