Huaxia Bank

RATING

SECTOR

Banking

WEBSITE

CONTACT

Hua Xia Bank Plaza
No.22 Jianguomennei Street
Dongcheng District
Beijing
P.R.C
100005

Tel: +86-95577

STOCK EXCHANGE

N/A

LISTING

  • Forbes #263 Global 2000 2021
  • Forbes #124 World’s Best Employers 2018 
  • Forbes #197 Top Regarded Companies 2018

EMPLOYEES

38,948

CHIEF SUSTAINABILITY OFFICER

The company does not disclose this information

AWARDS

  • In January 2019, the Company was honored as an outstanding green bank as a whole in the green bank evaluation conducted by the China Banking Association under the guidance of CBIRC
  • In January 2019, the Company was honored as an outstanding green bank as a whole in the green bank evaluation conducted by the China Banking Association under the guidance of CBIRC
  • In January 2019, the Credit Card Center of the Company was awarded the “Award for Excellent Partners”, the “Award for Outstanding Contribution by Sports-themed Products”, and the “Award for Outstanding Contribution by Authorization Success Rate Optimization” from VISA International
  • In February 2019, the Company was awarded five of the 2018 interbank RMB market awards published by the National Interbank Funding Center, namely, “Core Institutional Investor”, “Excellent Money Market Institutional Investor”, “Excellent Issuer of Interbank Certificates of Deposit”, “Trading Mechanism Innovation Award – X-Repo” and “Trading Mechanism Innovation Award – iDeal”
  • In November 2019, the Company was named the “Industry Model in ESG Sustainable Investment” at the Annual Outstanding Financial Enterprises Awards hosted by the Economic Observer
  • In December 2019, the Company was named the “Most Socially Responsible Listed Company” at the Ninth China Securities Golden Bauhinia Awards Ceremony held in Hong Kong
  • In December 2019, the Company was named the “Most Socially Responsible Listed Company” at the Ninth China Securities Golden Bauhinia Awards Ceremony held in Hong Kong
  • In December 2019, the Company was named the “Bank of the Year in Green Financial Services” in the competition for the “2019 Gold-Medal List of Chinese Financial Institutions – Golden Dragon Awards” sponsored by the Financial News

CONTENT SOURCE

FURTHER READING

Report created by Kavita Kripalani

Huaxia Bank

SECTIONS :  Sustainability •  Targets    Evaluation  •  Key Points  •  Overview

Company Activity

Hua Xia Bank Co., Ltd. provides commercial banking services. It operates through the following business segments: Electronic banking, Personal banking, Corporate banking, Small and medium enterprise credit banking, and Financing.

Its services include public deposits, loans, domestic and international settlement, bill acceptance and discount, issuance of financial bonds, agency issuance and underwriting of government bonds, trade of government and financial bonds, inter-bank lending and borrowing, foreign exchange trade, bank card service, provision of letters of credit and letters of guarantee, collection and payment service, safe deposit box, foreign exchange settlement and sale, and sideline insurance agency. 

The company was founded on October 14, 1992 and is headquartered in Beijing, China.

Company Sustainability Activity

Hua Xia Bank has been dedicated to becoming a socially responsible financial institution actively fulfilling its social responsibilities, continuously increasing communication with stakeholders like customers, shareholders and employees, and seeking sustainable development economically, socially and environmentally. 

Hua Xia Bank has released a social responsibility report to the public for 11 consecutive years, and been awarded multiple honors like Most Socially Responsible Financial Institution and Best Livelihood Finance Award of China’s Banking Industry many times.

Hua Xia Bank has been improving its service quality and efficiency, continuously developing its green finance-featured business, and taking an active part in devising innovative green finance business management and service modes. 

Focusing its efforts on the four service areas of energy efficiency financing, clean energy financing, environmental protection financing, and green equipment supply chain, it has created a product lineup that comprised green credit, green leasing, green investment, and green debt financing tool underwriting, developed the business features that advocated international cooperation, integration of industry and finance, and innovation in service mode, and forged the green finance brand of “Green Growth, Beautiful Hua Xia”.

Highlights

  • The Bank had introduced 1 USD billion of foreign capital through on-lending programs
  • Cumulatively issued 10.7 RMB billion of credit loans in home and foreign currency
  • Provided financing services for 95 projects in 17 provincial regions across the country
  • Saving 3.63 million tons of standard coal annually
  • Cutting CO2 emissions annually by 8.87 million tons
  • Cutting SO2 emissions annually by 28,300 tons
  • Cutting NOX emissions annually by 28,000 tons
 

Targets

The bank does not disclose this information.

Progress

  • They developed a series of products for contract energy management financing and emissions trade financing, and explored to provide the government and key energy-consuming enterprises with integrated services of energy diagnosis, energy planning, energy transformation, and green finance
  • In April 2020, the 20 Hua Xia Bank Green Finance 01, the first issue of Hua Xia Bank’s green bonds in 2020, was listed in the National Interbank Bond Market to raise RMB 10 billion for green industrial projects, with a three-year fixed rate. As of the end of 2020, the bond had invested in 63 projects from areas of energy conservation, clean transportation, clean energy, environmental protection and climate change adaptation, pollution control, as well as resource-saving and recycling
  • On April 8, 2020, China Securities Index Co., Ltd. announced the release of the CSI Hua Xia Bank ESG Index and the CSI ESG120 Strategy Index developed by the Bank. The two indexes, officially launched on April 30, are two of the first indexes developed based on the “ESG Evaluation System”, a proprietary system of China Securities Index. 
  • The Comprehensive Water Environment Improvement Project of an environmental governance company in Wuxi is responsible for desilting and building revetments along 11 river courses in Wuxi City. Wuxi Branch granted the project a special loan of RMB 400 million in its early stage, followed by another RMB 100 million working capital, effectively alleviating the financial pressure of the company and enhancing local flood control and drainage capabilities to the regional water and residential environment
  • Shenyang Branch granted an environmental service company a two-year RMB 390 million fixed-asset loan to build the Huludao Industrial Waste Treatment Center. After completion, the Center will be able to process 92,500 tons of industrial waste per year, effectively reducing pollution caused by industrial waste and improving local production and living environment

Certificates

The bank does not disclose this information.

UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: No Poverty

  • Precision poverty alleviation is planned to be strengthened
    • The Company plans to exert every effort to provide financial support for poverty alleviation
  • It plans to step up financial services in poverty alleviation, elderly care, communities, education and healthcare 
  • While ensuring the fulfillment of all precision poverty alleviation tasks, the Company plans to make overall planning and coordination to accomplish the poverty alleviation work entrusted by local governments, and provide timely financial assistance to the people who return to poverty and the newly impoverished
  • Charitable contributions were made to support precision poverty alleviation
  •  
  • The Company furthered its initiative to become a lead bank serving the coordinated development of the Beijing-Tianjin-Hebei Region financially

SDG 3: Good Health and Well-Being

  • The Company took an active part in advancing major projects including the Beijing 2022 Games, Beijing Daxing International Airport and Jing-Xiong expressway
  • It became a diamond partner of the “See You in Beijing” sports events 

SDG 4: Quality Education

  • During the reporting period, branches of the Company in many places launched donating events which raised funds of RMB 12,893,600 and material supplies of RMB 506,400
  • Urumqi Branch of Hua Xia Bank spent RMB 3.5 million in building education infrastructure and improving local education access in Hetian, Xinjiang

SDG 7: Affordable and Clean Energy

  • International cooperation was strengthened and green financial services were deepened. The Bank was among the first banks to sign the Principles for Responsible Banking of the United Nations to perform the ESG responsibility
    • The world’s largest energy storage project of the World Bank was implemented, with the balance of green credit reaching RMB 79,844 million, up 40.82%
  • Distinctive green finance was actively developed
  • The Company is active in practicing the green finance philosophy and grabbing financial service opportunities in China’s ecological conservation drive
  • It stepped up cooperation with international organizations, tapped deep into the vast market of green finance, allocated more credit, investment, financial leasing and other resources to green finance and substantially increased the proportion of green credit and the total amount of green finance
  • During the reporting period, the balance of green credit reached RMB 79.844 billion, up 40.82%, faster than growth of total loans
  • The Company maintained strict control over credit granting to high-polluting, high-energy consuming industries and to those with over-capacity, providing stronger support for energy conservation and environment protection industries
  • They continue to build the green finance brand of Building a Beautiful Hua Xia through Green Finance by developing green finance channels and promoting energy-efficient financial services

Huaxia Bank has made a mediocre attempt at sustainability, aiming to reduce poverty and hunger and improve education and energy efficiency. 

The bank set vague goals that are not tied directly with sustainability, and lacks metrics to support these goals.

However, they do have a number of notable awards for their efforts toward corporate responsibility. 

Therefore, this company has been rated a D.

Analyst Outlook: Neutral

The company’s lack of certifications and listings do not support the company’s initiatives and strategies.

Key Points

  • Signed the Principles of Responsible Investment on March 19, 2019
  • Huaxia Bank was hit with a 1.1 million yuan fine for failure to properly implement internal controls, resulting in “severe systemic risk hazards that led to adverse consequences.” One Huaxia executive was banned from the banking sector for life, while six other executives received fines of 100,000 yuan.
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