On June 19, 2006, Industrial and Commercial Bank of China Limited and National Council for Social Security Fund (NaCSSeF) signed Strategic Investment and Cooperation Agreement in Beijing. According to the agreement, NaCSSeF will invest RMB 18.028 billion in ICBC, pending to be approved by China Banking Regulatory Commission, and the agreement also stipulated that NaCSSeF will cooperate with ICBC in fund custody as well.
ICBC is currently the largest commercial bank in China, in terms of wholesaling, retailing, mortgage, electronic banking, asset custody and clearing. ICBC offers all-inclusive commercial banking products and services to corporate and individual customers in China. The National Social Security Fund was raised from central fiscal appropriation, reduction of State-owned shareholdings, other capital raisings approved by State Council and its investment return, mainly to make up the social security needs of the coming aging population peak.
It is an important strategic reserve for national economy development and social stability. National Social Security Fund is managed and operated by National Council for Social Security Fund.
During the signing ceremony, Mr. Xiang Huaicheng, Council Chairman of Social Security Fund, remarked that the Fund investment to ICBC was a support to ICBC strategic investment introducing, and also an indication of a full confidence that NaCSSeF placed on ICBC development.
Mr. Jiang Jianqing, Chairman of ICBC, related in the signing ceremony that the agreement between ICBC and NaCSSeF was another major success of ICBC in introducing strategic investment. Both parties will embark on a brand new journey to their strategic cooperation.
Earlier in Beijing, ICBC had concluded Strategic Investment and Cooperation Agreements with Goldman Sachs, Allianz Group and American Express. Foreign strategic investors made a USD 3.8 billion investment in ICBC, which was settled smoothly on April 28 this year.
ICBC spokesman introduced that ICBC shareholding reform was picking up steam once State Council made the approval in April 2005. Financial restructuring was completed by June and Industrial and Commercial Bank of China Limited was established on October 28 in the same year. In January 2006, ICBC signed Strategic Investment and Cooperation Agreement with foreign strategic investors.
And today's successful signing of Strategic Investment and Cooperation Agreement with NaCSSeF will further complete rational and diversified ICBC equity structure to lay a solid foundation for the next phase of in-depth strategic cooperation and corporate governance.
