Reporting ScopeReporting Period: Unless otherwise stated, the report covers the period between January 1 to December 31, 2019.Organizational Boundary : The report discloses the information of the Head O?ce and all branches and sub-branches of Hua Xia Bank.Reporting Cycle: The report is an annual report. The most recent report was issued on April 19, 2019.Compilation ConformanceThe report was prepared in accordance with theOpinions on Strengthening the Corporate Social Responsibility of Banking Institutionsissued by formerChina Banking Regulatory Commission (CBRC), theGuidelines on the Corporate Social Responsibility of Banking Institutions of Chinareleased by theChina Banking Association, and theNotice on Strengthening Listed Companies’Assumption of Social ResponsibilityandGuideline on EnvironmentalInformation Disclosure by Listed Companiesreleased by Shanghai Stock Exchange (SSE), and referred to theGuidelines on Corporate Social Responsibil-ity Reporting for Chinese Enterprises (CASS-CSR 4.0)issued by the Research Center for Corporate Social Responsibility of the Chinese Academy of SocialSciences,Guidance on Social Responsibility (ISO 26000:2010)issued by International Organization for Standardization (ISO),GRI Sustainability ReportingStandards (GRI Standards)andGRI Financial Service Sector Supplemental Guidelinesissued by Global Sustainability Standard Board (GSSB), and theEnvironmental, Social and Governance Reporting Guide (HK-ESG) issued by Hong Kong Exchanges and Clearing Limited (HKEx).ReferenceFor better readability, “Hua Xia Bank Co., Limited” is referred to as “Hua Xia Bank” or “The Bank” in the report.Data SourcesThe ?nancial data in the report come from the audited Annual Report 2019 of Hua Xia Bank Co., Limitedand other data come from internal documentsand statistics of Hua Xia Bank. Some contents and data can be traced back to previous years.Languages of the Report
The report is available in simpli?ed Chinese and English versions. In case of any discrepancy, the simpli?ed Chinese version shall prevail.Formats of the ReportThe report is available in both print and electronic formats. The electronic format of the report can be downloaded at our o?cial website (http://www.hxb.com.cn).Contact InformationHua Xia Bank Co., LimitedAddress: Hua Xia Bank Mansion, 22 Jianguomennei Street, Dongcheng District, BeijingPostal code: 100005Tel: 010-85237056Fax: 010-85239000E-mail: zhshzr@hxb.com.cn
About This Report
Message from ChairmanThe year 2019 was a critical year for realizing the ?rst centenary goal ofbuilding a moderately prosperous society in all respects and marked the 70thanniversary of the founding of the People’s Republic of China. In 2019, we re-mained true to our original aspiration, adhered to craftsmanship, and main-tained perseverance in pursuing our goals. Guided by Xi Jinping Thought onSocialism with Chinese Characteristics for a New Era, we strengthened andimproved Party leadership throughout the process of our reform and devel-opment, aligned Hua Xia’s Dream with the Chinese Dream, made concertede?orts to build the Bank into a “large and strong, stable and excellent”modern ?nancial group, and contributed to the sustainable development ofthe economy, society, and environment.We persevered in serving the real economy. Making active e?orts to jointhe economic mainstream, we shouldered the responsibility of providingsound services for the coordinated development of the Beijing-Tianjin-He-bei region, the integration of the Yangtze River Delta, and the constructionof the Guangdong-Hong Kong-Macao Greater Bay Area and other nationaldevelopment strategies. By constantly strengthening our support for keyareas of the real economy, such as industrial transformation and upgrading,consumption, and the private sector, we helped create powerful new driversfor the high-quality development of the real economy.
Based in Beijing, we contributed to regional development. Adhering to
our position as a “bank for Beijing”, we worked harder to establish theBank as a major ?nancial service provider for the Beijing-Tianjin-Hebei re-gion. We went all out to help promote the economic and social developmentof Beijing and the coordinated development of the Beijing-Tianjin-Hebeiregion so that Beijing can better ful?ll its major tasks according to the strategyof building Beijing into the political center, cultural center, international com-munication center, and technology innovation center of China, relocating itsnon-capital functions, and doing a better job in the construction of its sub-center.We made concerted e?orts to promote inclusive ?nance. Devoted to
serving SMEs, we pursued “professional services, branded business lines,featured operation, and re?ned management”, created a professional,exclusive and targeted organizational structure, and vigorously endeavoredto “become a ?nancial service provider for SMEs”. At the same time, wethoroughly implemented the CPC Central Committee’s decisions on thedecisive battle against poverty and continued to promote precision povertyalleviation in the ?nancial sector, and have launched supporting credit poli-cies based on our widely distributed outlets, and innovative comprehensive?nancial products and services, striving to contribute to winning the decisivebattle against poverty.We made green ?nance our calling card. We took the initiative to integrategreen development into our business operations, developed new modelsfor business management and ?nancial service delivery, and strengthenedinternational cooperation. We stepped up our e?orts to promote integrationbetween ?nance and various other industries and o?ered more support toindustries related to energy conservation, environmental protection, cleanenergy, and ecological governance. Thus, we created the ?nancial brand of
“Green Growth for a Better Hua Xia”, contributing our ?nancial expertise toChina’s pursuit of lucid waters and lush mountains.
Driven by innovations, we embraced FinTech. Based on our resourceendowments and development foundation, we promoted the overall digitaltransformation and innovations in online banking. Through the applicationof FinTech, we fostered di?erentiated competitive edges and created thebrand of Smart Finance and Digital Hua Xia for its blueprint for faster innova-tion-driven development.We remained prudent to control ?nancial risks. Adhering to law-based
operations and compliance, we kept to strict risk management measures. Bycontinuously improving internal control and compliance management andbuilding up the comprehensive risk management system, we kept our focuson risk prevention and control and completed all tasks properly to guardagainst and defuse ?nancial risks.A journey of ten thousand miles is ahead of us and we will forge ahead withimportant tasks on our shoulders despite all challenges. As a people-orientedand responsible state-owned ?nancial institution, Hua Xia Bank, under thestrong leadership of the CPC Central Committee with Comrade Xi Jinping atthe core, has the con?dence and determination to implement the decisionsand requirements of deepening the supply-side structural reform of the?nancial sector. We will make sure to reinforce our sense of political responsi-bility and shoulder our historical missions, press ahead in our reform and de-velopment resolutely despite all di?culties, and contribute to the realizationof the Chinese Dream and the great rejuvenation of the Chinese nation.
Party Secretary and Chairman of Hua Xia Bank
Message from Chairman
0622
Table of Contents
OutlookReporting IndexIndependent Assurance ReportFeedback Form
Message from ChairmanMessage from PresidentAbout Us
A Brilliant Hua Xia for Value Creation
Corporate GovernanceCSR ManagementCSR PerformanceGreen Development
A Sincere Hua Xia with Quality ServicesProtection of Customers’ Rights and InterestsBetter Customer ExperienceImprovement in Corporate Banking Services
A Dedicated Hua Xia with CraftsmanshipSpotlight: Providing Financial Support for the FightAgainst PovertySupporting for the Coordinated Development ofthe Beijing-Tianjin-Hebei RegionServing the Real EconomyDeveloping Inclusive Finance
A People-Centered Hua XiaPursuing Happiness for AllProtecting Fundamental Rights and Interests ofEmployeesSupporting Employee DevelopmentCaring for EmployeesBuilding a Better Society with Concerted E?orts
A Digital Hua Xia Driven by InnovationsFintech DevelopmentSmart Applications for Better Business DevelopmentESG Investment Philosophy
A Prudent Hua Xia with ComplianceFull Compliance in OperationsStrengthening Risk Management
Under the leadership of the Party, the People’s Republic of China hasgone through 70 extraordinary years. Especially since the launch of thereform and opening up, China has made great changes and greatly im-proved people’s living standards. Born out of the reform and opening-up,Hua Xia Bank rode the tide of the times, advanced together with thenation, and witnessed and played its part in the development of China’s?nancial sector with a customer-centric service philosophy and a prudentapproach towards corporate development.In 2019, we focused on improving overall operations and promotedcorporate development with all-out e?orts. Fully implementing the newdevelopment plan, we pursued breakthroughs in the six major strategicpriorities, achieved business expansion and further built up our capitalstrength. Our business structure and asset quality have improved andcompliance management has strengthened. In 2019, we realized a netpro?t of RMB 22.115 billion, an average return on equity (ROE) of 10.61%and a capital adequacy ratio of 13.89%.In 2019, we adhered to the principle of serving the real economy andendeavored to increase investments in key areas such as the coordinateddevelopment of the Beijing-Tianjin-Hebei region, the transformation andupgrading of industries, environmental protection and governance, andthe relocation of Beijing’s non-capital functions. Throughout the year, weprovided a total of nearly RMB 80 billion of ?nancing services for key pro-jects related to the coordinated development of the Beijing-Tianjin-Hebeiregion. We proactively aligned our businesses to major national devel-opment strategies for the Yangtze River Economic Belt and the Guang-dong-Hong Kong-Macao Greater Bay Area, promoted the transformationand upgrading of industrial structures, supported the country’s openingup to the outside world, made every e?ort to improve people’s livingstandards and well-being, and facilitated the development of the privatesector and micro and small enterprises (MSEs). As of the end of 2019, thebalances of loans for strategic emerging industries and MSEs were RMB81,229 million and RMB 396,387 million respectively.In 2019, we pursued green development, green ?nance, and innova-tions in green products. Through cooperation with the World Bank, wepromoted the largest single ?nancing innovation project in China for airpollution prevention in the Beijing-Tianjin-Hebei region, advanced theChina Renewable Energy and Battery Energy Storage Promotion Project,and further built the ?nancial brand of “Green Growth for a Better HuaXia”. As of the end of 2019, the Bank’s balance of green credit reachedRMB 79,844 million, an increase of RMB 23,145 million from the previousyear, up by 40.82% year on year. On March 19, 2019, the Asset Manage-ment Department of Hua Xia Bank joined the United Nations (UN)-sup-ported Principles for Responsible Investment (PRI) and became the ?rstasset management institution of a commercial bank in China to join thatorganization. Following that, the Bank launched its environmental, socialand governance (ESG) strategy and integrated social responsibility intoits investment decisions to contribute to the high-quality development ofthe ?nancial sector.In 2019, we stayed people-oriented and safeguarded employees’ legit-
Message from President
Deputy Party Secretary and President of Hua Xia Bank
imate rights and interests. To broaden their career development pathsand strengthen capacity building for them, we organized various culturaland sports activities, which facilitated full integration of employee growthwith corporate development. In 2019, the Bank carried out 3,986 trainingsessions with around 260,000 participants. As an active participant inpublic welfare undertakings, we organized many employee volunteeractivities to bring bene?ts to those in need. In 2019, we organized a totalof 1,977 volunteer service activities with 28,681 employee participants,contributing 21,741.9 hours of volunteer services in total.Looking into the future, socialism with Chinese characteristics is advanc-ing into a new era. The banking industry has started major transforma-tions and reforms, and Hua Xia Bank is marching towards a critical periodin its strategic transformation. Standing at a new starting point, we willadhere to the corporate culture of “integrity, standardization, e?ciency,and enterprise”, and strive to do a better job in serving the real econo-my, guarding against ?nancial risks, and improving quality and e?ciency.We will remain true to our original aspiration, keep our missions ?rmlyin mind, carry forward all business operations with concrete e?orts, andcontribute to the realization of the Chinese Dream and the great rejuvena-tion of the Chinese nation.
Hua Xia Bank was founded in Beijing in October 1992 andbecame a national joint-stock commercial bank after restruc-turing in March 1995. On September 12, 2003, the Bank wentpublic on Shanghai Stock Exchange (Stock Code: 600015), withregistered capital of RMB 15.387 billion.Since its inauguration, the Bank has been forging ahead andmade great achievements despite all di?culties. By the end of2019, the Bank had a total asset of RMB 3,020,789 million, 42Tier-1 branches, 73 Tier-2 branches, 1,025 outlets in 116 citiesat or above the prefectural level nationwide, and nearly 40,000employees, which had formed an institutional system ofbuilding presence in developed cities and reaching out to thewhole country. The Bank has set up Hong Kong branch as its?rst overseas branch, and 1,221 agencies in and out of China,covering 380 cities in 116 countries on all ?ve continents of theworld. Its settlement network covers all major trade areas inthe world.InThe Banker’sTop 1000 world banks published in July 2019,Hua Xia Bank ranked 56th by Tier-1 capital and 67th by total
Follow the fundamental strategy of“taking deposits as the foundation, building theBank’s through FinTech and talents, and ensuringstable operation through risk control”Keep to the direction of featured, digital,asset-e?cient, specialized, comprehensive, andworld-oriented development
Strive to develop into amodern ?nancial group
that is“large and strong,stable and excellent”
Actively pursueinnovative, coordinated,green, open and shareddevelopmentInnovativeCoordinated OpenShared Green
Focus onserving the real economyFocus oncreating value for customers and shareholders
About UsMessage from President0504
About Us
asset, respectively nine places and three places higher than the previous year. In the Forbes Global 2000 of 2019, the Bank ranked 265th, 24 places higherthan the previous year.
?Held
Shareholders’ General Meetingsand adopted
resolutions
?Balance of green credit:
?RMB
79.844
billion?Supported
environmental
?protection projects
?Issued3,127,500ETC cards
ractices
| In 2019As of the end of 2019A Brilliant Hua Xia for |
Value Creation
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for All0809Hua Xia Bank Co., Limited
A Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Governance structure
Asset LiabilityManagementCommittee
Credit,Investment andFinancing PolicyCommittee
Risk Manage-
ment andInternal Control
Committee
Credit ApprovalCommittee
Asset RiskDisposalCommittee
PerformanceManagementCommittee
ProductManagementCommittee
InformationTechnologyManagementCommittee
StrategicManagement andConsumer Rights andInterests Protection
CommitteeRelated PartyTransaction ControlCommitteeAudit Committee
Risk and Compliance
ManagementCommittee
Remunerationand EvaluationCommittee
NominationCommittee
OversightcommitteeNominationCommittee
Headquarters DepartmentsBranches and Sub-branches
Shareholders’ General Meeting
O?ce of the Board
of Directors
Senior Management
Board of DirectorsBoard of Supervisors
O?ce of the Boardof Supervisors
Corporate GovernanceThe Bank has established a corporate gov-ernance structure mainly comprising of theShareholders’ General Meeting, the Boardof Directors, the Board of Supervisors, andthe senior management. The Shareholders’General Meeting is the governing body, theBoard of Directors is the decision-maker,the Board of Supervisors serves supervisionfunctions, and the senior management is incharge of execution.The Bank has strengthened the statutoryposition of Party organizations in the corpo-rate governance structure, coordinated wellbetween the Party committee and the abovethree parts of the corporate governmentstructure, and incorporated Party leadershipin all parts of corporate governance, lendingstrong momentum to the reform and devel-opment of the Bank.
there were
directors in the Board of Directors
there were
Supervisors in the Board of Supervisors
ExecutiveDirectors
EmployeeSupervisors
IndependentDirectors
ExternalSupervisors
Shareholders’ GeneralMeetings were held
resolutionsadopted
Board of Directors Meetingswere held
resolutionsadopted
Board of SupervisorsMeetings were held
resolutionsadopted
As of the end of 2019In 2019
In 2019
Following the lead ofParty building
Holding high the banner and strengthening theoretical and politicalbuildupThe Bank has conscientiously studied Xi Jinping Thought on Socialism with Chinese Characteris-tics for a New Era and carried out education activities with the theme of “Remaining True to OurOriginal Aspiration and Keeping our Mission Firmly in Mind”. We formulated theImplementationPlan of Hua Xia Bank on Holding Themed Education Activities of “Remaining True to Our OriginalAspiration and Keeping our Mission Firmly in Mind” in the Whole Bank, and held various educa-tion activities such as seminars, reading the original works，visiting and learning. We enhancedour ideological work, and established a framework of “1+1+N” ideology and publicity regulationsystems.Consolidating the foundation through organizational constructionThe Bank has always adhered to Party leadership, resolutely shouldered its responsibility forstrengthening Party discipline, achieved full coverage of Party organization and Party work, andgiven full play to the crucial role of basic-level Party organizations. The Fourth CPC Congress of TheBank was held to identify the guiding thought, goals and work priorities for the next ?ve years, andelect a new term of Party Committee, Standing Committee and Discipline Inspection Committee ofthe Head O?ce. The regular renewal of primary-level Party organizations was promoted to makesure that all elections were completed at the expiration of o?ce terms. The Bank carried out prima-ry-level research and inspection work, and implemented the “Three Meetings and One Lesson”system, Thematic Party Day activities, lectures from the general secretary of Party organizations,Party member education and training ,etc. The Conference of Celebrating the 98th Anniversaryof the Founding of the Communist Party of China and the “Two Excellent and One Advanced”Commendation were held, in an e?ort to select typical ?gures and cases and act as an outstandingexample of entrepreneurship.Improving Party conduct and discipline to create a clean environmentThe Bank enforced full and strict discipline over the Party and implemented unswervingly the systemof accountability for Party conduct and clean governance. Based on the guiding principles of the CPCCentral Committee’s eight-point decision on improving Party and government conduct and the ac-tion against formalities performed for formalities’ sake, bureaucratism, hedonism, and extravagance,we formulated theMeasures of Hua Xia Bank on Implementation the Eight Rules and EnforcementRegulations, and revised theMeasures of Hua Xia Bank on Implementing Decisions and Regulations ofMajor Issues, Major O?cials Appointment, Major Project Arrangements, and Use of Large-Volume Capi-tal. The Bank organized a series of bank-wide inspection and evaluation activities on Party conduct andclean governance and a warning and education conference themed on “drawing lessons from andpromoting recti?cation with typical cases”. The Leading Group of Hua Xia Bank for Strict Governanceover the Party and its o?ce were set up. An annual task list for full and strict discipline was formulat-ed over the Party. The Bank organized Party organizations at all levels to draw up their own task listsaccordingly, signed letters of commitment for full and strict discipline over the Party, and ful?ll thecommitments.The Bank attaches great importance to investor relations and strictly implements theWorking Meas-ures of Hua Xia Bank Co., Ltd. on Investor Relations, having a dedicated investor relations managerunder the O?ce of the Board of Directors to take charge of relevant work.The Bank worked to promote interactions and exchanges with investors through multiple channelsand in many ways, so as to disseminate the Bank’s culture and values. In 2019, the Bank organizedshareholders’ general meetings, meetings for investors and analysts, online brie?ng on cash bo-nus, open day of investor groups, themed seminars and other activities, made conscientious e?ortsto receive investors who would like to visit, and answered questions carefully on the SSE onlineplatform and through investor service hotline and mailbox.
The Bank strictly complies with the reg-ulations on information disclosure andstandardizes the information disclosure andreporting processes. We actively ful?lledinformation disclosure obligations and con-tinued to enhance transparency via channelslikeChina Securities Journal , Shanghai Secu-rities News, Securities Times, Shanghai StockExchange website, the o?cial website of HuaXia Bank, etc.
% of leaders throughout the Bank at alllevels signed letters of commitment for Partyconduct and clean governance
including
including
The Bank has always remained true to its origi-nal aspiration and forged ahead despite all di?-culties. In 2019, we strengthened Party buildingand fully exercised strict governance overthe Party under the guidance of Xi Jinping’sThought on Socialism with Chinese Character-istics for a New Era. Besides, we have integratedParty leadership in the whole process of thereform and development of the whole Bank，and accelerated its move towards a modern ?-nancial group that is “large and strong, stableand excellent”.
Information disclosureInvestor relations
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for All1011Hua Xia Bank Co., Limited
A Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Vision of CSR ful?llment
Harmony brings a bright future and Hua Xia continues
with its public spirit:
Harmony brings a bright future
Four principles in CSR ful?llment
Six priorities in CSR ful?llment
Three practices for CSR ful?llment
Two goals of CSR ful?llment
Openness and transparencyCross-over thinking
Serving the real
economy
Practices for economic responsibility
Maximizing comprehensive valueContributing to a harmonious society
Practices for environmental responsibilityPractices for social responsibility
Practicing inclusive?nance
Promotingecological progress
Pursuing safe andsteady development
Empoweringthrough FinTech
Putting people
?rst
Communication with stakeholdersResource integration
China’s culture is at the core of the Bank’s development and prosperity, and the value created shall
be shared by all people of the Chinese nation.The Bank pursues harmonious co-existence, open cooperation,
sharing of bene?ts with stakeholders,and works towards balance between economic, environmental
and social bene?ts,making its contribution to a harmonious socialist society.
Hua Xia continues with its public spiritLeveraging on its advantages in specialty, location and resources, the
Bank takes the initiative to shoulder economic, environmental and
social responsibilities,and strive to bring bene?ts to every corner of China and every
member of the Chinese nation.
CSR Management
CSR philosophy
With an improved CSR management system,the Bank made it clear that the General O?ceof the Head O?ce is in charge of coordinatedCSR management and daily work related toCSR ful?llment across the board. The Bank alsoformulated CSR-related policies such as the
Guideline of Hua Xia Bank for Compiling Cor-porate Social Responsibility Reportsand the
Corporate Social Responsibility ManagementMeasures of Hua Xia Bankto facilitate standard-ized CSR management.
Attaching great importance to the concerns ofstakeholders, the Bank collected material top-ics through multiple channels and prioritizedthe topics based on how important they are tothe sustainable development of Hua Xia Bankand how important they are to stakeholders.Only those topics that were important for boththe Bank and stakeholders were included in the?nal matrix of material topics.
In September 2019, the United Nations Environment Programme published thePrinciplesfor Responsible Banking,launching the most important partnership ever between banksaround the world and the United Nations. Around 130 banks across the world signeddocument and Hua Xia Bank was one of them.For quite some time, the Bank, while pursuing high-quality development for itself, hasbeen striving to make its contribution to a kind of development that brings balanced bene-?ts to the economy, environment and society. As one of the ?rst banks to sign thePrinci-ples for Responsible Bankingand a ?nancial institution committed to ful?lling corporatesocial responsibility, the Bank made the commitment that it would align its corporatestrategies and operations with the Sustainable Development Goals and theParis Agree-mentand it would ful?ll this commitment through e?ective corporate governance andresponsible management practices, starting a new journey of high-quality and sustainabledevelopment.
Matrix of material topics
| Importance to stakeholders |
Bearing in mind the vision of building a modern ?nancial group that is “large and strong, stable and excellent”, the Bank worked to incorporate socialresponsibility into every part of its work and its corporate culture, made constant e?orts to improve its CSR management, steadily advanced its CSRpractices, and did all it could to create the maximal comprehensive value in economic, social and environmental aspects.
CSR management
Analysis of material topics
Striving to be a responsible bank and pursuing sustainable development
? Serving the real economy? Contributing to national strategies? Guarding against ?nancial risks? Promoting inclusive ?nance? Standardizing corporate governance? Contributing to poverty alleviation
? Devoting more e?orts to green ?nance? Supporting community development? Caring for employees? Promoting ?nancial knowledge
? Pursuing FinTech innovations? Protecting customers’rights andinterests? Improving service quality? Helping employees grow? Practicing green operation? Promoting industry development
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for All1213Hua Xia Bank Co., Limited
A Sincere Hua Xia withQuality Services2019 Social Responsibility Report
StakeholderExpectations and requirementsWays of communication
Government
Serving the development of the real economy
Promoting social progressPaying taxes according to lawTargeted poverty alleviation
Daily communicationMeetingsInformation reporting
Regulatory authorities
Compliance managementStandardizing corporate governance
Tightening risk management
Reporting on a regular basisHolding special meetingsInformation reporting
Shareholders and investors
Guaranteeing outstanding performanceO?ering continuous and stable returnsTransparent operation
Holding meetings with shareholdersReporting and announcementsDaily communication
Environment
Promoting green creditSupporting environmental protectionSupporting energy saving and emission reduction
Green o?ces
Maintaining close communicationAdvocating environmental protection concepts
Customers
Asset preservation and appreciationProviding innovative productsQuality and e?cient service
Opening the 95577 service hotlineCustomer satisfaction surveysCustomer interviewsRegular visits
Partners
Cooperation on a wider scope
Experience sharingFair procurement
Transparency
Integrity
Dedicated meetingsDaily communicationSound procurement policiesStrict tendering procedures
Employees
Protection of rights and interests
Remuneration and bene?ts
Working environmentCareer development
Employees’ congress
SeminarsCollection of opinions and suggestions
Visits
Communities
Financial knowledgeSupport for community developmentParticipation in public welfare activities
Financial services delivered in communities
Participation in community activitiesParticipation in public welfare activities
Media
Regular information disclosure
Reports on major events
Regular reportsPress conferencesMulti-channel communication
Stakeholders management
CSR awards and honors
Best Contribution to Targeted Poverty Alleviation Award
Best Green Finance Achievement AwardChina Banking Association
Best Socially Responsible Bank in 2019
21 Century Business Herald
Best Bank for Green Energy Development
Global Finance
Best Green Financial Service Bank of the Year
Financial News
CIFC Annual Case Special AwardChina Financial Publishing House
the Annual Charity Case Awardgranted to the Growth of Sanitation Workers’ Children Program
Southern Weekly
Green Finance Star Bank Award Best Industry Model of ESG Responsible Investment
The Economic Observer
2019 Annual Workmanship Brand AwardAnnual Case Award granted to the Growth of Sanitation
Workers’ Children program
People.cn
Best Bank for Responsible Investment Best Asset Management Company for Responsible Investment
Sina Finance
Listed company: 2019 Golden Sail Award for the Best Corporate Governance
2019 Golden Sail Award for Leadership in Excellent Listed Companies
Guangdong Southern Media Corporation Limited
2019 Financial Brand for “Bene?ting the People”2019 Excellent Financial Service- Serving SOEs Contribution Award
Beijing Daily
The Annual Award for Best Innovative Finance Products
Shanghai Securities News
Best Socially Responsible Listed Company Award
China Securities Golden Bauhinia Award Organizing Committee
Best Case Award
International Roadshow Center, Excellent IR
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for All
A Sincere Hua Xia with
Quality Services
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for All
1415Hua Xia Bank Co., Limited
A Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
IndicatorUnit201720182019
Balance of green creditRMB 100 million532.48566.99798.44Loans to energy conservation and environmental protection projectsRMB 100 million446.46494.92668.16Number of ETC cards10 thousand237.48262.4312.75Number of ETC card users10 thousand145.29170.34227.07Total number of one-stop ETC service outlets/319382820Number of e-transactions10 thousand66,363.7296,584.10123,005.62Estimated carbon emissions reduction through e-transactions10 thousand ton132.73193.17246.01
IndicatorUnit201720182019
Total assetRMB 100 million25,089.2726,805.8030,207.89Operating revenueRMB 100 million663.84722.27847.34Total pro?tRMB 100 million262.53267.83275.63Net pro?tRMB 100 million199.33209.86221.15Total depositsRMB 100 million14,339.0714,924.9216,564.89Balance of loans to MSEsRMB 100 million3,142.73,573.263,963.87Growth of loans to MSEsRMB 100 million428.51430.56390.62Number of countries and regions with Hua Xia agencies/115103116Number of cities with Hua Xia agencies/384344380RMB cross-border settlementRMB 100 million440.9371442.4ROA%
0.820.810.78
Allowance-to-NPL ratio%
156.51158.59141.92
CAR%
12.3713.1913.89
Shareholder equityRMB 100 million1,694.982,187.152,693.37ROE%
13.5412.6710.61
Total loansRMB 100 million13,940.8216,135.1618,726.02Balance of loans in support of strategic emerging industriesRMB 100 million308.71300.04812.29Balance of loans in support of cultural industriesRMB 100 million199.11267.53464.99Share of loans in support of cultural industries in the total balance of loans%
1.491.742.62
CSR Performance
Social performance
Environmental performance
Economic performance
IndicatorUnit201720182019
Number of outlets/9681,0221,025Number of rural outlets/85102106Number of outlets in old revolutionary base areas, areas inhabited by ethnicminority groups, remote and border areas and poverty-stricken areas
/727981Number of community sub-branches/193192177Number of online corporate banking transactions10 thousand2,529.43,649.774,692.58Number of online personal banking transactions10 thousand4,071.044,538.943,682.81Complaints and problems solved through the joint handling mechanism of the95577 customer service center
/2,3781,8762,012Settlement rate of complaints lodged through 95577 customer service center%100.00100.00100.00Customer satisfaction rate for 95577 customer service center%99.2997.1199.5695577 call-backs/39,96169,41142,604Total number of employees/42,35840,99738,639Total number of employees from ethnic minority groups /1,8541,7501,683Share of female employees %50.3950.5551.46Number of employee training sessions/3,6753,8893,986Number of participants of employee training sessions/210,652224,911261,106Number of AML training sessions/2,9623,1453,046Number of participants of AML training sessions/34,94137,04649,855Number of legal training sessions/176186213Participants of legal training sessions/14,34016,31719,595Total charitable donationsRMB 10 thousand972.61,2341,825.6
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for All1617Hua Xia Bank Co., Limited
A Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
RMB3,043million ofgreen ?nance bondsRMB
million of greenasset-backed securitiesRMB
2,951million of greencredit bonds
TheHead O?ce
Branches
Sub-branches
The Head O?ce established the Green Finance Management Commit-tee to coordinate and manage green ?nance-related businesses andlead the whole bank in relevant aspects. It also established the GreenFinance Center to promote green ?nance business.Branches of the Bank set up green ?nance leading groups andprofessional teams headed by members of the top leadership of eachbranch to do relevant coordination work and promote the business.For sub-branches, dedicated green ?nance branches and marketingdepartments were set up with designated personnel responsible forgreen ?nance-related work in some regions.
an increase of RMB
23.145
billionor
40.82
% over the beginning ofthe year
this is equivalent to saving
1,130,900 tons of standard coalcutting CO
emissions by
2,714,200tonsand reducing water use by
5,714,200tons
Green Development
As green ?nance is one of its six strategic prior-ities, the Bank has constantly increased greenactions in its business processes by buildinga green ?nancial service system covering theentire industry chain through internal businessstructuring and product innovation e?orts. Bylaunching international partnerships, busi-ness training and key projects, we have beenpushing forward the pilot program for featuredgreen ?nance business operation and haveaccumulated replicable experience and widelyapplicable practices which can be helpful to thefull launch of the green ?nance business, open-ing up a path towards featured green ?nancedevelopment that meet the actual needs.Enhancing credit management
The Bank has successively formulated anumber of special green credit regulations,includingMeasures for the Management ofGreen Credit of Hua Xia BankandGuidingOpinions on Green Finance of Hua Xia Bank, tochannel more credit, investment, and ?nancialleasing resources to green ?nance; formeda green credit system covering managementregulations, business policies, green products,statistics rules, supporting IT systems, perfor-mance-based incentives, internal audit, anddedicated training programs.
Focusing on product innovation
Targeting the four areas of energy e?ciency?nancing, clean energy ?nancing, environmen-tal protection ?nancing, and green equipmentsupply chain, the Bank continued to improveits green ?nancial product portfolio and diversi-fy its green service solutions. We have createda product portfolio covering green credit,green leasing, green investment, and greendebt ?nancing tool underwriting. A series offeatured products covering the re?nancing ofinternational ?nancial organizations, collective?nancing of green projects, comprehensive ser-vices for the energy sector, photovoltaic loans,emission pledge ?nancing, carbon ?nancing,and energy performance contracting ?nancing,have been developed to provide di?erentiatedand diversi?ed green ?nancial services for thegreen development of the real economy.
the Bank’s balance of green investment wasRMB7,745 million, including:
the Bank’s balance of green creditreached RMB 79.844 billion
the balance of loans for energy conservation and environmental protection projectswas RMB
66.816
billion, a year-on-year increase of
%
RMB1,600million ofindustrial investment funds
the Bank supported
environmentalprotection projects
As of the end of 2019
As of the end of 2019
In 2019
Supporting procurement and operation of new energy busesIn 2019, the Bank put part of its wealth management fund into a special green assetsupport plan for Zhangzhou Changyun Group Co., Ltd.’s public transport operationbased on fare collection rights, RMB 27 million in total value. It was the ?rst green bondfund targeting non-?nancial institutions issued in Fujian Province. It was mainly used forthe construction of bus stations and the procurement and operation of new energy buses.Replacing traditional diesel-powered buses with electric ones can reduce noise, energyconsumption, air pollution, and greenhouse gas emissions in the city. Meanwhile, thebuses can be charged during non-peak hours of electricity consumption such as late in thenight, thereby improving the overall e?ciency of the power grid.
Supporting China’s largest non-interference geothermalheating project
In 2019, the Bank provided RMB 505 million of 12-year credit loan for a Shaanxi-basedenergy development company to build a medium-depth non-interference geothermalheating system. As the largest of its kind in China, the heating system can meet the energyneeds of Xi’an Jiaotong University’s 23 state-level laboratories, 25,000 researchers and10,000 faculty members. Compared with conventional heating, it cuts annual energyconsumption by 2,754.8 tons of standard coal, 36.01% of the total.
The Bank regards green ?nance as a major move to serve the green development of China and promote the high-quality development of itself. Whileactively encouraging innovations in business management and ?nancial service models, we also support green travel, green transactions and greenoperations, thereby contributing to green, low-carbon, and circular economic development.
Dedication to green ?nance
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for All1819Hua Xia Bank Co., Limited
A Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
introduced a total of USD
billion of foreigncapital through on-lending programs
Polishing our image throughgreen ?nance
The Bank had active exchanges and coopera-tion with the World Bank, the Asian Develop-ment Bank and other international institutionsin an e?ort to bring in low-cost internationalfunds and green ?nance experience, and tomake green ?nance a calling card, hallmarkand widely upheld philosophy of the Bank,polishing the green ?nance brand of “GreenGrowth for a Better Hua Xia”.
Undertaking the World Bank’s largest energy storage project worldwide
In 2019, the Bank cooperated with the World Bank for the world’s largest energy storageproject—China Renewable Energy and Battery Storage Promotion Project. This is thelargest single project of the World Bank in East Asia in the ?scal year 2019, and it is alsothe ?rst ?nancial product in China dedicated to energy storage projects. The total projectinvestment amounted to USD 750 million, of which USD 300 million was provided bythe World Bank, and the rest came from the Bank through an 18-year RMB-denominat-ed credit loan. The project funds large-scale energy storage systems, especially batterystorage systems, and supports innovative projects for the utilization of renewable energyto facilitate the development of China’s energy storage industry.
Steadily pressing ahead with the Innovative Financing Project for AirPollution Control in the Beijing-Tianjin-Hebei RegionThe Innovative Financing Project for Air Pollution Control in the Beijing-Tianjin-HebeiRegion is the largest pollution control project of the World Bank in China in terms of thecapital involved, and the Bank partnered with the World Bank for it. As of the end of 2019,27 sub-projects had been launched, with a total investment of EUR 184,373,200 andsupporting funds of RMB 2,911 million. The project achieved all its targeted results aheadof schedule and passed the World Bank’s mid-term review with a rating of “satisfacto-ry”. It has also made outstanding contributions to the improvement of air quality in theBeijing-Tianjin-Hebei region.
issued RMB 10.2billion of credit loans inhome and foreign currencies
saving
3.47
million tons of standard coal annually
cutting SO
emissions annually by28,300 tons
provided ?nancing services for
projectsin 17 provinces, municipalities and autono-mous regions across the country
cutting CO
emissions annually by
8.47
million tons
cutting NOx emissions annually by28,000tons
As of the end of 2019, the Bank had
Awards and Honors
Wind power project supported by the Bank
Photovoltaic project supported by the Bank
More informationScan the QR code toread more how the Banksupported Mizuda’senvironmental e?orts
In 2019, the Bank earned for itself a range ofhonors and awards with outstanding perfor-mance in supporting clean energy developmentthrough green ?nance. We won titles such asBest Green Finance Contribution Award from theChina Banking Association, Star Bank for GreenFinance fromThe Economic Observer, BestGreen Financial Service Bank of the Year of GoldMedal Award of Chinese Financial Institutions -The Golden Dragon Award from Financial News(for the third time in a row), and Best Bank forGreen Energy Development, a world-renownedaward presented byGlobal Finance.
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for All2021Hua Xia Bank Co., Limited
A Sincere Hua Xia withQuality Services2019 Social Responsibility Report
Services for green lifestyles
Devoted to integrating the concept of greendevelopment into the Bank’s daily operationsand management, we have taken a series ofpractical green o?ce measures to reduce ener-gy consumption and create a low-carbon andgreen working environment. No environmentallaw or regulation has a signi?cant in?uence onthe Bank due to the nature of its businesses.
Protecting the environmentThe Bank encouraged employees to participate in environmental protection activities, such as tree planting and low-carbon travel, and guides em-ployees to embrace energy-saving, low-carbon, green, responsible and healthy life and work styles starting from the little things, thus contributing toenvironmental protection and ecological progress.
Xiamen Branch’s public welfare long walk to promote low-carbon andenvironment-friendly lifestyles
Changzhou Branch’s tree planting trip themed “Embracing theBeautiful Spring and Spreading the Seeds of a Green Lifestyle”
Promoting green transactions
The Bank actively promoted the construction of channels for electronicand green transactions, streamlined e-banking procedures, and guided itscustomers to get used to mobile ?nancial transactions.the total number of e-transac-tions reached
1,230,056,200
cutting carbon emissions by2,460,100tonse-transactions accounted for
98.52
% of the totalup by264,215,200or
27.36
%year on year
As of the end of 2019
Fuel consumption of o?ce cars of the HeadO?ce（Liter）
51,534.4939,812.6330,149.86201820192017
Electricity consumption of the Head O?ce（kWh）
34,894,453.0
37,985,485.343,626,786.8201820192017
An online o?ce system was usedto avoid unnecessary resourceconsumption.
Centralized procurement was car-ried out to e?ectively reduce theconsumption of o?ce supplies.
Smart lighting systems were usedto reduce energy consumptionand carbon emissions of o?ces.
The Bank advocated water conser-vation by putting up signs remind-ing employees to turn o? the tapafter using and report all cases ofwater leakage from the tap.
Water conservationLower energy consumptionGreen procurementOnline o?ce
Water consumption of the Head O?ce（Ton）
42,073.841,410.640,809.6201820192017
Paper consumption of the Head O?ce（Millionpieces）
6.67
6.72
4.92
201820192017
Paperless businesses processing at the counterCentering on promoting the use of electronic vouchers, theBank advanced the restructuring of its over-the-counter busi-ness processes and o?ered vouchers, customer signatures andbank seals in electronic forms to reduce paper use. No paper isused throughout the business processes at the counter unlesscustomers require documents in printed forms. As of the end of2019, 75% of our outlets have realized paperless operations.
the Bank had
2,270,700contracted ETCservice usersan increase of567,300
over the end of theprevious year
As of the end of 2019
an increase of503,500or
19.19
% over the beginning ofthe year
the Bank issued a totalof3,127,500 ETC cards
On July 24, 2019, the Bank and the Highway Monitoring &Response Center of the Ministry of Transport signed a memoran-dum for ETC business cooperation to support the building of anETC card issuance platform. On August 8, 2019, the ETC businessjointly provided by the two parties was o?cially launched andthe Bank became the ?rst joint-stock commercial bank to launchsuch business.
In 2019, the Bank launched Hua Xia virtual ETC card for car own-ers who would like to use ETC service. Without a physical card,an application for such a card can be approved in real-time andissued very soon. Simpli?ed application procedures pushed upservice e?ciency. The whole process from application, agree-ment signing, card issuance and connection with a Hua Xia cred-it card can be completed within 30 minutes. Besides, all users ofthis card are exempted from annual fees and loss reporting feesfor their credit cards and can enjoy a 5% discount on their tollpayment. New customers can also get an ETC e-tag for free andenjoy other bene?ts.
Launching ETC cooperation with theHighway Monitoring & Response Center ofthe Ministry of Transport
Hua Xia ETC cards promoting green travel
Compared with manual toll collection, for an ordinary light vehicle,ETC reduces NOx emissions by 16.4%, CFCs by 71.2%, CO by 71.3% andCO
by 48.9%.
Supporting green travel
The Bank actively cooperated with expressway management companiesand enterprises in the automotive service industry to promote ETC ser-vices which o?ered both economic gains and convenience to users, andencourage more people to travel in environment-friendly ways.
Green operationsGreen o?ce
?Nearly RMB
billion of ?nancingservices granted to key projects for the co-ordinated development of the Beijing-Tian-jin-Hebei region
?Balance of loans in support of strategicemerging industries:
?RMB
81.229
billion?Fund for targeted poverty alleviation:
?RMB4,309,677,100
? (including credit funds and donations)
?Balance of loans to MSEs:
?RMB
396.387
billion
ractices
| In 2019As of the end of 2019A Dedicated Hua Xia |
with Craftsmanship
Empowering poverty alleviation with a positive mindset
Spotlight
In line with the requirements set in the poverty alleviation plan for the 13th Five-Year Plan period(2016–2020) released by the State Council, the Bank focused on key provinces and autonomous regionsin Beijing’s poverty alleviation strategy, such as Inner Mongolia, Hebei, Tibet, Xinjiang, and Qinghai, todevelop its credit policies and launch integrated ?nancial products and services, so as to provide ?nan-cial support for the country’s ?ght against poverty.The Bank’s Party Committee took the lead in making donations and called upon all employees of theBank join the Social Participation in Poverty Alleviation and Development of China program. By the endof 2019, nearly 30,000 employees had followed the WeChat o?cial account of the program, and donat-ed RMB 1.5 million.
Providing Financial Support
? The Bank has always taken poverty alleviation as a major political task, and strove to strengthen
top-level design for poverty alleviation through ?nance, and formulatedHua Xia Bank Poverty Allevia-tion Implementation Plan and Work Plan 2019 in accordance with actual conditions.
Good mechanisms maintain focus on poverty alleviation and facilitate progress
Industrial development ensures e?ectiveness of poverty alleviation
? Coordination mechanism: The Bank established a leading group for poverty alleviation through?nance to make plans for and promote poverty alleviation tasks in a coordinated way, and to set clearrequirements, priorities and steps for targeted poverty alleviation.? Collaboration mechanism: In line with the poverty alleviation policies of the state and regulatoryauthorities, the Bank divided relevant tasks between various departments and ensure connection andcollaboration so that they could work in synergy.? Cooperation mechanism: The Bank brought in government risk compensation funds, ?scal funds foremergency mutual aids, and policy-based guarantee companies to combine the overall planning of?nancial poverty alleviation with the actual situation of poverty-stricken villages.? Support mechanism: The Bank incorporated poverty alleviation into the Party building evaluation sys-tem and set political discipline as the most important and fundamental discipline in targeted povertyalleviation, so as to achieve transparent and clean poverty alleviation.? Industrial development projects for poverty alleviation: Hohhot Branch introduced the industrializedmeat sheep breeding demonstration project of Inner Mongolia Little Lamb Husbandry Company to ArHorqin Banner according to local conditions.? Microcredit programs for poverty alleviation: The Bank increased support for registered poor house-holds, targeted micro loans precisely at projects that help poor households develop production orat featured and advantaged industries that can e?ectively lift poor households out of poverty. It tookoverall credit conditions and capacity to repay the loans as the main criteria for granting micro loansand took a prudent approach towards the renewal of loans without repayment of principal.
In 2019, the Bankprovided RMB 4,309,677,100for targetedpoverty alleviation (including credits and dona-tions)provided ?nancial services to a total of54,769 registered low-income peoplegranted loans totaling RMB2,876,014,800
to support 57 projects of industrial develop-ment for poverty alleviationprovided RMB366,355,000of personalloansissued credit card with a total credit line of RMB134,952,300
Spotlight: Providing Financial Support for the Fight Against Poverty
Public welfare programs keep people motivated and educated
Accurate statistics support poverty alleviation evaluation
? Donations to help people build con?dence in poverty alleviation: Hohhot Branch provided RMB
100,000 for ?ve “love supermarkets” located in Baolige Village, Bayanhua Town, and Nantuguri Geg-acha, Balaqirude Sumu in Ar Horqin Banner, and other places and established a point-based rewardsystem to bene?t the local poor population.? Poverty alleviation through education: the Bank provided RMB 3.5 million for the improvement ofeducation infrastructure in Hotan, Xinjiang, supported the children of migrant workers in DandelionMiddle School in Daxing District, Beijing, through the China Foundation for Development of FinancialEducation, and made more donations to left-behind children in poverty-stricken areas.? A precise statistics system for targeted poverty alleviation: Through the establishment of a complete andclear statistics system, the Bank designated responsible entities for industrial development, employment,consumption, and public welfare activities for poverty alleviation, and they kept records of the number ofpoor people assisted by loan borrowers (including employment), and ?led the recruitment of people fromimpoverished backgrounds and the number of people lifted out of poverty by poverty alleviation e?ortsthrough public welfare initiatives and consumption, in order to guarantee the targeted ?nancial services.? Poverty alleviation loan supervision and monitoring: The Bank strengthened the monitoring and analysisof credit granting and loan repayment to prevent excessive ?nancing in the name of poverty alleviation.
As of the end of 2019the balance of loans to regions that partneredwith Beijing for poverty alleviation reachedRMB4,118 millionan increase of RMB
1,451million from thebeginning of the yearcreated9,230 jobs for the local areaup
from the beginning of the yearhelped secure jobs for 944 registeredlow-income people in ?ve relevant provincesand autonomous regions
? Pairing up with poor households: The Bank dispatched 20 outstanding o?cials to work as ?rst
secretary of villagers’ committees in 14 poor villages and underdeveloped villages in 11 provinces,municipalities and autonomous regions and they played important roles in strengthening village Partyorganizations, promoting income growth, serving the people, and improving local governance.? Poverty alleviation in partner village assigned by Beijing municipal authorities: The Bank earnestly
implemented the policy of the State-owned Assets Supervision and Administration Commission ofPeople’s Government of Beijing Municipality on pairing up each enterprise with one village for pov-erty alleviation, and signed assistance agreement with Xinwangzhuang Village, Xitiangezhuang Town,Miyun District. Following the logic of “funds for industrial development, industrial development foremployment, and employment for more income”, the Bank helped all local low-income householdsout of poverty.
? Advanced technology to overcome di?culties in providing ?nancial services: The Bank launched
e-commerce credit, an online credit product, to solve problems such as delayed acquisition of marketinformation and low distribution e?ciency in the operation of agri-businesses.
? The Best Contribution Award for Targeted Poverty Alleviation at the Award Ceremony for Top 100 Performers of Social Responsibility held by China
Banking Association.? Fixed-pointed poverty alleviation e?ort carried out by Urumqi Branch was rated “Good” in the assessment by the Leading Group for Poverty Allevia-tion and Development of the Xinjiang Uygur Autonomous Region.
? Shijiazhuang Branch’s village-based poverty alleviation team was rated “Excellent” by the Organization Department of the Hebei Provincial Com-
mittee of the CPC; Song Xiyuan won the title of Excellent First Secretary of the village-based poverty alleviation team, and Gao Wenfeng was selected
as Excellent Member of the team.? Zhao Yongjun, an employee of Haikou Branch, was presented with the 2019 Excellent Individual for Poverty Alleviation from Hainan Financial
Sector by the Hainan Provincial O?ce of Poverty Alleviation and the Hainan Provincial Financial Supervision and Administration Bureau.? Chengdu Branch was presented with the award of Ten Best Branches in Targeted Poverty Alleviation by Modern Bankers in 2019.
Social Responsibility Report 2019Hua Xia Bank Co., Limited
for the Fight Against Poverty
Poverty alleviation through industrial development: Truly enabling people to bail themselvesout of poverty
? Urumqi Branch assisted in initiating the establishment of the “Huaxia Farmer Agricultural Cooperative
in Arele, Hotan City”, using its own advantages to help villagers increase their income. 18 poor villagershave bought shares with small loans in the cooperative, totaling RMB 680,000.
? Lanzhou Branch reached out to cooperatives to help local farmers in Dingxi, Gansu Province, grow
potatoes. At the same time, it also reached out to a local leading company in deep processing ofagricultural products for the purchase of potatoes from poor households at prices higher than themarket level. This formed a new model of ?nancial poverty alleviation featuring “government + bank+ enterprise + cooperatives + farmers” which ensured the supply of raw materials for the purchasingenterprise, protected the interests of local poor households and cooperatives, and promoted industri-al development, corporate operation e?ciency, and farmers’ income.
Poverty alleviation through ecological development: Turning lucid waters and lush mountainsinto invaluable assets? Haikou Branch adopted the “company + cooperative + poor households” model based on coopera-
tion with relevant companies to build a 498.75-kilowatt distributed photovoltaic power station in PuzaiVillage. Once the project is completed and connected to the power grid, it will bring more than RMB4,000 for each poor household in the village every year.
Lanzhou Branch donated tractors to DingxiPoverty Alleviation O?ce
Residents of Yunan Village preparing applespurchased by Xi’an Branch
The Bank was presented with The Best Contribution Award for Targeted Poverty Alleviation by China Banking Association
The Bank donated RMB 3.5 million to Hotan City for the expansion of ArelePrimary School
The village work team of Urumqi Branch donated clothing to local resi-dents to bring them love and warmth
Poverty alleviation through education: Securing a good starting line for poverty-strickenchildren? Xi’an Branch bought 15 computers and ?ve 60-inch ?at-screen TVs for Donggou Elementary School
and helped install these devices to ensure that the students can enjoy multimedia education as soonas possible.? Xining Branch donated RMB 100,000 to Shangbatang Village, Yushu Prefecture, which was mainlyused to purchase ?ve tons of coal for heating at the village elementary school, 146 pieces of winterclothing for students and teachers, 136 sets of school bags and school supplies, school canteensupplies and some items of basic living needs for some poor families in the village.
Poverty alleviation through consumption: Engaging more people in poverty alleviationthrough purchases instead of donations? Taiyuan Branch purchased RMB 15,000 worth of agricultural products from the village which was
paired up with for poverty alleviation and donated them to sanitation workers of Taiyuan, and villagepoverty alleviation team members dispatched by the branch helped local poor households sell RMB31,700 of millet, eggs and corn grits.? On the National Poverty Relief Day, employees from Shijiazhuang Branch, visited Jinpo Village, An-gezhuang Township, Yi County to purchase homegrown agricultural products such as peanuts, sweetpotatoes, persimmons and eggs, helping villagers create wealth for themselves through labor.The “love supermarket” of Taiyuan Bank opened
A modern chicken farm built in a ?xed-pointpoverty alleviation village with the support fromHaikou Branch
Spotlight: Providing Financial Support for the Fight Against PovertySocial Responsibility Report 2019Hua Xia Bank Co., Limited
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Supporting for the Coordinated Developmentof the Beijing-Tianjin-Hebei RegionPositioned as the bank for Beijing, the Bank contributed to Beijing’s e?orts to build itself into the political center, cultural center, international commu-nication center, and technology innovation center of China, supported the construction of the city’s sub-center and the Xiongan New Area, and helpedwith the relocation of Beijing’s non-capital functions, thus promoting the coordinated development of the Beijing-Tianjin-Hebei region.
Guided by Beijing’s development blueprint,the Bank continued to enhance the ?nancingsupport for the capital’s economic develop-ment and in?uence in technological innovationand cultural spheres. Through such e?orts, wecontributed to the economic transformationand development of the capital.
Centering on the innovation-driven development strategy, the Bank leveraged on its advantages in FinTech and Internet Plus initiatives, established ded-icated organizations to provide services for technology-centered enterprises. Its Zhongguancun Management Department supported the developmentof relevant technology companies intending to help create new FinTech business forms at Zhongguancun National Innovation Demonstration Park.In 2019, together with guarantee institutions, venture capital institutions, and innovation incubators active in the Zhongguancun area, the Banklaunched special products such as the easy loan for start-ups, easy loan for high-tech companies, intellectual property loan, and investment linkage loan.The products provided ?nancial support for several original innovations with great in?uence in areas such as integrated circuits, new energy, biomedi-cine, advanced manufacturing, and helped cultivate a batch of innovative enterprises with great potential and industry-leading enterprises.
Focusing on the construc-tion of the capital city
the bank provided RMB
229.56
billion of loans for the Beijing area
the Bank’s ?nancing services covered
84.91
% of SOEs at the municipal and district levels inBeijing
and issued a total of RMB8,776 million of loans
the balance of credit loans for such companies was RMB10,783
million
including RMB30,305million for high-tech enterprises, RMB21,742million for culturaland creative enterprises, and RMB24,836 million for MSEs
the Bank provided ?nancing services for
technology companiesin Beijing
the Bank provided ?nancing services for
cultural and creativecompanies in Beijing
In 2019
As of the end of 2019
Supporting technological innovation
As of the end of 2019
Contributing to cultural prosperityFocusing on building Beijing into the cultural center of China, the Bankestablished the Center of Cultural and Creative Industries and the BeijingCultural and Creative Industries Management Department under its HeadO?ce to speed up the development of related mechanisms and promoteproduct innovation. By actively responding to the ?nancial needs ofcultural and creative companies, we contributed to the cultural prosperityand development in the capital city.
Helping polish time-honored brands to carry forward and develop traditional Chinese culture
The Bank launched its Time-Honored BrandAction Plan focusing on seven market seg-ments including renowned catering brands,traditional food, health care, traditional folkcostumes, cultural heritage, publishing andmedia, and craftsmanship. The Bank carriedout all-round cooperation with Tong Ren Tang,Gongmei Cloisonne, Donglaishun, Red Star,Arctic Ocean, Wangzhihe, Wuyutai, and manyother time-honored brands to facilitate innova-tion-driven development of China’s outstand-ing traditional culture. As of the end of 2019,the Bank had established partnerships with 31time-honored brands in Beijing and deliveredall-round customized ?nancial service packag-es for 12 of them as the ?rst batch.
More comprehensive services as a way to shoulder responsibilities
The Bank carried out joint Party building, public welfare and brand building activitieswith time-honored brands, provided consulting services with its rich resources and infor-mation, and cooperated with high-quality brands within the industry to build resourcesharing platforms.
All-round customized ?nancial service packages for each brandBased on the characteristics of each brand, the Bank customized all-round ?nancialservice packages and extended its services to the upstream and downstream sections ofthe relevant industry chain.
Policy support for the Time-Honored Brand Action Plan
The Bank developed preferential policies for these time-honored brands, o?ering themloans with longer periods, more suitable repayment methods and preferential prices.Besides, green channels were opened for them to expedite loan approval.
The Bank signed theStrategic Cooperation Agreement on Promoting the Time-Honored Brand of Beijing with Tong Ren Tang, Gongmei Cloisonne, Bei-jing Fashion and Xianglong Group
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Signing strategic cooperation agreements with enterprises to contribute to the economic development ofthe capital cityOn March 29, 2019, the Bank signed strategic partnership agreements with nine key enterprises under the administration of Beijing’s munic-ipal government, including the State-owned Capital Operation and Management Center of Beijing, Beijing Infrastructure Investment Co., Ltd.,Beijing Investment Group Co., Ltd., Beijing Huanwei, Beijing Capital Agribusiness & Food Group, Beijing Capital Highway Development GroupCo., Ltd., Beijing Municipal Road & Bridge Group Co., Ltd. (BMRB), Beijing Uni.-Construction Group Co., Ltd, and Beijing Orient Electronics GroupCo., Ltd. (BOE) under Beijing Electronic Holding Co., Ltd. Based on these agreements, the Bank provided quality ?nancial services for key pro-jects, enterprises, ?elds, and areas in the capital.
“The strategic partnership between Hua Xia Bank and nine municipal enterprises of Beijing is a major move that will promote the integrateddevelopment of municipal ?nancial institutions and municipal enterprises, give full play to the leading role of state-owned capital and enter-prises in Beijing’s economic development, and lend momentum to the construction of the capital city and the coordinated development ofthe Beijing-Tianjin-Hebei region.”
Zhang Guilin, Party Secretary and Director of the State-owned Assets Supervision andAdministration Commission of People’s Government of Beijing Municipality
Supporting a series of winter sporting events
In 2019, the Bank became one of the diamond partners of Experience Beijing – a series of winter sporting events, making its contribution to thehigh-quality development of the sports and cultural industry in Beijing. In the future, the Bank will continue to provide all-round and high-qual-ity ?nancial services for the development and promotion of ice and snow sports in China.
Promoting economic development
The Bank deepened its strategic cooperation with the authorities ofvarious districts and counties, as well as many state-owned enterprisesin Beijing. By proactively learning about and identifying their speci?c?nancial needs, we established a service platform featuring connectionand coordination between the Head O?ce, branches and sub-branchesto better work with key enterprises and promote the rapid and steadyeconomic development of Beijing. Such partnerships formed a synergywith the headquarters economy in Beijing, bringing bene?ts for all partiesinvolved.In 2019, the Bank formulated thePlan of Hua Xia Bank for Delivering GoodFinancial Services for the Economic Development of the Capital to Havea Good Start. According to the plan, the Bank strengthened services fordistrict-level state-owned assets management centers, ?nancial a?airso?ces, and platform companies. More ?nancial support was o?ered tokey areas such as Daxing, Chaoyang and Haidian districts and major localcompanies such as BAIC Group, Beijing Investment Group Co., Ltd., State-owned Capital Operation and Management Center of Beijing, BeijingCapital Highway Development Group Co., Ltd., and BBMG Corporation Ltd.
provided RMB
34.3
billion of credit loans tothe headquarters and subsidiaries of munici-pal enterprises
supported
mu-nicipal key creditprojects with overRMB
billion offunds
In 2019, the BankThe Bank o?ered strong support to the construction of Beijing’s sub-center and Xiongan New Area as the two wings for Beijing’s overall development. Thishelps with the relocation of the non-capital functions of Beijing and contributes to the coordinated development of the Beijing-Tianjin-Hebei region.Support for the balanced development of Beijing’s sub-center and Xiongan New Area
Supporting the construction ofthe sub-center of Beijing
The Bank made active e?orts to channelhigh-quality ?nancial resources to the sub-centerof Beijing. In line with the development plan forthe new urban area in Tongzhou District, the Bankapproved and granted loans to more constructionprojects in Tongzhou, e?ectively facilitating theorderly relocation of the non-capital functions ofBeijing.
Establishing more outlets
Enhancing cooperation with platform enterprisesThe Bank set up three sub-branches and outletsand put in place more than 40 smart countersand other self-service machines. The Bank hasalso received approval for opening its TongzhouBranch from Beijing Bureau of China Bankingand Insurance Regulatory Commission, and thebranch will be the second Tier-1 branch in thesub-center once it opens its door.
The Bank granted nearly RMB 10 billion in credit to
Beijing Investment Group Co., Ltd. to support the
construction of 52 infrastructure projects related to
the construction of the Tongzhou New Town and
the demolition and reconstruction work of Taihu
Town and its surrounding areas.Providing support for relocationAllocating more resources
The Bank took an active part in supporting therelocation of municipal authorities and public in-stitutions to the sub-center and launched special?nancial products including Hua Xia Elite Loan,Hua Xia Express Card, and Global Elite CreditCard for the more than 50,000 employees of 118organizations directly a?liated to the municipalgovernment.
Since 2015, the Bank has provided more than
RMB 37.3 billion of credit and ?nancing for the
development of Tongzhou District, which was used
to support key projects of the district, including
the demolition and reconstruction of the cultural
tourism zone, Tongzhou Yunduan Industrial Park,
Universal Studios Beijing, and shanty town recon-
struction project in Lucheng Town.
signed strategic cooperation agreementswith
municipal enterprises, 2 govern-ment departments, and
private enterprise
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
To be a major ?nancial service provider for the Beijing-Tianjin-Hebei region, the Bank set up a dedicated working group for the coordinated develop-ment of the Beijing-Tianjin-Hebei region, which was headed by the President. The goal is to build a dedicated ?nancial service platform for the region byestablishing relevant systems, mechanisms and launching relevant businesses and products. By doing so, the Bank will contribute to the coordinateddevelopment of the Beijing-Tianjin-Hebei region with its advantages in ?nancial innovation.In 2019, focusing on transportation integration, ecological environment protection, industrial transfer, and upgrading and other key ?elds, the Bankprovided strong support for projects such as the Daxing Airport Express, the city sub-center museum, the Tongzhou organic matter resource ecologicaltreatment station, the infrastructure project of Caofeidian Coordinated Development Demonstration Zone, Baiyangdian water pollution control andblockchain fund management platform. With approval received successively for its Tongzhou Branch and Xiongan Branch, the Bank basically formed anoutlet network covering all key areas for the coordinated development of the Beijing-Tianjin-Hebei region.
Contribution to the coordinated development of the Beijing-Tianjin-Hebei region
provided nearly RMB
billion of ?nancing services for key projects re-lated to the coordinated development of the Beijing-Tianjin-Hebei region
had a total of
outlets in the Beijing-Tianjin-Hebei regionIn 2019, the Bank
Supporting the construction ofXiongan New Area
Based on the needs of Xiongan New Area, theBank developed special preferential policies,and set high targets for the development anddelivery of products and services, as well as forrelevant innovation e?orts and work e?ciency,making its contribution to the construction ofXiongan New Area. In 2019, the Bank receivedapproval to start preparation for XionganBranch.
Becoming the ?rst to join a blockchain project management platformof Xiongan New Area
Supporting the construction of Daxing Airport ExpressThe Bank is the ?rst national joint-stock bank to join the blockchain project managementplatform of Xiongan New Area. The Bank moved its cash management products into theplatform to provide transfer and payment, review and authorization and ?nancing serviceson it. This enabled authorities of Xiongan New Area to manage contracts and contract ful-?llment, allocate fund and monitor fund use for various construction projects. It has served21 enterprises, including China Xiongan Group Co., Ltd., and projects involved included theMillennium Forest project, Tanghe Sewage Reservoir project, and other key projects in thearea.
In 2019, Beijing Daxing International Airport was put into use, which further improved the
transportation system of the Beijing-Tianjin-Hebei region. Beijing Branch actively support-
ed the construction of the Daxing Airport Express, which was key to a modern rapid transit
system and helped transform how people travel in the local area. Beijing Branch had grant-
ed a total of RMB 565 million of credit loans to the project.
the Bank had issued a total of2,139,600cards themed on the coordi-nated development of the Beijing-Tianjin-Hebei regionan increase of369,300or
20.86
% from the end of theprevious year
As of the end of 2019Supporting the integration of public services inthe Beijing-Tianjin-Hebei regionTo build a ?nancial service circle for the greater Beijing area, the Bank haslaunched special products, including Hua Xia Elite Loan, Fund Loan, andForeclosure Loan to meet the ?nancial needs of residents in Beijing, Tian-jin and Hebei in consumption, travel, relocation, decoration, and so on.The Bank issued the ?rst debit card in the banking industry with the co-ordinated development of the Beijing-Tianjin-Hebei region as the theme,which provides a signi?cant platform for the Bank to serve customers,develop businesses, and increase market share in the region, thus drivingthe development of public services.
Supporting transportation inte-gration in the Beijing-Tianjin-Hebei region
In light of the transportation developmentplan for the Beijing-Tianjin-Hebei region, whichfeatures four vertical lines, four horizontal lines,and a loop line, the Bank increased support forprojects critical to transportation integrationin the Beijing-Tianjin-Hebei region, includingrail transit, highway, port and transportationhub projects, based on considerations of botheconomic and social bene?ts, promoting con-venient inter-city connections in the region.
Launching strategic cooperation with Zhangjiakou for green and innovation-driven development
To promote the construction of Zhangjiakou as the water source conservation area and the ecological bu?er zone of Beijing, the Bank signeda strategic cooperation agreement with the municipal government of Zhangjiakou to pursue innovation in green ?nance and promote thedevelopment of green industries in the city. By the end of 2019, through the Innovative Financing for Air Pollution Control in Beijing-Tianjin-He-bei Program and other green ?nancial products, the Bank had provided a total of RMB 520 million of green ?nancial products for Zhangjiakou,e?ectively promoting green, low-carbon and environment-friendly development of the city.
Supporting ecological environ-ment governance in theBeijing-Tianjin-Hebei regionThe Bank continued to enhance cooperationwith international ?nancial organizations suchas the World Bank to provide ?nancial supportfor key projects related to air pollution control,water pollution control, and clean energy de-velopment, as well as energy conservation andenvironmental protection enterprises. In 2019,the Bank funded the distributed photovoltaicpower generation projects at Qinghe wastewa-ter treatment plant, Huanghua Huanan windfarm, and some other high-quality energy-sav-ing, environmental protection and cleanenergy projects.
the Bank provided nearly RMB
billion ofloans to green development projects in theBeijing-Tianjin-Hebei regionAs of the end of 2019In 2019the Beijing-Tianjin-Hebei region joinedhands with the World Bank for the InnovativeFinancing for Air Pollution Control in Beijing-Tianjin-Hebei Program, under which
sub-projects were already launched
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Serving the Real Economy
Continuing to give priority to serving the real economy, the Bank actively aligned its businesses to national development strategies and regional devel-opment plans, promoted the transformation and upgrading of the industrial structure, fully supported the improvement of people’s living standardsand well-being, and provided e?cient, convenient and all-round ?nancial services to support China’s opening up.
Based on its expertise, the Bank launched credit, investment, and ?nancing policies to fully align its businesses to major national strategies for regionaldevelopment.
Supporting national regional development strategy
Boosting the development ofthe Yangtze River Economic BeltPaying close attention to the developmentof the Yangtze River Economic Belt, the Bankprovided continuous and high-quality ?nancialservices for related infrastructure constructionprojects, industrial transformation and upgrad-ing e?orts and new urbanization initiatives,making its contribution to the development ofYangtze River Economic Belt.
Supporting the development ofthe Guangdong- Hong Kong-Ma-cao Greater Bay AreaThe Bank improved its organizational structureand mechanism to better support the con-struction of the Guangdong-Hong Kong-Ma-cao Greater Bay Area and helped accelerateintegrated development.
Infusing vitality to the development of the Guangdong-HongKong-Macao Greater Bay AreaGuangzhou Branch joined hands with various parties in society to create a livable, busi-ness-friendly and tourist-friendly life circle and world-class city cluster in the Greater BayArea.
Supporting the development ofFree Trade ZonesThe Bank made strategic attempts at ?nancialservices free trade zones (FTZs). By continuous-ly improving its service models and mecha-nisms, the Bank infused lasting vitality to the?nancial reform of FTZs.
The Bank actively promoted theestablishment of various organiza-tions in FTZs, with 17 branches settingup 30 organizations as of the end of2019.
The Bank built professional teams andestablished a dedicated expert panelto vigorously promote steady businessdevelopment in FTZs.
Based on the “commercial banking+ investment banking” service mod-el, the Bank continuously pushedup the share of FTZ customers in itscustomer base and the proportionof capital ?nancial services in allserivces. It built its own character-istics,and delivered di?erentiatedservices in FTZs.
The Bank continued to improve theworking mechanism for its organ-izations within FTZs and establishsound communication mechanismsfor them. It collected information onregulatory policies, the latest trendsin the industry, and product innova-tions monthly, shared the informationamong institutions within FTZs, andfacilitated mutual learning.
Supporting the development of the Yangtze River Economic Belt
Boosting the development of Ganjiang New Area
Establishing Hong Kong Branch to provide ?nancial services for thedevelopment of the Guangdong- Hong Kong-Macao Greater Bay Area
In strict accordance with the Yangtze River Golden Channel Development Plan, HefeiBranch strengthened support for industrial transformation and upgrading initiatives, aswell as enterprises and projects engaged in environmental protection and innovation. TheBranch worked to play its part in meeting the ?nancial needs of the integrated multidi-mensional transportation corridor along the Yangtze River Economic Belt and selectedand supported outstanding projects related to regional industrial upgrading and transfer.Starting from demonstration zones for industrial relocation, such as Wanjiang EconomicZone, Anhui, Hefei Branch provided ?nancial services for promising transferred companiesand projects that met the requirements set in its credit, investment and ?nancing policies,and thus o?ered strong support for the development of the Yangtze River Economic Belt.As of the end of 2019, Hefei Branch’s balance of loans in support of the development ofthe Yangtze River Economic Belt was RMB 19,978 million, and a total of 476 customers hadbene?ted from these loans.
As a state-level new area, Ganjiang New Area is of great signi?cance to the economic devel-opment of the Yangtze River Economic Belt, the rise of central China, and the developmentand opening-up of inland areas of China. Nanchang Branch established the Ganjiang NewArea Sub-Branch to provide high-quality ?nancial services for local economic devel-opment. By the end of 2019, a total of RMB 1,645 million of loans had been provided toenterprises in the Ganjiang New Area.
On September 26, 2019, the Bank’s Hong Kong Branch Preparation Team received abanking license from the Hong Kong Monetary Authority and the Hong Kong Branch waso?cially established. In the future, it will actively respond to national strategies, continueto provide modern ?nancial services with the characteristics of Hua Xia Bank to supportthe construction of the Guangdong-Hong Kong-Macao Greater Bay Area.
It provided low-cost ?nancing servicesfor key local construction projects inthe forms of project loans, syndicated
loans, funds, etc.
It paid attention to urban renewalprojects and provided high-qualityfinancial services for real estate com-panies for the renovation of old towns,factories, and villages.It launched featured consumer ?nan-cial products and provided special ser-vices for retail customers in the Greater
Bay Area.
Based on the rapid transport networkconsisted of high-speed railways, in-ter-city rails, and high-grade highways,it launched ETC services for Class-II ac-counts to contribute to the connectivityof the Greater Bay Area.
Developing the blockchain technology to serve the construction of Tianjin Free Trade ZoneThrough cooperation with the ?rst blockchain cross-border trading platform of China, i.e. the TCB Trade Express Platform jointly built by TianjinCustoms and Tianjin Bureau of Commerce, Tianjin Branch provided customized ?nancial products for the sound development of cross-bordertrade enterprises in Tianjin. As of the end of 2019, Tianjin Branch, with the help of the blockchain technology, realized cross-validation of dataon cargo ?ow . The Branch completed cross-border payments totaling USD 5.5 million. The platform enabled whole-process cargo monitoringand exchange of data on cross-border capital transactions and contributed to a close-loop business ecology that improved itself constantly.
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Supporting China United Cement Corporation’s transformation and upgrading
Guided by relevant industrial policies and thedistribution of various industries, the Bankstepped up its support for the creation neweconomic drivers, helped with strict controlover and the elimination of backward produc-tion capacities, and promoted the mutuallybene?cial and integrated development of the?nancial industry and traditional industries,thus facilitating the transformation and upgrad-ing of traditional industries.
Supporting the transformationof traditional industries
Boosting the transformation and development of the blue economyShandong Jiejing Group Corporation is the oldest company in the integrated algae prod-ucts processing business in China and a leader in the industry. In recent years, QingdaoBranch has actively provided credit support to this company to help it transform from atraditional production and processing enterprise to a new enterprise featuring high-calibertalents, advanced technologies and excellent products, contributing to the high-qualitydevelopment of the blue economy.
In 2019, the Bank issued RMB 40 billion of perpetual bonds to add to its Tier-1 capital, further en-hancing its ability and potential to enhance supply-side structural reforms of the ?nancial sector.In line with national policies on industrial up-grading, the Bank used ?nancial instruments toguide and support the transformation of tradi-tional industries, the development of strategicemerging industries, and the modernization ofagriculture. Through such e?orts, the Bank con-tributed to the shift towards more sustainableeconomic growth.
Promoting industrialtransformation andupgrading
Supporting strategic emergingindustriesThe Bank actively responds to national strat-egies for supporting the development of stra-tegic emerging industries, and has increased?nancial support for key industries and areas.By the end of 2019, the balance of loans for sup-porting strategic emerging industries was RMB
81.229 billion.
Supporting the development of China’s manufacturing industry
Providing better targeted, stronger, and more reliable ?nancial services for agricultural projects
According to theMade in China 2025 Implementation Plan of Shaoxingand the characteristics of the advanced equipment manufacturingindustry in Shaoxing, Shaoxing Branch provided ?nancial services mainly for key leading enterprises supported by the municipal government,listed companies and their core subsidiaries, companies about to go public, or equipment manufacturing companies with advanced technolo-gies, clear competitive edges, and good business performance. In the ?rst half of 2019, the branch extended a total of RMB 940 million of creditto 10 equipment manufacturing companies.
Kulongtai Vegetable Wholesale Market in Beizhen City, Liaoning Province, is one of the ?rst leading enterprises of China for agricultural indus-trialization, a state-level central wholesale market, and a key part under the Non-Staple Food Project in Jinzhou City. To help the market solve
Supporting the modern agricultureThrough di?erentiated credit management, ?nancial product innovation, service model innovation and other approaches, the Bank promoted thehealthy development of agriculture-related enterprises and the supply-side structural reform of agriculture sector.
A customer manager of Shaoxing Branch visited the construction site of Shaoxing Metro to seewhat the customer needed
a series of problems, including di?culties in collecting receivables, completingsettlements, making payments, and conducting reconciliation, Shenyang Branchcarried out in-depth cooperation with the market on fund settlement, digital?nancial platform building, and innovation in agriculture-related ?nancial prod-ucts. Speci?cally, it helped the market launch an account system that combineddedicated deposit accounts and internal bookkeeping, and realized multiplefunctions such as the deposit and management of funds, fund ?ow monitoring,payment, internal bookkeeping and interest calculation. Since the launch of thesystem in August 2019, 140,000 transactions had been completed through thesystem, involving a total value of RMB 300 million. The branch’s excellent perfor-mance was highly praised by related enterprises.
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Working with Shenzhen High-tech Investment to promote the implementation of the “Four Hundred Billion” plan
To o?er more support to the implemen-tation of the “Four Hundred Billion”plan of Shenzhen to promote the healthydevelopment of the private sector, onJuly 17, 2019, Shenzhen Branch signedtheStrategic Cooperation Agreement onFinancing Support for Private Enterpris-es in Shenzhen with Shenzhen High-tech Investment & Guaranty Co., Ltd.(Shenzhen High-tech Investment), andintroduced more powerful, targeted, andpractical measures to fuel the develop-ment of the private sector of Shenzhen.Shenzhen Branch cooperated withShenzhen High-tech Investment toprovide subsidy loans and govern-ment procurement loans for 300 pri-vate enterprises that have receivedgovernment tax cuts, and providedthem with relevant fee reductions.
Shenzhen Branchprovided no less thanRMB 30 billion of specialcredit loans to privateenterprises in Shenzhen.
By increasing the credit line for Shen-zhen High-tech Investment, ShenzhenBranch issued no less than RMB 30billion to support private enterprises inShenzhen to issue bonds. By applyingproducts in the underwriting pool of theHead O?ce, Shenzhen branch providedhigh-quality private enterprises with full-amount bond underwriting services.
Through in-depth cooperation inthe ?elds of cloud computing, bigdata, and arti?cial intelligence,Shenzhen Branch provided30,000 MSE owners in Shenzhenwith a total of RMB 300,000 incredit loans through its mobilebanking platform where lendingcan be approved immediately.
The Bank earnestly implemented the majordecisions and arrangements of the CPC CentralCommittee and the State Council on supportingprivate enterprises and the private sector, andcame up with a series of measures, including al-locating dedicated credit resources, shorteningthe ?nancing chains for enterprises, and low-ering the ?nancing costs for private enterprisesand MSEs, to provide strong ?nancial supportfor the development of private enterprises.
Lauching inclusive ?nancial products for private enterprises to solvetheir ?nancing di?cultiesGiven that private enterprises and MSEs usually borrow short-term small loans frequently andurgently, the Bank created a dedicated ?nancial service package for them, that is Hua Xia in-clusive package for private enterprises. The package includes three series of products, namelyRongyitong, Ronghuitong, and Rongjietong, and they together provide private enterprises andMSEs with well-targeted ?nancial service solutions, to meet their di?erentiated needs and helpthem solve ?nancing di?culties in three aspects, three major problems that pushing up their?nancing costs, and three sore points in using ?nancial services.Insu?cient creditInsu?cient credit lineHigh-cost bridging loansLack of guaranteesOccupation of fundsHigh-cost short-term loansLow e?ciencyDi?culty in getting services
High interest rates for the
occupation of funds
Start-up Loan, IntellectualProperty Loan, High-techLoan, Cultural and CreativeLoan, Rent Loan, MarketLoan, Villager Loan, FisherLoan, Mountain FarmingLoan
Yongxu Express, AnnualReview Loan
Yinbao Tong, Yinshui Tong,Invoice Loan, POS Loan,Photovoltaic Loan
House Loan Express, FactoryMortgage LoanFinancing E Loan, Hua XiaExpress Loan
Flexible Loan, Circular Loan
Financing di?culties inthree aspectsRongyitong
Full Amount Loan,Credit Value-added Loan
Order Loan, Government
Procurement Loan,E-Supply Chain SeriesMSE Card, Dragon E Express
Three causes of high
?nancing costRonghuitong
Three sore points
Rongjietong
Supporting privateenterprises
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Serving the going globalcampaign of Chinese enterprisesThe Bank continued to build its overseas pres-ence, strengthen international cooperation,create innovative products for the internationalmarket, and support the internationalization ofRenminbi, providing reliable ?nancial supportfor the going global campaign of Chinese enter-prises.
Expanding channels for global servicedelivery
Creating innovative products for theinternational market
Supporting Renminbi internationalizationThe Bank actively developed correspondentbanks at home and abroad, so as to provide cus-tomers with fully integrated ?nancial services athome and abroad. By the end of 2019, the Bankhad set up 1,221 correspondent banks at homeand abroad in 380 cities of 116 countries andregions on all ?ve continents of the world.
The Bank continued to contribute to the
internationalization of Renminbi by forming the
four product systems of cross-border account
services, cross-border settlement products,
cross-border ?nancing products, and capital
projects. These product systems cover tradi-
tional products, such as remittances and letters
of credit, as well as innovative products such
as cross-border two-way RMB fund pools. With
these products, the Bank aims to help customers
carry out cross-border settlement and ?nanc-
ing businesses using Renminbi. By the end of
2019, the Bank had handled RMB 44.24 billion of
cross-border RMB transactions.Through the R&D of secondary market risk participation forfaiting products and payment guaranteeforfaiting products, the Bank further enriched its trade and ?nancial product portfolio, applicationscenarios, and business channels. As of the end of 2019, the Bank had completed transactions RMB 1.44billion in total value for secondary market risk participation forfaiting products and RMB 100 million forpayment guarantee forfaiting products.The Bank also worked to build up its RMB-foreign exchange derivatives series, and promoted the launchof RMB-foreign currency swap products. As of the end of 2019, the Bank had signed contracts for overUSD 109.81 million of RMB-foreign currency swap products.
In line with the trend of economic globalization and the basic national policy of opening-up to the outside world, the Bank actively expanded its overseasbusiness, built international presence with steady steps, and provided support for the Belt and Road Initiative and the going global campaign of Chineseenterprises.
Supporting China’s opening-up
Supporting the Belt and RoadInitiativeThe Bank actively expanded its ?nancialnetwork and opened up ?nancial servicechannels to improve the quality and e?ciencyof ?nancial services in support of the Belt andRoad Initiative.
the Bank had established
corre-spondent banks along the Belt and Road
accounting for
% of all correspondentbanks of the Bankmore than
% of the correspondent banks established in 2019 were located along the Beltand Road
As of the end of 2019
Based on its strengths in coordinating ?nancialresources, the Bank worked to serve people’spursuit for a better life through measures suchas launching more ?nancial products, creatinginnovative service models, and conductingdi?erentiated credit management.
Contributing to theimprovement ofpeople’s living standards
? Based on customers’ needs, the Bank vigorously promoted consumption loans for di?erent
consumption scenarios.? In accordance with related national policies and the principle of market-based pricing, the
Bank took targeted measures according to the characteristics of each city and selected
high-quality projects to accelerate the granting of personal housing loans.? With the support of FinTech, the Bank actively developed online loans by enhancing innova-
tion and cooperation with head platforms.
? The Bank explored personal loan securitization, successively issuing Longju personal housing
mortgage loan ABS products and personal loan NPAS products.? The Bank improved its six-tier wealth man-
agement customer classi?cation system,
dividing wealth management customers
into inclusive, basic, VIP, wealth, high-val-
ue, and private banking customer groups,
and continuously optimized its business
structure in accordance with regulatory
requirements for asset management busi-
nesses.
Optimizing personal ?nancial service system
Expanding the consumer credit business
Strengthening wealth management
? The Bank vigorously expanded its ETC busi-
ness and implemented the demonstrationproject of mobile payment for the conveni-ence of the people. The Bank promoted theintegration of FinTech with retail business,made payment and acquiring business morescenario-based, and pursued more innova-tions in payment.
Improving payment and acquiring businessesHelping build Sihanoukville Special Economic Zone into a win-win project of the Belt and Road Initiative
Hodo Group is one of the 120 pilot enterprises for deepening reform designated by the State Council, and it is also a demonstration enterprisefor the implementation of the trademark strategy as approved by the State Administration for Industry & Commerce. It took the lead in the de-velopment of the Sihanoukville Special Economic Zone in Cambodia, and thus contributed to deepening China-Cambodia economic and tradecooperation under the Belt and Road Initiative. Wuxi Branch provided a credit line of RMB 630 million for the Group, of which RMB 430 millionhad been used. Such ?nancial support helped accelerate the construction of the Sihanoukville Special Economic Zone and made the projectan excellent example of win-win cooperation and friendship along the Belt and Road.
The Bank organized the marketing day activities themed “One Hundred Cities and Ten Thousand Households”(I)
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
? The Bank gradually extended its loans to
cover comprehensive personal consumptionfor home furnishing, tourism, healthcare,etc., providing more support to people’sspending in new hotspots of consumption.? The Bank upgraded its Elite E-Loan and HuaXia E Loan products to align its ?nancialproducts better to customers’ needsand provide customers with e?cient andconvenient consumer ?nancial services.
? Adhering to technological innovation,
the Bank stepped up its e?orts to provide?nancial services in the ?eld of auto ?nance,and worked with PICC P&C to create HuaXia Cheyidai, providing customers withinnovative, convenient, and intelligent auto?nancial services along the whole chain.? As of the end of 2019, the Bank’s balance ofcomprehensive consumption loans reachedRMB 56.1 billion.
E-Life
The Bank organized the marketing day activities themed “One Hundred Cities and Ten Thousand Households”(II)
Developing Inclusive Finance
To meet the ?nancial needs of SMEs, the Bank persevered in providing specialized services, building brands, fostering special features in operation, andcontinuously re?ning its management. By continuously improving top-level design, enhancing organizational structure and management mechanism,pursuing better resource allocation, and strengthening risk control, the Bank continuously improved its inclusive ?nancial services, aiming to be “a?nancial service provider for SMEs”. It has ful?lled all MSE-related regulatory indicators for ten consecutive years since 2010.
Strengthening business management
? The Bank developed action plans to comprehensively strengthenand improve ?nancial services for private enterprises and MSEs.Concerted e?orts were made across the whole bank to promote?nancial services for MSEs.
Action plans to support private enterprises and MSEs
? The Bank restructured the Inclusive Finance Department, estab-
lished the retail and inclusive ?nance division, completed theinclusive ?nance restructuring at the branch level, and enhancedcollaboration between all business lines of the bank to jointly pro-vide services for MSEs.
A better organizational structure to accommodatededicated inclusive ?nancial service institutions
? A better performance evaluation mechanism: The Bank includedMSE business target ful?llment and implementation of relevantregulatory policies in the performance evaluation and promotionof branch and sub-branch leaders, so as to motivate leaders to do abetter job in serving MSEs.? A better NPL tolerance evaluation mechanism: The Bank followedrelevant regulatory requirements of China Banking and InsuranceRegulatory Commission in performance evaluation related to thetolerance for non-performing loans for MSEs.
? A sound mechanism for exemption from accountability based ondue diligence: The Bank formulated Hua Xia Bank Credit, Invest-ment, and Financing Policy for 2019andHua Xia Bank Standardsfor Due Diligence on Credit Granting .
Better mechanisms for a culture daring and willingto lend
? The Bank worked harder to ensure su?cient credit resources and gave priority to MSEs in credit granting.? The Bank formulated more preferential policies for internal funds transfer pricing, and counted the value-added tax exempted for interest income on eligibleloans to MSEs as part of branches’ pro?ts in relevant performance evaluations.? The Bank allocated more funds for MSEs as it successfully issued RMB 40 billion of perpetual bonds.
Better resource allocation for enhancedsupport for private enterprises and MSEs
Assistance to help private enterprises andMSEs out of di?culties? Outstanding loan renewal service: The Bank went all out to promote
the annual review system for loans, actively renewed loans withoutrepayment of principal, and vigorously promoted Yongxu Expressloans.? Assistance to help enterprises out of di?culties: For MSEs who were
in temporary di?culties but had marketable products and a goodprospect, the Bank did not stop lending, withdraw loans, or cuto? credit supply blindly, but worked to help them out. The Bankimplemented a series of measures to lower interest rates and servicecharges and improve the e?ciency of review and approval, thusshortening the ?nancing chain, improving ?nancing e?ciency, andreducing ?nancing costs.
Sound risk control with featured control models? The Bank strengthened the guiding role of risk management andstrictly adhered to rigid rules in relevant policies, steered loangranting in accordance with the trends of industrial restructuring, theeconomic mainstream, and the direction of industrial development,and worked hard to guide customer classi?cation and industry-based management.? The Bank stepped up its e?orts to expand its MSE customer base inareas with a more developed private sector, devoted more resourcesto the Beijing-Tianjin-Hebei region, the Yangtze River Delta and thePearl River Delta, did more to analyze credit customers with highdefault rates, and improved credit customer classi?cation andeligibility requirements.? Based on the overall economic development and creditenvironment in each speci?c region, the Bank established adi?erentiated authorization mechanism based on total amountcontrol, level-based management, and dynamic monitoring, so as toguard against region-speci?c risks.? The Bank set and improved key points for risk control regardingFinTech innovations, and strengthened the dedicated review andapproval teams with continuous e?orts.
Towards featured inclusive ?nance
Anju Leye e-Life for a better life
The Bank provided comprehensive,multi-level, specialized ?nancial productsand services to meet customers’ di?erentneeds related to basic life, entrepreneur-ship and employment, healthcare andelderly care, and tourism and recreation.By creating and upgrading the personalloan brand of Anju Leye e-Life, the Bankendeavored to strengthen its support forconsumption upgrading.
? This part of the portfolio provides loansfor the purchase of business premises andconstruction machinery and vehicles byindividuals so as to help start-ups.? As of the end of 2019, the Bank’s balanceof personal business premise purchasingloans totaled RMB 28.5 billion, with 59,000customers.
Leye (literally “satisfactory job”)the Bank’s balance of personal consump-tion loans was RMB
270.4
billionan increase of RMB
billion, or
28.51
%from the beginning of the year
As of the end of 2019
? This part of the portfolio gives priority to the
credit needs of home buyers, i.e. those whopurchase ordinary commercial residentialunits, ?rst-time home buyers and upgraders.? In line with the national developmentstrategy of developing the Guangdong-HongKong-Macau Greater Bay Area, the Banklaunched dedicated housing loan productsfor the Greater Bay Area so as to make iteasier for Hong Kong and Macao residents topurchase housing in mainland cities in theGreater Bay Area.? As of the end of 2019, the Bank’s balance ofpersonal housing loans reached RMB 185.9billion, an increase of RMB 39.3 billion overthe beginning of the year.
Anju (literally “happy life”)
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Intensifying e?orts in inclusive ?nance, demonstrating a great sense of responsibility
Launching MSE Card to help customers out of “growing pains”
In 2019, working towards the targets regarding increasing credits to MSEs and serving more MSE customers, Changzhou Branch made targetede?orts in inclusive ?nance, showing a great sense of responsibility.
On August 9, 2019, Hua Xia Bank launched Hua Xia Inclusive Corporate Financial Card for MSEs in Shaoxing, Zhejiang. At the event, the Banklaunched the MSE card to provide an array of featured services, such as cash deposit and withdrawal, transfer, settlement, payment, ?nancing,insurance, legal consulting, etc., meeting the diverse ?nancial needs of the self-employed individuals, small business owners and legal repre-sentatives of small businesses.
Hefei Branch gave a presentation on MSE-related products and services to some MSEs
? For business units, the balance of eligible loans and theincrease of relevant accounts were taken as indicators in theperformance evaluation for bonuses.? For the leadership of the branch, these indicators were includedin the performance evaluation and linked to the salary of thepresident.
? For customer managers, eligible loans had a coe?cient of 3instead of 1.5 in management evaluation, and the weight of rel-evant indicators increased from 70% to 80% in KPI evaluation.? Time-bound competitions were held to guide business unitsand customer managers to work in accordance with the deci-sions and arrangements of the branch. Rewards were o?ered tothose who worked hard and achieved greatly, while those withpoor performance were punished.
Guiding operations with improved performanceevaluation mechanisms
? The Branch formulated detailed rules on inclusive ?nance man-
agement to clarify the work mechanisms at each level and haddesignated personnel for follow-up and progress monitoring.? The Branch required daily monitoring, monthly reports, andquarterly evaluations to ensure attainment targets regarding MSEloans and accounts and promote the growth of eligible loans.? The Branch integrated into local economic development through
activities, such as 100 Banks Entering 10,000 Enterprises, andtargeted poverty alleviation, to enhance the marketing e?ect inareas under the strong support of the branch.
Strengthening services with enhanced managementto support the development of inclusive ?nance
balance of loans in support of MSEs:
RMB
396.387
billionAs of the end of 2019
loans to MSEs increased byRMB
39.062
billionthe balance of loans to MSEs accounted for
22.36
% of the total loans of the Bank
The Bank continued to strengthen productand service innovation, built a service systemthat combines online and o?ine delivery, andprovided ?nancing services in more ?exibleand e?cient ways to facilitate the developmentof private enterprises and MSEs.
Launching innovative andfeatured products and ser-vices
featured products for MSEs:
balance of loans for online businesses of MSEs:
RMB
12.244
billionnumber of MSE customers of onlinebusinesses:
54,705
Online: Empowered by FinTechO?ine: Rolling out more featured products and services
Online loan product series
The Bank adopted internet-based means to improve services for MSEs and increase e?ciency. Itdeveloped innovative cash management products, such as Finance Pass, Bidding Pass and Underwrit-ing Pass, to provide complete personalized fund management services to 165 private enterprises andMSEs. Given that private enterprise and MSE owners are generally more accustomed to working onmobile devices, the Bank developed a mobile corporate banking system which encompasses servicefunctions such as payment and settlement, inquiry and account checking, and wealth management, aswell as feature functions for business management such as clocking-in, meeting management, and riskreporting.
The Bank improved its House Loan Express, launched Hua Xia Express Loan, and carried out onlinecollateral evaluation and e-contract signing on the basis of centralized online credit record keeping.The Bank upgraded annually reviewed loans, launched Yongxu Express based loan renewal withoutrepayment of principal to extend terms of loans for eligible lenders, providing more convenience forMSEs in regard to re-lending and loan renewal. The Bank also improved the procedures for MSE creditextension and built a MSE credit factory to deliver services to MSEs with higher e?ciency.The Bank launched Private Enterprise Express and MSE card to provide featured services for privateenterprises and MSEs.Changzhou Branch visited the self-employedbusiness owners in Changzhou Knitting City
The Bank launched innovative online loan products, including the Long Business Loan and InvoiceLoan series relying on big data for risk control, the Long Concessional Loan series for key enterprises,the Long e Loan provided jointly with insurance companies, etc.
Scenario-based and business form-speci?c services
SpeedCovenience
Targeting sore points
In 2019
As of the end of 2019
?Technology patents of the Bank:
?Issued
series of ESG thematic wealthmanagement products
?Raised RMB
10.068
billion offunds
?Information emergency drills:
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
The Bank implemented its digitalization strategy and fully launched 15 key FinTech projects, covering cash management, payment integration, targetedmarketing, digital credit and other ?elds. As of the end of 2019, 88% of these key projects had achieved preliminary results and 13 technology platformshad been put into use, pushing the Bank into the forefront of the industry in this respect.
While launching new businesses and applyingnew technologies, the Bank made all-out e?ortsto prevent systemic ?nancial risks. It contin-ued to improve its FinTech risk managementsystem, and use technologies to identify andeliminate hazards, ensuring secure and highlye?cient use of FinTech.
The Bank worked to improve its system security management framework, ?nancial network securityemergency response system and disaster preparedness system, and enhanced the continuity of the?nancial IT system. It built instrumental platforms for better situation awareness, risk perception acrossthe board, risk prediction and early warning, improved the Bank’s ability to respond to major cyberthreats, disasters and emergencies, thus ensuring the safe and stable operation of its IT systems.
FinTech Development
Making concrete progress in FinTech platform building
PreventingFinTech-related risks
Continuously improved its oper-ation and maintenance manage-ment system to control risks ofchanges
Advanced the improvement ofoperation and maintenance toolsto form an automated, mobile,visualized and smart operation andmaintenance system
Reinforced business continuitymanagement and further improvedreal-time disaster preparednessswitch drills
Enhanced the improvement ofcloud data centers and reinforcethe foundation of operations
15 Key FinTech Projects
Smart multi-purpose cloud data center
construction project
Big data integration platformSmart outlet transformation project
Robo-adviser platformBasic platform for smart services
Targeted marketing support platform
Integrated payment platformIntegrated information security risk
awareness platform
Mobile platform for employees
Cash management platform
Architecture reshaping project
Internet banking technology support
platformConnection and integration project
Digital credit service platformOperational process digitalization
enhancement project
Facilitating upgrading ofthe industrial Internetthrough integration ofindustries and ?nance
The Bank actively promoted exchangesand cooperation with peers on FinTech. It co-operated with Internet companies, FinTechcompanies and Internet banks to developscenario-based business solutions, movedahead towards digitalization and intelligenti-zation, and worked to create a new model ofvalue creation featuring integration, connec-tivity and strategic planning.
In 2019, the Bank cooperated with Huawei Innovation Lab to make an overall strategic plan for thetransformation of its information system architecture and design the IT architecture of an openbanking platform. This is the first open banking platform based on stack cloud built on Kunpengprocessor with safe and open basic components. This cooperation ensured business security andstable operation for the Bank, and enhanced its control in various related aspects.
Hundsun Electronics is the ?rst technology company in China to provide commercial banks’ wealth management subsidiaries with integratedsolutions in response to the new regulations on assets management. The company rolled out complete solutions for personal wealth management,corporate assets management, and institutional assets management. In 2019, the Bank signed theAgreement of Comprehensive Cooperation onAssets Management Technologywith Hundsun. According to the agreement, both parties would cooperate in all aspects of assets managementtechnology and the Bank would be able to improve its customer services, investment management, and operation support.
Joining hands with Huawei “Kunpeng” to build an open bankplatform
Signing an agreement with Hundsun Electronics to create a new growth driver
The Bank intensi?ed ?nancial informationsecurity protection. It formulated regulationsand standards for whole-lifecycle ?nancial in-formation management and conducted regularchecks at points prone to information leakage,so as to protect ?nancial data assets and pre-vent risks of ?nancial information leakage.
Guard against user privacy risks
The Bank revised theDetailed Rules for Management of Production Data of Information System,proposing rigorous requirements on operations and downloading involving sensitive data so as toprevent unauthorized data retrieval, tampering, disclosure and damage.Inspections were carried out on personal information protection across the Bank to detect hiddenrisks of information leakage.The Bank worked to identify and ?x system security vulnerabilities, enhanced system security mon-itoring and proactive prevention and control, intensi?ed end security management and control,required regular disposal of downloaded production data, and checked for weak passwords forterminals and production key backup, etc.The Bank took vigorous measures to control the scope of data processing, keep the computernetwork, telecommunications network and broadcasting network separate, analyze productionproblems within production and quasi-production environments, and gradually realize the closed-loop management of sensitive data. It also enhanced production data operation management anddeployed the audit system to achieve recording, auditing and tracing of system operations.
Intensifying production data management
Carrying out inspections on personal information protectionEnhancing cybersecurity protection and ensuring data integrity
Strictly controlling data use to ensure security related to data ?ow and transfer
Ensuring safe andstable operation ofIT system
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Smart Applications for Better Business Development
Moving ahead with retaildigitalization withtechnologyThe Bank continued to increase resourceinvestment in FinTech development, madeactive e?orts to create a customer-centered,data-enabled, and technology-driven smartretail business system, so as to promote thedigitalization and upgrading of retailing andrealize sustained, robust, and high-qualitydevelopment of retailing business.
The mobile marketing platform for personalloans allows users to apply for and get loans ona tablet, helps the Bank improve marketing andservice capabilities, e?ciency, and customerexperience.
The Bank launched basic ?nancial through themobile QuickPass app, continuously improvedthe card-binding veri?cation elements and im-prove mobile payment quality, and adjusted thetransaction limit to improve settlement e?ciencyin collaboration with UnionPay. Meanwhile, theBank successively launched mobile QuickPassproducts on mobile devices, such as SamsungWatch, Oppo Pay, Vivo Pay and Mi Band, furtherenriching its mobile payment product system.
The digital credit risk control system enables ef-fective prevention and control of high-risk fraudsand credit risks related to personal online loans.
The robo-adviser system changes the traditionalsales model for wealth management products.With cloud computing, big data analytics andother technologies, the system produces userpersona and automatically generate advice on aninvestor’s assets portfolio, delivering customizedinvestment adviser service that combines activeand passive investment strategies. The privatebanking system contributes to smart privatebanking, helps the Bank manage VIP privatebanking customers in a hierarchical way, presentproducts in shelf style, and provide private bank-ing and wealth management customers withinvestment advice and planning services.
Accelerating the building of online loan platforms
Advancing mobile payment
Building an independent risk control model for
personal online loans
Launching robo-adviser system and privatebanking and wealth management system“Smile to Pay” builds newecology of smart payment“Smile to Pay” face recognitionpayment is the Bank’s featurednew technological product createdon the basis of biometrics. It ena-bles customers to make paymentsin a safe, well-regulated, convenientand e?cient way. After registrationon the Bank’s mobile banking appor on mobile QuickPass, users canpay at designated merchants suchas supermarkets, restaurants, gasstations, convenience stores, etc.simply through face recognition anda password, needing no physicalbank card. This greatly improveduser’s experience.
Using FinTech to betterserve SMEs
With FinTech, the Bank created new servicemodels and streamlined the lending procedureto better serve small and medium-sized enter-prises (SMEs). It used technologies to solve theproblem of risk assessment for SMEs, reduced?nancial risks and improved ?nancial serviceaccessibility.
The digital small business credit service platform allows small businesses to register as newcustomers of the Bank, apply for loans and receive them after review and approval, andmanage the loan afterwards. All these can be done online and this helps solving ?nancingdi?culties for SMEs and considerably improves SME ?nancing e?ciency.Identi?cation technology veri?es users’identity and enhances loan security; theInternet, big data and other technologiessupport online analysis and automaticgeneration of various documents, signi?-cantly increasing e?ciency.
The system takes internal and external dataas the basis of online credit applicationreview and approval, and post-loan mon-itoring. Analysis results are automaticallygenerated to provide strong support formultiple business models and better riskcontrol.
ProceduresData
Digital small business service platform improves service capability
Hua Xia Bank’s “Long Business Loan” is a featured ?nancial product developed in cooperation with Tencent. Based on cutting-edgetechnologies such as cloud computing, big data and arti?cial intelligence, the product contains key technological modules for customer IDveri?cation, biometrics, OCR, and big data-based risk control, building a highly e?cient system that put together functions such as marketing,risk control, and loan granting. This product ensures the security of users’ funds and information, and realizes the whole-process automatedonline operation, bringing more diverse ?nancial services and more e?cient and convenient ?nancial experiences to customers.
Long Business Loan: a new model of inclusive ?nance
To meet the growing demand customers in Tier-3 and Tier-4 cities for auto ?nancing, Shanghai Branch cooperated with Shengshi Dalian Finan-cial Leasing (Shanghai) Co., Ltd. to break geographical limits with technologies and provide convenient online ?nancing services for customersin need of auto ?nancial leasing.This product allows for automated online review and approval, credit granting and loan delivery, breaking the barriers of time and space. Whileproviding highly e?cient and convenient ?nancing services for car owners-to-be nationwide, the Bank used Internet technologies to bringmore customers to brick-and-mortar auto service outlets, securing bene?ts for multiple parties.
Online auto ?nancing delivers services across regions
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
The Bank explored the appli-cation of natural language pro-cessing technology in ESG dataresearch, planned to take ESGfactors as data points to build aknowledge graph for fast datacollection and analysis, and toexpand the analysis scope tosupply chains and participatingand controlling shareholders.The ultimate goal is to gener-ate ESG data that serves theneeds of di?erent types ofinvestment, including stocks,bonds, non-standardized debts,equities, etc.
ESG Investment Philosophy
Joining PRI
In March 2019, the Bank’s Assets Management Department joined the United Nations-supported Principles for Responsible Investment (PRI) andbecame the ?rst asset management institution of a commercial bank in China to join the organization.
The Bank ful?lled responsibility and earnestly implemented an ESG investment philosophy and aligned its overall strategy for assets management tothis philosophy. The Asset Management Department of the Bank joined the United Nations-supported Principles for Responsible Investment (PRI),and promoted the ESG philosophy through strategic research, ESG database building, themed wealth management products, and themed activities.Besides, the Bank held the ?rst ESG Investing Forum for Asset Management in China.
Principles for Responsible Investment (PRI) is a United Nations-supported international non-pro?t organization jointly initiated by the UNEP FI andthe UN Global Compact. In early 2005, the former United Nations Secretary-General Ko? Annan invited a group of the world’s largest institutionalinvestors and stakeholders to develop the Principles for Responsible Investment. The Principles were launched in 2006 at the New York Stock Ex-change. It works to help investors understand the investment implications of environmental, social and governance (ESG) factors and to support itsinternational network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the ?nancial markets and economies in which they operate.
PRI
To advance ESG strategy research andpromotion and to disseminate the ESGinvestment principles in China’s assetmanagement industry, the Bank developedthe guidelines for implementation of ESGstrategies in wealth management and in-vestment, active and passive ESG strategies,and clari?ed internal and external evaluationstandards. It also established an ESG strategyresearch team to conduct in-depth researchon ESG investment practices and underlyingassets.
Developing ESG investmentstrategies
The Bank carried out independ-ent research on the ESG analysisframework and evaluationsystem to better understandenterprises’ ESG performance,improve asset allocation andincorporate ESG analysis intothe decision-making process.
The Bank established commu-nication and exchange mecha-nisms with research institutesand education institutions athome and abroad, workedfurther to identify the key indus-trial factors that are material,comparable and accessible,and continuously enhanced theguiding role of ESG strategies oninvestment decisions.
Improving ESG investmentresearch system
Developing a three-tier ESG
factor system
Conducting ESG data research
In 2019, the Assets Management Department of the Bank launched ESG-themed net-value-oriented wealth management products centering on beautifulChina with lucid waters and lush mountains and CSR performance for a better life for the people. Since the ?rst of these was launch on April 15, the Bankhad issued 11 of them in total and raised RMB 10.068 billion of funds.
Launching ESG-themed wealth management products
On December 14, 2019, the Bank held the ?rst ESG Investing Forum for Asset Management in China. At the forum, participants from theBank and representatives of associations and ?nancial institutions shared their opinions and insights on topics such as “ESG Investmentand Development Vision” and “Financing for Sustainable Development”. The CSI Hua Xia Bank ESG Index that the Bank launched jointlywith China Securities Index Co. Ltd.(CSI), was also released on the event.
Holding the 1
st
ESG Investing Forum for Asset Management in China and releasing ESG Index
?Compliance education sessions:
?3,636
?Non-performing loan (NPL) ratio:
1.83%
?Anti-money laundering(AML) trainingsessions:
3,046
?Allowance-to-NPL ratio:
?
141.92%
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Full Compliance in OperationsThe Bank adhered to fully law-based and compliance operation, constantly improved its internal control and compliance management system, pro-moted law-based governance across the board, improved business management processes and systems, gave play to the role of money laundering riskmanagement and case risk prevention and control, ensured full compliance with all regulatory requirements for all business and management activities,and saw no major negative incident.compliance education sessions:
3,636
participants in the training sessions orlectures on anti-?nancial crimes:
21,444
training sessions or lectures on anti-?nancialcrimes:
In 2019
participants in the compliance education：
163,222
training sessions on anti-money laundering:
3,046
participants in the training ses-sions on anti-money laundering:
49,855
The Bank continued to strengthen its internal control system by promoting professional inspections, recti?cation of identi?ed problems, and compli-ance audit. It also worked hard to restore good order on the ?nancial market, and comprehensively improved internal control and compliance manage-ment, providing strong support for the Bank’s lean management and high-quality development.
Improving internal control system
The Bank held the “Year of Promotion of Compliance Management” theme activity
Launching a campaign to reinforce good market order and boost compliance
The Bank actively implemented the requirements of the China Banking and Insurance Regulatory Commission（CBIRC）, launched the campaign toreinforce good market order and boost compliance cum the Year of Compliance Management Promotion, sorted out and improved its internal controlsystem, and organized the self-inspection and self-recti?cation activities within departments as well as random on-site inspection along businesslines, focusing on key points of problem recti?cation in key areas. The Bank thus found and eliminated all kinds of hidden risks in time, and trulyrealized fully law-based operation.
The Bank stepped up its e?orts to promote law-based governance, implemented the2017–2020 Implementation Plan of Hua Xia Bank for DevelopingRule of Law, actively improved legal risk management and continuously strengthened legal review to guide the identi?cation and control of legal risksin a systematic manner and ensure business operation with full compliance. In addition, it took various measures to improve publicity and education onthe rule of law, worked hard to foster a culture of compliance with laws, regulations and disciplines, and nurture a healthy atmosphere of integrity withinthe Bank.
Promoting law-based governance bank-wide
? Five sessions of Hua Xia Bank Lectures on the Rule of Law were organized. In view of the areas prone to legal risks, the Bank disseminated legal knowledge to
raise employees’ awareness and build their capacity to comply with the law. Over 8,000 people across the Bank participated.? Throughout the year, a total of 208 training sessions on the rule of law were organized , covering leaders at all levels, employees across business sectors, aswell as legal professionals.? In its legal a?airs management system, the Bank opened columns on legal interpretation and rule of law, providing 14 legal interpretations and typical casesand 319 legal work trends to share experience in the rule of law and legal risk management across the Bank.? The Bank also organized employees to watch publicity videos of the Constitution and the rule of law-themed ?lms and review the oath of allegiance to theConstitution. Employees were encouraged to participate in online legal knowledge competitions and stage art shows, do knowledge quizzes, and visit cor-rectional facilities, to cultivate a favorable atmosphere for legal awareness raising across the Bank.
Strengthening the culture of the rule of law
? By improving its legal a?airs management system with information technologies, the Bank constantly pushed up the e?ciency of and standardized legal
a?airs management in all aspects, including contracts, authorization, litigation, counsel services, intellectual property rights, law publicity and education, etc.? The Bank formulated guidelines on contracts of asset management and trusteeship, and issued contract templates covering ?nancial management, retail,
corporate business, international business, bond underwriting, advertising and other businesses. These e?orts solved, once and for all, problems in contract
drafting and quality, and e?ciency in related business areas, and systematically enhanced the capacity of legal risk prevention and control.
Intensifying legal risk control
The Bank revised theAdministrative Measures for EmployeeErrors and Non-compliance Points of Hua Xia Bank, uni?ed thestandards for employee errors and non-compliance points in allbranches and business sectors, and intensi?ed investigation andpunishment for violations of laws and regulations, especiallyrepeated violations.
The Bank revised theArticles of Association of Hua Xia Bank Co.,Limitedto strengthen Party building and equity management. TheBank also established theList of Compliance Matters for the Boardof Directors of Listed Banks, aiming to strengthen the compliancemechanisms for the Board of Directors to perform its duties.
Improving corporate governance structure
The Internal Control and Compliance Department and the De-partment of Legal A?airs were merged to form the Legal Compli-ance Department and shoulder six more items of responsibilitiesincluding due diligence for non-compliance credit granting.
Adjusting the organizational framework for management
TheAdministrative Measures for the Problem Recti?cation Workof Internal and External Inspection of Hua Xia Bankwas revised tostreamline the work?ow of problem recti?cation and clarify relevantresponsibilities. All business sectors of the Bank worked in an all-round way to identify existing problems , analyze the fundamentalcauses of the problems, and develop targeted countermeasuresthrough a cycle of inspection, recti?cation and veri?cation.
Improving the mechanism of rectifying problems
Unifying criteria for non-compliance accountability
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Jinan Branch launched the AML publicity campaign
Zhengzhou Branch’s AML publicity campaign themed on Cracking down on the Money Laun-dering Crime to Safeguard Financial Security
The Bank continued to improve its AML-relatedinternal control system and operating mech-anisms by upgrading the AML informationsystem, strengthening control over high-riskbusinesses, and launching AML publicity activi-ties. These pushed up the quality and e?ciencyof the Bank’s AML work in an all-round way.
Strengthening AMLmanagement
? The Bank developed or improved its suspi-
cious transaction monitoring models for taxcrime, export tax rebate fraud, gambling,telecommunications fraud, etc., to cover alltypes of money laundering crimes.? Attempts were made at the applicationof AI in AML to improve the accuracy ande?ectiveness of suspicious transactionmonitoring.
? The Bank carried out a series of AMLpublicity activities to raise public awarenessof AML. Special posters were distributedamong the public and employees, and fourconsecutive AML publicity cartoons werereleased on our WeChat o?cial account andviewed for 65,000 times.? The Bank also strengthened AML teambuilding by organizing multiple levels of AMLtraining sessions for directors, supervisors,senior management members, employeesand branches, reaching 49,000 times.
? The Bank revised theAdministrative Meas-ures for Anti-Money Laundering of Hua XiaBank, theAdministrative Measures for Cus-tomer Identi?cation and the Preservationof Customer Identity Data and TransactionRecords of Hua Xia Bank, theWorking Rulesof the Leading Group on Anti-Money Laun-dering of Hua Xia Bank, theAdministrativeMeasures for Reporting Large and Suspi-cious Transactions of Hua Xia Bank, and theBusiness Process of Reporting Large andSuspicious Transactions of Hua Xia Bank,with a view to clarifying AML standardsacross the Bank.? The risk management system against mon-ey laundering was further improved andinstitutional money laundering risk assess-ment was launched to achieve well-targetedand e?ective identi?cation and control ofmoney laundering risks.
Continuing to improve the mechanism
Giving full play to technologies
Conducting in-depth AML publicityand training
The Bank implemented the requirements of theCircular of CBIRC General O?ce on ConductingInvestigation and Recti?cation Activities AgainstIllegal Fund-Raising Risk by Insurance Institutions,theCircular of CBIRC on Launching the SpecialCampaign Against Gang Crimes by Banking andInsurance Institutions, and theCircular of CBIRCGeneral O?ce on Preventing and CombatingIllegal Fund-Raising, Illegal Loan Granting andFinancial Fraud by Banking and Insurance Insti-tutions, formulated dedicated work plans to ?ghtagainst gang crimes and illegal activities across thebank. The Bank also enhanced risk investigation,reported relevant clues as required, and imposedcontrols in a timely manner.
The Bank launched dedicated campaigns tocrack down on illegal fund-raising, illegal loangranting, and ?nancial fraud so as to strengthenpublicity and education for the general publicand the sta?, and to enhance public awarenessand capability to understand and resist illegal?nancial activities.
The Bank clari?ed the contents and requirementsof case risk prevention training, and guided andsupervised various departments to carry outsuch training and education activities. Variousbranches organized relevant activities in a widerange of form including compliance and case riskprevention knowledge competitions, compli-ance-themed lectures, etc. to foster a culture ofsound internal control.
The Bank formulated theCode of Conduct forEmployees of Hua Xia Bankand theConduct Banfor Employees of Hua Xia Bank, and incorporatedthem into the daily training for employees andthe orientation training for new recruits. The Bankalso required all sta? members to put in practicethe corporate culture of integrity, standardization,e?ciency and progress.
TheTarget-based Responsibility List for CaseRisk Prevention of Hua Xia Bank was revisedand signed by employees bank-wide. The Bankalso organized tests on the content of the list,so as to ensure that employees were fully awareof the responsibility for case risk prevention foreach position and the detailed rules to follow tomaintain professionalism.
The Bank maintained a tough stance against caserisks. The Bank carried out in-depth case-basedwarning and education, and increased checksfor case risks and employees with abnormalbehaviors with an aim to resolutely forestall risksrelated to ?nancial crime cases.
Strengthening case riskprevention and control
The Bank strictly abides by the relevant laws and regulations on intellectual property right (IPR) protection. It has put in place the prevention and manage-ment mechanisms, behavior control mechanism, and coordination and handling mechanisms for IPR infringement and relevant disputes, as well as punish-ment and accountability mechanisms. In addition, the Bank also provide tools and methods for right holder veri?cation so as to systematically standardizeemployees’ behavior of using intellectual properties in the possession of others.
Protecting intellectual property rights e?ectively
Implementing regulatory requirements andstrengthening risk checks
Continuing to conduct external publicityactivities to maintain a harmonious and stable?nancial environment
Strengthening case risk prevention training toconsolidate the foundation of complianceoperation
Formulating code of conduct for employees tobetter ensure compliance
Clarifying duties on case risk prevention consoli-date the achievements in this regard
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Strengthening Risk ManagementThe Bank improved its risk management system and went all out to cultivate a risk management culture in the Bank, in a bid to provide reliable supportfor the sound, balanced, sustained and rapid development of all businesses of the Bank.
The Bank steadily moved forward with thereform of its comprehensive risk managementsystem, actively advanced the implementationof various regulatory systems and regulations,and constantly improved the risk managementprocedures to ensure that utmost managemente?ectiveness.
Improving the riskmanagement system
the NPL ratio amounted to
1.83
%the Allowance-to-NPL ratio reached
141.92
%
As of the end of 2019
Optimizing “eight mechanisms” to improve the risk management modelShanghai Branch put “process management, inelastic planning, goal achievement and compliance supervision” to every risk managementpost, every business link and every credit business customer, in order to hold ?rm to the red line of major risk events and the lifeline of assetquality.The coordination mecha-nism between credit approv-
al and corporate businesscredit project
The risk concentration manage-ment index system and monitor-ing mechanism of the branches
The coordinated managementmechanism of credit operation
The ?eld inspection mech-
anism of key risk control
customersThe application mechanism ofmonitoring and analysis resultsof the credit operation
The comprehensive coverage
mechanism for operational
risk management
The working mechanism ofweekly training for customer
managers
The quick disposal andresponse mechanism of risk
events
The Bank continued to enhance its capacity toidentify, measure, monitor, control and reportall kinds of risks in its business operations,in a bid to eliminate hidden dangers in keybusiness areas and links and ensure e?ectiverisk management throughout the process ofdecision-making, execution to supervision.
Strengthening compre-hensive risk management
? The Bank formulated theCredit, Investmentand Financing Policy of Hua Xia Bank in2019, in which environmental protectionand poverty alleviation projects were givenpriorities for investment, in order to o?ermore support to eco-friendly enterprises,and better meet the ?nancing needs ofpoverty-stricken areas.
Credit risk management
? Based on the risk management strategy ofthe year, the Bank strictly implemented itsset market risk preference, and kept trackof and analyzed the impact of major eventson the market risks of relevant businessesof the Bank, so as to strengthen risk-basedquota management, themed analysis of keybusinesses and early warning for risks.
Market risk management
? The Bank strengthened the identi?cation ofoperational risks to prevent such risks from thesource.? The Bank enhanced the monitoring andanalysis of operational risks, improved its keyrisk indicator system, did more to analyze theindicators and give reminders and early warn-ing when necessary.? Self-evaluation was carried out throughout theBank, covering all main business sectors, theHead O?ce and various branches to producemaps of operational risks for each key businessprocess.? The Bank revised theCompilation Manual ofImportant Operational Risks and PreventiveMeasures of Hua Xia Bank, issued theCollec-tion of Typical Operational Risk Cases (2019),and organized a competition for operationalrisk management identi?cation.
Operational risk management
? The Bank completed 59 business continuitydrills and carried out 100% of its drill plans.? The drills were done with emphasis givento manual business handling in emergency,switch to standby operation sites, featuringcoordination between technological andbusiness divisions, and cooperation betweenthe Head O?ce and branches. This made thedrills all the more realistic.
Business continuity management
? The Bank adjusted the organizational structure
and departmental responsibilities according tothe Reform Plan of Comprehensive Risk Man-agement System, and strove for a professional,re?ned, ?exible and responsible risk controlmechanism.? The Bank evaluated and updated its riskpreference and formulated its risk managementstrategy accordingly, so as to clearly de?ne riskcontrol objectives and approaches for the year.
? The Bank enabled its Risk Management andInternal Control Committee, Credit, Investmentand Financing Policy Committee, and AssetRisk Disposal Committee to fully play their rolesto improve the quality and e?ciency of theirreview and decision-making processes.
? The Bank focused on comprehensive risk eval-
uation at branches, performance evaluation forregional chief risk o?cers, and the assessmentof implementation of credit, investment and?nancing policies, to continue to improve riskmanagement of the Bank.
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for All
A Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
?Invested RMB3,493,800
?in public education
?
outlets in rural areas?
outlets in old revolutionary baseareas, areas inhabited by ethnic minoritygroups, remote and border areas andpoverty-stricken areas?Complaint handling satisfaction rate:
99.90%
?100% of customer complaints settled
SDG Practices
with Quality Services
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services
2019 Social Responsibility Report
Protection of Customers’ Rights and InterestsIntensifying managementof consumer rights andinterests protection
Ensuring ?nancial safety
The Bank resolutely implements the require-ments of regulatory authorities and incorporatethe protection of consumers’ rights and inter-ests into its corporate governance system andcorporate strategies. We keep improving ourorganizational structure and working mecha-nism, with more e?orts on personnel training,and carry out whole-process supervision andspecial inspections. By taking active steps toenhance institutional, implementation and reg-ulatory e?orts, we have protected consumers’rights and interests in all respects.
Giving high priority to keeping customers’funds and information safe, the Bank strictlyimplements various supervision requirements,and adopts rigorous measures such as en-hanced business risk warning and technologiesupgrading to prevent information leakage,strengthen safety protection, and guide cus-tomers to avoid risks, safeguarding custom-ers’ ?nancial safety.
? The Bank set up the Department of Con-
sumer Rights and Interests Protection anda service team to protect consumers’ rightsand interests.
Improving organizational structure
? The Bank improved its internal controlsystems in nine aspects such as disclosureof information on ?nancial products andservices and inquiry of ?nancial products andservices.
Improving internal control systems
? The Board of Directors, along with its Stra-tegic Management and Consumer Rightsand Interests Protection Commission, heldmeetings on consumer rights and interestsprotection to formulate strategies, and im-prove relevant code of conduct.
Improving working mechanisms
? The Bank organized training sessions andtests for employees according to the annualwork plan for consumer rights and interestsprotection.Building the capability of employees
? Intensifying prior review, process control and
post supervision.The Bank incorporated therequirements of the consumer rights andinterests protection into its product designprocesses . All marketing promotion behaviorswere under control and all relevant regulationson ?nancial products and services in specialand key areas were strictly implemented,and merchants were managed and trained inrelation to consumer protection. The Bank alsoadjusted product and service rules for whichconsumers raised extensive concerns to betterprotect consumers’ rights and interests.
Implementing whole-process supervision
Measures for the protection of consumers’ property
? The Bank connected its fraud
handling platform with thepolice fraud managementplatform of the Ministryof Public Security to formsynergy against telecommu-nication frauds, and createdan anti-fraud system and setup an early warning and re-sponse system for suspicioustransactions.
Providing more reminders tohelp customers avoid risks
Cracking down on telecommu-nication frauds and building thefraud prevention systemIntensifying internal trainingand exchange to improve riskidentification and prevention? The Bank kept up with allchanges in regulatory rules,collected information ontypical cases from peer banks,and released risk briefs on theshared platform.
? The Bank enhanced therisk management related tophone number veri?cationfor card activation;Statementof Hua Xia Bank on Risks ofOnline Financial Serviceswaspresented; Sta? membersremind customers of risks.Measures to ensure consumers’ information security? The Bank formulated privacy policies applicable to its online ?nance apps.? The Bank carefully checked for cases where the scope of personal informa-tion collection was unclear or where collected personal information wasused for purposes other than those clearly stated.
? The Bank managed all operations and downloads related to sensitive data withstringent measures.? The Bank checked for and ?xed security vulnerabilities in its system andenhanced security management and control.
Reinforcing relevant systemsConducting special checks
Intensifying data managementEnsuring cybersecurity
Disseminating?nancial knowledgeAs a response to social concerns and ?nancialservice issues, the Bank conducted educationalcampaigns to popularize ?nancial knowledgeand enhanced consumers’ understanding of?nancial products, services and their safetyawareness through interaction with the publicin schools, CBDs and communities, creatinga sound ?nancial ecology and serving as adisseminator of ?nancial knowledge.
The Bank organized consumer education activities such as “3·15” consumer education week,education against illegal fundraising, “Financial Knowledge for Safety of your ‘Pocket’” awarenessraising event, “Great Journey for Popularizing Financial Knowledge”, “Financial Knowledge Popular-ization Month, Financial Knowledge Entering Thousands of Families, Striving to be Rational Investors,Striving to be Good Financial Netizens” and other educational campaigns.
Outlets disseminated ?nancial knowledge with big screens in the lobby, ?yers on counters, face-to-facecommunication at information desks, dedicated public education areas, etc. We also reached out tocommunities, school campuses and business districts and other sites to further disseminate ?nancialknowledge.
The Bank carried out special publicity activities themed on the 70th anniversary of the founding ofthe People’s Republic of China, the new RMB banknotes, the ?ght against frauds, the smart bankcounter, etc.
The Bank provided ?nancial knowledge in reader-friendly ways via its o?cial website, WeChat publicaccount, Weibo, Douyin, SMS, etc. On the o?cial website, there is a dedicated column for security alertsto release information on typical risks and countermeasures. The Bank also released anti-fraud tips on adedicated “Prevention of Fraud” WeChat o?cial account.
Main channels
Major measuresActive participation in the consumer education campaigns organized by the People’s Bank of Chinaand China Banking and Insurance Regulatory Commission
O?ine channels
Online channels
Campaigns to popularize ?nancial knowledge initiated and held by the Bank
invested aroundRMB3,493,800in public education ser-viceorganized
21,021public education activities
In 2019, the Bank
covered over9,993,700people with its public educa-tion e?ortshanded out approximately3,551,300copies of publicity materials tothe publicengaged over
51,945of its employees in these activities
Kunming Branch held a publicity activity underthe theme of “Putting Consumer First andImproving Services”
Yinchuan Branch’s Financial Knowledge Pub-licity Month campaign
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Zhang Jianhua, President of the Bank, delivered a speech at the ?nals and awarding ceremony of the contest
Beijing Branch carried out educational campaign to popularize ?nancial knowledge in a school
As of the end of 2019
In 2019
1,025outlets in total
outlets were opened in 2019covering all provincial capitals and
large and medium-sized cities acrossthe country (except Lhasa)
outlets in rural areas
new branches and sub-branches openedin Central, West and Northeast China
outlets in old revolutionary base areas, are-as inhabited by ethnic minority groups, remoteand border areas and poverty-stricken areas
county-level sub-branches opened
Better Customer ExperienceExpandingservice channels
The Bank made active efforts to improve itsoutlet network and promote the transformationtowards smart outlets. In response to the nation-al urbanization and new countryside construc-tion campaigns, the Bank improved its networkat the county level to provide better financialservices for less-developed areas, deliveringquality services to more people.
Zhengzhou Branch created nice-looking lobby to deliver thoughtful services to customers
Shanghai Branch’s lobby
Knowledge contest on the new Law on the Protection of Consumer Rights and InterestsIn March 2019, “the Finals and Awarding Ceremony of 2018–2019 Hua Xia Bank Cup Knowledge Contest on the Law on the Protection ofConsumer Rights and Interests” was successfully held, with the Bank as the exclusive title sponsor. Zhang Jianhua, President of the Bank,made a speech and expressed the Bank’s dedication to protecting ?nancial consumers’ legitimate rights and interests, and safeguarding aprosper and stable ?nancial market and ?nancial safety. The contestants gained a better understanding of the new law on consumer rights andinterests protection and knew more about consumer rights protection. With the in?uence of the Contest and the “3·15” consumer rights andinterests protection week, we joined hands with the organizers to carry out o?ine activities on campuses and launch online follow-up activi-ties, so as to further disseminate relevant knowledge of consumer rights protection and integrate the knowledge into daily life.
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for All
A Sincere Hua Xia with
Quality Services
2019 Social Responsibility Report
More convenience: Smart counters took over many frequently used per-sonal banking procedures and delivered the services in a scenario-basedmanner with standardized processes, improving both service deliverye?ciency and customer experience.Enhanced security: Facial recognition was required for transactions atsmart counters to ensure security.
Measures to develop smart counters
Exploring intelligent ?nance on the Opening Day of SOEs
More convenience
Enhanced security
The Bank continuously improved its online service channels and added diverse functions to its online banking products such as mobile banking, person-al online banking and telephone banking, providing customers with better and convenient ?nancial services.
Business processes were improved. Longying robo-advisor service andphone number-based payment were launched to produce smart invest-ment strategies and improve customers’ online payment experience.
AI customer service robot “i Xiaoxia” was introduced to provideservices including scenario-based transaction assistance, functionnavigation and business consultation, further improving customerexperience by making self-service easier for them.Personal online bankingTelephone banking
In 2019, the Bank developed its Mobile Banking 5.0 to deliver all-round smart ?nancial services to users with a nice design, high technology, anda leading security system. Based on Mobile Banking 5.0, a set of urban service ecosystems were built, covering Taobao Group Purchase, fooddelivery, entertainment, online campus payment, ?nancial services for overseas students, etc.
Mobile Banking 5.0 provides customers with smart ?nancial services with six smart functions: smartrecommendations, smart customer assistants, smart prompts, smart transfer, smart wealth man-agement and smart ecosystem.
Mobile Banking 5.0 is ?rmly based on biometrics, big data analysis, machine learning and othertechnologies, as well as an advanced homegrown mobile development platform to achieve highere?ciency and better user experience.
Visualization, color blocks, customizable function combinations, and ads-free options providesmore satisfactory customer experience through details the of the design.
Mobile Banking 5.0 contains a ?rst-of-its-kind security mechanism to help customers guard againstrisks related to large-sum transfers and electronic pickpocket. A special sequence prompts warn-ings and initiates fraud block in real time, fully protecting customers assets.
Smart
Secure
PleasantHigh-tech
Mobile banking 5.0 provides smart, pleasant, high-tech and secure services
Online Elite Loan 2.0 ETC services for easier travelling
Online automobile purchase loan
Three-in-One Code of Hua Xia e-cashier counterPersonal large-sum deposit 3.0
Hua Xia e-Loan 2.0
Innovating?nancial productsThe Bank made innovations in its ?nancialproducts and services to meet the diverse?nancial demands of personal bankingcustomers for consumption transformationand upgrading, assets preservation and valuecreation. The Bank also promoted innovationsin technologies, products and procedures, andoptimized products operation, scenario ecologyand customer experience to provide custom-ized ?nancial products, delivering outstandingcustomer experience in the industry.
Online Elite Loan 2.0 allows users to use theircredits online in a recycling manner and transferfunds across banks automatically, and it alsohas functions such as credit review, e-signature,etc., providing customers with a wide variety ofconvenient services.
Customer can link WeChat mini program “HuaXia E-Transport” with Hua Xia credit cards andthen apply for an ETC e-tag on the program.After receiving, putting in place, and activatingthe e-tag by themselves, users can use the ETCservices wherever they go.
The new version incorporated more functions,especially a white list function and a printed de-posit certi?cate function. Special products couldbe launched for special target customer groupsso that customers can have more options.
Support forconsumption upgrading
Services for car ownersConvenient payment
As the younger generation became the mainstay of the consumer population, plain creditcard designs could no longer meet customers’ demand for personalized experience. TheBank collaborated with Toutiao.com to issue the “IN City” co-branded credit card. With the3D card making technology, the card design featured landmarks, cultural and historic sites,representative ?ora, and impressionist symbols of ten most popular cities in China to presentthe beauty and charm of Chinese cities and o?er users personalized experience.
Co-branded credit card with Toutiao.com creating personalized?nancial service experience
Hua Xia e-Loan was improved into version 2.0adding to it a white list function. Customerson the white list can apply for loans via mobilebanking and the smart review and approvalsystem will complete the review and grantloans based on a di?erentiated model.
Credit service is embedded into the auto con-sumption scenario. The auto loan application,review and approval are completed online,which improves e?ciency and simpli?es cus-tomers’ auto loan application process.
The Bank Developed the integrated paymentproduct “Hua Xia e-cashier counter” to puttogether the three payment channels of Union-Pay, AliPay, and WeChat Payment and improvecustomers’ payment experience.
Assets preservation and
value creation
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Valuing customers’ opinionsThe Bank paid high attention to customercomplaints. We improved customer satisfactionby smoothening channels for lodging com-plaints, improving mechanisms for handlingcomplaints, conducting complaint analysis,and truly solving problems for customers. In2019, the Bank received 19,751 complaints andsuggestions and 100% were properly handled,with a customer satisfaction rate of 99.90%. Nodispute arose throughout the year due to refus-al to handle or delayed handling of complaints.
? The Bank established a soundsystem and a complete set ofrules for handling complaints,and formulated relevant man-agement measures so as toensure su?cient attention to allcustomer with good institution-al arrangements.
? The Bank improved the com-plaint handling and responsedmechanisms and implementeda system where the one who?rst receives a complaintmust remain responsible forhandling it till the very end, allcomplaints must be properlyhandled within a set time limit,and handling strategies mustbe based on categorization ofcomplaints.
? The Bank maintained channelsopen for complaints and knownto customers by putting upclearly visible signs containingall relevant information in alloutlets.
? The Bank organized customercomplaint analysis meetingsregularly to review compli-cated complaints, identifytypical cases, and propose clearrequirements for improvementaccordingly.In 2019, the 95577 Customer Service Centerinitiated the service coordination mechanismfor
,
complicated cases
and made42,604 call-backs to customers
Raising service standards
In 2019
star-rated outlets
Top 100 model outletsincluding
three-star outlets,
four-staroutlets, and
?ve-star outlets
Improving service qualityand e?ciency
While improving service delivery channels, wealso upgraded its service management system,strengthened training for employees, and car-ried out supervision and inspection activities,so as to provide customers with better services.
? The Bank held service work
meetings to formulate servicemanagement plans, regula-tions and rules.? The Bank carried out serviceinspections, regular checksand spot checks to monitorand control service delivery.
? The Bank advanced theevaluation and selectionof TOP 100 and star-ratedoutlets.
? The Bank organized diverse cultural activities ando?ered more value-added services to customers.
? The Bank improved itsinternal training team toprovide better targeted andservice-oriented training foremployees.Major measures
Providing quality services for customers
Serving special customer groups
The Bank fully considered the actual needsof di?erent groups at the community leveland provided well-targeted, convenient andthoughtful ?nancial services for the elderly,servicemen and veterans, migrant workers, andvarious other special customer groups.
? The Bank endeavored to build its the ?nancial product series specially designed for the elderly. Basedon elderly customers’ demand for security, liquidity and pro?tability, the Bank created ?nancialproduct packages for them by putting together government bonds, anti-cancer insurance policies andother suitable products.? The Bank provided convenient services for Huacai Life card holders. There were reserved counters forthem at outlets and some frequently used supplies were available free of charge.? The Bank organized activities for the elderly in communities. With a wide variety of training courses,
customers can learn ?nancial knowledge and other skills to better enjoy their lives.? In response to the demands of di?erent parties such as regulators, construction companies and mi-grant workers, the Bank proposed a payroll credit plan for the payment of migrant workers’ wages.By connecting to governmental platforms, the Bank launched payroll credit service, as well as fundmonitoring, and payment data submission to government authorities. This helped tackle problemssuch as delayed wage payment to migrant workers and repurposing of relevant funds.
Huacai Life service brand for the elderly
The Bank created a payroll credit mechanism for migrant workers
? The Bank provided Huaxia Veteran debit card for veterans, o?ered various fee discounts and exemp-
tions for holders and provided customized ?nancial services such as deposits, wealth management
and start-up loans. Huaxia Veteran Card was issued in Shanghai, Jinan, Hangzhou and some other
places, winning high praise from customers.The Bank provided dedicated ?nancial service scheme for veterans
? The Bank launched special service delivery plans for in-patients and other customers with mobility
di?culties to help them complete urgently needed transactions.The Bank provided services outside of its own premises for customers with mobilitydi?culties
an increase of702,600or
%, over thebeginning of the yearhad4,029,700elderly customers,As of the end of 2019, the Bank
set up reserved counters at
outletsput in place accessible entrances at
outlets
Improvement ofcomplaint han-dling mechanisms
properly handled
% of the customer complaints
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
.
Smart community ecosystem delivering better services to communities
The Bank is committed to meeting the ?nancial service demands of common residents in communities. Focusing on merchant services,property management services, and convenience services for community residents, we brought together a number of relevant functions onHua Xia e-community app to build a closed-loop service network for a smart community ecosystem. As of the end of 2019, the Bank had 1.08million active users in its smart community ecosystem.
Diverse ?nancial servicesConvenient services for daily life
Smart communityecosystem
Multiple e-payment methods are provid-ed to create secure, convenient and fastpayment services.
Robo-advisors analyzes customer demandsand recommend a targeted ?nancialproduct package for customers, making cus-tomized ?nancial services accessible.
Customers can use theBank’s app to makeappointments with accountmanagers for o?-site ?nancialservice delivery. They canalso search for the location ofcertain outlets using the appor make inquiries over thephone.
A closed life circle was developed, wherepeople’s needs for clothing, food, accom-modation, transportation, entertainment,shopping and travel were all attendedto. The Bank collaborated with over600 third-party organizations, includingshopping malls, catering and e-commercebusinesses to o?er hundreds of thousandsof commodities and various convenientservices for customers.
Based on customers’ demand for ETCservices, the Bank collaborated with athird-party auto service platform to pro-vide various kinds of auto-related services.
Huaxia e-payment covers571 fee-collecting institu-tions in 86 cities, so custom-ers can complete paymentand top up on their mobilephone with great conveni-ence.
ShoppingConvenientpayment
Payment andtopping upE?cientadvisorservices
Services for
car ownersRobo-Advisorservices
Nanning Branch actively provided support for the Department of Housing and Urban-Rural Development of Guangxi to secure wage paymentfor migrant workers. The branch joined banks with its partner bank to issue the Guijiantong wage card for migrant workers in the construc-tion industry. Companies who use these cards to pay the wages are exempted from relevant commissions and charges . The functions of thecard was designed based on the model of existing cash management products to meet the needs of construction enterprises.. The Bank alsoo?ered Jiangongbao for construction project sub-contractors to help solve problems when relevant labor companies fail to make timely pay-ments. As of the end of 2019, a total of 29,100 Guijiantong wage cards had been issued and 49 payroll credit accounts had been established.
Taking multiple measures to ensure wage payment to migrant workers
Improvement in Corporate Banking ServicesCreatingnew service models
The Bank worked to reinforce the position of cor-porate financial services as a pillar business divisionand set up service platforms to create a well-con-nected business environment. For customers indifferent sectors, we provided customized productsand services, created a corporate financial servicesystem that covers assets management, invest-ment banking and large-sum transactions in theirbroader senses, and worked to pool resources fromvarious channels for better financial services.
? The platform provides highly e?cientwhole-process integrated account andfund management services to solveproblems such as complex operations,unorganized account checking andmanagement di?culties for enterpris-es. There are Zhi·Hui Cash Sweep,Financial Account Express, TenderingExpress and other speci?c productson the platform to meet the needs ofdi?erent categories of customers.Theplatform had covered 223 core enter-prises and over 2,300 accounts.
Qiyue ?nance and asset managementplatform for cash management
? Platform Express Pal provides ?nancialservices such as online payment, cashsettlement, separate account accountingand online ?nancing. The platform is builtfor diverse business scenarios and createsan interconnected business ecosystem forenterprises. It had provided ?nancial servicesfor 138 enterprises and merchants.
Platform Express Pal
? The Bank continuously improved the basicfunctions of its online corporate bankingsystem, developed standardized service in-terfaces for transfer and payroll services, andlargely reduced the development workloadof enterprises. The system is connected withthe non-tax central ?nance system to simplifynon-tax payment procedures , providingmore convenient and e?cient online bankingservices for customers.
Online corporate banking
Service platform building
In 2019, Guangzhou Branch cooper-ated with Foshan UCA Supply ChainService Co., Ltd. (UCA) to launchPlatform Express Pal. The system islinked with UCA’s fund depositoryand management system, to providea convenient payment channel forplatforms and their users. The systemboasts account functions such asmanagement, settlement, clearingand statistics analysis, o?ering morestandardized and e?ective trade fundmanagement. Besides, GuangzhouBranch also launched the same ser-vice in collaboration with GuangdongEquity Exchange and two other enter-prises to e?ectively meet customers’demands for fund management,clearing and settlement.
Launching Platform ExpressPal to meet the diversedemands of customers
? It delivers enterprises’ messages to speci?c parties. The platform allows users to check
business research reports from external contributors, look for quality business partners, andidentify risks of their partner enterprises, solving important problems for SMEs.? It serves as a mobile assistant for entrepreneurs. Wherever they are, entrepreneurs can com-plete authorization for ?nancial a?airs on the platform. Mobile o?ce apps may be embed-ded to put ?nancial a?airs together with administrative work.? It works as a ?nancial risk control o?cer on the go. When bound up with a terminal, theplatform o?ers a diversity of ways to ensure utmost security.
? It can be used to manage services across Multiple channels. The app is well-connected tothe online banking system with accounts, veri?cation and authorization systems all shared,so customers may feel relaxed and reassured to use it.
Mobile corporate bankingThe mobile corporate banking platform provides functions such as transfer, account checkingand mobile authorization, as well as platform-based and tool-based services such as adminis-tration and interaction with speci?c business districts.
A Brilliant Hua Xia for
Value Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services
2019 Social Responsibility Report
Longying·IP Express revitalizing IP of cultural enterprisesIn August 2019, the Bank unveiled Longying·IP Express. Patents, copyrights, trademarks and other intellectual properties were treated asbottom assets. the Bank provided ?nancial support for cultural enterprises, either by investing in securitized products of such assets as anunderwriter or investor, or by providing funds for them as a lender. A whole range of ?nancial services in the “commercial bank + investmentbanking” model was o?ered. At present, the Bank has invested in the ?rst IP-based ?nancial leasing ABC project and the ?rst IP shelf o?eringABS project of China.
Jiangsu Tech Loan fueling intelligent manufacturing in ChinaJiangsu Tech Loan is targeted at high-tech MSEs in Jiangsu Province, with the provincial government providing some guarantee fund while Nan-jing Branch issues liquidity loans. The Branch It learned through prior investigation that Nanjing Lvjinren Rubber and Plastic High-tech Co., Ltd.,who entered a stage of rapid development, was in need of ?nancial support. In response, the sub-branch helped the company communicatewith Nanjing High-tech Zone Production Promotion Center and immediately granted RMB 3 million after con?rming the company’s eligibilityto “Jiangsu Tech Loan”, o?ering strong support for intelligent manufacturing of China.
Long Concessional Loan supporting enterprisesLong Concessional Loan project is the ?rst 100% online project launched by Hangzhou Branch for MSEs. The project adopted the loan process-ing model where all procedures were completed online, automated, smart and e?cient. It built risk identi?cation models to serve as the basisof credit granting and set the credit line. Based on MSEs’ ?nancing demands and habits, the branch launched options for borrowers such asaverage principal plus interest repayment, revolving credit, one-o? credit, etc. Users of Long Concessional Loan come from di?erent provincesof the country and from di?erent industries and sectors. As of the end of 2019, loans had been approved for 5,997 MSEs with RMB 1,782 millionof loans granted and a loan balance of RMB 800 million.
For high-tech start-ups, the Bank launchedfeatured products to help them solve ?nancingdi?culties, including Start-up Easy Loan, High-tech Easy Loan, IP Loan, and Equity + CreditInvestment products.For cultural and creative enterprises, the Banklaunched four product series: Cultural & CreativeLoan, Cultural & Creative Financing, Cultural&Creative Investing,, and Cultural & Creative Trade,and released Longying·IP Express to promotethe development of cultural start-ups.
For the going global of Chinese enterprises, theBank launched products for forfeiting, creditinsurance ?nancing, international factoring withrecourse, ?nancing guarantee, non-?nancingguarantee, etc.
Innovationsin productsand services
For MSEs, the Bank provided featured productssuch as annually-reviewed loans, House LoanExpress, Hua Xia Fast Loan and Long ConcessionalLoan, to meet customers’ ?nancing demand andimprove service e?ciency.
The potentials of high-tech start-ups were releasedby active e?ortsIn 2019, Appotronics, as a world-leading high-tech laser displaycompany, became one of the ?rst companies listed on the sci-ence and technology innovation board. The company opened itsfund-raising regulatory account in Shenzhen Branch and RMB 330million of funds raised has been collected to the account. ShenzhenBranch has been actively supporting high-tech start-ups. It estab-lished cooperation with the company in 2015. The branch issuedloans, increased the credit line, and provided the bank’s accept-ance bill service for Appotronics. Shenzhen Branch had served 354hightech start-ups. In the past three years, the branch providedcredit support worth over RMB 30 billion for high-tech start-ups.
Securing cooperation with Beijing Infrastructure Investment to fosterbank-enterprise industry-?nance collaboration
In 2019, the Bank signed a strategic cooperation agreement with Beijing InfrastructureInvestment Co., Ltd . According to the agreement, Beijing Infrastructure Investment willserve as a major private investor for the construction of Shaoxing Urban Rail Transit Line
1. For this project, the Bank provided full play on the basis of the advantages as a national
joint-stock commercial bank and through e?ective and e?cient coordination betweenits Head O?ce and relevant branches. To meet the demand of Beijing InfrastructureInvestment, the Bank provided a high-quality integrated ?nancial service package, highlye?cient services and a replicable model, earning high praise from both Jingtou Invest-ment and the public-private partnership (PPP) project company in Shaoxing. The projectcemented the Bank’s strategic partnership with Beijing Infrastructure Investment withe?ective business collaboration that brought bene?ts to all parties involved.
Carrying out strategiccooperationThe Bank attached high importance to keysectors and key enterprises that are strategicpillars to the national economy in its busi-ness operations. It accelerated the buildingof a “3-3-1-1” service system for strategicand key customer groups and adhered to theprinciple of being firmly market-based, realeconomy-oriented and mainstream.
around36,600of which were new clientsserved in 2019the Bank had around567,300corporateclients
central SOEs including State Grid Corporation ofChina and China General Technology
local SOEs including Beijing InfrastructureInvestment Co., LTD, and the Northern InvestmentGroup Co., Ltd.
private enterprises including Suning Holdings Groupincluding:
government authoritiesthe Bank has signed the “HQ to HQ” strategiccooperation agreements with
customers
In 2019
As of the end of 2019
Shenzhen Branch visited Appotronics
?
51.46%
of the sta? were female?employees
?3,986training sessions
?
1,683employees from ethnicminority groups
?Total charitable donations:
?RMB
18.256
million
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia with
Compliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
the Bank had labor contractswith
%
of its employees
the social insurance coveragerate was also
%
Protecting Fundamental Rights and Interests ofEmployees
Adhering to equal employmentThe Bank strictly prohibits all forms of employment discrimination andforced labor. It is committed to equal treatment for all employees regard-less of their ethnicity, gender and cultural backgrounds. At the same time,The Bank continuously improved paid leave system, strictly implement-ed regulations on maternity leave and breastfeeding breaks for femaleemployees, protecting the legitimate rights of employees.
In strict accordance with relevant laws and regulations including theLabor Law of the People’s Republic of Chinaand theLabor ContractLaw of the People’s Republic of China, the Bank constantly improved itsemployment systems and safeguarded the legitimate rights and interestsof employees for harmonious and stable labor relations.
In 2019
the Bank had a total of
38,639employeesof whom5,996 were new
51.46
% were female1,683were from ethnicminority groups
In 2019
Education background of employeesMaster’s degree or higher13.70%Junior college or lower20.63%
Age structure of employees
35 and below
66.69%
36–45
22.33%
46–55 9.93%56 and above
1.05%
Promoting democratic managementThe Bank constantly improved its democratic corporate managementsystem based on the Employees’ Congress, and ensured that employeescan exercise their rights concerning democratic management in accord-ance with the law. By holding meetings with sta? members, solicitingconstructive suggestions from employees, and having an email box foropinions from employees, the Bank maintained smooth informationexchange and communication channels with sta? members.The Bank held the 2019 Employees’ Congress on June 11, 2019, and par-ticipants adopted proposals related to salary and labor contracts, suchas theMeasures of Rank-based Remuneration of Hua Xia Bankand theRevised Plan of Enterprise Annuity of Hua Xia Bank. These proposals werealso explained and publicized among all employees so that they enjoythe rights to know, participate, express their opinions, and supervise.
In 2019the Bank held a total of
employees’ congresses
with8,252employeerepresentatives participatingand received
proposalsand1,479 constructivesuggestions from employeesthere were 396sta? meetingswith7,434?rst-line employees
% of which were adoptedand implemented
Attaching great importance to build the overallcapabilities of employees, the Bank made con-tinuous e?orts to improve its employee trainingsystem tailored to the needs of the Bank’sbusiness development and management.By organizing training programs at all levelsand for all business sectors, The Bank has pro-vided employees with opportunities to learn,broaden their horizons, and improved theirprofessional skills in various aspects.
Supporting Employee Development
Employee training
Updating professional ?nancial knowledge：Through training delivered by leaders in various ?elds,overseas training courses, lectures, rotation training for customer manager and various other forms oftraining, the Bank kept up with the latest macroeconomic and industrial policies, as well as trends inFinTech development and digital transformation, Internet ?nance and asset management, and helpedemployees update knowledge promptly.
O?ering more online training opportunities：The Bank sped up the dissemination of knowledge
through live streaming of training courses, online micro-courses, contests and examinations, all de-livered on the mobile app Hua Xia Academy. It launched and improved a new column titled “WealthManagement Knowledge Center”, held the Second Micro Course Design Contest, and purchased thecourseware Blockchain Technology and Its Application in the Financial Sector to enrich the content ofthe online training system.
Working harder to develop the Bank’s training courses：Customer managers’ manuals and col-lection of corporate banking marketing cases were compiled as training materials to accumulate goodpractices and valuable experience, and helped employees solve problems by combining theories andpractices.
In 2019
the Bank organized3,986internal trainingsessionsreaching261,106 person-timesamong them
Professional marketing skills training
The Bank held the Brand Management Training Course
training sessions were about corporatesocial responsibilityreaching50,576 person-times
Bachelor’s degree65.67%
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for AllA Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
“Me and My Motherland” Award Conference for Model Workers and Final of the First SingingContest in Celebration of the 70th Anniversary of the Founding of the People’s Republic of China
“Singing on the Party’s Day” of Xiamen Branch
Organizing cultural and sports activities
The Bank always advocating work-life balance, organized a wide range of sports and cultural activities, and created favorable and healthy environmentfor employees. By forming interest groups such as badminton, tennis and dance, and organizing competitions and other events, The Bank enriches thespiritual and cultural life of employees, encourage interactions, thus boost employees’ energy for work.
Singing contest of Hohhot Branch
Employee basketball and table tennis match
Caring for Employees
Sta?s arranged the Home of Employees to be warm and creative
Nanning Branch donated medical expenses for employees who su?er from acute leukemia
BuildingHome of EmployeesThe Bank continued to build its Home of Employ-ees. The aim is to create spaces where employeescan learn, seek entrepreneurship opportunities,exercise their democratic rights and feel happyand cared for. The Home of Employees has fitnessequipment, TV sets, reading space, lounges, etc.Itis a place where employees can do some exercise,read books, and rest up. In 2019, there were a totalof 920 such spaces across the Bank and 59 of themwere named model Homes of Employees.
Besides a sound medical assistance system foremployees, the Bank also allocated funds tohelp employees in need. On special occasions,representatives of the Bank would also visitemployees in di?culties and bring them care.These are the manifestation of the Bank’speople-oriented philosophy.
Helpingemployees in need
In 2019the Bank helped
needy employeeswith RMB
3.48
million of living allowancesand RMB457,700of medical subsidies
A Brilliant Hua Xia forValue Creation
A Dedicated Hua Xiawith Craftsmanship
A Digital Hua XiaDriven by Innovations
A Prudent Hua Xia withCompliance
A People-CenteredHua Xia PursuingHappiness for All
A Sincere Hua Xia with
Quality Services2019 Social Responsibility Report
Building a Better Society with Concerted E?orts
Celebrating the 70th anniversary of the founding of the People’s Republic of ChinaSince its inauguration in 1992, the Bank has been growing together with our motherland and played important roles in China’s economic development.On the occasion of the 70th anniversary of the founding of the People’s Republic of China in 2019, the Bank held celebrations and o?ered every possiblesupport to all commemoration activities in society.
On October 1, 2019, after over three months of basic training, joint rehearsals and ?eld rehearsals, 170 employees of the Bank ful?lled theirtasks as part of the National Day parade with great success. Their performance received wide attention and was highly acclaimed by the mediaand the general public alike.
Participating in National Day parade
Scan the QR code to read the article about thesta? and customer representatives of the Bankgathered at the Great Wall to celebrate the 70thanniversary of the foundingof the People’s Republic ofChina
Participating in public welfare activitiesTo serve and give back to society, the Bankorganized all kinds of public welfare and volun-teer activities, including blood donation, carefor the elderly, student aid and visits to veteransand vulnerable groups.
In January 2019, volunteers of the Bank visited Beijing Dandelion School in Daxing Districtand presented writing brushes, ink, calligraphy paper, ink stones, penholders, and otherstationery items to the students as gifts. The hope is to open up a path for the kids to trytheir hands at arts and live an enriched life.Besides, the Bank had made donations to the school through China Foundation for Develop-ment of Financial Education for two consecutive years, providing special support for teachersto participate in R&D and learning programs to improve the teaching skills.
Volunteer service at Beijing Dandelion School
In 2014, the Bank cooperated with Beijing Women & Children’s Development Foundation toestablish the Hua Xia Bank Foundation for the Growth of Children of Sanitation Workers. TheFoundation provides ?nancial support for children of poor sanitation workers so that they cana?ord education, and has organized a series of public welfare activities to build the capacitiesand care for the growth of children of sanitation workers. Over the past six years, the Bank’sdonation totaled RMB 7.5 million.In July 2019, a summer camp for these children opened at Shijia Hutong Museum under thetheme of Hua Xia Bank’s E?orts to Safeguard Our Future: 2019 Growth Program for Childrenof Sanitation Workers. Participants visited a waste collection station in Beijing and China Mete-orological Administration to understand the impact of waste on the environment. They shotgarbage classi?cation videos, learned experts’ views on it, and spread the knowledge theylearned, becoming real practitioners of environmental protection.
Summer Camp for Children of Sanitation Workers
The Environmental lecture for children of sani-tation workers
Volunteers from Zhengzhou Branch visited awelfare home
Dalian Branch launched a campaign to helpchildren with autism
Summer Camp for children of sanitation work-ers was successfully concluded
2019 Social Responsibility Report Hua Xia Bank Co., Limited
The year 2020 is the year to achieve the ?rstcentenary goal of building a moderatelyprosperous society in all respects and thelast year of the 13th Five-year Plan. It is alsothe last year of Hua Xia Bank’s four-yeardevelopment plan and the year for a planfor the next years. Adhering to the guidanceof Xi Jinping Thought on Socialism withChinese Characteristics for a New Era, we willseize every minute to make progress withinnovation, assume economic, social andenvironmental responsibilities, and open upnew prospects for the development of HuaXia Bank.
Outlook
? Focusing on the strategy of building Beijing into four centers, we willsupport the release of Beijing’s noncapital functions, contribute tothe construction of the capital sub-center, and promote the collabo-rated development of Beijing-Tianjin-Hebei region, thus serving thesocio-economic development of Beijing.? Keeping up with national strategies on regional development and
focusing on deepening the supply-side structural reform, we will ear-nestly serve and support the restructuring of key areas.? We endeavor to expand ?nancial services concerning the private sector,consumption and people’s livelihoods.
Serving the real economy
? We will promote the construction of a long-term mechanism for com-pliance management, strictly prevent risks, and maintain ?nancialsecurity and stability.
Guaranteeing safe and stable develop-ment
? As a move to strengthen our role as a “provider of ?nancial servicesfor SMEs”, we will improve our ?nancial services for micro and smallenterprises with wider coverage and better satisfaction.? We will deepen the implementation of the targeted poverty alleviationstrategy and enhance targeted poverty alleviation through ?nancialservices.
Practicing inclusive ?nance
? We will accelerate the construction of 15 key FinTech projects for theestablishment of an information technology platform.? We will innovate in our ?nancial service models, striving to realize thecorporate vision of A “Smart Finance, Digital Hua Xia”.
Empowering ?nance with technologies
? We will improve the green ?nance service system, increase our supportfor green, low-carbon, and circular economy, strengthen internationalcooperation in green ?nance, and boost the in?uence of the green?nance brand of “Green Growth for a Better Hua Xia”.? We will launch special green travel products and promote the estab-lishment of green transaction channels.? We will strengthen green operations, promote green purchase, andengage in green public welfare.
Supporting ecological progress
? We will comprehensively safeguard the rights and interests of employ-ees and help employees grow in multiple aspects.? We will pay attention to employee care and enrich their inner life.? We will strengthen the education and publicity on ?nancial knowledgeand improve the public’s ?nancial literacy.? We will actively participate in public welfare undertakings and workwith the people to create a better life.
Staying people-oriented
OutlookHua Xia Bank Co., Limited 2019 Social Responsibility Report
Reporting Index
Standard number and descriptionPageNote
GRI 101: FoundationGRI 102: General disclosures
Organization pro?le
102-1 Name of the organizationP5102-2 Activities, brands, products, and servicesP5102-3 Location of headquartersP5102-4 Location of operationsP5102-5 Ownership and legal formP3102-6 Market servedP5102-7 Scale of the organizationP5102-8 Information on employees and other workersP5102-9 Supply chain102-10 Signi?cant changes to the organization and its supply chain102-11 Precautionary Principle or approachP54-61102-12 External initiativesP11102-13 Membership of associationsP11、P52Strategy
102-14 Statement from senior decision-makerP3-4102-15 Key impacts, risks, and opportunitiesP56-61Ethics and integrity
102-16 Values, principles, standards, and norms of behaviorP5、P10-11102-17 Mechanisms for advice and concerns about ethicsP10
Governance
102-18 Governance structureP8102-19 Delegating authorityP11102-20 Executive-level responsibility for economic, environmental, andsocial topics
P10-15102-21 Consulting stakeholders on economic, environmental, and socialtopics
P11-12102-22 Composition of the highest governance body and its committeesP8102-23 Chair of the highest governance bodyP3102-24 Nominating and selecting the highest governance body102-25 Con?icts of interest102-26 Role of highest governance body in setting purpose, values,and strategy
P8-9102-27 Collective knowledge of highest governance body102-28 Evaluating the highest governance body’s performance102-29 Identifying and managing economic, environmental, andsocial impacts
P11-12102-30 E?ectiveness of risk management processesP60-61102-31 Review of economic, environmental, and social topicsP11-12102-32 Highest governance body’s role in sustainability reportingP11102-33 Communicating critical concernsP12102-34 Nature and total number of critical concernsP11-12102-35 Remuneration policies102-36 Process for determining remuneration102-37 Stakeholders’ involvement in remuneration102-38 Annual total compensation ratio102-39 Percentage increase in annual total compensation ratio
GRI Content Index
Standard number and descriptionPageNoteStakeholder engagement
102-40 List of stakeholder groupsP12102-41 Collective bargaining agreements102-42 Identifying and selecting stakeholdersP11-12102-43 Approach to stakeholder engagementP12102-44 Key topics and concerns raisedP11-12
Reporting practices
102-45 Entities included in the consolidated ?nancial statementsP1102-46 De?ning report content and topic BoundariesP1102-47 List of material topicsP11102-48 Restatements of informationP86-89
No infor-mation isrestated.102-49 Changes in reportingP86-89
There wereno majorchanges intopics dis-closed inthe report.102-50 Reporting periodP1102-51 Date of most recent reportP1102-52 Reporting cycleP1102-53 Contact point for questions regarding the reportP92102-54 Claims of reporting in accordance with the GRI StandardsP86-89102-55 GRI content indexP86-89102-56 External assuranceP90-91GRI 200 Economic topicsGRI 103 Management ap-proach
103-1 Explanation of the material topic and its boundary
P11、P22-
103-2 The management approach and its componentsP22-45103-3 Evaluation of the management approachP22-45GRI 201 Economic perfor-mance
201-1 Direct economic value generated and distributedP14-15201-2 Financial implications and other risks and opportunities dueto climate change
P16-21201-3 De?ned bene?t plan obligations and other retirement plans201-4 Financial assistance received from governmentGRI 202 Market presence
202-1 Ratios of standard entry level wage by gender compared tolocal minimum wage202-2 Proportion of senior management hired from the local communityGRI 203 Indirect economicimpacts
203-1 Infrastructure investments and services supportedP22-45203-2 Signi?cant indirect economic impactsP22-45GRI 204 Procurement prac-ticesGRI 103 Management ap-proach
103-1 Explanation of the material topic and its boundaryP21103-2 The management approach and its componentsP21103-3 Evaluation of the management approachP21204-1 Proportion of spending on local suppliersGRI 205 Anti-corruptionGRI 103 Management ap-proach
103-1 Explanation of the material topic and its boundary103-2 The management approach and its componentsP58103-3 Evaluation of the management approach205-1 Operations assessed for risks related to corruptionP58205-2 Communication and training about anti-corruption policiesand procedures
P58205-3 Con?rmed incidents of corruption and actions takenGRI 206 Anti-competitivebehavior
206-1 Legal actions for anti-competitive behavior, anti-trust, andmonopoly practicesGRI 300 Environmental top-icsGRI 103 Management ap-proach
103-1 Explanation of the material topic and its boundaryP11、P16-21103-2 The management approach and its componentsP16-21103-3 Evaluation of the management approachP16-21
Reporting IndexHua Xia Bank Co., Limited 2019 Social Responsibility Report
Standard number and descriptionPageNote
GRI 301 Materials
301-1 Materials used by weight or volume301-2 Recycled input materials used301-3 Reclaimed products and their packaging materialsGRI 302 Energy
302-1 Energy consumption within the organizationP21302-2 Energy consumption outside of the organization302-3 Energy intensity302-4 Reduction of energy consumptionP21302-5 Reductions in energy requirements of products and servicesP20、P68GRI 303 Water
303-1 Water withdrawal by source303-2 Water sources signi?cantly a?ected by withdrawal of water303-3 Water recycled and reusedGRI 304 Biodiversity
304-1 Operational sites owned, leased, managed in, or adjacent to, pro-tected areas and areas of high biodiversity value outside protected areas304-2 Significant impacts of activities, products, and services on biodiversity304-3 Habitats protected or restored304-4 IUCN Red List species and national conservation list specieswith habitats in areas a?ected by operations
GRI 305 Emissions
305-1 Direct (Scope 1) GHG emissions305-2 Energy indirect (Scope 2) GHG emissions305-3 Other indirect (Scope 3) GHG emissions305-4 GHG emissions intensity305-5 Reduction of GHG emissions305-6 Emissions of ozone-depleting substances (ODS)305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other signi?-cant air emissionsGRI 306 E?uents and waste
306-1 Water discharge by quality and destination306-2 Waste by type and disposal method306-3 Signi?cant spills306-4 Transport of hazardous waste306-5 Water bodies a?ected by water discharges and/or runo?GRI 307 Environmental Com-pliance
307-1 Non-compliance with environmental laws and regulationsGRI 308 Supplier environ-mental assessment
308-1 New suppliers that were screened using environmental criteria
308-2 Negative environmental impacts in the supply chain and actions takenGRI 400 Social topicsGRI 103 Management ap-proach
103-1 Explanation of the material topic and its boundaryP11、P76-83
103-2 The management approach and its componentsP76-83
103-3 Evaluation of the management approachP76-83GRI 401 Employment
401-1 New employee hires and employee turnoverP78
401-2 Bene?ts provided to full-time employees that are not provid-
ed to temporary or part-time employees
P78
401-3 Parental leaveP78GRI 402 Labor/Managementrelations
402-1 Minimum notice periods regarding operational changes
GRI 403 Occupational Healthand Safety
403-1 Workers representation in formal joint management–worker
health and safety committees
403-2 Types of injury and rates of injury, occupational diseases,
lost days, and absenteeism, and number of work-related fatalities
P81
403-3 Workers with high incidence or high risk of diseases related
to their occupation
403-4 Health and safety topics covered in formal agreements with
trade unionsGRI 404 Training and educa-tion
404-1 Average hours of training per year per employee
404-2 Programs for upgrading employee skills and transition assis-
tance programs
P79
Standard number and descriptionPageNote
GRI 404 Training andeducation
404-3 Percentage of employees receiving regular performance andcareer development reviewsGRI 405 Diversity and equalGRI 103 Management ap-proach
103-1 Explanation of the material topic and its boundary103-2 The management approach and its componentsP78103-3 Evaluation of the management approachP78405-1 Diversity of governance bodies and employeesP78405-2 Ratio of basic salary and remuneration of women to menGRI 406 Non-discrimination406-1 Incidents of discrimination and corrective actions takenGRI 407 Freedom of associa-tion and collective bargain-ingGRI 103 Management ap-proach
103-1 Explanation of the material topic and its boundary103-2 The management approach and its components103-3 Evaluation of the management approach407-1 Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at riskGRI 408 Child labor408-1 Operations and suppliers at significant risk for incidents of child laborGRI 409 Forced or compulso-ry labor
409-1 Operations and suppliers at signi?cant risk for incidents offorced or compulsory laborGRI 410 Security Practices410-1 Security personnel trained in human rights policies or proceduresGRI 411 Rights of indigenouspeoples
411-1 Incidents of violations involving rights of indigenous peoplesGRI 412 Human rights as-sessment
412-1 Operations that have been subject to human rights reviews
or impact assessments
412-2 Employee training on human rights policies or procedures
412-3 Signi?cant investment agreements and contracts that
include human rights clauses or that underwent human rights
screeningGRI 413 Local communi-tiesGRI 103 Management ap-proach
103-1 Explanation of the material topic and its boundaryP82-83
103-2 The management approach and its componentsP82-83
103-3 Evaluation of the management approachP82-83
413-1 Operations with local community engagement, impact as-
sessments, and development programs
413-2 Operations with signi?cant actual and potential negative
impacts on local communitiesGRI 414 Supplier social as-sessment
414-1 New suppliers that were screened using social criteria
414-2 Negative social impacts in the supply chain and actions takenGRI 415 Public policy415-1 Political contributionsGRI 416 Customer healthand safetyGRI 103 Management ap-proach
103-1 Explanation of the material topic and its boundaryP62-75
103-2 The management approach and its componentsP62-75
103-3 Evaluation of the management approachP62-75
416-1 Assessment of the health and safety impacts of product and
service categories
P64
416-2 Incidents of non-compliance concerning the health and safe-
ty impacts of products and servicesGRI 417 Marketing and labe-ling
417-1 Requirements for product and service information and labelingP64、P70
417-2 Incidents of non-compliance concerning product and service
information and labeling
417-3 Incidents of non-compliance concerning marketing commu-
nicationsGRI 418 Customer Privacy
418-1 Substantiated complaints regarding concerning breaches of
customer privacy and losses of customer dataGRI 419 SocioeconomiccomplianceGRI 103 Management ap-proach
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
419-1 Non-compliance with laws and regulations in the social and
economic area
Reporting IndexHua Xia Bank Co., Limited 2019 Social Responsibility Report
9091Independent Assurance Report 2019 Social Responsibility Report Hua Xia Bank Co., Limited
Independent Assurance Report
Feedback FormThank you for reading the Hua Xia Bank Co., Limited 2019 Social Responsibility Report. In order to provide you and other stakeholders with morevaluable information and improve our ability and level of CSR ful?llment, we would love for you to share your comments on this report and send yourfeedback as follows:
Tel: 010-85237056Fax: 010-85239000Email: zhshzr@hxb.com.cnPostal code: 100005Address: Hua Xia Bank Mansion, 22 Jianguomennei Street, Dongcheng District, Beijing
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