Hua Xia Bank Co., Limited
About This ReportReporting ScopeReporting Period | Unless otherwise stated, the report covers the period between January 1 to December 31, 2020.Organizational Boundary | The report discloses the information of the Head Office 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 17, 2020.Preparation BasisThe report was prepared in accordance with the Opinions on Strengthening the Corporate Social Responsibility of Banking Institutions
issued by former Banking Regulatory Commission (CBRC), theGuidelines on the Corporate Social Responsibility of Banking Institutionsof Chinareleased by the China Banking Association, and theNotice on Strengthening Listed Companies’ Assumption of SocialResponsibilityandGuideline on Environmental Information Disclosure by Listed Companiesreleased by Shanghai Stock Exchange(SSE), and referred to thePrinciples for Responsible Bankingissued by United Nations Environment Programme, theGuidelines onCorporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR 4.0)issued by the Research Center for Corporate SocialResponsibility of the Chinese Academy of Social Sciences,Guidance on Social Responsibility (ISO 26000:2010)issued by InternationalOrganization for Standardization (ISO),GRI Sustainability Reporting Standards (GRI Standards)andGRI Financial Service SectorSupplemental Guidelines issued by Global Sustainability Standard Board (GSSB), and theEnvironmental, Social and GovernanceReporting 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 financial data in the report come from the auditedAnnual Report 2020 of Hua Xia Bank Co., Limitedand other data come frominternal documents and statistics of Hua Xia Bank. Some contents and data can be traced back to previous years.LanguagesThe report is available in simplified Chinese and English versions. In case of any discrepancy, the simplified Chinese version shallprevail.FormatsThe report is available in both print and electronic formats. The electronic version can be downloaded at our official website (http://www.hxb.com.cn).Contact InformationHua Xia Bank Co., LimitedAddress: 22 Jianguomennei Street, Dongcheng District, BeijingPostal code: 100005Tel: 010-85237056Fax: 010-85239000E-mail: zhshzr@hxb.com.cn
Message from Chairman04Message from President06About Us08CSR Management11CSR Awards and Honors14CSR Performance15
Outlook104Appendix106Reporting Index106Independent Assurance Report111Feedback Form113
Table of Contents
Promoting the Coordinated Development ofthe Beijing-Tianjin-Hebei RegionImplementing State-level Regional DevelopmentStrategiesPromoting Industrial Transformation and UpgradeServing China’s Opening-up
Devoting More Efforts to Green FinanceServices for Green LifestylesPracticing Green Operation
Promoting the Growth of MSEsSupporting Private EnterprisesBoosting People’s Wellbeing
Full Compliance in OperationsStrengthening Risk Management
Accelerating FinTech DevelopmentImprovement in Corporate Banking ServicesUpgrading the Customer ExperienceProtecting Customer Rights and Interests
Protecting Employee RightsSupporting the Development of EmployeesCaring for EmployeesBuilding a Harmonious and Beautiful SocietyThrough Joint Efforts
A Dedicated Hua Xiawith Craftsmanship
An Eco-friendly Hua XiaThrough Green Development
A Philanthropic Hua Xiawith Inclusive Finance
A Prudent Hua Xiawith Compliance
A Sincere Hua Xia withInnovative Services
A People-centered Hua XiaPursuing Happiness for All
0104
0205
0306
2020 Social Responsibility Report0203Hua Xia Bank Co., Limited
Spotlight:
Contributing to the FightAgainst the COVID-19 withConcerted EffortsSpotlight:
Contributing to the DecisiveVictory in the Battle AgainstPoverty Through MultipleApproaches
2020 Social Responsibility Report0405Hua Xia Bank Co., Limited
Message from Chairman
In 2020, confronted with the hard shock from the COVID-19 pandemic and accelerating changes, Hua Xia Bank adhered to theguidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and promoted bank-wide reform by enhancingParty leadership. Despite challenges, we seized opportunities, stayed true to our original aspiration and worked hard to fulfil our mission.We made unremitting efforts to promote sustainable corporate, economic, social and environmental development at the same time.We shouldered our responsibilities in the ght against the pandemic.Facing the extreme test of the pandemic, we earnestly implementedthe decisions and deployment of the Central Party Committee, the State Council and China Banking Insurance Regulatory Commissionon COVID-19 prevention and control. We spared no effort to support the national efforts of ensuring stability and securities on six fronts.We offered sound, efficient financial services and actively fulfilled our responsibilities to aid the fight against the pandemic and supportresumption of work and production, striving to get through tough times with all walks of life.
We developed inclusive nance to help win the battle against poverty.Aiming to be “a financial service provider for small and mediumenterprises (SMEs)”, we allocated comprehensive credit loans to micro and small enterprises (MSEs), advanced product innovationand process optimization, and improved financial service capability for MSEs. At the same time, we implemented the decisions anddeployment of the Central Party Committee on targeted poverty alleviation. Leveraging our financial advantages, we actively introducednew financial products and models for poverty alleviation, improved service efficiency, and spared no effort to accomplish our targets inthe battle against poverty.We provided nancial support for the development of the real economy.Based in Beijing, we endeavored to build the Bank into anational-level joint-stock bank and a major financial service provider for the Beijing-Tianjin-Hebei region. In line with national and regionaldevelopment strategies for the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area and so on, we continuedto increase resource investment in pivotal areas of the real economy (e.g., transformation and upgrade of industrial structure, China’sopening up to the outside world, development of private enterprises) and add momentum to the high-quality development of realeconomy.
We embraced digital trends and pursued innovation-driven development.We constantly boosted FinTech innovation, improvedcoordinated planning and top-level design for digital transformation, and accelerated the development of key FinTech projects anddigitalization of core business. Moreover, we built the innovation mechanism of agile organization system, ramped up efforts to improvedigital ecosystem, and created the “Smart Finance, Digital Hua Xia” brand, pushing forward the innovative development and digitaltransformation.We developed green nance to protect the beautiful homeland.We actively practiced the green development philosophy, channeled
more resources to green finance areas such as credit loans, investment and finance lease, and built a full-chain green finance servicesystem ranging from internal architecture building to product innovation. In addition, we took the initiative to expand internationalcooperation, constantly greened our services, and worked to create the “Green Growth for a Better Hua Xia” brand and contribute to thebuilding of beautiful China with lucid waters and lush mountains.We prevented and controlled nancial risks through compliance and stable operation.Adhering to compliant operation, we stressed
“compliance for value creation”, insisted on risk management, and comprehensively promoted the construction of a long-termcompliance management system. With these efforts, we advanced the risk management system reform, improved internal compliance,and consolidated the foundation for compliant operation, safeguarding high-quality corporate development and securing financial orderand social stability.In face of challenges or difficulties, heroes stand out. Looking into the future, under the strong leadership of the Party Central Committeewith Comrade Xi Jinping at its core and standing at the beginning of a new development stage, we will practice the new developmentphilosophy, and integrate into the new development pattern. With unremitting efforts, we will work to realize the Chinese Dream ofnational rejuvenation and make achievements to celebrate the 100th anniversary of the founding of the Communist Party of China.
Party Secretary and Chairman of Hua Xia Bank
Hua Xia Bank Co., Limited2020 Social Responsibility Report
Message from President
Deputy Party Secretary and President of Hua Xia Bank
The year 2020 was an extraordinary year. Confronted with the sudden outbreak of COVID-19 and the impacts of complicated situationsat home and abroad, Hua Xia Bank insisted on boosting the real economy. Upholding the customer-centric service philosophy, wefulfilled our responsibilities as a state-owned financial institution and pressed ahead with all our achievements.Since 2020, we have orderly promoted the transformation and institutional reform of Hua Xia Bank and constantly cemented thefoundation for operation and development. As a result, we have achieved continuous growth in business scale, operating efficiencyand risk resistance capability. In 2020, we realized a revenue of RMB 95.309 billion, a net profit of RMB 21.568 billion, and a capitaladequacy ratio (CAR) of 13.08%.In 2020, facing the extreme test of the pandemic, the Bank adopted diverse measures and provided financial support to aid COVID-19prevention & control and resumption of work and production, and to ensure stability and securities on six fronts. As of the end of 2020,the Bank had cumulatively allocated RMB 20.705 billion credit loans to 288 enterprises essential for pandemic prevention and control;postponed the repayment of principals and interests and cut the interest rate for 11,077 enterprises (including small-business owners,individual industrial and commercial households, with a cumulative business principal of RMB 204.155 billion) hit by the pandemic.In 2020, the Bank actively seized opportunities of regional economic development. We went all out to advance regional developmentin the Beijing-Tianjin-Hebei region, Yangtze River Delta region and Guangdong-Hong Kong-Macao Greater Bay Area, along Beijing-Guangzhou and Beijing-Shanghai railway lines, and other key areas, to effectively support the development of the real economy. In2020, the Bank cumulatively provided RMB 65.6 billion of financing services for key projects in the coordinated development of theBeijing-Tianjin-Hebei region. At the same time, the Bank ramped up efforts to promote the transformation and upgrade of industrialstructure, support the development of micro, small and medium-sized private enterprises, and facilitate the country’s opening up. As ofthe end of 2020, the balance of loans for supporting strategic emerging industries had reached RMB 79.689 billion while the balance ofloans to MSEs had reached RMB 456.412 billion.In 2020, the Bank enhanced financial support for targeted poverty alleviation, especially for the fixed-point poverty alleviation in Beijing,the East-West collaboration for poverty alleviation, and educational development for poverty alleviation. We increased input in industrialdevelopment, public welfare, stimulating consumption of local products, employment and educational support in poverty-stricken areas.In addition, we set up the fund for preventing return to poverty and for industrial development, contributing to winning the battle againstpoverty. In 2020, the Bank provided RMB 840.2222 million (including credit loans, donations and consumer spending) for targetedpoverty alleviation and offered financial services to a total of 21,582 registered poor people.In 2020, the Bank responded to the national efforts of ecological progress, improved the long-term mechanism for green credit loansand investment, and enhanced cooperation with international organizations in this regard. By developing marketing platforms andoptimizing specialty products, the Bank provided more financial support for key green projects to aid pollution control. As of the end of2020, the balance of green loans had reached RMB 180.043 billion and the balance of climate finance had reached RMB 157.1 billion.Besides, the Bank endeavored to practice ESG investment and launched CSI ESG120 Strategy Index, CSI Hua Xia Bank ESG Index andCSI Equity-Hua Xia Wealth Management ESG Preferred Bond Index Strategy Index, attracting extensive attention from the market andinvestors.In 2020, the Bank put people first, protected employee rights, and provided abundant training and career development opportunities,so that employees can grow together with the Bank. In 2020, the Bank held 4,365 training sessions for 370,748 participants. Moreover,the Bank actively engaged in charity and promoted social harmony. In 2020, the Bank organized 2,091 volunteer service activities, with30,235 participants delivering 22,851.2 hours of service.Looking into the year 2021, it is time for us to make new efforts. Standing on the new historic point, Hua Xia Bank will remain true toour original aspiration, brave challenges and difficulties, and take confident, firm strides to help realize the Chinese Dream of nationalrejuvenation.
About Us
Hua Xia Bank was founded in Beijing in October 1992and became a national joint-stock commercial bank afterrestructuring in March 1995. On September 12, 2003, theBank went public on Shanghai Stock Exchange (Stock Code:
600015), with registered capital of RMB 15.387 billion.Since its inauguration, the Bank has been forging ahead andmade great achievements despite all difficulties. By the endof 2020, the Bank had a total asset of RMB 3,399.816 billion,44 Tier-1 branches, 79 Tier-2 branches, 1,022 outlets in 122cities at or above the prefectural level nationwide, and nearly40,000 employees, which had formed an institutional systemof building presence in developed cities and reaching outto the whole country. The Bank has set up 1,206 agencies inand out of China, covering 321 cities in 101 countries on allfive continents of the world. Its settlement network covers allmajor trade areas in the world.InThe Banker’s Top 1000 world banks published in July2020, Hua Xia Bank ranked 51st by Tier-1 capital and 65thby total asset, respectively five places and two places higherthan the previous year.
2020 Social Responsibility Report
?Strive to developinto a modern nancial
group that is“largeand strong, stable and
excellent”
Actively pursue innovative，coordinated, green, open and
shared developmentFocus on serving the real economyand creating value for customers and
shareholdersFollow the fundamental strategy of “taking deposits asthe foundation, building the Bank’s through FinTech andtalents, and ensuring stable operation through risk control”
Keep to the direction of featured, digital, asset-efficient, specialized, comprehensive, and world-
oriented development
Corporate GovernanceThe Bank has established a corporate governance structure mainly comprising of the Shareholders’ General Meeting, the Board ofDirectors, the Board of Supervisors, and the senior management. The Shareholders’ General Meeting is the governing body, the Boardof Directors is the decision-maker, the Board of Supervisors serves supervision functions, and the senior management is in charge ofexecution.The Bank has strengthened the statutory position of Party organizations in the corporate governance structure, coordinated well betweenthe Party committee and the above three parts of the corporate governance structure, and incorporated Party leadership in all parts ofcorporate governance, promoting the synergy of Party leadership and corporate governance.
NominationCommittee
Audit Committee
HeadquartersDepartments
Branches andSub-branches
Shareholders’ General
Meeting
Office of the Board
of Directors
Office of the Board
of Supervisors (Securities Affairs Department)
SeniorManagement
Board of DirectorsBoard of Supervisors
NominationCommitteeOversightCommitteeStrategicManagement andConsumer Rights
and InterestsProtectionCommitteeRelated PartyTransaction ControlCommittee
Remunerationand EvaluationCommittee
Asset LiabilityManagement
Committee
CreditApprovalCommittee
Asset RiskDisposalCommittee
PerformanceManagementCommittee
ProductManagementCommittee
InformationTechnologyManagementCommitteeRisk Managementand InternalControl CommitteeCredit, Investmentand FinancingPolicy Committee
Risk andComplianceManagementCommittee
in the Board of Directors
in the Board of Supervisors
Independent Directors
External SupervisorsEmployee Supervisors
Executive Directorsthere were
Directors
Shareholders’ General Meetings wereheld with
resolutions adopted
Board of Directors Meetings wereheld with
resolutions adopted
Board of Supervisors Meetings wereheld with
resolutions adopted
there were
Supervisors
7 5
5 4
As of the end of 2020In 2020
Hua Xia Bank Co., Limited
Following the Lead of Party Building
Investor Relations
Information Disclosure
The Bank has followed Xi Jinping Thought on Socialism with Chinese Characteristics fora New Era and implemented the guiding principles of the 19th CPC National Congress,the second, third, fourth and fifth plenary sessions of the 19th CPC Central Committee,and China’s Central Economic Work Conferences. While adhering to Party leadership andenhancing Party building, the Bank has continuously promoted full and strict discipline overthe Party and followed Party leadership in its pursuit of high-quality development.
Party leadership at all levels and theirmembers fulfilled1,200
tasks on their principal responsibilitylist for exercising strict governanceover the Party Committee
To strengthen investor relations management, the Bank strictly implemented theWorkingMeasures of Hua Xia Bank Co., Ltd. on Investor Relations, and designated a dedicated investorrelations manager under the Office of the Board of Directors to take charge of relevant work.The Bank has worked to promote interactions and exchanges with investors through multiplechannels and in many ways. In 2020, the Bank organized shareholders’ general meetings,meetings for investors and analysts, online briefing on cash bonus, open day of investorgroups, themed seminars and other activities, and answered questions carefully on the SSEE-interaction platform and through investor service hotline and mailbox, so as to enhance thecapital market’s understanding of the bank.
The Bank has attached great importance to transparent operation, strictly complied withthe regulations on information disclosure and standardized the information disclosure andreporting processes. We actively fufilled information disclosure obligations and continued toenhance transparency via channels likeChina Securities Journal, Shanghai Securities News,Securities Times, Shanghai Stock Exchange website, the official website of Hua Xia Bank, etc.In the assessment of information disclosure of listed companies in Shanghai Stock Exchangefrom 2019 to 2020, the Bank was evaluated level-A (excellent).
Continuously strengthening Party building at the primary level and the development ofcorporate culture, and creating a positive, hard-working, united and cooperative atmosphere
In 2020
2020 Social Responsibility Report
Improving the work systems of theBank’s Party Committee; formulating,optimizing and implementing thework rules for Party Committee,implementation rules for Partyaffairs disclosure, regulations oncommunication with the standingcommittee of the Party Committeesof key banks, list of major issuesto be discussed before decisionmaking of the Party Committee and itsprocedure, etc.
Giving full play to the leading role of the Party Committee in steering the direction, overseeingthe big picture and ensuring e?ective implementation, and strictly performing its responsibility ofexercising full and rigorous Party disciplinesConsolidating the outcomes of the education on the original aspiration of the Party and the patrolinspection & recti?cation campaignEnforcing full, rigorous self-discipline of the Party Committee; enhancing anti-corruptioneducation, discipline and warning; and exercising strict governance over the Party CommitteePracticing the ideology education accountability mechanism, building and implementing the“1+1+N” ideology education and publicity system frameworkUpholding the Party standards for competitive cadres for a new era, and adhering to the Partyleadership over cadres and talentsEnforcing disciplines and rules, and fully supporting the resident discipline inspection &supervision team to perform its duties
The Bank has integrated CSR management with corporatedevelopment, and continuously improved CSR management andpractices to create greater value for stakeholders. TheCorporateSocial Responsibility Management Measures of Hua Xia Bank
has been strictly implemented to regulate CSR management,and the branding and communication of Hua Xia Bank’ssocial responsibility management has been strengthened tocontinuously improve the perception of employees and externalparties of the Bank’s role in value creation.
CSR Management
Harmony brings a bright future and Hua Xia continues with its public spiritChina’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. Harmony brings a bright futureThe Bank pursues harmonious co-existence, open cooperation,sharing of benefits with stakeholders, and works towards balancebetween economic, environmental and social benefits, making itscontribution to a harmonious socialist society.
Hua Xia continues with its public spirit
Leveraging on its advantages in specialty, location andresources, the Bank takes the initiative to shoulder economic,environmental and social responsibilities, and strives to bringbenefits to every corner of China and every Chinese.
Openness and transparencyCross-over thinkingResource integration
Maximizing comprehensive valueContributing to a harmonious society
Serving thereal economy
Putting people firstPracticinginclusive finance
Promoting ecologi-cal progress
Pursuing safe andsteady development
Empoweringthrough FinTech
Practices for economic responsibilityPractices for environmental responsibilityPractices for social responsibility
Vision of CSR fulfillment
FourCSR principles
TwoCSR goals
SixCSR priorities
ThreeCSR practices
Communication with stakeholders
In 2020, we actively implemented thePrinciples for ResponsibleBanking(PRB) of United Nations Environment Programme FinanceInitiative (UNEP FI) and practiced the ESG responsible investmentphilosophy. While pursuing sustainable corporate development,the Bank made a positive contribution to the sustainability of theeconomy and society. By organizing CSR management training,the Bank enhanced employees’ social responsibility awarenessand capability to fulfill responsibility.
Hua Xia Bank Co., Limited
CSR Philosophy
Contributing to the SDGs
The Bank has identified 16 material topics in combination with sustainable developmenttrends, advanced CSR practices of peers and concerns of stakeholders. The Bank hasprioritized the topics based on “importance to the sustainable development of Hua Xia Bank”and “importance to stakeholders”.
In September 2015, the United Nations held the Sustainable Development Summit andadopted the2030 Agenda for Sustainable Development. The agenda covers 17 SustainableDevelopment Goals (SDGs), which point out the direction for countries and enterprises acrossthe world to contribute to sustainable development. Bearing in mind the vision of building amodern financial group that is “large and strong, stable and excellent”, the Bank has workedto make an assessment in terms of materiality and importance, distinguished core goals andrelated goals, and allocated resources and advantages to core areas, contributing to the UN’sSDGs.
Importance to the sustainable development of Hua Xia Bank
Importance to stakeholders
Materiality Matrix
Devoting more efforts to green nanceSupporting community developmentCaring for employeesPromoting nancial knowledge
Practicing green operationPromoting industry development
Serving the real economyContributing to national strategiesGuarding against nancial risksPromoting inclusive nanceStandardizing corporate governanceContributing to poverty alleviationPursuing FinTech innovationsProtecting customers’ rights and interestsImproving service qualityHelping employees grow
Coregoals
Related
goals
2020 Social Responsibility Report
Stakeholder Communicaton
StakeholderKey expectationsOur responses
Government
Serving the real economySupporting national strategiesDeveloping inclusive financeHelping fight povertyPaying taxes in full according to the law
Coordinating regional developmentSupporting the growth of small and microenterprisesFacilitating China’s opening upPromoting targeted poverty alleviation throughfinancial servicesPaying taxes in fullRegulatory authorities
Compliance managementTightening risk management
Implementing regulatory policiesAccepting supervision and evaluationStrengthening risk prevention
Shareholders and investors
Improving corporate governanceOffering continuous and stable returnsProtecting shareholders’ rights and interestsTransparent operation
Improving corporate governanceEnsuring sound and stable operationCreating value for shareholdersStrengthen information disclosure
Environment
?Paying attention to climate change?Supporting green development
Developing green financePromoting green office practicesEngaging in public welfare-orientedenvironmental protection campaigns
Customers
Protecting customers’ rights and interestsImproving customer experienceAccelerating product innovation
Strengthening the protection of employees’ rightsand interestsProviding high-quality and efficient servicesStrengthening innovation in financial productsAdvancing digital transformationPartners
TransparencyIntegrityWin-win cooperation
Strengthening exchanges and cooperationImproving procurement management
Employees
Protection of rights and interestsRemuneration and benefitsWorking environmentCareer development
Protecting the basic rights and interests ofemployeesUnblocking career development channelsProviding training on job skillsCarrying out rich cultural and sports activitiesCommunities
Financial knowledge popularizationSupport for community developmentSupporting public welfare undertakings
Popularizing financial knowledgeParticipating in public welfare activities
Hua Xia Bank Co., Limited
Materiality Analysis
CSR Awards and Honors
2020 Social Responsibility Report
The Best Inclusive Finance Award2019 Green Bank with Excellent
Overall AssessmentChina Banking Association
Top 10 Outstanding Banks for JointPopularization of Financial Knowledge in 2020Best Organization Award for IllegalFundraising Prevention Publicity in 2020
China Banking and InsuranceRegulatory Commission (CBIRC)
Outstanding Bank Award for“Popularization of FinancialKnowledge for Safety of Your
Pocket”Awareness Raising
People’s Bank of China (PBOC)Financial Consumer Protection Bureau
Financial News
Outstanding Financial Bond Issuer
Top 100 Banks for Settlement -Outstanding Dealer
China Central Depository & Clearing
Co., Ltd.
Outstanding Bank for ESG
Responsible InvestmentA Trustworthy AssetManagement Bank
The Economic Observer
2020 Banks with OutstandingCompetitiveness in Inclusive
Finance Practices
China Business Journal
The Best Socially Responsible
Listed Company Award
China Securities Golden Bauhinia
Award Organizing Committee
The 2020 Global GreenFinance Innovation Award
Best FinTech Innovation Award of the YearMost Distinctive Credit Card Product
Award of the YearInternational Finance Forum (IFF) Financial Digital Development
Alliance
The Bank of the Year for
Trade Finance
Financial News
The Best Smart Bank AwardThe Best Mobile Banking UserExperience AwardChina Financial CerticationAuthority (CFCA)
The 2020 Outstanding Boardof DirectorsSFC
The Bank of the Year forGreen FinanceSina FinanceThe 2020 Outstanding Board of
DirectorsThe 2020 Outstanding Bank forBrand BuildingThe 2020 Rising Star ofInvestment Bank
st Century Business Herald
Star of the Battle Against the
PandemicPioneer in Financial Service-driven Poverty Alleviationchina.com.cn
The 2020 Gamma Award for Bank
FinancingThe 2020 Gamma Award for Mobile
BankingThe 2020 Gamma Award for Green
Finance BankSecurities Times
Top 10 Financial Brands for“Beneting the People”Beijing Daily
Most Responsible Listed
CompaniesAward of Outstanding Contributions
to Inclusive Finance of the YearNational Business Daily
Digital Economy Pioneer
Award
Securities Dailyp5w.net
Economic Performance
CSR Performance
Hua Xia Bank Co., Limited
Total depositsUnit: RMB billion
1,492.492
1,656.489
1,818.33201820192020
RMB cross-bordersettlement
Unit: RMB billion
37.1
44.24
46.3
201820192020
CARUnit: %
13.19
13.89
13.08
201820192020
Total loansUnit: RMB billion
1,613.516
1,872.602
2,108.993201820192020Balance of loans in support ofstrategic emerging industriesUnit: RMB billion
30.004
81.229
79.689
201820192020
Balance of loans in supportof cultural industriesUnit: RMB billion
26.753
46.499
52.93
201820192020Percentage of loans in supportof cultural industries in the totalbalance of loansUnit: %
1.74
2.62
2.66
20182019
2020
Balance of loans to MSEsUnit: RMB billion
357.326
396.387
456.412
20182019
2020
Growth of loans to MSEsUnit: RMB billion
43.056
39.062
60.024
20182019
2020
Shareholder equityUnit: RMB billion
218.715
269.337
282.655
20182019
2020
ROEUnit: %
12.67
10.61
8.64
20182019
2020
ROAUnit: %
0.81
0.78
0.67
20182019
2020
Allowance-to-NPL ratioUnit: %
158.59
141.92
147.22
20182019
2020
Number of countries andregions with Hua Xia agencies
Unit: /
201820192020
Number of cities with Hua Xiaagencies
Unit: /
201820192020
2,680.58
3,399.816
3,020.789Total assetUnit: RMB billion
202020192018
Operating revenue
72.227
84.734
95.309
Unit: RMB billion
2020201920182019
26.783
27.563
27.153
Unit: RMB billion
20202018
Total prot
20192020
20.986
22.115
21.568
Unit: RMB billion
2018
Net prot
The Gold Award for Investor
Relations - InstitutionalFriendly Communication
Award
Balance of green loans
Number of ETC cards
Estimated carbon emissionsreduction through e-transactions
Number of ETC card users
Number of e-transactions
Unit: RMB billion
Unit: 10,000
Unit: 10,000 ton
Unit:10,000
Unit: million
56.699
262.4
193.17
170.34
965.8410
79.844
180.043
312.75
325.62
244.01
246.01
229.44
227.07
1,230.05621,147.1926
2020 Social Responsibility Report
Note: The data of green loan balance in 2020 was based onthe Special Statistics System of Green Loan revised by thePeople’s Bank of China in December 2019.
2018
2018
2018
2018
2018
2019
2019
2019
2019
2019
2020
2020
2020
2020
2020
Social Performance
Number of outletsUnit: /
1,022
1,025
1,022
Total number of employeesfrom ethnic minority groupsUnit: /
1,7501,683
1,785Customer satisfaction rate for95577 customer service centerUnit: %
97.11
99.56
99.61
Number of participants ofemployee training sessionsUnit: /
224,911261,106
370,748Total number of employeesUnit: /
40,99738,639
39,284
Total charitable donationsUnit: RMB million
12.34
18.256
80.233
IndicatorUnit201820192020
Number of rural outlets/102106107Number of outlets in old revolutionary base areas, areasinhabited by ethnic minority groups, remote and border areasand poverty-stricken areas
/798181Number of community sub-branches/192177168Number of online corporate banking transactions10,0003,649.774,692.583,018.07Number of online personal banking transactions10,0004,538.943,682.812,344.73Complaints and problems solved through the joint handlingmechanism of the 95577 customer service center
/1,8762,01213,126Settlement rate of complaints lodged through 95577 customerservice center
%
100.00100.00100.0095577 call-backs/69,41142,604130,559Percentage of female employees%
50.5551.4651.14Number of employee training sessions/3,8893,9864,365Number of AML training sessions/3,1453,0461,210Number of participants of AML training sessions/37,04649,85598,710Number of legal training sessions/186213190Number of participants of legal training sessions/16,31719,59528,005
Hua Xia Bank Co., Limited
2018
2018
2018
2018
2018
2018
2019
2019
2019
2019
2019
2019
2020
2020
2020
2020
2020
2020
Environmental Performance
A Dedicated Hua Xia with CraftsmanshipA Philanthropic Hua Xia with Inclusive Finance
Hua Xia Bank Co., Limited
A Sincere Hua Xia with Innovative Services
We surveyed customers’ needs for financial services for medicalinstitutions, medicine production and procurement, etc. andmet such needs instantly. An express service channel for cross-border remittance was opened, with dedicated employees onduty for 24 hours, to meet business needs, including importingcritical medical supplies and procurement of prevention andcontrol materials. Besides, we implemented reduction andexemption, and all individual transfers and donations initiatedby “Loving Donations” of online corporate banking to fight thepandemic were exempted from handling fees. We also offeredpreferential interest rates to companies that provide and sellanti-pandemic medical supplies and to those ensuring livingstandards. Our service efficiency was improved to give priorityto the acceptance of the business on pandemic prevention, theaffected one, and the credit business in Wuhan.
For seriously affected small and micro enterprises, we tookthe initiative to extend credit, renew loans, issue new loans forrepaying the old ones, adjust the repayment plan, and exemptor cut interest rates, to help them resume production. Anexclusive product, “Huaxia’s Loving Loans”, was launched forstaff participating in the prevention and control of the pandemic.The personal credit repayment period was flexibly adjustedfor the affected people. By the end of 2020, the loans of 556customers had been extended with an amount of RMB 589million.
We announced the changes of our business hours on our officialWeChat accounts and official website, and worked to ensureefficient, convenient, and safe financial services at our businessoutlets across the country. We enabled customers to completetransactions through our online channels, such as mobilebanking, online banking, and telephone banking, as well asLong Business Loan, Long Concessional Loan, and other onlineplatforms, without leaving their home. Our customer servicecenter formulated a contingency plan and worked around-the-clock to ensure non-stop functioning of our 95577 hotline andfinancial services.
Opening an express service channel in therst place
Facilitating the resumption of work andproduction with all efforts
Constant innovation of online nancial services
Contributing to the Fight Against theCOVID-19 with Concerted Efforts
At the beginning of 2020, the COVID-19 pandemic raged across China. Faced with theserious situation, the Bank conscientiously implemented the pandemic control decisionsof the Party Central Committee and the State Council, and adopted special measures forsolving special and urgent incidents, ensuring stability and security on six fronts. We gavefull play to the role of financial service in supporting pandemic control work, made everyeffort to help prevent and control the pandemic and resume work and production, andworked with all stakeholders to overcome the difficulties.
11,077
20.705
we issued
a total of RMBmeasures in support of pandemic prevention and control andthe provision of financial services
billion of credit fund was issued to 288 enterprises involved inpandemic prevention and controlwe postponed the repayment of principals and interests andcut the interest rates forenterprises (including small-business owners, individualindustrial and commercial households, with a cumulativebusiness principal of RMB 204.155 billion) hit by the pandemic
In 2020
The staff of Guangzhou Branch actively helped enterprises in resumingwork and production
Beijing Branch helped a company purchase pandemic-preventionsupplies overseasThe Head Office organized an emergency drill forpandemic control in Dongdan’s office building
Enhancing nancial support for ghting COVID-19
The Bank launched an anti-pandemic wealth managementproduct with a one-year close period, and raised RMB3 billion. The profits that we surrendered through thereduction or exemption of management fees, salescommissions, and custody fees were all used to attractinvestors to buy anti-coronavirus bonds.
CaseLaunching an anti-pandemic wealth managementproduct
2020 Social Responsibility Report
21202020 Social Responsibility ReportHua Xia Bank Co., Limited
It took only five hours fromcredit application to loangranting by means ofonline credit approval andmanual bookkeeping in thecore banking system forBeijing Branch to providean emergency loan ofRMB 100 million, whichwas used by Beijing topurchase the first batch ofpandemic-prevention itemsincluding masks overseas.
It provided solid andtimely financial supportfor disaster relief to HubeiCharity Federation, HubeiRed Cross Foundationand other organizations.It closely cooperated withChina Construction ThirdEngineering Bureau Co.,Ltd., Peking Union MedicalCollege Hospital and otherunits and timely providedthem customized financialservices.
It worked with WeDoctor,a platform that broughttogether 6,700 academicexperts and over 200,000physicians (associateprofessor or above) from1,900 major hospitals acrossthe country to providea full range of servicescovering appointment andregistration, online diagnosisand treatment, electronicprescription, and onlinedispensing.
It launched the “Entry andExit Registration System”mini-app on WeChat thatoffers free registrationservice. The mini-apphelped facilitate theresumption of work andentry and exit managementof employees andcommunity residents, thusreducing the risk of crossinfections.
Its village-based povertyalleviation team took theinitiative to take bodytemperature and disinfectvehicles at the villageentrance, persuadevisitors to go back,supervise gatherings ofvillagers, visit and registerbody temperatures ofall villagers every day,and popularize the latestpandemic developmentof and knowledge aboutpandemic control.
Beijing BranchWuhan BranchShenzhen BranchChangzhou BranchYinchuan Branch
Wuhan Branch made donations for building Huoshenshan Hospital
2.37100,0005110,200
240,000
Wuhan Branch donated anti-virus supplies
In 2020
Spreading the love of Hua Xia Bankthrough charity donations
the Bank donated RMB
the Bank donated more thanRMB
the Bank donateda total ofdonatedmillion through a youth volunteerdonation campaign
masks for pandemic
prevention and control in
Xicheng District, Beijing
employees fromHua Xia Bank’ssubsidiaries andbranches in Beijing
packages of disposabletableware and other dailynecessities
mL of blood
million to Hubei Charity Federation
the Bank donated
quilts
to construction workersfrom China ConstructionThird Engineering BureauCo., Ltd. who were buildingHuoshenshan Hospital andLeishenshan Hospital
Case
23222020 Social Responsibility ReportHua Xia Bank Co., Limited
Li Minji, Party Secretary and Chairman of Hua Xia Bank, extended greetings to officials dispatched to communities
Zhang Jianhua, Deputy Party Secretary and President of Hua Xia Bank, worked with officials dispatched to communities
Officials dispatched to communities conducted pandemic prevention and control activitiesOfficials dispatched to communities kept a journal of their daily work
To give full play to the role of the Party’s primary organizations as bastions and the exemplary vanguard role of Party members andofficials, we selected outstanding Party members and youth backbones from all units in Beijing to participate in pandemic preventionand control in communities, and to jointly build a people’s defense line with streets, communities and residents, thus improving thecapacity for pandemic prevention and control at the community level. We also established a temporary Party branch in communitiesto provide relevant staff with protective equipment and disinfection materials such as masks, disposable gloves, infrared temperatureguns, hand sanitizers, etc.
Remaining true to the original aspirationof serving the community
In 2020
three batches of excellent Partymembers and
days to participate in the front-lineprevention and control of the pandemic
young backboneswere selected and dispatched to
forcommunities
25242020 Social Responsibility ReportHua Xia Bank Co., Limited
After the COVID-19 outbreak, an emergency leading team for COVID-19 prevention was quickly established to make uniformarrangements of relevant work, intensify control of employees to know their acts, formulate management systems based on the situationof pandemic prevention and control, and implement responsibilities at all levels, thus ensuring the safety and health of employees.
Under the principle of preventing the coronavirus from re-entering the country to cause new spread, we quarantinedpeople returning from home, enhanced the management ofimportant groups and key links, the investigation of suspectedcases and close contacts, as well as the health monitoring ofemployees. The Head Office monitored employees’ temperaturesand other abnormal conditions every day and reported andhandled them according to the results in a timely way.
We made uniform arrangements of business hours of outletsin accordance with regulatory requirements, and madeannouncements in a timely manner. In addition, we implementedcustomer diversion measures to guide customers to use self-service equipment, of which the cleaning and disinfection werestrengthened. Customers were also guided to complete healthinformation registration and body temperature testing afterentering the outlets, where anti-pandemic supplies such asmasks and disinfectants were prepared for them.
Outlet management
Workplace management
Publicity and education management
Beijing Branch strengthened pandemic prevention and control at outlets
Strict access management was implemented in the Head Office’sbuilding
Interviews with eight media outlets, including Beijing Daily, during thepandemic
Lifts of the Head Office’s building were disinfected once a working hourduring the pandemic
An emergency drill for pandemic control was conducted in the Head Office’s building
Social distancing was maintained in the workplaceMeals were under strict management by the Head Office
The Head Office arranged separate dining for employeesTimely announcements were made to ensure the public’saccurate understanding of the business information of the Bank.We took the initiative to spread the latest information of our fightagainst the pandemic through news media in real time. Besides,we positively responded to and kept close communication withsuperior departments, and reported the effectiveness of thepandemic prevention and control work. Moreover, we effectivelycommunicated with staff and lead them to prevent the pandemicscientifically.
The Head Office made plans on Bank-wide pandemic prevention andcontrol
Taking responsibility to defend safety
Employee management
Thirty-four measures, including the Guidelines for theAdministrative Operation of Head Office During the Period ofPandemic Prevention and Control, were introduced to guide theBank’s scientific and effective prevention and control to ensuresmooth administrative operations. Besides, we improved theprevention and control system for office space, and implementedthe responsibilities at all levels. The Head Office’s building wasclosed for better management, including strict control of theentry and exit of staff, enhancement of the disinfection of theoffice area, rigorous management of the property, implementationof unified supply of meals but separate dining at work stations,and enhancement of inspections.
27262020 Social Responsibility ReportHua Xia Bank Co., Limited
840.2222
Egg-laying Hens Poverty Alleviation Project of Hohhot Branch
Contributing to the Decisive Victoryin the Battle Against PovertyThrough Multiple Approaches
We resolutely followed the anti-poverty decisions and arrangements made by the PartyCentral Committee, the State Council, regulatory authorities, as well as Party committeesand governments at all levels, and fully leveraged our rich resources and strengths asa nancial institution to ght poverty. We introduced anti-poverty credit policies, andinnovated in our comprehensive nancial products and services, striving to providenancial support for China to win the ght against poverty and build a moderatelyprosperous society in all respects.
The Bank established a poverty alleviation leading groupheaded by Li Minji, Party Secretary and Chairman, andstrengthened the Party committee’s top-level design for andpromotion of poverty alleviation work. The implementation planswere formulated, and objectives of poverty alleviation wereclarified. Four mechanisms are in place to facilitate coordination,cooperation, support and guarantee for poverty alleviation.The Bank coordinated bank-wide anti-poverty efforts to supportEast-West collaboration for poverty alleviation and our pairedanti-poverty partners. Targeting key poverty-stricken countiesand districts in Xinjiang, Inner Mongolia, Qinghai, Hebei,etc., we issued the Notice on Promoting the Implementationof Key Poverty Alleviation Projects in 2020, identified 11 keypoverty alleviation projects, and concentrated our resources oneradicating poverty in all dimensions.We worked to ensure precise identification, assistance, and management, effective implementation of responsibilities, policies,and work, and education, basic healthcare, and housing guarantees, and saw to it that the responsibility, policies, assistance, andregulation should be retained after poverty elimination. We constantly improved and innovated in our financial service model for povertyalleviation, stimulated the development momentum of poverty-stricken areas, and enhanced the poor’s ability to help themselves outof poverty. We guided local villagers to consolidate the results of poverty alleviation with their own efforts and actively promoted theintegration of poverty alleviation with rural revitalization.
Giving full play to the guiding role of credit policies, the Bankenhanced credit support for local agriculture, agricultural andsideline product processing industries, and other characteristicand advantageous industries in poverty-stricken areas,and adopted a variety of financial products and services toguarantee financial support for poverty alleviation.
To effectively prevent those already lifted out of poverty fromretuning to poverty and those prone to be stricken by povertygetting into poverty, and consolidate our poverty alleviationachievements, in September 2020, we donated RMB 10 millionto set up the first industry fund aimed to prevent the return topoverty, in addition to RMB 5 million donated by the People’sGovernment of Fuping County.
Improving organizational building fortargeted poverty alleviation
Establishing a sound mechanism to preventthe return to poverty
Increasing credit supply
Focusing on key areas
Integrating poverty alleviation with rural revitalization
21,582
298.7974
488.2832
In 2020
2020 Social Responsibility Report
the Bank provided RMB
including RMBfor supporting
and RMB?million of personal loans to the registered poorpopulation
millionprojects of industry development for
poverty alleviation
the Bank provided financial services formillion for targeted poverty alleviation (includingcredits, donations, and consumption-drivenpoverty alleviation funds)
registered poor people
Improving poverty alleviation mechanisms
29282020 Social Responsibility ReportHua Xia Bank Co., Limited
A delegation led by Party Secretary and Chairman Li Minji inspected the Bank’spoverty alleviation achievements in Xinwangzhuang Village, Miyun District, Beijing
A village-based anti-poverty officer assigned by Kunming Branch visited a local family to learn about their living conditions
Hua Xia Bank Kindergarten established by Urumqi Branch
Scan the QR codeto learn about thepoverty alleviationstories of povertyalleviation cadres ofHua Xia Bank
We have developed various innovative poverty alleviation credit products based on local conditions, such as Fisher Loan for coastalareas in eastern China, Farmer Loan for central China, Photovoltaic Loan for western China, and Flower Loan for Yunnan Province. Theseloans targeting rural areas, rural enterprises, and farmers help facilitate the development of industries through credit granting, createemployment opportunities, and thus increase local incomes, effectively boosting the development of local industries that contribute topoverty alleviation. In 2020, the Bank set up a special fund to provide credit support for western areas that partnered with Beijing forpoverty alleviation, offered special loans to local enterprises that could drive poverty alleviation and boost farmers’ incomes.
We have leveraged the stimulating role of finance in the development of industriesand creation of jobs, and have granted corporate and personal loans to westernareas that have partnered with Beijing for poverty alleviation to support regionalindustry development. In 2020, we set up public welfare-oriented positions indesignated areas with local governments, and gave preference to graduates frompoor families in recruitment. To further contribute to poverty alleviation throughemployment, we also issued loans to individuals and self-employed businesses.In June 2020, we invested RMB 10 million in setting up public welfare-orientedpositions in Moyu and Luopu counties, through which we would create 2,000 jobsfor registered poor families in the local area.
We increased donations to western areas, especially Moyu and Luopu in HotanCity. In 2020, we donated RMB 41.5844 million to poverty-stricken areas, anincrease of RMB 28.6908 million over 2019. Among all the donations, RMB 15.8million went to Moyu and Luopu. The Party committee also mobilized employeesto make donations through the official WeChat account of the Social Participationin Poverty Alleviation and Development of China, and the donations amounted toRMB 1.67 million.
We have invested in education in poverty-stricken areas foryears; the cumulative investment during the recent three yearsexceeded RMB 11 million. We invested RMB 8.5 million in totalin building “Hua Xia Bank Kindergartens”, rebuilt or expanded“Arele Primary School” and “Gujiang Bage High School”,creating a new path to support basic education through povertyalleviation. In June 2020, we invested RMB 2.5 million in YushuVocational and Technical School, Qinghai to develop a fieldtraining base, drinking water projects and to sponsor outstandingteachers to pursue the master’s degree or advanced studies,benefiting more than 7,000 teachers and students.
We actively supported the Smart Vending Machine for Products from Poor Areas,a key project initiated by the State Council Leading Group Office of PovertyAlleviation and Development. We issued an RMB 5 million credit loan to theproject undertaker in 2020. Besides, we increased targeted procurement ofagricultural and sideline products in poor areas. In 2020, we purchased RMB
11.5572 million of goods from poor areas.
Industry development for poverty alleviationA “golden key” to poverty alleviation and a door leading to prosperity and happiness
Employment for poverty alleviationStabilizing employment and encouraging hard work for a better life
Consumer spending on products from poor areasReplacing donations and assistance with consumer spending so thateveryone can contribute
Anti-poverty charityGathering every drop of love for a loving world
Education for poverty alleviationEnding intergenerational poverty through education and securing a fair chance for poverty-stricken children
Innovative poverty alleviation approaches
31302020 Social Responsibility ReportHua Xia Bank Co., Limited
Honors and Awards
Since the launch of the partnership assistance program between BeijingBranch and Xinwangzhuang Village, the Branch has effectively boostedfarmers’ income and wealth through such livelihood-benefiting projects asjoint Party building, industrial upgrading, charity donations, purchase ofself-produced agricultural products, and recruitment of college studentsfrom poor families. The tomato greenhouse and understory fungus plantingarea constructed under the aid of the branch increase the collectiveincome of the village by at least RMB 60,000 per year. The newly builthiking trails and the 1958 art district attract a large number of tourists tocome for sightseeing and accommodation. Beijing Branch also helped thevillage design the “Xinwangzhuang” brand LOGO for agricultural products,increasing the added value of agricultural products.Many years in a roll, the village-based poverty alleviation team has beenhelping Erdaozhuang Village, Xiazhuang Township, Fuping County,Baoding City. Song Xiyuan, the first secretary of the village-based workteam, has become a member of the harmonious family. With the helpof the work team, the entire village has established industries with localcharacteristics, such as edible fungi, forest and fruit, photovoltaics, etc.,and set up labor service posts, where people with labor ability can makemoney through physical labor and those unable to work can receivesubsidies. The work team assisted the village committee to provide jobopportunities for 141 poor people.
Since 2017, Urumqi Branch has successively invested more than RMB
37.5 million in donations and operating expenses in Hotan, Xinjiang,
and assigned 15 comrades to participate in the village-based povertyalleviation work in the three extremely impoverished villages of Hotan City.The Branch also launched the “Hua Xia Bank Huimin Supermarket”, “HuaXia Bank Poverty Alleviation Coal Yard”, “Hua Xia Bank Poverty AlleviationNight Market”, and other livelihood-benefiting programs, which helped1,142 poverty-stricken people from the three villages to get rid of poverty.
In order to help Huanghua Village make new breakthroughs in developingthe collective economy, Kunming Branch invested RMB 100,000, which,along with the RMB 50,000 of subsidy that the village committee appliedfor from the organization department of the county Party committee, wasinvested in the ecological farm of the village. Through a “Party branch +cooperative + breeding base + farmer households” model, the investmentassists farmers to increase their income, and helps adjust the agriculturalindustry structure and strengthen the collective economy. In the first yearof its operation, the collective economy of the village achieved a profit ofmore than RMB 20,000.
Shijiazhuang BranchKunming Branch
Village-based cadres of Chengdu Branch sent school supplies to the kindergarten in Wangbuding Township
The Bank was rated “Good” in the annual assessment ofpoverty alleviation performance by the Beijing State-ownedAssets Supervision and Administration Commission (BeijingSASAC).
The village-based work team of Urumqi Branch hadbeen rated “Excellent” in the performance appraisal ofXinjiang Uygur Autonomous Region for three consecutiveyears.
Shijiazhuang Branch was recognized as the “MostEnthusiastic Public Welfare Partner” by Hebei CharitableJoint Foundation.Shijiazhuang Branch’s village-based poverty alleviationteam was recognized as the “Excellent Village-basedPoverty Alleviation Team in 2019” by the OrganizationDepartment of the Hebei Provincial Committee of theCPC and Hebei Provincial Poverty Alleviation andDevelopment Office.Urumqi Branch’s poverty alleviation work in deep-povertyvillages had been rated “First Class” in the assessmentof Xinjiang for two consecutive years.
Urumqi Branch was awarded the honorary titlesof Advanced Enterprise for Promoting IndustryDevelopment and Advanced Grassroots Unit forContributing to Poverty Alleviation by Hotan City.
Urumqi Branch was rated “Excellent” for all the fourmajor indicators in the 2019 performance appraisalof village-based teams, and won the honorary titles ofUnit of Excellent Organization, Advanced Work Team,Advanced Work Team Leader, and Advanced WorkTeam Members.
Song Xiyuan from Shijiazhuang Branch was honored theAdvanced Individual of Poverty Alleviation Collaboration inBeijing.Ma Shuxin from Urumqi Branch won the honorary title ofAdvanced Individual of Poverty Alleviation Collaboration inBeijing issued by Beijing Poverty Alleviation and Support
Office.
Gao Wenfeng from Shijiazhuang Branch was honored bythe Organization Department of Hebei Provincial PartyCommittee and Hebei Provincial Poverty Alleviation andDevelopment Office as the Excellent Member of Village-based Teams for his contributions to poverty alleviation inHebei Province in 2019.Li Yingchun from Kunming Branch was honored the
Outstanding Member of Village-based Poverty AlleviationTeams in 2020 and the Most Beautiful Poverty AlleviationCadre.
Shijiazhuang Branch:
Kunming Branch was recognized as the “Model Unit inPoverty Alleviation in 2020” by the Party Committee and
Government of Dali Bai Autonomous Prefecture, YunnanProvince.Hohhot Branch won the honorary title of the Model Unit in
Poverty Alleviation issued by the People’s Government of
Ar Horqin Banner, Chifeng City.The Bank won the Targeted Poverty Alleviation Vanguard
Award in the Third Top Pioneers List of Financial PovertyAlleviation 2020 selection campaign hosted by China.com.The Bank won the honorary title of Excellent Organization
Unit in the picture collection campaign themed poverty
alleviation organized by Guangming.com.
Urumqi Branch:
Enriching poverty alleviation practices
Beijing BranchUrumqi BranchCase
2020 Social Responsibility Report3534
A Dedicated Hua Xia with CraftsmanshipAn Eco-friendly Hua Xia Through Green DevelopmentA Philanthropic Hua Xia with Inclusive FinanceA Prudent Hua Xia with ComplianceA Sincere Hua Xia with Innovative ServicesA People-centered Hua Xia Pursuing Happiness for All
Hua Xia Bank Co., Limited
Promoting the Coordinated Developmentof the Beijing-Tianjin-Hebei RegionPositioned to be a major financial service provider for the Beijing-Tianjin-Hebei region,we actively served Beijing’s drive to develop into a national political center and culturalcenter, an international exchange center and technology innovation center and relocateits non-capital functions. We also increased financial support for the development ofthe Beijing Municipal Administrative Center and the Xiongan New Area, and for thecoordinated development of the Beijing-Tianjin-Hebei region.
Serving the development of “One Core”
As a “bank for Beijing”, we followed the city’s master plan for development, and increasedthe financial support for the construction of the city. We helped Beijing sharpen its edgein technological innovation and cultural development, and promoted the economictransformation and development of the capital.
the Bank provided RMB
260.7
billion of financing for projects in Beijing
the Bank had provided RMB
billion offinancing for small and micro enterprisesin Beijing
The Bank continued to ramp up financial support for SOEs under Beijing SASAC, suchas the Shougang Group, Beijing Construction Engineering Group and BBMG CorporationLtd. Specifically, targeted products were innovated in different areas, ranging fromcollectively-owned construction land, urban renewal, and financing during projectoperation period. The move has provided financial support for the construction of thecapital.To provide quality financial services for small and micro enterprises, we have settled inthe Beijing First Loan and Renewal Service Center and set up 18 financial service centerstargeting small and micro enterprises to provide them with a green channel to consult onand handle credit-related businesses. Since 2017, Hua Xia Bank has provided RMB 81.2billion in credit support to 16,500 small and micro enterprises in the capital.the Bank signed strategic cooperation agreements with
government department,
enterprises under Beijing SASAC, and
private enterpriseunderwrote
corporate bonds issued by local enterprises with an amount of RMB
.
billion, a year-on-year increase of
%
Promoting economic development
In 2020
In 2020
The Bank signed the strategic cooperation agreement with Beijing Financial Holdings Group
As of the end of 2020
To build Beijing into a national cultural center, the Bank has actively responded to thefinancial needs of cultural and creative enterprises, contributing to the cultural boom inthe city.
the Bank provided RMB
22.9
billion of financing for
culturaland creative enterprises in Beijing
In 2020Boosting cultural prosperity
The Bank has launched seven featured financial products and offered comprehensivefinancial services, boosting the development of these brands. The Bank signed a strategiccooperation agreement with Beijing Wuyutai Tea Co., Ltd.
The Bank has launched the Hua Xia loan series for cultural parks in Beijing and becomeone of the first batch of financial institutions with the intent to invest in risk compensationto reward these enterprises in Beijing. Amid the pandemic, the Bank has issued tenmeasures to help cultural MSEs reduce operating costs.
The Bank has successfully invested in the Action Plan for Supporting FIRST CAPITAL-Capital Securities-Phase I Cultural Leases, making its contributions to the integrateddevelopment of Beijing’s culture and technology and building Beijing into the culturalcenter of China.
Ramping up nancial services for cultural and creative enterprises
Scan the QR codefor more informationabout Hua XiaBank’s policy onfinancial services forcultural and creativeenterprises
To build Beijing into the national STI center, the Bank has taken the initiative to integrateinto the Zhongguancun innovation ecosystem, continued to expand the service coverage,and propelled the transfer and commercialization of technological advancements, todevelop Beijing into a global STI leader.
the Bank provided RMB
.7billion
of financing for
technology
enterprises in Beijing
Financing science, technology and innovation (STI)
Supporting the development of technology enterprisesWe contactedAdministrative Committeeof Zhongguancun ScienceCity (formerly known asZhongguancun HaidianScience Park), BeijingLocal Financial Supervisionand Administration,Shenzhen Stock Exchange,and Zhongguancun ListedCompanies Association,and enhanced cooperationwith Haidian FinancialService Platform
We continued to do businesswith financing guaranteeagencies such as BeijingZhongguancun Sci-techFinancing Guaranty Co.,Ltd., Beijing Investment andGuaranty Corporation andChina National Investmentand Guaranty Corporation,co-built the risk sharingmechanism, and adoptedproper and effective riskcontrol measures to providestrong financing support forhigh-tech enterprises
In cooperation with anintellectual propertyoperations managementcompany, we launched theIPR Loan (Zhirongbao, orSmart Loan) and Small SmartLoan, vigorously promotedIPR pledges and loans,and explored ways towardsecuritization of the collectiveIPR assets of Zhongguancun
Intensifying cooperationInnovating in servicesEstablishing a platform
In 2020
Continuing to implement the Time-Honored Brand Action Plan
Deepening the integrated development of culture and nance
Boosting the innovation-driven development of IP nancing
2020 Social Responsibility Report3736
A Dedicated Hua Xia with CraftsmanshipAn Eco-friendly Hua Xia Through Green DevelopmentA Philanthropic Hua Xia with Inclusive FinanceA Prudent Hua Xia with ComplianceA Sincere Hua Xia with Innovative ServicesA People-centered Hua Xia Pursuing Happiness for All
Hua Xia Bank Co., Limited
Responding to national and municipal development strategies, the Bank has provided higher-level financial services for thegovernment and enterprises in the Beijing Municipal Administrative Center for win-win development. In 2020, we opened a branch inthe administrative center. The branch would provide premium financial services for infrastructure construction, green finance, industrytransfer, STI, culture & creativity and personal finance.
Supporting the development of the Beijing Municipal Administrative Center
The Bank increased financing for key projects, such as comprehensive transportation hubs and rail transitsystem, to speed up the development of integrated transportation.The Bank continued to advance its financing projects for air pollution control in the Beijing-Tianjin-HebeiRegion, and introduced green finance bonds to finance green projects in the administrative center.The Bank increased financing for the reconstruction of bungalow neighborhoods and run-down areas inTongzhou, to improve living conditions.The Bank actively financed the construction of Yunhe Business District, National Cybersecurity IndustrialPark, Universal Beijing Resort, as well as other key infrastructure projects.
Supporting the development of the Beijing Municipal Administrative Center and Xiongan New AreaWith the focus of helping Beijing relocate its non-capital functions, the Bank has considerably promoted the development of the BeijingMunicipal Administrative Center and Xiongan New Area, contributing to the high-quality coordinated development of the Beijing-Tianjin-Hebei region.
We have formulated theImplementation Plan for Providing Financial Services for the Innovation-driven Development of Xiongan NewArea. Our financial services for Xiongan New Area are diverse, covering such areas as infrastructure construction, environmentalgovernance, industry transfer and undertaking. In 2020, our Xiongan Branch was officially opened and signed strategic cooperationagreements with six local key enterprises to guarantee better financial services for Xiongan New Area.
Opening ceremony of Xiongan Branch
Service hall of Xiongan Branch
Supporting the development of Xiongan New Area
Eight main measures to support the development of Xiongan New Area
The Bank developed a scene-based omni-channel service ecosystem combiningour app, and provided local residents withhigh-quality personal banking servicesincluding wealth management, debit cardswith the coordinated development of theBeijing-Tianjin-Hebei region as the theme,ETC service, etc.
The Bank set up more outletsand ATMs to form a morerational layout in Xiongan NewArea.
The Bank supported XionganNew Area to build a “green, low-carbon, intelligent, efficient, eco-friendly and livable” city. Weoffered international sub-loans,green credit and other productsand services, and lent more toprojects like the Beijing-Tianjin-Hebei Air Pollution Preventionand Financing Innovation .The Bank accelerated thedevelopment of onlinefinancial services for supplychain based on blockchaintechnology, to form anindustry ecosystem featuringpositive interlay, sustainabledevelopment, and mutualbenefits, boosting theconstruction of Xiongan’s“smart city brain project”.
The Bank helped build a service-oriented government. Followingthe development trend of “Internet-based governance”, the Bankcontinued to improve IT servicesfor government finance, socialsecurity, housing and urban-ruraldevelopment, etc.
The Bank actively supported thedevelopment of micro, small andmedium-sized enterprises. Apartfrom introducing more innovativeproducts and models, the Banksped up the development ofonline business, leaned credit tothem, and continuously improvedservice efficiency for them withthe help of FinTech.
Supporting thedevelopment of
integrated transportation
Supporting ecologicalconservationImproving livingstandards
Promoting infrastructureconstruction
The Bank offered preferentialpricing for key projects engagedin infrastructure construction,environmental governance,industry transfer and undertaking.
The Bank increased directfinancing, and enhancedsupport for debt-basedfinancial instruments issuedby local large enterprisessuch as China XionganGroup.
2020 Social Responsibility Report3938
A Dedicated Hua Xia with CraftsmanshipAn Eco-friendly Hua Xia Through Green DevelopmentA Philanthropic Hua Xia with Inclusive FinanceA Prudent Hua Xia with ComplianceA Sincere Hua Xia with Innovative ServicesA People-centered Hua Xia Pursuing Happiness for All
Hua Xia Bank Co., Limited
Contribution to the coordinated development of theBeijing-Tianjin-Hebei regionThe Bank established a leading group on the development of the Beijing-Tianjin-Hebeiregion. Based on vertical and horizontal collaboration and coordination between the HeadOffice and branches, we increased resource input and policy support for key projects inthe region, to substantially improve our contribution to the coordinated development ofthe Beijing-Tianjin-Hebei region.
the Bank financed RMB
65.6
billion for key projects related to thecoordinated development of the Beijing-Tianjin-Hebei region
the Bank had opened
bankingoutlets in the Beijing-Tianjin-Hebei region
In 2020
As of the end of 2020Promoting the development of key functional areas of the Beijing-Tianjin-Hebei region
In 2020
The Bank presented China Renewable Energy and Battery Energy Storage Promotion Project in the New Product, New Technology, New ApplicaitonScenario Promotion Conference of Beijing SASAC
Leveraging our unique strengths in green finance, the Bank further strengthenedcooperation with international financial organizations such as the World Bank, andintroduced low-cost funds such as sub-loans of the World Bank and foreign governmentloans to support energy conservation, emission reduction, and clean-energy developmentin the Beijing-Tianjin-Hebei region.
the green loan balance of our branches inthe Beijing-Tianjin-Hebei region reachedRMB
37.901
billion
an increase of RMB
14.436
billion of the green loans
an increase of
%from the previousyear
The Bank actively built an integrated financial service circle for the Beijing-Tianjin-Hebeiregion, with integrated personal financial services concerning payment, rate discountsand lending and financing. Moreover, the Bank continued to upgrade the debit cardthemed on the coordinated development of the Beijing-Tianjin-Hebei region, enabling itsholders to use it to take public transportation commuting between the three places.
the Bank had issued
,
,
debit cardsthemed on the coordinated developmentof the Beijing-Tianjin-Hebei region
the Bank had financed
projectsin the Innovative Financing Project for AirPollution Control in the Beijing-Tianjin-Hebei region
Supporting the integration of public services in the Beijing-Tianjin-Hebei region
Supporting the ecological governance and restoration of the Beijing-Tianjin-HebeiRegion
As of the end of 2020
Shijiazhuang Branch signed a strategic cooperation agreement with Langfang AirportEconomic Zone on providing financial services for Langfang Airport Economic Zone,mainly the Airport Service Center, and Beijing Daxing International Airport Bonded Area(Hebei) Phase I project. By now, RMB 200 million of loans have been issued.
The Bank offered credit loans of RMB 1.62 billion to a company in Tianjin Binhai New Areaand issued ultra-short bonds of RMB 500 million for the company. Additionally, the Bankindependently underwritten and wholly invested in China’s first debt financing program ofRMB 1 billion under the theme of “Coordinated Development of the Beijing-Tianjin-HebeiRegion”, which was issued by a company in Tianjin Economic-Technological DevelopmentZone .
The Bank actively communicated with the Zone Management Committee, extended creditto Caofeidian State Control Investment Group Co., Ltd., and enhanced financial service forthe Zone and its resident enterprises.
The Bank granted a credit loan of RMB 1.38 billion to a wind energy company in ZhangbeiCounty and a new energy company in Hebei, supporting the Zhangjiakou Wind Power(Clean Energy) project.
Beijing Daxing International Airport Economic Zone
Tianjin Binhai New Area
Beijing-Hebei Caofeidian Co-development Demonstration Zone
Zhangjiakou-Chengde Ecological Function Zone
2020 Social Responsibility Report4140
A Dedicated Hua Xia with CraftsmanshipAn Eco-friendly Hua Xia Through Green DevelopmentA Philanthropic Hua Xia with Inclusive FinanceA Prudent Hua Xia with ComplianceA Sincere Hua Xia with Innovative ServicesA People-centered Hua Xia Pursuing Happiness for All
Hua Xia Bank Co., Limited
Implementing State-level RegionalDevelopment StrategiesThe Bank has developed the regional development strategy based on “Three Zones, Two Lines, Multiple Outlets”. Leveraging ourexpertise, the Bank formulated credit, investment and financing policies, and motivated branches to serve the mainstream economybased on local situation, promoting the coordinated and high-quality regional economic development.
Advancing the integration of the YangtzeRiver DeltaThe Bank deepened the mechanism and capacity building forintegrated and coordinated development. We strengthenedresearch on regional policies, seized market opportunitiesand allocated more credit loans to advance the integrateddevelopment of the Yangtze River Delta.
The meeting of our branches in the Yangtze River Delta on integrated development led by Li Minji, Party Secretary and Chairman of Hua Xia Bank
Shanghai Branch providedcomprehensive financialservices for major projectsinvolving an airport groupand a new energy vehiclecompany, advancing theintegrated developmentof financial services forkey companies in theYangtze River Delta.
Hangzhou Branch signeda strategic cooperationagreement with theHangzhou MunicipalGovernment, accordingto which HangzhouBranch will provide RMB120 billion of financing foroutstanding enterprisesand key projects inHangzhou in the nextthree years.
Nanjing Branch hadfinanced more thanRMB 100 billion forkey projects, suchas the EcologicalRestoration Project ofDazong Lake.
Shanghai BranchHangzhou BranchNanjing Branch
The Bank optimized local branches’ cross-border financial service system, and vigorouslydeveloped a portfolio of specialty products, providing comprehensive financial servicesfor the Greater Bay Area.
balance of loans for the Greater Bay Areahad reached RMB
.
billion,a year-on-year increase of
28.2
%Giving full play to the advantages ofGuangzhou as a national central cityand comprehensive transport hub,and supporting the development ofinfrastructure, strategic emergingindustry, advanced manufacturing andmodern service industry
Leveraging its advantages broughtby the abundant leading FinTechcompanies and financial resources,and flexible policies, acceleratingthe development of technology andfinance, and building an innovationbase
Taking advantage of Hong Kong’s position as an international financial and trade centerand global offshore RMB business hub, strengthening trade finance and innovation-driven development, and establishing the platforms for overseas customer service,investment, financing and trade
As of the end of 2020
Case
Our Hong Kong Branch issued USD 50 million of bilateral loans to a companyand signed a strategic cooperation agreement with the company on corporateaccount, financing, product diversification, and internet platform. The two sidesaimed to jointly create high-quality financial services.
Providing high-quality nancial services for enterprises in the GreaterBay Area through cross-border cooperation
Guangzhou BranchShenzhen Branch
Hong Kong Branch
Promoting the development of theYangtze River Economic Belt
The Bank closely followed the development trend of the YangtzeRiver Economic Belt, and provided premium financial services forinfrastructure construction in areas essential to public wellbeingand industrial upgrade, to inject impetus into regional high-qualitydevelopment.CaseCase
The Bank lent RMB 100 million to a company in Yu 'anDistrict, Lu 'an City, Anhui Province, for river dredging,pipeline network inspection and restoration, post-floodreconstruction projects, etc., to help local residents returnto normal life as soon as possible.
Aiding ood control and promoting the infrastructureconstruction of the Yangtze River Economic BeltSupporting the construction of key projects in theYangtze River Delta region
Supporting the development of the Guangdong-HongKong-Macao Greater Bay Area
2020 Social Responsibility Report4342
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Hua Xia Bank Co., Limited
Promoting Industrial Transformationand Upgrade
In line with national policies on industrial upgrade, the Bank actively engaged in the reform of state-owned enterprises(SOEs). This move contributed to the upgrade of traditional industries, the development of strategic emergingindustries, and the high-quality growth of the real economy.
Supporting the transformation of traditional industriesSupporting strategic emerging industries
Guided by relevant industrial policies and the distribution ofvarious industries, the Bank promoted the mutually beneficial andintegrated development of the financial industry and traditionalindustries, thus facilitating the transformation and upgrade oftraditional industries.
The Bank actively increased financial support for key industriesand areas, contributing to the rapid development of high-end equipment manufacturing, new-energy vehicles and otherstrategic emerging industries. As of the end of 2020, the balanceof loans to support strategic emerging industries was RMB 79.689billion.Case
Case
The Bank used on-lending funds to support theconstruction of a photovoltaic power generation projectin Changzhi County by a subsidiary of a mining groupin Shanxi to facilitate local energy transformation. Aftercompletion, the project can generate 23,471,400 kWhannually, saving 7,763.3 tons of standard coal.
The Bank worked to advance the ABN project of anaviation company to promote the securitization of accountsreceivable, make good use of idle assets and speed up thecompany’s development.
Boosting the transformation and upgrade of atraditional coal enterprise
Issuing China’s first Asset-Backed Medium-TermNote (ABN) in general aviation
Changzhou Branch visited an enterprise to investigate the R&D in the field of new materials
Serving China’s Opening-up
Under the new development pattern of “dual circulation”, the Bank made active contributions to stabilizing foreigninvestment, trade and achieving a higher level of opening-up by providing cross-border ?nancial support for the Beltand Road Initiative projects, the going global campaign of Chinese enterprises and the development of free tradeareas.Main measures for stabilizing foreign investment and trade
The Bank developed theOnline Cross-borderFinancial Service Guide, mobilized the headquarters,branches, and sub-branches to collaborate witheach other, and opened green channels to ensurethe arrival of imported anti-pandemic materials andoverseas donations.
The Bank provided integrated financial servicesfor enterprises, including the whole-processforeign exchange policy consultation, cross-borderguarantee/standby letter of credit (SBLC), etc.
The Bank implemented theCircular of the StateAdministration of Foreign Exchange on OptimizingForeign Exchange Administration to SupportForeign-related Business Growthand other policiesto improve foreign exchange service efficiency andguard against cross-border capital flow risks.
The Bank launched online services such assupply chain cloud account, supply chain onlinecontract signing and blockchain forfaiting to reducecustomers’ travel costs.
Setting up a taskforce
Innovative services
Implementing facilitation policies
Promoting online services
Case
Shortly after the COVID-19 outbreak, the Bank launched the green channel for cross-border business and simplified the processfor import purchase of foreign exchange, facilitating customers to import anti-coronavirus materials and accept overseasdonations.
Launching the green channel for cross-border business
In response to a customer’s needs forimporting anti-coronavirus materials, thebranch opened a USD 13 million letterof credit and reduced handling fees forcustomers.
In spite of traffic control and otherdifficulties, the branch settled USD 80million of foreign debt for a customer.
The branch was able to completethe processes of foreign exchangepurchase, payment and settlement within20 minutes, and helped an enterprisesource infrared ear thermometersand other protective equipment fromAmerican manufacturers.
Guangzhou BranchNanchang BranchSuzhouBranch
2020 Social Responsibility Report4544
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Hua Xia Bank Co., Limited
Supporting the Belt and Road Initiative
Supporting the development of Free Trade Zones
Developing cross-border nancial services
The Bank actively supported the Belt and Road Initiative (BRI) and expanded itscorrespondent bank network in partner markets. With innovation in trade financeproducts, debt financing instruments and inter-bank investment, the Bank helped promoteinfrastructure construction and market development in BRI countries.
the Bank had established
correspondent banks in BRI markets,accounting for
%of all correspondentbanks of the Bank
the Bank had established
serviceoutlets in 21 FTZs across the countryThe Bank ramped up efforts to support the development of Free Trade Zones (FTZs).We set up institutions, launched products and leveraged the advantages of free tradeaccounts in cross-border direct investment and cross-border financing, to meet thefinancing needs of multinational corporations, overseas institutions and Chinese-investedenterprises and help promote the reform of FTZs.
The Bank innovated trade finance products, strengthened international cooperation, andsupported the internationalization of Renminbi, providing reliable financial support for thegoing global campaign of Chinese enterprises.
As of the end of 2020
As of the end of 2020
Case
Chongqing Branch has strongly supported the Sino-Singapore (Chongqing)Demonstration. It helped customers to list on the Singapore Exchange, promotedcross-border green bond and RMB capital pool projects, and provided newalternatives of financing channels.
Supporting Chongqing’s drive to develop into a pioneer of inlandopening-up in China
The Bank expanded its correspondent bank network at home and abroad, enhanced communication andcooperation with international peer banks, and provided customers with local and foreign currency integratedtrade financial services. As of the end of 2020, the Bank had set up 1,206 correspondent banks at home andabroad in 321 cities of 101 countries and regions on all five continents of the world.The Bank actively promoted credit insurance financing, international factoring, FTZ pledge financingloans, increased support for exporters, and reduced financing costs of Chinese-invested enterprises.Moreover, the Bank realized online scenario-based application of supply chain financial services, stronglysupporting the development of MSMEs.
The Bank continued to advance RMB internationalization with four product lines, i.e., cross-border accountservices, cross-border settlement products, cross-border financing products, and capital projects. We aimedto facilitate cross-border settlement and financing businesses using Renminbi and allow customers to benefitfrom RMB settlement facilitation policies. As of the end of 2020, the Bank had handled the cross-border RMBbusiness of RMB 46.3 billion.
Expandingchannels forglobal servicedelivery
Innovatingtrade nanceproducts
SupportingRenminbiinternationalization
2020 Social Responsibility Report4746Hua Xia Bank Co., Limited
A Dedicated Hua Xia with CraftsmanshipAn Eco-friendly Hua Xia Through Green DevelopmentA Philanthropic Hua Xia with Inclusive FinanceA Prudent Hua Xia with ComplianceA Sincere Hua Xia with Innovative ServicesA People-centered Hua Xia Pursuing Happiness for All
2020 Social Responsibility Report4948Hua Xia Bank Co., Limited
A Dedicated Hua Xia with CraftsmanshipAn Eco-friendly Hua Xia Through Green DevelopmentA Philanthropic Hua Xia with Inclusive FinanceA Prudent Hua Xia with ComplianceA Sincere Hua Xia with Innovative ServicesA People-centered Hua Xia Pursuing Happiness for All
Promoting the Growth of MSEsThe Bank has met all supervision indicators for small and micro enterprises for 11consecutive years. The Bank took the initiative to meet the financial needs of SMEs andimproved its measures for ensuring stability in the six key areas: employment, financialoperations, foreign trade, foreign investment, domestic investment, and expectations. Wedeveloped comprehensive financial service solutions for MSEs, lent more to more MSEswith improved services and at less cost.
balance of loans to MSEs: RMB
456.412
billionloans to MSEs increased by RMB
60.024
billion
As of the end of 2020
The Bank increased policysupport for reviewing loanapplications, especiallysingle applications for nomore than RMB 10 million byprivate MSEs. The Bank alsooptimized the fault toleranceand correcting mechanismfor business innovation.
The Bank set up special divisions for inclusive financeservice in key branches. We enlarged the empoweringrole of FinTech, coordinated resource allocation andramped up efforts to build a unified online lendingmanagement platform.
The Bank strengthened innovation of products, technology,models and other aspects. Moreover, the Bank interactedwith relevant management and information systems of coreenterprises and government departments, and provided moreefficient financing services for upstream and downstream MSEs.
The Bank formulated the2020 GuidingOpinions on Credit Access and RiskManagement of Inclusive Finance. TheBank maintained strict managementof “customers, guarantees, regions,products, platforms, and quotas”;and fostered a normalized riskcheck mechanism capable of onlinemonitoring, special examinations,cross-checks, and special assessment.In addition, the Bank propelled theapplication of the internal review systemfor retailing in the whole process of riskcontrol, and employed both the humanand automated risk control models.
?Enhancingbusinessinnovation
A soundcredit system
An improvedservice systemA soundlong-termmechanism
Strengtheningrisk preventionand controlThe Bank’sinclusive nance
system
The Bank promoted cooperationwith taxation, businesses, insuranceand guarantee organizations.
Innovating in nancial products and services
With FinTech empowerment, the Bank optimized the online service system to meet MSEs’ financing and development needs in a moreflexible and convenient way.Enhancing online nancial services
The Bank accelerated the constructionof the independent risk control model foronline lending. We formulated a seriesof online lending systems, such asthe administrative measures for onlinelending, rules on the management andimplementation of the Internet loan riskcontrol model, etc.
The Bank optimized the new-generationYinguantong tax and fee e-paymentsystem, which allows the payment ofcustoms taxes in real time, saves themanual operational cost of operatingcenters and improves the efficiency oftax collection.
The Bank formulated the administrativemeasures and implementation rules forthe credit decision engine platform. Wealso promoted the application of theelectronic credit contract managementsystem for small businesses, improvingservice efficiency with the help oftechnologies.
The Bank developed the paymentfinancing APP for MSEs to providemore convenient financial services forcustomers. The APP has such newfunctions as customer credit inquiryand online authorization for externaldata query, further improving the userexperience.
The Bank opened an official WeChataccount focusing on inclusive financeservices, which allows such self-servicefunctions such as credit application,loan application, automatic accountregistration, loan repayment, onlineproperty valuation and other services.
Strengthening risk control
Enhancing the efciency of
tax payment
Improving business efciency
Optimizing the paymentnancing system
Providing convenient services
2020 Social Responsibility Report5150Hua Xia Bank Co., Limited
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The Bank spared no effort to ensuring stability and security on six fronts. The lending to MSEs maintained a relatively high growth rate,supporting enterprises’ resumption of work and production.
Loan Products Based on theAnnual Review
The Bank offered medium- and long-term loans for MSEs with the financingperiod of up to 30 years.
The Bank reduced the costs for renewingloans for customers, the costs ofrefinancing and the time of businesslending, and automatically re-lended toenterprises without signing a new loancontract and exempted them from payingback the principal within five years, thuseffectively eliminating customers’ sorespots caused by the turnover of funds.
The Bank cooperated with a guaranteecompany in Beijing to develop andlaunch financial products such as ELoan for Livelihood and E Loan forForeign Trade to provide considerateservices for Beijing’s retailingMSEs (e.g., catering companies,convenience stores, deliverycompanies) and the foreign tradeenterprises engaged in the Belt andRoad Initiative.
For logistics MSEs, such as consignees,shippers, logistics companies and self-employed drivers, the Bank offered smallcredit loans to help them pay for logistics,transportation, etc. upon applicationand allow them to pay back wheneverthey can, and provided flexible financialservices for the logistics sector.
The Bank effectively helped MSEs getrid of liquidity risks and exempted themfrom “repaying the existing loan beforeapplying for a new loan”.
House Loan Express 5.0
E Loan for Livelihood & E Loan
for Foreign Trade
Logistics Loan
Loan Renewal withoutRepayment of Principal
A diversiedproductsystem
Addressing nancing difculties for MSEs
CaseIn response to the COVID-19 pandemic, Xiamen Branch launched “Reliable LoansSalary Keeper”, a special loan for eligible MSEs and self-employed individualsaffected by the COVID-19, to pay salaries and help them fight against thepandemic.
balance of loans to MSEs with no morethan RMB 10 million each increased byRMB
26.688
billion fromthe beginning of the year, an increase of
26.65
%,
14.61
percentage points higher than the growthrate of the Bank’s loans
Reliable Loans bring timely help to MSEs
Guangzhou Branch took the initiative to understand enterprises’ needs during the pandemic
As of the end of 2020
Improving services andconnection with customersOpening an express service channelInnovating in products and servicesReducing financing costsOptimizing online services
Five support measuresFive countermeasures
Enhancing loan renewal servicesImplementing deferral on loan repaymentProviding Work Resumption LoansLaunching Reliable LoansEnhancing exclusive servicesLogistics Loan
2020 Social Responsibility Report5352Hua Xia Bank Co., Limited
A Dedicated Hua Xia with CraftsmanshipAn Eco-friendly Hua Xia Through Green DevelopmentA Philanthropic Hua Xia with Inclusive FinanceA Prudent Hua Xia with ComplianceA Sincere Hua Xia with Innovative ServicesA People-centered Hua Xia Pursuing Happiness for All
CaseWenzhou Branch actively participated in the campaign of “100 Banks Entering100,000 Enterprises”. The branch increased field visits to find out the enterprisedemands, and formulated targeted financial service solutions. As of the endof 2020, via the above campaign and in delivering services for “development,decision-making and policy implementation”, the branch organized 1,068 fieldvisits and helped 739 private enterprises and MSEs with financing of RMB 3.948billion.
Smoothening the “last mile” for nancial services
CaseShenzhen Branch issued RMB 10 million Work Resumption Loan for purchase ofraw materials, intelligent upgrading of the production line, and recruitment of R&Dpersonnel, effectively alleviating a high-tech enterprise’s financial pressure andtackling difficulties.
Helping MSEs out of difculties through Work Resumption Loans
Shenzhen Branch helped a company resume production
Kunming Branch financed small flower companies
Scan the QR code formore information about
our Hua Xia Bank’sFinancing Scheme forSMEs
Shaoxing Branch provided customized financial services for a printing and dyeing enterprise
Supporting Private EnterpriseThe Bank earnestly implemented the major decisions and deployments of the CPCCentral Committee, the State Council, and regulators on supporting private enterprisesand the private sector. We ramped up efforts to improve services for private enterprisesand further cut some fees to lighten the burden on private enterprises and support theirdevelopment.
the Bank cumulatively reduced or exemptedservice fees for private enterprises byRMB
175.2954
million, an increase of RMB
122.99
million from theprevious year
In 2020
Case
Due to the sudden outbreak of the COVID-19, a technology company in Shenzhenfound itself short of working capital. Shenzhen Branch simplified the proceduresand innovatively launched “Easy First Loan”, which provides customized financialservices for enterprises that have applied for the loan for the first time. The creditamount was determined and verified in no time, and the customer was offered apreferential interest rate.
Helping enterprises that have applied for the loan for the rst time
2020 Social Responsibility Report5554Hua Xia Bank Co., Limited
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Boosting People’s Wellbeing
We diversified diverse financial products and service models to provide safe professional,and considerate financial services for customers to meet the people’s aspiration for abetter life.
Financial services for Agriculture, Farmers and Rural Areas
The Bank continued to develop targeted products to improve the coverage of basicfinancial services and accessibility of loans to rural areas. The Bank enhanced financialservices in an orderly manner to promote rural revitalization and help build a beautifulcountryside.
balance of inclusive finance loans to“agriculture, farmers and rural areas” hadreached RMB
14.398
billion, which increased by RMB
1.808
billion,or
14.36
%, from the beginningof the year,
2.32
percentagepoints higher than that of the Bank’s loans
As of the end of 2020
The Bank built a statistical and monitoring system for loans to“agriculture, farmers and rural areas” and continued to optimizebusiness processes and loan approval mechanism.The Bank deepened the banking-insurance cooperationmechanism, actively promoted agricultural supply chain finance,and developed specialty products, exploring a credit enhancementfinancing system centered on quality.The Bank promoted basic financial services in rural areas,developed special withdrawal services for farmers; set up mobileterminals to provide mobile services and improved online services.
Establishing
a soundmechanism
Optimizing
product
Improvingservices
CaseCase
In 2020, Hangzhou Branch issued nine loans to MSEs inLindai Town, Pinghu City, totaling RMB 29 million. It helpedimprove the quality and efficiency of modern agricultureand boost rural employment.
Kunming Branch supported Jiangnan Village constructinfrastructure, green and beautify the environment, andharden roads. It improved various public service facilities,including health centers, libraries, and fitness sites,effectively improving the living environment of the village.
Supporting the development of industries to help builda beautiful countryside
Promoting infrastructure construction and improvingrural landscapes
Hangzhou Branch helped build a beautiful countryside in Lindai Town, Pinghu
Case
As of the end of 2020, Chengdu Branch had granted 54 credits loans, totaling RMB 160 million, to thedoubanjiangindustry inPi County. The loan has effectively solved the financing difficulties of localdoubanjiangproducers while increasing the yield andincome of broad-bean growers.Doubanjiang Loans help local enterprises thrive
Chengdu Branch employees visiteddoubanjiangenterprises
Kunming Branch helped Jiangnan Village improve its environment
2020 Social Responsibility Report5756Hua Xia Bank Co., Limited
A Dedicated Hua Xia with CraftsmanshipAn Eco-friendly Hua Xia Through Green DevelopmentA Philanthropic Hua Xia with Inclusive FinanceA Prudent Hua Xia with ComplianceA Sincere Hua Xia with Innovative ServicesA People-centered Hua Xia Pursuing Happiness for All
Supporting livelihood improvement
Responding to the country’s call to support the development of Central and WesternChina and the Old Industrial Bases in Northeast China, the Bank continued to improvebasic financial services and the layout of county-level outlets. We provided qualityfinancial services to less-developed areas, especially in such areas as public services,medical service, education and senior care.
the Bank had opened
outletsin rural areasprovided services for
outlets in oldrevolutionary base areas, areas inhabitedby ethnic minority groups, remote andborder areas and poverty-stricken areas
the Bank opened
more county-levelsub-branchopened
new outlets in Central andWest China
As of the end of 2020
In 2020
Kunming Branch served a customer of ethnic minorityResponding to the country’s call for improved living standards and social security, theBank continued to optimize resource allocation for projects vital to people’s wellbeing andmake professional financial services accessible to every resident.
Developing inclusive nance
Case
Case
Guiyang Branch successfully reached the RMB 3 billion banking-insurancecooperation with a water conservancy company to support the resumption of workand production of key water conservancy projects of the company, effectivelyguaranteeing livelihood-benefiting projects.
Changchun Branch brought heat suppliers, users and payment channels togetheron WeChat to form a platform for trustworthy public utility payment and convenientlifestyle services.
Helping ght droughts and water shortage in northwestern Guizhou
Empowering public services
Supporting consumption
The Bank actively promoted consumption in areas essential to people’s wellbeing, andserved residents’ core consumption needs for a better life, thus boosting domesticconsumption and confidence and momentum for economic recovery.
balance of personal loans (except creditcard): RMB
424.251
billion
As of the end of 2020
Supporting consumption upgrade
We built the Hua Xia E Loan brand, under which are five sub-brands: Elite E Loan,Hua Xia E Loan, Housing E Loan, Vehicle E Loan and Education E Loan. Weemployed big data and cloud-based risk control platforms to provide professional,intelligent and integrated personal credit services to retailing customers.
The Bank developed intelligent, digital, and agile personal loans, and continued toboost personal loans.
Focusing on such real-life scenarios as travel and leisure, education andtraining, medical care and elderly care, maternal and child health, ventilation andenvironmental protection, smart home, and car rental and purchase, we activelydeveloped integrated loan businesses.
Upgrading personal loan brands
Enhancing consumption-side supply
Case
In response to the call of People’s Bank of China (PBOC) to promote mobilepayment, we cooperated exclusively with China UnionPay to launch the QuickPasscredit card. It offers “cashback for every purchase”, discounts, and installmentdiscount, and aims to fuel the economic re-opening after the pandemic.
Initial launch of Hua Xia QuickPass credit card
The Starcatcher Platinum credit card
The credit card exclusively for
medical workers
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
Building an agile organization system
Accelerating FinTechDevelopmentTo pursue digital transformation and development, the Bank empowered products andbusiness development with FinTech, promoted external cooperation on FinTech, andendeavored to guard against FinTech risks and promote digital finance across industries.
We continued to improve IT management and accelerated the building of basicapplication platforms for big data, smart services and digital credit loans, which aredriven by the five goals of “led by innovation, driven by data, smart transformation, safeoperation and efficiency enhancement”.
The Bank actively promoted digital transformation. We set up a leading group for digitaltransformation, and opened the office for promoting digital transformation to offerinstitutional guarantee for rapid, effective promotion. We have laid down the blueprint andimplementation route, and improved coordinated planning and top-level design for digitaltransformation.
?The Bank built online channels and initiatedactivities to call for new technology applications andsystem usability evaluation.?The Bank built a crowd-testing platform to test
mobile banking, staff mobile platforms, and otherapplications.
Improving the level of management
?The Bank created the IT organizational structureconsisting “One Department, Six Centers, and OneCompany”.?The Bank established a closed-loop processsystem covering the entire life cycle of informationtechnology.?The Bank carried out pilots of agile projects andpromoted their application.
The Bank formed a systematic theoretical basisintegrating the characteristics of digitalization, four digitallevels, and digital financial ecosystem, and exploredand promoted the development of digital innovation andtransformation.?Deepeningunderstanding
Embracing FinTech
The Bank ramped up efforts to promote external cooperation on FinTech, developed business scenarios and solutions, and explored anew development model that is open, collaborative, and sharing.
The Bank cooperated with internet companies, FinTech companies and internet-based banks to promote cross-border cooperation, andconstantly improve the Bank’s intelligent and digital operations.CaseThrough collaboration with professional technology companies, the Bank built the Cloud Native application developmentplatform that integrates advanced microservice application development frameworks, complete cloud-native service governanceinfrastructure, and advanced mobile development platforms. The platform significantly improves the development efficiency andensures unified application management, and has been successfully piloted in several projects, such as WeChat Bank.
Ofcial launch of the Cloud Native application development platform
Building a win-win ecosystem
Building R&D mechanismsEnhancing communication
The Bank integrated national and regional strategies forbuilding a digital economy into digital and technologicaltransformation, and created a new business structurefocusing on both enterprises and customers.Developing the
strategic plan
?
The Bank developed digital and intelligent financial servicesolutions to promote the optimization and upgrading of theindustrial chain and supply chain, promoted the openingup of the Bank, and created new test fields for innovation.Driving digitaltransformationwith innovation
?
?The Bank launched the FinTech supermarket online.?The Bank put into operation the cloud-basedapplication development platform.
Applying research results
?The Bank set up the FinTech innovation fund.?The Bank set up the FinTech innovation risk reservefund.
Innovating in incentive mechanisms
Conducting communication and cooperation
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
The Bank promoted the building of a digital ecosystem based on the industry internet platform, to connect SMEs, help improve financialservice accessibility to SMEs and reduce their financing costs.Supporting the development of industry digitization ecosystem
The “1+4” platform interconnectivity strategy
?The Bank built the industry digital financeplatform.?The Bank empowers industry digitalization.
The Bank connects with industrial internet platformsowned by government departments, centralenterprises, and industry leaders and associations,and embeds its financial services into platformscenarios.
At the customer end
The Bank providesconsultation servicesfor IT or financialSMEs, coveringoverall planning,architecture design,system constructionand follow-upoperations, etc.
Our e-banking appprovides SME userswith enterpriseinformation inquiry,competitor riskmonitoring, businessanalysis report andother services.
The Bank providestraining for IT orfinancial SMEson softwaredevelopment, systemoperation andmaintenance, anddatabase, etc.
Our e-bankingapp provides SMEusers with mobileadministrationservices such asattendance check,administrativeapproval andreimbursement.
The Bank offersintegrated financialservices online toSMEs, includingmaking appointmentsfor accountopening, accountmanagement andproxy charging andpayment, etc.
Planning andconsultation services
Industry-specicconsultation servicePersonnel training
Mobile administration
services
Integrated nancialservices
Strengthening the customer information management
The Bank amended and issued polices and rules for financial information management, improved whole-lifecycle financial informationmanagement, and implemented requirements of personal information protection to prevent financial information leakages.The Bank issued data and information management policies suchas the Hua Xia Bank Data Governance Administrative Measuresand the Hua Xia Bank Implementation Rules for InformationSystem Data Management.The Bank enhanced remote terminal authentication andtechnological control over terminal security.
In line with the Personal Financial Information ProtectionTechnical Specification and regulatory requirements, the Banktested bank-wide mobile app transaction software to identify andeliminate hazards of authentication information management,software security, etc.The Bank carried out the annual training for information securityofficers and participated in the 2020 National Network SecurityPublicity Week campaign.
The Bank optimized FinTech risk management to ensure the safe and efficient operation of FinTech platforms.
Supporting the digital transformation of micro-, small and medium-sized enterprises
Institution construction
Technological support
Self-checks
Publicity and training
?The Bank improved the operation and
maintenance management system anddelicacy management.?The Bank enhanced business continuitymanagement and further improvedtimely response.
?The Bank built a mobile operation andmaintenance platform.?The Bank completed the online trialoperation (phase I) of the system map.?The Bank launched the software-definedwide-area network (SD-WAN) project.
?The Bank promoted the developmentof same-city dual-active informationsystems supporting primary andsecondary services.?The Bank built a cross-center dual-active data processing platform.
?The Bank built a private cloud platformto support stable operation of tens ofthousands of cloud hosts.?The Hua Xia-Huawei Joint InnovationLaboratory was opened.?The Bank built a backup cloud self-service platform.
Intelligent systemsStrengthening platform building
Safeguardingsecure and stableoperation of the IT
system
Delicacy management
B
D
A
C
Enhancing data process capabilities
The Bank became one of the first co-initiators for Digital Transformation Partnership Action
Guarding against FinTech risks
At the Bank end
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
The Bank launched 40 keyfunctions including e-receipt,online reservation for accountopening and Bluetoothshield, and optimized 273items in process remodeling,experience interaction,etc. We used big datato help corporate clientsinquire about competitors’information, choose potentialpartners, identify businessrisks and expand businesscircles.
The Bank launched thee-receipt, online contractsigning with suppliers,corporate agreementdeposit purchase, letterof confirmation requests,etc., meeting the need forcontactless services.
The platform serves over 300micro-, small and medium-sized enterprises in a dozenof industries includingwholesale, retail and foreigntrade, and facilitates theimplementation of locale-government services andpublic wellbeing projects.
The Bank completed modularand professional innovationupgrade, strengthened theplatform’s user experienceand security, and providedplatform merchants with moreprofessional, humanized andcustomized services. As ofthe end of 2020, PlatformExpress Pal had providedfinancial services to 151companies including GuangxiExchange Depository andClearing Center and StateGrid E-commerce.
Mobile corporate
banking
Online corporatebanking
Qiyue nance and assetmanagementplatform for cash management
PlatformExpress Pal
Convenient services
The Bank enhanced medium- and long-termfinancing support for manufacturing enterprisesand launched annual-review loans exclusivelyfor manufacturers, allowing them to renew loanswithout signing a new loan contract and paying theprincipal within five years.
The Bank boosted innovation of ?nancial productsfor MSEs, and launched House Loan Express 5.0and logistics loans, etc. to meet diverse needs of?nancing.
The Bank launched whole-lifecycle financialproducts and services to support the incubationand growth of technology companies, includingthe easy loan for start-ups, easy loan for high-techcompanies, corporate growth loan, and incubationloan, etc.
To better serve foreign trade companies in China,the Bank launched supply chain cloud accountsand online contract signing functions for supplychain businesses.
Diverseservices
The Bank continued to enhance service support for large central SOEs, local SOEs,listed companies, industry leaders, and fast-growing enterprises, and constantlydeepened the “3-3-1-1” customer marketing and service strategy. The Bank selected 79strategic customers at headquarters’ level.
our headquarters signed
more headquarters clients (excluding financialinstitutions), including
corporate customers and
institutions (governmentdepartments, associations, exchanges, etc.)
balance of customer credit andinvestment financing businesses in the“3-3-1-1” white list had reached RMB
685.033
billion, anincrease of RMB
57.823
billion (
9.2
%) from the beginning ofthe year.
As of the end of 2020
In 2020
Case
The Bank signed a strategic cooperation agreement with Shenzhen StockExchange, with focus on IPO mentoring, technology and finance, etc., to supportthe growth of innovative startups, the development of strategic emergingindustries, and the country’s “dual-circulation” development.
Signing a strategic cooperation agreement with Shenzhen StockExchange to support the growth of innovative enterprises
Zhang Jianhua, Deputy Party Secretary and President, visited Shenzhen Stock Exchange
Improvement in Corporate Banking Services
The Bank deepened the integration of finance and technology, and promoted the transformation and development of corporate financialservice models. We provided industry- and sector-specific products and services, to create an interconnected business ecosystem forcorporate clients.
Building service platforms
Strategic cooperation
Product innovation
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A Dedicated Hua Xia with CraftsmanshipAn Eco-friendly Hua Xia Through Green DevelopmentA Philanthropic Hua Xia with Inclusive FinanceA Sincere Hua Xia with Innovative ServicesA People-centered Hua Xia Pursuing Happiness for All
2020 Social Responsibility ReportHua Xia Bank Co., Limited
The Bank improved customer experience by smart machines
Beijing Branch provided warm services for customers
The Bank continued to expand its service coverage, optimized the layout and deepenedthe transformation of banking outlets, and improved online product and service models.
the Bank opened1,022branchesin total, covering all provincial capitals(except Tibet) and
citiesabove prefecture-level across the country
community sub-branches
1,149 self-service banking facilities
the Bank opened
new bankingoutlets
In 2020
As of the end of 2020
The Bank’s first operating transformation lab was set up at Kunming Branch
The Bank officially launched the robo-advisory system in March 2020 to providecustomers with intelligent, professional and targeted financial services.
The Bank developed a list of 32 personal financialproducts to go online. Targeting online financialservices for individual borrowers, the Banklaunched the Hua Xia E Loan
The Bank improved the management system forinternet loans. In addition, the Bank enriched riskcontrol dimensions and sources, significantlyenhancing the risk identification, controlcapabilities and business efficiency.
Intelligent services
Online servicesRened services
Retail service
upgrade
Upgrading the Customer Experience
Adhering to customer-centric financial services, the Bank actively built a smart retail banking system to provide convenient, efficientfinancial services.
Expansion of service channels
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
Building ofine channels
Building online channels
The Bank created a comprehensiveecosystem that integrates financialservices, public services, publiceducation, salons, etc.
?With the goal of developing “fast, easy to use, good-looking, economical, and interesting”
APPs, the Bank would make iteration every one to two weeks.?The Bank improved the e-community service APP that supports localized applicationsand vigorously promoted scenario-based marketing activities.?The Bank enriched product functions, such as transfer of large-value deposits.?The Bank optimized the personal banking transaction process of the counter image front-end system.?With voice recognition and other AI technologies, the Bank upgraded the intelligentcustomer service robot system.?During COVID-19 prevention and control, work-from-home customer service staff wereassigned to ensure around-the-clock operation of the 95577 customer service hotline.
By applying a variety oftechnologies such as biometrics,AI, and big data, the Bankconnected equipment acrossoutlets and promoted customizedproducts.
The Bank designed mobile andmodular service scenarios tocommunicate with customersthrough flexible forms.
As some service requests arediverted to the self-servicemachine, the waiting time at theoutlet hall was shortened byover 30%.
Scenario-based and intelligent services at outlets
Enhancing service capabilities of online platforms
More intelligent
More integrated
More exible
More e?cient
Mobile banking 5.0
Personal banking
Telephone banking
2,932
64.1
%
2.87
%
As of the end of 2020In 2020
Case
To meet customers’ needsfor contactless financialservices out of concernsfor COVID-19, the Bankdeveloped the CustomerManager “Cloud Studio”,a new portal for online-offline integrated digitalservices.
Contactless services
The Bank improved the service management system and enhanced service quality andefficiency, realizing higher customer satisfaction rate.The Bank continued to improve the service management system, strengthened personneltraining, and carried out supervision and inspection, striving to provide consumers withbetter services.Improving service standards
Parent-child activities for VIP customers of Xiamen Branch
The Bank issued service managementevaluation standards to specify servicemanagement methods.
The Bank enhanced the management ofthe internal training team and providedtargeted training for employees.The Bank participated in the selection ofDemonstration Units of Responsible andStandardized Service in China’s BankingSector.
The Bank provided customers withdiverse and high-quality services.
Intelligent
outlets
Guangzhou Branch’s library bank
24/7 uninterrupted financial services ofoffline outlets
Improvement in service quality and efciency
the Bank installed intelligent counters in total intelligent counters per outlet
from the previous year
with
the rate of off-the-counterservices to all businesses ofthe Bank reached
the monthly active users ofour personal banking APPincreased by
A Prudent Hua Xia with Compliance
7170
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
Adhering to the people-centered service philosophy, we attached much importanceto complaint response in 2020. We offered unimpeded complaint channels, optimizedthe complaint response mechanism and analyzed complaints to improve the effectof complaint response. Throughout the year, we received 29,771 complaints; thesettlement rate of complaints reached 100% and the customer satisfaction rate forcomplaint response reached 93.48%. Due to the COVID-19 pandemic, we received alot of complaints against credit card repayment, especially in Beijing, Jiangsu, Tianjinand Hubei, etc. In response, we improved service standards and processes and flexiblyresolved complaints and disputes. In addition, the Bank worked to reduce complaints andimprove customer satisfaction, safeguarding the legitimate rights and interests of financialconsumers.
Valuing customer complaints
Improving complaint management
The Bank amended and issued theAdministrative Measures for CustomerComplaint Response, clarifying customercomplaint response process andverification processes.The Bank earnestly fulfilled theresponsibility of complaint handling,resolved financial disputes in a diversifiedmanner, and continued to improvethe quality and efficiency of complaintresponse.
The Bank disclosed complaint responsechannels and processes through mediaand set up a special zone in outlets tohandle customer complaints.
The Bank held the Bank-wide complaintanalysis meeting, where typicalcomplaints were analyzed and problemsof the Bank were rectified.
Enhancing institutional buildingUnblocking complaint channels
Regulating complaint responseSupervising and guiding correctionsof key problems
Hangzhou Branch held the Caring for the Elderly Activity on Chongyang Festival
The Bank provided considerate services for groups with special needs, including theelderly, military personnel and veterans, and migrant workers.
the Bank had
4.7438
millionelderly customersset up reserved counters at
outletsput in place accessible facilities at
outlets
Serving groups of special needsAs of the end of 2020
We have incorporated the protection of consumer rights into corporate governance system andstrategy, and stepped up to advance and integrate consumer rights protection and consumerservices, to create a harmonious financial environment.
Scan the QR code formore information about theBank’s efforts to protectconsumer rightsChangsha Branch launched an education and publicity activity on the protection ofcustomers’ rights and interests
Protecting Customer Rightsand Interests
The Bank attached great importance to the protection of consumer rights and interests, complied with regulatory requirements, andcomprehensively improved work quality and efficiency.
?The Bank strengthened the top-level design for the protectionof consumer rights and interests, established the organizationalstructure, institutions and systems, review mechanisms,information disclosure mechanisms, supervision and inspectionmechanisms, education and publicity mechanisms, trainingand complaint management mechanisms, and assessment andevaluation mechanisms.
Institutionalbuilding
?The Bank specified ex ante review specifications and regulatedinstitutional review and other procedures.?The Bank tightened in-process control with a focus on tighteningthe review of business and product-related items.?The Bank enhanced post-event supervision, strengthenedprofessional inspections, complaint analysis, and assessmentand evaluation.Strengtheningwhole-processcontrol
?The Bank formulated an annual training plan on consumer rightsprotection.?The Bank carried out training and examinations on the protection
of consumer rights and interests among middle-level and seniormanagers as well as grassroots sales staff. The total number oftrainees reached 37,186.
Trainingmanagement
Intensifying basic management
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
The Bank actively participated in the investor and consumer education activitiesorganized by the People’s Bank of China (PBOC), China Banking and InsuranceRegulatory Commission (CBIRC) and China Banking Association (CBA). The Bankcontinued to organize financial knowledge popularization and consumer educationactivities to improve customers’ understanding of financial products and services, raisetheir awareness of risks, and help create a good financial ecosystem.
benefited over26,105,997
people with its public financial knowledgeeducation and publicity activitieshanded out approximately
3.2775
million copies ofpublicity materials to the public
the Bank organized18,416
public financial knowledge educationand publicity activities
engaged over118,409
employees in these activities
We have given high priority to financial security and employedtechnological means to prevent information leakage. Westrengthened financial security, guided customers to avoidrisks, and did what we can to recover their losses.
In 2020
Shenzhen Branch organizedonline live-streaming of its financialservices. Its staff acted as livestreamers to introduce to viewersits anti-coronavirus measures andspecial service arrangements inresponse to the pandemic.
Cloud-based
experienceof financialservices
Wuhan Branch disseminated basicfinancial knowledge to consumersstaying at home through onlineseminars, online service salons, andother activities on the cloud. It alsoexposed typical fraud cases to helpcustomers avoid frauds.
Nanjing Branch organized an onlinesituational quiz and other activitiesto teach consumers to analyze andstay vigilant against financial risks.
Case
The Bank adopted the “Internet + Financial Knowledge” education and publicity mode to enhance consumers’ awareness of self-preservation and capability to prevent and handle financial risks.
Internet-based nancial knowledge popularization
Cloud-based
disseminationof financialknowledge
Cloud-basedcommunicationon financialrisks
To mark the International Children’s Day, Urumqi Branch taught RMB basics to kids
Hua Xia Bank set up special columns on its official websites and other channels, andopened public education areas at outlets. It also carried out a variety of online and offlineeducation and publicity activities.
Protection ofconsumers’
property
Protectingconsumer
privacy
The Bank connected its anti-fraud platform with the anti-fraudplatform of the Ministry of Public Security to form synergyagainst telecom frauds.
In line with the regulatory requirements, the Bank conductedcomprehensive security checks of all software on our mobileapps. We reshaped the privacy protection policy framework,updated privacy policies on mobile banking, direct banking,and mobile corporate banking, and conducted safety tests onthese apps.
We employed big data and machine learning technology toeffectively identify fraud risks and intervene in time.
The Bank formulated the emergency plan for online financialservices, and improved the emergency plan for customerservice hotlines.
Monitoring suspicious transactions
Improving risk management capability
Cracking down on frauds and building
the anti-fraud system
Enhancing information protection
Financial educationEnsuring nancial security
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
51.1
%increasedover the beginning of the year
equivalent to savingmillion tons of standard coalequivalent to savingmillion tons of water
180.043
Establishing the Green Finance Management Committee to coordinategreen finance-related businesses across the Bank; establishing theGreen Finance Center to promote the business of green financeSetting up leading groups and specialized teams headed by branchleaders to coordinate and promote the green finance businessPushing forward the green finance pilot program and setting updedicated green finance branches and marketing departments withdesignated personnel responsible for green finance-related work
60.89
note: the value of increase and rate ofincrease are calculated based on thedata adjusted in accordance with theStatistical Methodology for Green Loansrevised by the People's Bank of China inDecember, 2019
We earnestly followed national policies for the industries and environmental protectionand financial regulatory requirements, and strictly tightened up credit granting inindustries that cause high pollution, high consumption, and overcapacity. On the otherhand, we channelled more financial resources into sectors that contribute to green,low-carbon, and sustainable development, especially green credit to such areas asenergy conservation, environmental protection, clean energy, and green transportation,providing financial support for the development of green industries and enterprises.
A rendering of an industrial waste treatment center project financed by the Bank
The Comprehensive Water Environment Improvement Project of an environmentalgovernance company in Wuxi is responsible for desilting and building revetmentsalong 11 river courses in Wuxi City. Wuxi Branch granted the project a specialloan of RMB 400 million in its early stage, followed by another RMB 100 millionworking capital, effectively alleviating the financial pressure of the company andenhancing local flood control and drainage capabilities to the regional water andresidential environment.
Shenyang Branch granted an environmental service company a two-year RMB390 million fixed-asset loan to build the Huludao Industrial Waste TreatmentCenter. After completion, the Center will be able to process 92,500 tons ofindustrial waste per year, effectively reducing pollution caused by industrial wasteand improving local production and living environment.
Aligning with national banking policies, we have introduced capital and advancedconcepts from overseas, and dedicated resources and a team to stimulate innovation inproducts and theories, while exploring a development path with special characteristicsfor green finance.The Head
Office
1.457
10.9499
Devoting More Effortsto Green Finance
Branches
Outlets
Developing green credit
A wind farm project financed by the Bank
As of the end of 2020the Bank’s balance of green loans hadreached RMB
an increase of RMBbillion
billion
Case
Case
Supporting water environment improvement projects
Supporting industrial waste treatment
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
10.673
1.6
7.233
450920
In April 2020, the 20 Hua Xia Bank Green Finance 01, the first issue of Hua XiaBank’s green bonds in 2020, was listed in the National Interbank Bond Market toraise RMB 10 billion for green industrial projects, with a three-year fixed rate.As of the end of 2020, the bond had invested in 63 projects from areas of energyconservation, clean transportation, clean energy, environmental protection andclimate change adaptation, pollution control, as well as resource-saving andrecycling.
including
8.727
In 2020
On April 8, 2020, China Securities Index Co., Ltd. announced the release of theCSI Hua Xia Bank ESG Index and the CSI ESG120 Strategy Index developedby the Bank. The two indexes, officially launched on April 30, are two of the firstindexes developed based on the “ESG Evaluation System”, a proprietary systemof China Securities Index.These two indexes are fruits of our active contribution to the development of thecapital market. Centering on the CSI Hua Xia Bank ESG Index and the CSI ESG120Strategy Index, we will develop more net-worth wealth management products topromote ESG investing in China.
Held the Second Summit on ESG Investing in China Asset Management Industry2020 Status Report - ESG Investing in ChinaAsset Management Industry
We developed a series of products for contract energy management financing andemissions trade financing, and explored to provide the government and key energy-consuming enterprises with integrated services of energy diagnosis, energy planning,energy transformation, and green finance. A product system of green credit, green lease,green investment, and green debt-financing underwriting tools has been built, coveringenergy efficiency financing, clean-energy financing, environmental-protection financing,and green equipment supply chain financing. In 2020, we launched collective financingfor green projects to accelerate the approval and improve customer service capabilities.
With ESG as the clear focus of our investment strategy, we have developed ESGstrategies and databases, issued ESG-themed wealth management products, and so onto practice the ESG concept.We formulated the Measures of Hua Xia Wealth Management Co., Ltd. for ESGManagement (Trial), compiled the Hua Xia Bank ESG Evaluation System, held theSecond Summit on ESG Investing in China Asset Management Industry, and releasedthe 2020 Status Report - ESG Investing in China Asset Management Industry.
Innovative green productsPracticing ESG concept
As of the end of 2020
RMBbillion in green bondsthe Bank’s balance of greeninvestment had reached RMBbillion
RMBmillion in green billsUSDmillion of bonds in foreign currencies
RMBbillion of investment in industrial funds
the Bank launchedissues of ESG-themed wealthmanagement products
18.29
the ESG-themed wealth managementproducts under management amountedto RMBbillion in total
raised RMBbillion
RMBmillion in interbank asset equity rightsRMBmillion in asset-backed securities
Case
Case
Issuing RMB 10 billion of green bonds
Ofcial launch of the ESG indexes
As of the end of 2020
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
10.7
8.87
A container-based peak-shaving and valley-filling electrochemical energy storage power stationproject financed by the Bank
The Bank carried out marketing activities for green finance brands. A total of 33large- and medium-sized green finance publicity activities were held by our branchesthroughout the year. We compiled a collection of 16 green finance marketing cases thatare highly innovative and have strong social influence.
AwardsWe have invested RMB 944.26 million in the 4,493-hectare Project through theWorld Bank’s on-lending solutions to support the Coastal Afforestation Projectin Xiangshui County. The Project is expected to improve the local coastalenvironment and disaster resilience, protect the people’s lives and properties, andpromote sustainable coastal socioeconomic development.The Project adds more than RMB 2 million per year to the fixed income of the 412local households, significantly improving their living standard. Besides, poverty-stricken residents were hired as forest rangers with a stable source of income. TheProject was praised by the local government, regulatory authorities, enterprises,and residents alike.
The Bank won another award of the Best
Bank for Green Energy Development
issued by Global Finance
The Bank won the 2020 IFF Global Green
Finance Innovation Award, becoming the
only financial institution in the banking
sector to win the award
We maintained close cooperation with international organizations such as the AgenceFran?aise de Développement (AFD), the Asian Development Bank, and the InternationalGreen Economy Association. In 2020, we actively pushed forward the World Bank’sChina Renewable Energy and Battery Storage Promotion Project and steadily advancedits Innovative Financing Project for Air Pollution Control in the Beijing-Tianjin-HebeiRegion and other on-leading projects. Through these projects, we tried to meetinternational standards in terms of policy-making expertise, and project managementand execution.
Actively benchmarking against international practices, the Bank has become China’s firstfinancial institution to apply the World Bank’s Environmental and Social Framework (ESF)and has established the On-lending Environmental and Social Management System(ESMS).
Through capability building, publicity and education, and exchanges, we advocatedand fostered the corporate culture of green finance, injecting cultural vitality into thedevelopment of the Bank’s green finance.
Deepening international cooperationImproving management standards
Fostering green culture
Case
Supporting the Coastal Afforestation Project Phase II in XiangshuiCounty
The China Renewable Energy and Battery Storage Promotion Project we co-launched with the World Bank is the largest of its kind under the World Bank andthe first in China dedicated to financing energy storage. The investment totalsUSD 750 million, of which USD 300 million comes from the World Bank and USD450 million from Hua Xia Bank in the form of equivalent RMB loans. The money isused to support energy storage (excluding pumped-hydro storage) projects andprojects for the innovative utilization of renewable energy. It helps enhance theintegration and utilization rate of renewable energy nationwide.In August 2020, the loan for the first sub-project – the energy storage project ofa beer company in Guangdong, was granted to build a container-based peak-shaving and valley-filling electrochemical energy storage power station.
As of the end of 2020, the Innovative Financing Project for Air Pollution Control inthe Beijing-Tianjin-Hebei Region, the most expensive anti-pollution project betweenChina and the World Bank, had deployed 28 sub-projects and invested RMB 4.633billion in pollution control, equivalent to saving 1.16 million tons of standard coaland reducing 2.56 million tons of CO
emissions per year.
Case
Case
China Renewable Energy and Battery Storage Promotion Project kicksoff its rst sub-project
Steadily advancing the Innovative Financing Project for Air PollutionControl in the Beijing-Tianjin-Hebei Region
As of the end of 2020the Bank had introduced USDbillion of foreign capital through on-lendingprogramscumulatively issued RMBbillion of credit loans in home and foreigncurrencies
3.63
savingmillion tons of standard coal annuallycutting CO
emissions annually bymillion tons
28,300
cutting SO
emissions annually bytons
28,000
cutting NOX emissions annually bytons
provided financing services forprojects in 17 provincial regions acrossthe country
The Bank prepared a series of training courses for renewable energy and on-lendingprograms, issued the list of green finance marketing priorities of the year, and conductedindustrial research on urban energy, wind power, photovoltaic power, and green building,etc. A learning materials system has been preliminarily built across the Bank, coveringmacro-economic situation, green finance policies, updates and analyses of key industrialpolicies and trends, and implementation rules for business handling and risk prevention.
The Bank actively publicized the green finance business of the Bank. The promotionalvideo of the Bank’s green finance brands was broadcast on CCTV 1 and CCTV 9 duringprime time. Our green finance brand “Green Growth for a Better Hua Xia” has earnedrecognition from the market with increasingly strong brand influence.
The Bank delivered 4 bank-wide green finance training sessions and held the YouthDevelopment Forum on Green Finance.
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
1,147,192,600
ETC services
Offering more professional services
2,440,100
16.4
%
71.2
%
71.3
%
48.9
%
3,256,200
169,400
128,700
NOX emissions byCFCs byCO byCO
by
compared with manual toll collection, for an ordinary light vehicle, the use of ETCreduces
The Bank strengthened training andassessment of the marketing staff anddeveloped service solutions targetingcustomers’ greatest concerns and sorespots, so as ensure customers’ right toknow.
The Bank launched an SMS push functionfor ETC business, upgraded the feededuction messaging system for the ETCbusiness according to the requirementsof the Highway Monitoring & ResponseCenter of the Ministry of Transport, andallowed ETC customers to search for thedetails of charges.
2,294,40098.21%
2018
20182018
20182019
20192019
20192020
20202020
202041,410.6
39,812.6328
41,695,542.340,809.6
30,149.8620.52
47,169,874.8433,193.13
24,607.2620.83
51,340,078.62
(kWh) (ton)
(liter) (ton)
We actively promoted ETC business and continuously improved the ETC quality. Wehave rolled out discounts for ETC users, striving to encourage users to use ETC andfacilitate green transportation.
Attaching great importance to our environmental impacts, we promoted green office throughout the Bank, striving to reduce resourceconsumption, improve energy efficiency, and cut pollutant discharges. We implemented low-carbon operations across the board andpromoted green development.
As of the end of 2020, all our over-the-counter services were paperless. To promote theuse of electronic certificates, we restructured the over-the-counter service process, andoffered certificates, customer signatures, and bank seals in electronic forms, reducingpaper consumption while improving the efficiency of over-the-counter services.
Upgrading information services
Adopting centralized printing and carrying out all over-the-counter service in a paperless manner to reduce resourceconsumption
Encouraging the staff to practice the “empty plate”campaign and packing up leftovers to avoid waste of food
Strictly following air-conditioning temperature controlrequirements, using intelligent lighting systems, andswitching off unnecessary lights to reduce energyconsumption
Promoting and encouraging garbage sorting andcentralized garbage collection, and assigning garbagesorting officers at busy floors and time periods
Encouraging employees to turn off the tap after using andreport any cases of water leakage
Promoting the use of the electronic centralized sourcingplatform and factoring environmental protection and CSRperformance into supplier selection
Paperless servicesLower energy consumption
Water conservation
Garbage sorting
Water consumption of theHead OfceElectricity consumption of the Head Ofce
Paper consumption of the Head OfceFuel consumption of company vehicles ofthe Head Ofce
“Empty plate” campaign
Green sourcing
Services for Green LifestylesPracticing Green Operation
Supporting green travelGreen ofce
Promoting paperless services
As of the end of 2020the Bank had signedETC service usersan increase ofover the end of the previous yearissuednew ETC cardsincreaseover the beginning of the year
requests for e-services?tonsof the services were handled via the
main e-channels
4.12
%
an increase of
In 2020
the Bank handledequivalent to cutting CO
emissions by
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
Case
The Head Ofce and Beijing Branch signed theCommitmentLetter on Household Waste Sortingwith employees, andstrengthened employees’ self-discipline and the mutualsupervision between the Bank and the community. We mobilizedemployees to register on the “BVF” (“志愿北京”) mini-app onWeChat or at the neighborhood committee as garbage sortingvolunteers. As of October 12, 2020, 3,885 employees, or 100% ofthe total, had signed theCommitment Letter on
Household WasteSorting, and 1,583 employees, more than 40.75% of the staff, hadregistered as volunteers.
Responding to the “Garbage Sorting at SOEs” campaignlaunched by the State-owned Assets Supervision andAdministration Commission of Beijing Municipality
A garbage sorting promotion meeting at the Head Office
Classified dust bins in the Head Office for centralized garbagecollection
The tree planting activity of Chengdu Branch
The “Garbage’s Fun Travel” garbage sortingawareness activity organized by Nanjing Branch
The environmental protection activity of Wenzhou Branch on the World Environment Day
The brisk walk activity of Guiyang Branch forpromoting low-carbon transportation
We actively raised employees’ awareness of environmental protection and resourcesconservation, and encouraged employees to play their due role in the building of a greenand beautiful China.
Environmental protection activities
8988
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
Businessdivisions
Audits
We have strengthened the awareness of “compliance for value creation,” improvedthe internal control system and consolidated the basis for compliant operations, whichstrongly supported the Bank’s high-quality development.
3,304
152,334
35,048
1,210
98,710
compliance education sessions:
training sessions or lectures onanti-financial crimes:
participants in the complianceeducation:
participants in the training sessions orlectures on anti-financial crimes:
training sessions on anti-moneylaundering:
participants in the training sessions onanti-money laundering:
In 2020
The Bank actively enhanced employee awareness of the rule of law, management of legal affairs, and control of legal risks, striving topromote compliant operations across the Bank.
CaseIn line with the Notice on Carrying out Re-examinations of the Rectification of Market Chaos in the Banking and InsuranceIndustries issued by China Banking and Insurance Regulatory Commission, the Bank organized self-examination and self-rectification across the board.
Restoring the order of the market through re-examinations
The Bank set up a leading group, formulated work plans. Westressed the primary responsibility of the chief leaders, andensured that all responsibilities are effectively performed atevery level.The department strengthened in-process control andsupervision, conducted inspections and continuously promotedre-examinations of the rectification effect.
As the main responsible bodies, our business divisions stayoriented toward problems and risks. We improved the qualityand efficiency of inspections, and identified and eliminated risksin time.The Bank earnestly strengthened audits and supervision of re-examinations of rectification effect.
The Bank formulated the Measures for the Evaluation of Legal Compliance Management ofBranches to strengthen the evaluation of legal compliance of branches and the applicationof assessment methods.Improving the performance appraisal mechanism
The Bank formulated the Administrative Measures for On-site Inspection of LegalCompliance and revised the Administrative Measures for Specialized InspectionCoordination to clarify the content of on-site inspections and the requirements for specialinspections by specialized departments.Improving the inspection system
The Bank formulated the Standards for Checking Rectifications of Problems Identified inInspections from Inside and Outside to clarify the standards for credit and quasi-creditbusinesses as well as accounting, thus ensuring accurate and effective rectification.Enhancing the quality and e?ciency of recti?cation
The Bank revised the Administrative Measures for Due Diligence on Credit Granting and theStandards for Due Diligence on Credit Granting to show zero tolerance for incomplianceand serious violations of rules.Enhancing due diligence
The Bank revised the Administrative Measures for Punishing Violations, the WorkingRules for Punishing Violations, and detailed rules for punishing violations in specializedbusinesses, to further tighten the punishments for violations, especially repeated violations.
Tightening punishments for violations
?We organized lectures on relevant lawsand regulations to enhance employees’legal literacy and ability of applying legalknowledge to solving business problems.?Tomarkthe12?4NationalConstitutionDay and the Constitution Week publicitycampaign, we organized the review of theoath of allegiance to the Constitution andquizzes about the Constitution.?Throughout the year, we organized 190training sessions on the rule of law.
?We upgraded the legal affairs managementsystem based on technological meansto regulate management and improveefficiency.
?A list of responsibilities was made to promotelaw-based governance and managementof legal risks. Based on regular reports onlegal risks, we continued to track, guide, andevaluate legal risk management.?The Bank strengthened guidance for legalrisk control, summarized the impacts of theCivil Code on our businesses, and compileda collection of cases of financial crimescommitted by banking practitioners.?The Bank integrated legal services andstrengthened the legal risk managementsystem.
Building corporate culture thatpromotes the rule of law
Control of legal risks
Management of legal affairs
Zhang Jianhua, Deputy Party Secretary and President of Hua Xia Bank, presided over the meeting on re-examinations
Full Compliance inOperationsThe Bank promoted fully law-based and compliant operations. We worked to improve theinternal control and compliance management mechanism and the business managementprocesses and systems, ensuring that all our operations are carried out according torelated regulatory requirements.
Improving the internal control system
Promoting the rule of law
Cooperation ofthe Head Ofceand branches
The LegalComplianceDepartment ofthe Head Ofce
9190
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
加强反洗钱管理
?The Bank made policies to manage risks of money launderingand terrorist financing and built a laundering risk managementframework.?The Bank revised policies on the risk assessment andcustomer classification for money laundering and terroristfinancing and on monitoring of accounts suspected, andstrengthened AML management.
?The Bank optimized the AML working platform, restructuredthe customer money laundering risk assessment model,and strengthened risk management in areas vulnerable tolaundering risks.?The Bank applied AI technology to optimize monitoring rulesfor suspicious transactions that have violated rules frequently,so as to improve the ability of intelligent monitoring.
Improving working mechanisms
Enhancing technical support
?The Bank closely tracked high-frequency money launderingbehaviors, pointed out risk features in time, and tightenedtransaction monitoring and management of high-risk accounts,effectively blocking the flow of criminal funds.Tightening risk management and control
?The Bank compiled scenario-based cases about moneylaundering crimes, such as telecom fraud, and enhancerelated publicity through its outlets, activities, and mediaplatforms.
?The Bank continued to enhance the public’s AML awareness,and carried out publicity activities centering on moneylaundering, terrorist financing, and other illegal activities.
Conducting publicity activities
AnAMLpublicityactivityofNanningBranch
The Bank strictly abided by laws and regulations on intellectual property rights (IPRs) protection. We have put in place administrativemeasures and a structure for IPR management. While protecting our own IPRs, such as trademarks and patents, we systematicallyregulated the use of IPRs owned by others, to avoid the risk of IPR infringement.
The Bank identified goals and measures for case risk prevention and control work, sawto that responsibilities were effectively implemented at each level, and strengthened themanagement of key points and weaknesses.The Bank defined four dimensions of case risk prevention and control, screened case riskson a quarterly basis, and increased checks on organizations with severe regional risks,multiple problems, and weak internal control management.
The Bank issued the risk warning of Protect Customer Information and Effectively PreventRisks.
The Bank formulated the Code of Conduct for Employees and organized training andeducation on compliance and prevention of financial criminal cases.The Bank popularized financial knowledge to the public and raised customers’ alert againstfinancial risks.
In line with the Guiding Opinions of the General Office of the China Banking and InsuranceRegulatory Commission for Preventing Illegal and Criminal Financial Activities Carried outby Banking and Insurance Practitioners, we conducted self-examination and developedand implemented preventive measures.
The Bank conducted special investigations into employees’ illegal inquiries and other illegalbehaviors, analyzed early warnings given by the employee account monitoring system, andstrengthened the management of investigation, rectification and accountability process.
The Bank launched dedicated campaigns to crack down on gang crimes and illegalfund-raising and loan granting. We stepped up the monitoring and analysis of suspicioustransactions, and assisted judicial organs to block the flow of criminal funds.
The Bank continued to improve the internal control system and operating mechanisms, stepped up to guard against risks in high-riskbusinesses, and organized training and publicity activities to improve the effect of AML work.
The Bank maintained a tough stance against financial criminal cases. We carried out in-depth case-based warning and education, andintensified checks for case risks and employee conduct management to resolutely forestall risks related to financial criminal cases.Strengthening AML managementStrengthening case risk prevention and control
Enhancing the protection of intellectual property rights
Strengtheningcase riskprevention andcontrol
Increasingchecks onemployeeswith abnormal
behaviors
Carrying outtraining andeducation onnancial criminalcases
Maintaining aharmonious andstable nancialenvironment
Strictlypreventing illegal
and criminalnancial activitiesof bankingpractitioners
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
1.80
%
147.22
%theNPLratioamountedto
theallowance-to-NPLratioreached
As of the end of 2020
?The Bank implemented economic and financial macro policies and regulatory requirements, made credit,investment, and financing policies more forward-looking and adaptable.?The Bank stressed the fulfillment of responsibilities and strengthened risk management for key businesses,areas, and products.
?The Bank adopted multiple methods to dispose of troubled assets faster to ensure the quality of assets.?The Bank launched online valuation of collateral in the form of residential property, improving valuationefficiency at less costs.?The Bank adjusted credit and financing policies to guarantee differentiated support for the development ofmanufacturers and MSEs in key regions.?The Bank optimized the credit system and the collateral management system, and worked faster to developand mapping of the large-sum risk exposure system, etc.
?The Bank optimized the market risk quota system and the management process to improve the effectivenessof quota control.?The Bank strengthened the analysis of key businesses and early warnings, and assessed the impacts ofmarket fluctuations and other major events in a timely manner.?The Bank improved the system for managing credit risks of counterparties and strengthened risk managementfor derivatives.?The Bank implemented regulations on market risk management in Basel II, calculated the capital requirementfor market risk based on the revised Standardized Approach, and pushed forward the market risk consultingproject under Basel II.
?The Bank revised the Administrative Measures for Business Continuity, the Master Contingency Planfor Business Continuity and the Specifications for the Compilation of the Contingency Plan for BusinessContinuity.?The Bank sorted out relations between primary or secondary businesses and information systems, definedthe scope of key information systems, and enhanced their applicability and disaster resilience, to avoid anybusiness interruptions caused by their failure.?The Bank strengthened the regulation over drills and organized more practical drills more regularly. Weconducted47drillsineightscenariosthroughouttheyear.
Credit riskmanagement
Business continuitymanagement
Market riskmanagement
In 2020, the new risk management framework was fully implemented. We integratedand optimized the organizational structure, division of responsibilities and allocation ofpersonnel for risk management. In addition, eight mechanisms were put in place, namelythe authorization management mechanism, the approval management mechanism, therisk manager mechanism, the special-asset operation mechanism, the accountabilitymechanism, the mechanism of putting all things under centralized management byspecialized departments, the technology empowerment mechanism, and the risk culturemechanism, covering key processes and links of risk management.
We worked constantly to identify, measure, monitor, and control risks in operation and management, eliminated risks in key businesses,improved comprehensive risk management, and ensured effective risk management.Strengthening RiskManagement
The Bank emphasized comprehensive risk management. While implementing theComprehensive Risk Management System Reform Plan, we enhanced institutionaldevelopment for risk management, and systematically enhanced our ability to forestalland defuse risks across the board, in a bid to provide reliable support for the sound,balanced, sustained and rapid development of all businesses of the Bank.Improving the risk management system
Deepening comprehensive risk management
The Bank made public the results of risk monitoringand evaluation, and improved the notification andtransmission of risk management information.
The Bank revised the Risk Reporting ManagementMeasures to optimize and integrate the content andprocess of risk monitoring.
Focusing on comprehensive risk evaluation at branches,performance appraisal of regional chief risk officers,and assessment of the effect of credit, investment andfinancing policies, the Bank continued to improve riskmanagement.
The Bank enabled the Risk Management and InternalControl Committee, Credit, Investment and FinancingPolicy Committee, and Asset Risk Disposal Committeeto fully play their roles to improve the quality andeffectiveness of their deliberation and decisions.
The Bank evaluated and adjusted risk preferences,formulated a risk management strategy accordingly,and clarified risk control objectives for the year.
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
9796
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
As of the end of 2020
6,931 were newwere female
51.14
%
were from ethnic minority groups1,785
the Bank had a total of 39,284 employees
64.32
%Junior college or lowerBachelor’s degree
21.94
%
13.74
%
57.79
%
%
1.58
29.15
%
%
11.48
46 – 55
56 and above
breakdown of employeesby education background
breakdown of employees by age
Master’sdegreeor higher
35 and below36 – 45
%
%labor contract signing rate: social insurance coverage rate:
In 2020
1,327347
7,319
%5,986
rational suggestionsstaff meetings first-line employees
employees’ congresses
of themthe Bank received
held
adopted and implementedorganizedparticipated by
which were participated bysolicited
employee representativesproposals
In 2020
Complying with the Law on Promotion of Employment and other relevant laws andregulations, we provided employees with equal employment opportunities. We resolutelyopposed any type of employment discrimination and treated employees fairly andequally regardless of their nationalities, races, ages, genders, religious beliefs, andcultural backgrounds.
The Bank improved democratic management in the basic forms of the Employees’Congress. We disclosed corporate information, and offered unimpeded channels foremployee communication, interest coordination and rights protection. Through ourintranet, official WeChat account, bulletin boards, and electronic screens, we promptlyannounced major decisions concerning the vital interests of employees and thedirection of corporate reform and development, and had equal dialogues and shareddevelopment achievements with employees.In 2020, the Employees’ Congress elected the new Board of Supervisors, voted andapproved the Bank’s Collective Contract, and revised the Interim Measures for theDisclosure of Corporate Affairs of the Head Office. We effectively protected employees’rightstoknow,participate,deliberate,andsupervise,andwonthetitleoftheNationalModel Unit of Corporate Information Disclosure and Democratic Management in 2020.
Protecting Employee Rights
In strict accordance with relevant laws and regulations, including the Labor Law andthe Labor Contract Law, the Bank earnestly protected employee rights and worked toestablish harmonious and stable labor relations.
Promoting equal employment
Promoting democratic management
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
4,365
370,748
81,885
including
In 2020Li Minji, Party Secretary and Chairman of Hua Xia Bank delivering a speechon the 10th Youth Development Forum
Retail business training for branch managers
The 2020 Brand Communication andManagement Training of the Head Office
The 2020 Comprehensive Ability ImprovementWorkshop of Hangzhou Branch
Haikou Branch organized fun games for employees and their families
Group activity of the Employee Yoga Association ofHong Kong Branch
Scan the QR code toknow more about loving
stories ofHua Xia Bank
GuiyangBranch’s2020NewYearGalaHarbin Branch co-workers’ visit to the Memorial Hall of
the War to Resist US Aggression and Aid Korea
We have improved the training system and built trainingbase to improve the quality and efficiency of training.
We have offered different levels of training for employeesof different levels and positions.
We have delivered live-streamed lectures through mobilelearning platforms and APPs, and built a three-dimensionaltraining network.
Training resourcesTraining channelsTraining methods
Supporting the Development of EmployeesCaring for EmployeesWe cared about the development of employees and offered them unimpeded development channels. We developed a tiered talentreserve, worked hard to improve employees’ job skills and competencies, and offered platforms for the rapid growth of employees atdifferent levels and positions to support their career development and realizing personal value.We cared about the cultural life of employees, and organized diversified cultural and sportsactivities to provide platforms for employees to show their talents, prove themselves, andcultivate their sentiments. We encouraged employees to live a healthy and positive life andcontinuously enhanced their cohesion and team spirit.
Enriching cultural and sports activities
the Bank organizedtraining sessions
participants
CSR training sessions
participants
for
for
The Head Office organized employees to carry out activitiesin Yucun, the birthplace of the "two mountains" concept
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
Wuxi Branch visited and sent greetings to a hospitalized employee
The Head office employees participate in table tennis activities
The nursing room of Kunming Branch
The nursing room of Shanghai BranchThe Women’s Day dancing activity of Tianjin Branch
The brisk walk activity of Lanzhou BranchThemed Party Day activities for employees of Guangzhou Branch
1.2681
1.0648
989,400
In 2020In 2020
Caring about the health and development of female employees, the Bank offered themspecial health examinations regularly, organized various theme activities and symposiumsfor them, solicited their opinions and suggestions, and made sure their concerns wereaddressed effectively.
The Bank set up an employee relief fund and sent representatives to visit employeesin difficulties and bring them care. We offered unimpeded channels to deliver aidto employees in need, and expressed sympathy in various forms, to enhance theirwellbeing and sense of belonging.The Bank continued to upgrade the Home of Employees where employees could learn,seek entrepreneurship opportunities, exercise their democratic rights, and feel happyand cared for. The Home of Employees has fitness equipment, TV sets, reading space,lounges, etc. It is a place where employees can relax themselves and communicate witheach other.
Helping employees in needBuilding the home of employees
Homes of Employeesemployees in need
million of living allowances
of medical subsidies
million of disaster relief subsidies
Model Homes of Employees
the Bank opened the Bank helped
distributed RMB
RMB
RMB
including
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2020 Social Responsibility ReportHua Xia Bank Co., Limited
Beijing Branch organized employees to learn flower art
Xiongan Branch organized Party branch activity
Scan the QR code toknow more about “TheImperfect Music Hall”
Jinan Branch organized employee development activity
Hohhot Branch organized poverty alleviation charityactivity
InNovember2020,“TheImperfectMusicHall”H5projectcreatedbyHangzhouBranchinpartnershipwithTencentwasofficiallylaunched.Theprojectselected25children with psychological and physical impairments to form the “Imperfect Band”and express their inner world through music. The project was marketed both onlineand offline. As of the end of 2020, the activity had won the attention and support over20,000 people.
The Imperfect Music Hall public welfare activity
Hua Xia Bank Scholarships and Grants Award Ceremony of Lanzhou University
Enthusiastic about public welfare, the Bank actively promoted the volunteer spirit andcontinued to carry out volunteer activities on a regular basis and contribute to socialcivility and harmony.
Building a Harmoniousand Beautiful SocietyThrough Joint Efforts
Case
In May 2020, the Bank and China Foundation for Development of FinancialEducation jointly initiated the Hua Xia Bank Scholarships and Grants Program,aiming to support beneficiaries to complete their studies in college. The beneficiariesare college students from poor families studying at Lanzhou University, LanzhouUniversity of Finance and Economics, and so on, contributing to poverty alleviationthrough educational support.
Hua Xia Bank Scholarships and Grants Program helps needy studentcomplete higher studiesCase
Hua Xia Bank Co., Limited
A Dedicated Hua Xia with CraftsmanshipAn Eco-friendly Hua Xia Through Green DevelopmentA Philanthropic Hua Xia with Inclusive FinanceA Prudent Hua Xia with ComplianceA Sincere Hua Xia with Innovative ServicesA People-centered Hua Xia Pursuing Happiness for All
OutlookThe year 2021 marks the centenary of the founding of the CPC, the launching of a newjourney towards building a modern socialist China in all respects, and the first year of theBank’s renewed five-year development plan. We will continue to follow the guidance of XiJinping Thought on Socialism with Chinese Characteristics for a New Era, and assumeour economic, social and environmental responsibilities more firmly and proactively. Wewill keep forging ahead, and strive to develop into a modern financial group that is “largeand strong, stable and excellent”.
In response to major national developmentstrategies, such as the coordinateddevelopment of Beijing-Tianjin-Hebeiregion, the integration of the YangtzeRiver Delta Region, and the constructionof the Guangdong-Hong Kong-MacaoGreater Bay Area, we will support thetransformation and upgrading of industrialstructure, China’s opening up process, thedevelopment of private enterprises, andother important areas of the real economy.Besides, we will vigorously promote ruralrevitalization, the innovation of financialproducts and service models, continue toincrease the coverage of and customers’satisfaction for our financial servicestargeting small and micro enterprises,and usher in a new era of high-qualitydevelopment of the real economy.
We will speed up digitalization, empowerbusinesses with technological innovation,and provide customers with high-qualityand efficient financial services. We willprotect the legitimate rights and interestsof employees, emphasize employee care,and grow together with employees. We willcarry out financial knowledge educationand publicity, devote to public welfareundertakings, and join hands with thepeople to create a better life.
We will continue to improve our greenfinancial service system, strengtheninternational cooperation in green finance,practice ESG investment, support greenand low-carbon development and thecreation of a circular economy, andfacilitate the realization of the targets ofpeaking carbon emissions by 2030 andrealizing carbon neutrality by 2060. Wewill pay attention to our impacts on theenvironment, fully practice green office,promote green procurement, devote toenvironmental protection-oriented publicwelfare activities, and push forwardecological progress.
Practicing the mission and servingthe real economy
Promoting FinTech innovation and co-creating a better life
Coping with climate change andbuilding a beautiful homeland
104105HuaXiaBankCo.,Limited
AppendixReporting IndexGRI Content IndexStandard number and descriptionPageNoteGRI 101：
FoundationGRI 102：
General disclosures
Organization prole
102-1 Name of the organizationP8102-2 Activities, brands, products, and servicesP8102-3 Location of headquartersP8102-4 Location of operationsP8102-5 Ownership and legal formP8102-6 Market servedP8102-7 Scale of the organizationP8102-8 Information on employees and other workersP8102-11 Precautionary Principle or approachP86-93102-12 External initiativesP11102-13 Membership of associationsP11
Strategy
102-14 Statement from senior decision-makerP4-7102-15 Key impacts, risks, and opportunitiesP4-7Ethics and integrity
102-16 Values, principles, standards, and norms of behaviorP8, P11102-17 Mechanisms for advice and concerns about ethicsP11
Governance
102-18 Governance structureP9102-19 Delegating authorityP11102-20 Executive-level responsibility for economic, environmental,and social topics
P11-17102-21 Consulting stakeholders on economic, environmental, andsocial topics
P12-13102-22 Composition of the highest governance body and itscommittees
P9102-23 Chair of the highest governance bodyP4-5102-26 Role of highest governance body in setting purpose,values, and strategy
P9102-29 Identifying and managing economic, environmental, andsocial impacts
P11-13102-30 Effectiveness of risk management processesP92-93102-31 Review of economic, environmental, and social topicsP11-13102-32 Highest governance body’s role in sustainability reportingP11102-33 Communicating critical concernsP13102-34 Nature and total number of critical concernsP12-13
Stakeholder engagement
102-40 List of stakeholder groupsP13102-42 Identifying and selecting stakeholdersP12-13102-43 Approach to stakeholder engagementP13102-44 Key topics and concerns raisedP12-13
Reporting practices
102-45 Entities included in the consolidated financial statementsP1102-46 Defining report content and topic BoundariesP1102-47 List of material topicsP12102-48 Restatements of informationP106-108
Noinformationis restated.102-49 Changes in reportingP106-108
There wereno majorchangesin topicsdisclosed inthe report.102-50 Reporting periodP1102-51 Date of most recent reportP1102-52 Reporting cycleP1102-53 Contact point for questions regarding the reportP1102-54 Claims of reporting in accordance with the GRI StandardsP106-108102-55 GRI content indexP106-108102-56 External assuranceP111-112GRI 200Economictopics
GRI 103Managementapproach
103-1 Explanation of the material topic and its boundaryP12, P32-57103-2 The management approach and its componentsP32-57103-3 Evaluation of the management approachP32-57GRI 201 Economicperformance
201-1 Direct economic value generated and distributedP15201-2 Financial implications and other risks and opportunities dueto climate change
P74-85GRI 203 Indirect economic
impacts
203-1 Infrastructure investments and services supportedP32-57203-2 Significant indirect economic impactsP32-57
GRI 204Procurement
practices
GRI 103Managementapproach
103-1 Explanation of the material topic and its boundaryP83103-2 The management approach and its componentsP83103-3 Evaluation of the management approachP83
Standard number and descriptionPageNote
2020 Social Responsibility Report106107Hua Xia Bank Co., Limited
GRI 205
Anti-corruption
GRI 103Managementapproach
103-2 The management approach and its componentsP90-91205-1 Operations assessed for risks related to corruptionP90-91205-2 Communication and training about anti-corruption policiesand procedures
P90-91GRI 300Environmentaltopics
GRI 103Managementapproach
103-1 Explanation of the material topic and its boundaryP12, P32-57103-2 The management approach and its componentsP74-85103-3 Evaluation of the management approachP74-85GRI 302 Energy
302-1 Energy consumption within the organizationP83302-4 Reduction of energy consumptionP83302-5 Reductions in energy requirements of products and servicesP82-83GRI 400Social topics
GRI 103Managementapproach
103-1 Explanation of the material topic and its boundaryP12, P18-31, P94-103103-2 The management approach and its componentsP18-31, P94-103103-3 Evaluation of the management approachP18-31, P94-103GRI 401 Employment
401-1 New employee hires and employee turnoverP96401-2 Benefits provided to full-time employees that are notprovided to temporary or part-time employees
P99-101
GRI 404 Training and
education
404-1 Average hours of training per year per employeeP98404-2 Programs for upgrading employee skills and transitionassistance programs
P98
GRI 405Diversityand equalopportunity
GRI 103Management
approach
103-2 The management approach and its componentsP96-97103-3 Evaluation of the management approachP96-97405-1 Diversity of governance bodies and employeesP96-97
GRI 413
Localcommunities
GRI 103Management
approach
103-1 Explanation of the material topic and its boundaryP72, P102-103103-2 The management approach and its componentsP72, P102-103103-3 Evaluation of the management approachP72, P102-103
GRI 416Customerhealth and
safety
GRI 103Managementapproach
103-1 Explanation of the material topic and its boundaryP66-73103-2 The management approach and its componentsP66-73103-3 Evaluation of the management approachP66-73416-1 Assessment of the health and safety impacts of product andservice categories
P71-73
GRI 417 Marketing and
labeling
417-1 Requirements for product and service information andlabeling
P71-73
Standard number and descriptionPageNote
PRB Content Index
Reporting and Self-Assessment Requirements
ReferencePrinciple 1: Alignment
1.1 Describe (high-level) your bank's business model, including the main customer segments served,
types of products and services provided, the main sectors and types of activities, and where relevant thetechnologies financed across the main geographies in which your bank has operations or provides productsand services.
P4-8, P11-13, P33,
P47, P59, P75,
P87, P95
1.2 Describe how your bank has aligned and/or is planning to align its strategy to be consistent with and
contribute to society's goals, as expressed in the Sustainable Development Goals (SDGs), the Paris ClimateAgreement, and relevant national and regional frameworks.
Principle 2: Impact and Target Setting
2.1 Impact Analysis
Show that your bank has identified the areas in which it has its mostsignificant (potential) positive and negative impact through an impactanalysis.
P4-7, P11-14, P16,
P39, P74-85
2.2 Target Setting
Show that the bank has set and published a minimum of two Specific,Measurable (can be qualitative or quantitative), Achievable, Relevant andTime-bound (SMART) targets, which address at least two of the identified“areas of most significant impact”, resulting from the bank’s activities andprovision of products and services.Show that these targets are linked to and drive alignment with and greatercontribution to appropriate Sustainable Development Goals, the goals ofthe Paris Agreement, and other relevant international, national or regionalframeworks. The bank should have identified a baseline (assessed against aparticular year) and have set targets against this baseline.Show that the bank has analysed and acknowledged significant (potential)negative impacts of the set targets on other dimensions of the SDG/climatechange/society’s goals and that it has set out relevant actions to mitigatethose as far as feasible to maximize the net positive impact of the set targets.
2.3 Plans for Target
Implementation andMonitoring
Show that your bank has defined actions and milestones to meet the settargets.Show that your bank has put in place the means to measure and monitorprogress against the set targets. Definitions of key performance indicators,any changes in these definitions, and any rebasing of baselines should betransparent.
2.4 Progress on
Implementing Targets
For each target separately:
Show that your bank has implemented the actions it had previously defined tomeet the set target.Or explain why actions could not be implemented / needed to be changedand how your bank is adapting its plan to meet its set target.Report on your bank’s progress over the last 12 months (up to 18 months inyour first reporting after becoming a signatory) towards achieving each ofthe set targets and the impact your progress resulted in. (where feasible andappropriate, banks should include quantitative disclosures)
2020 Social Responsibility Report108109Hua Xia Bank Co., Limited
Reporting and Self-Assessment Requirements
ReferencePrinciple 3: Clients and Customers
3.1 Provide an overview of the policies and practices your bank has in place and/or is planning to put in
place to promote responsible relationships with its customers. This should include high-level information onany programmes and actions implemented (and/or planned), their scale and, where possible, the resultsthereof.
P19, P21, P26-57,
P64-82
3.2 Describe how your bank has worked with and/or is planning to work with its clients and customers to
encourage sustainable practices and enable sustainable economic activities. This should include informationon actions planned/implemented, products and services developed, and, where possible, the impactsachieved.
Principle 4: Stakeholders
4.1 Describe which stakeholders (or groups/types of stakeholders) your bank has consulted, engaged,
collaborated or partnered with for the purpose of implementing these Principles and improving your bank’simpacts. This should include a high-level overview of how your bank has identified relevant stakeholders andwhat issues were addressed/results achieved.
P13Principle 5: Governance & Culture
5.1 Describe the relevant governance structures, policies and procedures your bank has in place/is planning
to put in place to manage significant positive and negative (potential) impacts and support effectiveimplementation of the Principles.
P9, P11-13, P81-85,
P98
5.2 Describe the initiatives and measures your bank has implemented or is planning to implement to foster a
culture of responsible banking among its employees. This should include a high-level overview of capacitybuilding, inclusion in remuneration structures and performance management and leadership communication,amongst others.
5.3 Governance Structure for Implementation of the Principles
Show that your bank has a governance structure in place for the implementation of the PRB, including:
a) target-setting and actions to achieve targets setb) remedial action in the event of targets or milestones not being achieved or unexpected negative impactsbeing detected.
Principle 6: Transparency & Accountability
6.1 Progress on
Implementing the Principlesfor Responsible Banking
Show that your bank has progressed on implementing the six Principles overthe last 12 months (up to 18 months in your first reporting after becoming asignatory) in addition to the setting and implementation of targets in minimumtwo areas (see 2.1-2.4).
Showed in thisreport andAnnual
Report 2020 ofHua Xia Bank Co.,LimitedShow that your bank has considered existing and emerging international/regional good practices relevant for the implementation of the six Principlesfor Responsible Banking. Based on this, it has defined priorities andambitions to align with good practice.Show that your bank has implemented/is working on implementing changesin existing practices to reflect and be in line with existing and emerginginternational/regional good practices and has made progress on itsimplementation of these Principles.
Independent Assurance Report
2020 Social Responsibility Report110111Hua Xia Bank Co., Limited
Feedback Form
Thank you for reading theHua Xia Bank Co., Limited 2020 Social Responsibility Report. In orderto provide you and other stakeholders with more valuable information and improve our ability andlevel of CSR fulfillment, 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: 22 Jianguomennei Street, Dongcheng District, BeijingWhat kind of stakeholders do you belong to?〇The Government 〇 Regulatory authority〇Shareholder and investor〇Customer
〇Employee〇Partner〇The Environment〇Community〇Media
〇Other（
）Do you think the Report completely covers your expectation of Hua Xia Bank?〇Yes〇No, what else would you like to know（
）What do you think of the readability in terms of the content arrangement and layout design of theReport?〇Good〇Average〇BadWhat other comments and suggestions do you have on our social responsibility work and our report?
2020 Social Responsibility Report112113Hua Xia Bank Co., Limited