HUA XIA BANK CO., LIMITEDSocial Responsibility Report
2021
Social Responsibility Report 2021HUA XIA BANK CO., LIMITED
Address:22 Jianguomennei Street, Dongcheng District, Beijing Postal code:100005Tel:010-85237056 Fax:010-85239000Website:www.hxb.com.cnEmail:zhshzr@hxb.com.cnStock code:600015Scan the QR codefor more information
About This Report
Reporting Scope
Reporting Period:Unless otherwise stated, the report covers the period between January 1 to December 31, 2021.Organizational Boundary:The report discloses the information of the Head Office and all branches and sub-branches of Hua Xia Bank.Release Cycle:This is an annual report. The most recent report was issued on April 30, 2021.
Preparation BasisThe report was prepared in accordance with , theGuidelines on Environmental Information Disclosure for Financial Institutionsissued bythe People's Bank of China, theOpinions on Strengthening the Corporate Social Responsibility of Banking Institutionsissued by formerBanking Regulatory Commission (CBRC), theGuidelines on the Corporate Social Responsibility of Banking Institutions of Chinareleasedby the China Banking Association, andNotice on Strengthening the Social Responsibility of Listed Companies and Issuing the Guidelinesfor Environmental Information Disclosure of Listed Companies on the Shanghai Stock Exchange and the Notice on Further Improvingthe Information Disclosure of Listed Companies' Poverty Alleviation Contributionby Shanghai Stock Exchange (SSE), and referredto thePrinciples for Responsible Bankingissued by United Nations Environment Programme,Guidance on Social Responsibility (ISO26000:2010)issued by International Organization for Standardization (ISO), andGRI Sustainability Reporting Standards (GRI Standards).ReferenceFor better readability, "Hua Xia Bank Co., Limited" is referred to as "Hua Xia Bank" , "the Bank" or "We" in the report.Data SourcesThe financial data in the report come from the auditedAnnual Report 2021 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 shall prevail.FormatsThe report is available in both printed 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
Scan the QR code to watchimage publicity film of the bank
Message from theChairmanAbout UsCSR ManagementCSR Performance
Continuing theHard Work ofthe Past Centuryand Embarkingon a Great NewJourney
CONTENTS
SPOTLIGHT
MORE STEADFASTLOWER CARBON EMISSIONS
MORE INCLUSIVEMORE PRUDENT
MORE FULFILLINGSMARTER
Remaining True to the OriginalAspiration of the Financial Industryto Empower the Real Economy
Promoting Green Development and
Contributing to China's 30·60
Decarbonization Goal
Invigorating the Market andPromoting Common Prosperity
Managing Compliance Risks to Secure
Long-Term Stability and Development
Putting People First in Creating a
Better LifeAccelerating Digital Transformationand Upgrading Financial Services
Promoting the Coordinated Development of theBeijing-Tianjin-Hebei RegionAccelerating Industry Transformation and UpgradeServing China's Opening-up
Developing Green Finance
Addressing Environmental Risks
Serving a Green Life
Supporting Rural VitalizationSupporting MSEsBoosting People's Wellbeing
Ensuring Compliance
Strengthening Risk Management
Safeguarding Employees Rights
Empowering Career Growth
Promoting Work-Life Balance
Building a Harmonious Society Through Joint EffortsPromoting Digital TransformationImproving Corporate Banking ServicesImproving Customer ServicesProtecting Consumer Rights and Interests
OutlookAppendixReporting IndexIndependent AssuranceReportFeedback Form
Message from the Chairman
In 2021, standing at the historical junction of the "Two CentenaryGoals" and the beginning of China's14th Five-Year Plan, HuaXia Bank closely followed the CPC Central Committee withComrade Xi Jinping at its core and set out our own developmentplans and mission in the context of national development andthe new development paradigm. We work harder to live upto our aspirations and fulfill the political, economic, and socialresponsibilities of a state-owned financial enterprise, striving tobecome a modern financial group that is "large and strong withstable and excellent performance". By doing so, we make newcontributions to the Second Centenary Goal.We gave play to the leading role of Party building, from whichwe draw the strength to go ahead. We upheld the overall Partyleadership over financial work and lead high-quality developmentwith sound Party building. We promoted Party history educationand carried out the activity of "Serve the People with ConcreteAction" to ensure that employees can practice what they havelearned. We held a wide range of activities to celebrate thecentenary of the CPC, for example, commending outstandingParty members, Party affairs workers, and primary-level Partyorganizations and organizing a staging of plays dedicated tothe Party's history under the theme of "Looking Back on theParty's 100-Year History, Embarking on a New Journey"and the theme exhibition of "red stars shining in China". Wegave commemorative medal to a Party member to mark thelatter's 50-year Party membership. Together, we created avibrant atmosphere to celebrate the centenary of the CPC inthe whole bank and fully integrated Party building into businessdevelopment.We remained true to our original aspirations as a financial playerto serve the real economy. In the face of complexities and thearduous task of pursuing reform, development, and stability athome, we showed strong resilience and improved the qualityand efficiency of serving the real economy. Headquartered inBeijing, we ramped up financial support for building Beijing intothe national political, cultural, international communication andtechnological innovation centers. We served key projects suchas the Beijing Municipal Administrative Center and the Beijing2022 Winter Olympics. Focusing on key regions such as theBeijing-Tianjin-Hebei region, Yangtze River Delta, Guangdong,Hong Kong, and Macao, we fully supported major projectsto contribute to national strategies and coordinated regionaldevelopment. Through financial services, we advanced industrialand technological transformation, supported new infrastructure,advanced manufacturing, and strategic emerging industries, andserved China's opening-up to the outside world and the dualcirculation development paradigm.We improved inclusive finance to contribute to commonprosperity. Positioned as a "financial service provider for SMEs",we brought out new inclusive financial products and services
and offered targeted support to private micro- and small-sizedenterprises and the people's livelihood. As a result, we introducedfinancial resources to the key areas and weak links. Meanwhile,we responded to the national rural vitalization strategy, promotedcommon prosperity, and strictly implemented "four remainings"principle to see that poverty alleviation can invigorate rural China.We accelerated digital transformation to foster new growthdrivers. Confronted with the new round of technological andindustrial transformation, we explored how to give financialsupport to the digital industry and digitalized industrialdevelopment and realize in-depth integration of finance andtechnology. New progress had been achieved in the digitalfinancial business for industries, key platforms, and datagovernance. We created a unique digital consumption ecosystem,which goes hand in hand with digital finance for industries, toform a financial service system that serves both companies andconsumers. We also trained digital talent, created a culture ofinnovation, and activated digitalized innovation factories to createan agile organization.We went deep into green finance to serve China's 30·60Decarbonization Goal. Seizing the opportunity of China toenhance ecological civilization and realize green transition for itseconomic and social development, we provided financial servicesfor carbon peak and carbon neutrality to create new features andadvantages in green financial development. New green financialproducts and services were offered, and the investment andfinancing structure was optimized. In 2021, the shares of ourgreen credit outperformed other joint-stock banks and we metthe "two no less than" goals set by the People's Bank of Chinafor green credit. Aiming to build a "climate-friendly bank", weachieved new breakthroughs in carbon financial service innovationand international cooperation projects.The wealth of a country is measured by the abundance ofits people. Looking ahead, guided by Xi Jinping Thought onSocialism with Chinese Characteristics for a New Era, Hua XiaBank will place high-quality financial development as an importantguarantee for common prosperity. Drawing on the wisdom andstrength from the Party's glorious past, we will forge aheadwith revolutionary spirits. We will move faster towards a modernfinancial group that is "large and strong with stable and excellentperformance" to make unremitting efforts to realize the greatrejuvenation of the Chinese nation.
Party Secretary and Chairman of Hua Xia Bank
Li Minji
About UsCompany ProfileCorporate Governance
As of the end of 2021
In 2021
Hua Xia Bank Co., Limited was founded in Beijingin October 1992 and became a national joint-stockcommercial bank after restructuring in March 1995.On September 12, 2003, the Bank went public onShanghai Stock Exchange (Stock Code: 600015),with registered capital of RMB 15.387 billion.Since its inauguration, the Bank has been forgingahead and made great achievements despite alldifficulties. By the end of 2021, the Bank had atotal asset of RMB 3,676.287 billion, 44 Tier-1branches, 79 Tier-2 branches, 1,008 outlets in 122cities at or above the prefectural level nationwide,and nearly 40,000 employees, which had formed aninstitutional system of building presence in developedcities and reaching out to the whole country. TheBank has set up 1,196 agencies in and out ofChina, covering 316 cities in 96 countries on allfive continents of the world. Its settlement networkcovers all major trade areas in the world.
The Bank implements the concept of sustainability in corporate governance and advances a modernized corporate governance. We haveestablished a corporate governance structure mainly comprising of the Shareholders' Meeting, the Board of Directors (the Board), the Boardof Supervisors, and the senior management. The Shareholders' Meeting is the governing body, the Board is the decision-maker, the Boardof Supervisors serves supervision functions, and the senior management is in charge of execution. We enhance the legal status of Partyorganizations in the corporate governance structure, coordinate the Party Committee, the Shareholders' Meeting, the Board of Directors (theBoard), the Board of Supervisors, and the senior management, and integrate Party leadership into all aspects of corporate governance to makeParty leadership goes together with corporate governance.
InThe Banker'sTop 1000 world banks published in June 2021, Hua Xia Bank ranked 51st by Tier-1 capital, the same as what it was theyear before, and 64th by total assets, respectively one higher than the previous year..
Development VisionInnovative,coordinated, green, open and shared development
Strategic PointsTaking deposits as the foundation, building the Bank's throughFinTech and talents, and ensuring stable operation through riskcontrol
Development DirectionsKeeping to the direction of featured, digital, asset-efficient,specialized, comprehensive, and world-oriented developmentl
Corporate Development VisionStrive to develop into a modern financial group that is "large andstrong with stable and excellent performance"FocusServing the real economy and creating value for customersand shareholders
Basic PrinciplesServing the overall interests of the country, staying market-oriented,following strategies, promoting reform and innovation, creatingvalue, and developing strengths to making up for weaknesses
There were
Directors in the Boardamong them
among them
ExecutiveDirectors
Non-executiveDirectors
Independent Directors
There were
Supervisors in the Board
Shareholder Supervisor
External Supervisors
Employee Supervisors
Shareholders' Meetingswere held with
resolutions adopted
Board Meetings wereheld with
resolutions adopted
Board of SupervisorsMeetings were held with
resolutions adopted
Organizational Structure
Investor RelationsInformation Disclosure
CSR Philosophy
To strengthen investor relations management, the Bank strictly implementstheWorking Measures of Hua Xia Bank
Co., Ltd. on Investor Relations,and designated a dedicated investor relations manager under the Office ofthe Board of Directors to take charge of relevant work.The Bank has promoted interactions and exchanges with investorsthrough multiple channels and in many ways. In 2021, the Bank organizedmeetings and activities such as Shareholders' Meeting, performancebriefing, investor reception day and special research, and carefullyanswered the questions posted on SSE E-interactive platform and frominvestor hotline to enable investors to have a better understanding ofthe Bank. The Bank also won the Best Digital Investor Relations Awardin the Fourth China Excellent IR Selection and the Institutional FriendlyCommunication Award in the Panoramic Investor Relations Gold Award.
The Bank attaches great importance to transparentoperation, closely monitors regulations, and strictly complieswith the regulations to improve the timeliness, effectivenessof information disclosure, and standardize the informationdisclosure and reporting processes. We have fulfilledinformation disclosure obligations and enhanced transparencyvia channels likeChina Securities Journal, ShanghaiSecurities News, Securities Times, Securities Daily,Shanghai Stock Exchange website, the official website ofHua Xia Bank, etc.
We aspire to develop into a modern financial group that is large and strong with stable andexcellent performance, and the CSR concept is embodied in our corporate DNA. In 2021,the brand concept of "Sustainability for a better future" was proposed, which echoes withthe vision of "harmony brings a bright future and Hua Xia continues with its public spirit",leading the whole Bank to have solid CSR performance. The Head Office is designatedto take full charge of bank-wide CSR performance. We continuously improve our CSRmanagement and steadily push ahead CSR practices. As one of the first signatories to thePrinciples for Responsible Bankingissued by United Nations Environment Programme and asupporter of the Task Force on Climate-related Financial Disclosures (TCFD), we continueto improve CSR management and practice, and create comprehensive economic, social, andenvironmental values to contribute to UN SDGs.
CSRManagement
Sustainable, WonderfulBrand philosophy
Vision of CSR fulfillmen
CSR goals
Maximizing comprehensive value, Contributing to a harmonious society
CSR practicesPractices for economic responsibility, Practices for environmental responsibility, Practices for social responsibility
CSR principlesOpenness and transparency, Cross-over thinking, Resource integration, Stakeholder Communication
CSR priorities
Serving the real economy, Practicing inclusive finance, Promoting ecological progress, Pursuing safe and steadydevelopment, Empowering through FinTech, Putting people first
Sustainable
It is an action guide that incorporates the concept ofsustainability into business activities
Harmony brings a bright future
The Bank pursues harmonious co-existence, opencooperation, sharing of benefits with stakeholders,and works towards balance between 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 shouldereconomic, environmental and social responsibilities, andstrives to bring benefits to every corner of China andevery Chinese
Harmony brings a bright future and Hua Xia continues with its public spirit
China's culture is at the core of the Bank's development and prosperity, and the value created shall be shared by all peopleof the Chinese nation
Wonderful
It is the goal to realize people's aspirations for a betterlife through financial services to promote commonprosperity
Strategic Management and ConsumerRights and Interests Protection CommitteeRisk and Compliance Management
CommitteeRelated Party Transaction Control
CommitteeRemuneration and Evaluation CommitteeNomination Committee
Shareholders' Meeting
Board of DirectorsBoard of Supervisors
Office of the Board of Supervisors
Senior Management
Headquarters DepartmentsBranches and Sub-branches
Office of theBoard of Directors(Securities Affairs
Department)Audit CommitteeAsset Liability Management CommitteeCredit, Investment and Financing Policy
CommitteeRisk Management and Internal Control
CommitteeCredit Approval CommitteeAsset Risk Disposal CommitteeAudit Department
Oversight Committee Nomination Committee
Product Management CommitteeGreen Finance Management CommitteeInformation Technology Management Committee Performance Management Committee
StakeholderCore ExpectationsMain Responses
Government
Serving the real economySupporting national strategyDeveloping inclusive financeSupporting rural vitalizationPaying tax in full according to law
Serving coordinated regional development
Supporting the growth of private micro- and small-sized enterprises
Supporting China’s opening-up
Advancing rural vitalization
Paying taxes in full
Regulatory authorities
ComplianceStrict risk management
Implementing regulatory policies
Receiving supervision
Strengthening risk preventionShareholders and
investors
Improving corporate governanceEnsuring sustained and stable returnProtecting shareholders’ rights and interestsAchieving transparent operation
Improving corporate governance
Realizing stable operation
Creating values for shareholders
Strengthening information disclosure
Environment
Focusing on climate changeFacilitating green development
Developing green finance
Promoting green offices
Participating in eco-friendly public activities
Customers
Safeguarding customer rightsImproving customer experienceAccelerating product innovation
Strengthening the protection of consumer rights
Providing high-quality and efficient services
Enhancing financial innovation
Advancing digital transformation
Partners
Fairness and transparencyContract fulfillment with integrityWin-win cooperation
Strengthening exchanges and cooperation
Improving procurement management
Employees
Protection of rights and interestsRemuneration and benefitsWorking environmentCareer development
Protecting the basic rights and interests of employees
Facilitating career development channels
Providing job skills training
Carrying out diverse cultural and sports activities
Communities
Financial knowledge popularizationSupport for community developmentEngagement in public welfare undertakings
Publicizing financial knowledge
Participating in charitable activities
Materiality AnalysisStakeholder Communication
Contribution to UN SDGs
The Bank has collected the concerns ofstakeholders by soliciting suggestionsfrom the senior management of the HeadOffice as well as internal and externalstakeholders, and prioritized the topicsbased on "importance to the sustainabledevelopment of Hua Xia Bank" and"importance to stakeholders."
In September 2015, the United Nations Sustainable DevelopmentSummit adopted the2030 Agenda for Sustainable Development.The agenda covers 17 Sustainable Development Goals (SDGs),pointing out the direction for countries and enterprises globallyto promote sustainable development. Focusing on the vision ofbuilding a modern financial group that is large and strong withstable and excellent performance, the Bank evaluates from twodimensions of materiality and importance, distinguishes core goalsand related goals, and devotes resources to core targets to realizesustainable development goals.
Devoting more efforts to green financeSupporting community developmentCaring for employeesPromoting financial knowledge
Practicing green operationPromoting industry development
Pursuing FinTech innovationsProtecting customers' rights and
interestsImproving service qualityHelping employees grow
Serving the real economyContributing to national strategiesGuarding against financial risksPromoting inclusive financeStandardizing corporate governanceContributing to rural vitalization
Materiality Matrix
Importance to stakeholders
Core Goals
Related Goals
Importance to the sustainable development of Hua Xia Bank
The Economic ObserverA Trustworthy SocialResponsibility OrganizationExcellent Green Bank ofthe YearCorporate SocialResponsibility Award
81.229
79.689
97.321
2019
2019
201920192019
2019
2019
2019
2019
3,020.789
2020
2020
202020202020
2020
2020
2020
2020
2021
2021
202120212021
2021
2021
2021
2021
84.734
95.309
27.563
27.153
22.115
21.568
3,399.816
3,676.287
95.870
31.493
23.903
1,872.602
2,108.993
2,213.529
39.062
60.024
34.337
396.387
456.412
490.749
1,656.489
1,818.330
1,904.363
CSR Awards and Honors
China Banking Association
2021 Outstanding Award for ProvidingFinancial Services to MSMEs
Financial Planning Standards BoardChina (FPSB China)Best Organization Award
Financial NewsBest Social Responsibility Bank of the
Year
BRTVThe Most Beautiful Enterprise
Award
Shanghai United Media
GroupESG Green Finance Awardof the Year
stCentury Business
Herald
Outstanding CSR Project
Award
Trade FinanceBest Transaction Bank
Beijing Evening News and Beijing
DailyTop 10 Financial Brands Contributing
to Public Wellbeing
china.com.cnOutstanding Joint-stock Commercial
Bank of the YearOutstanding Green Finance Bank of the
Year
China Banking and Insurance NewsTop 10 Social ResponsibilityOrganizations of 2020A Model Influential Financial Brand in
China
China Banking Association"Innovation-Driven Development" Good
News Award
Interbank Market Technical StandardsWorking Group of China FinancialStandardization Technical CommitteeRated as "excellent" by the 2021Interbank Market Technical Standards
Working Group
CSR PerformanceEconomic
Unit:RMB billionUnit:RMB billionUnit:RMB billion
Unit:RMB billion
Unit:RMB billionUnit:RMB billionUnit:RMB billion
Unit:RMB billionUnit:RMB billion
Total asset
Net profit
Balance ofloans to MSEs
Growth of loansto MSEs
Balance of loans insupport of strategicemerging industrie
Operating revenue
Total depositsTotal loans
Total profit
201920212020
0.78
0.67
0.67
201920212020
10.61
8.64
9.04
201920212020
135.125
142.855
164.667
201920212020
44.243
46.314
70.134
201920212020
13.89
13.08
12.82
201920212020
141.92
147.22
150.99
201920212020
269.337
282.655
300.702
201920212020
239.078
249.421
255.980
201920212020
190.969
192.254
190.744
79.844
180.043
208.477
227.07
244.01
254.81
201920192020202020212021
①The data of green loan balance in 2020 was based on the Special Statistics System of Green Loan revised by the People's Bank of China in December 2019
312.75
325.62
327.74
123,005.62
114,719.26
322,655.98
201920192020202020212021
Unit:RMB billionUnit:RMB billion
Unit:RMB billion
Unit:RMB billionUnit:Dollar billion
Unit:%Unit:%
Unit:%
Unit:RMB billionUnit:10,000
Unit:10,000Unit:10,000
Unit:%Balance of loans in support ofmanufacturing industry
International settlement
CARAllowance-to-NPL ratio
RMB cross-border settlement
Balance of agriculture-related loans
ROA
Shareholder equity
Number of ETC card users
Number of ETC cardsNumber of e-transactions
Balance of green loans
①
ROE
Environmental
Unit:10,000
Unit:10,000
201920202021
3,682.81
2,344.73
1,651.14
201920192020202020212021
1,025
1,022
1,008
201920202021
4,692.58
3,018.07
2,759.33
201920202021
201920202021
100.00
100.00
100.00
201920202021
42,604
130,559
130,637
201920202021
2,012
13,126
14,931
201920202021
99.66
99.61
99.56
3,986
5,2004,365
201920202021
261,106
531,553370,748
201920202021
Social
Unit:/
Unit:/
Unit:/Unit:%
Unit:/
Unit:/Unit:/
Unit:%
Unit:/Number of outlets
Number of outlets in old revolutionary base areas, areas inhabitedby ethnic minority groups, remote and border areas and poverty-stricken areas
Number of rural outlets
Settlement rate of complaints lodgedthrough 95577 customer service center
Complaints and problems solved through the joint handlingmechanism of the 95577 customer service center
Number of employee training sessionsNumber of participants of employee training sessions
Customer satisfaction rate for 95577 customer service center
95577 call-backs
Number of online corporate banking transactions
Number of online personal banking transactions
98,71049,855
135,000
201920202021
51.46
51.43
51.14
201920202021
8,023.31,825.6
1,451.5
201920202021
3,046
4,7221,210
201920202021
20201,785
20211,912
20191,683
202039,284
202139,175
201938,639
19,595
31,803
28,005
201920192020202020212021
Unit:/
Unit:%Unit:RMB 10,000
Total number of employees
Percentage of female employeesTotal charitable donations
Total number of employees from ethnic minority groupsNumber of legal training sessions
Number of AML training sessionsNumber of participants of AML training sessions
Number of participants of legal training sessionsUnit:/Unit:/Unit:/
Unit:/Unit:/
Spotlight
Continuing the Hard Work of the Past Century andEmbarking on a Great New Journey
"Looking Back on the Party's 100-Year History, Embarking on a New Journey" – Staging and Voting of excellent plays celebrating the Party's centenary
Over the past hundred years of struggle, the Communist Party of China (CPC) has carried forward its great founding spirit. We havethoroughly studied and implemented the guiding principles of the 19th CPC National Congress and plenary sessions of the 19th CPC CentralCommittee and built education and training platforms for CPC member. New ways of Party history learning have been created throughcelebration activities for the 100th anniversary of the Party, such as visiting old revolutionary bases, holding knowledge quizzes about Partyhistory, and organizing the Party Day events. CPC members and other staff of the whole bank are inspired and stimulated with the wisdomand strength draw from Party history learning and education to write a new chapter in the 14th Five-Year Plan period.
In 2021, we organized a staging ofplays dedicated to the Party's historyunder the theme of "Looking Backon the Party's 100-Year History,Embarking on a New Journey". Theplays vividly depicted the glorious100-year history of the Partyand its great achievements andvaluable experience. Nearly 600Party members from 42 primary-level Party committees of theBank participated in the event. Theperformances attracted more than4 million views and more than 3.88million votes online. Party membersand other employees reinforced theirsense of responsibility, patriotism,and displayed the image imbued withvigor and vitality while learning theParty's history and bringing it alive.
We organized the mini-lecturecontest with the theme of "Praisingthe Party's Achievements andPromoting Development" to selectand disseminate inspiring andintriguing mini-lectures to attract andunite more employees to the study ofthe Party history.
We commended 100 outstanding Party members, 50 outstanding Partyaffairs workers, and 50 excellent primary-level Party organizationsacross the Bank. The Party Committee of the Beijing Branch was ratedas an advanced grass-roots Party organization in Beijing. Three grass-roots Party organizations, four Communist Party members, and threeParty affairs employees were rated as "outstanding organizations andindividuals" in the Beijing SASAC system. Their examples appealed toall employees to learn from them.
Learning Party History to Remind our Aspirations
Recalling red memories - Celebrating the CPC centenary in various forms
Staging and votingof excellent playscelebrating the CPCcentenary
The contest of mini-lectures on theParty's history andachievementsCommendingoutstanding Partymembers, Partyaffairs workers, andprimary-level Partyorganizations
The meeting to commend outstanding Party members, Party affairs workers and primary-level Party organizations, and the seminar on the Party's history and theories presided over by theBank's Party Secretary
Harbin Branch carries out learning party history activity
The Head Office holds the theme exhibition "Red Star Shines in China – Hua Xia Bank Celebrates the 100th Anniversary of the Founding of the CPC"
Wenzhou Branch goes to Gutian for rotation training activities for Party branch secretaries
Nanchang Branch holds a drama performance – Writing Down Your Name
Guangzhou Branch carries out the Yan'an special training
Scan the QR code tofind out more about thethematic exhibition
Scan the QR code to learnmore about the rotationaltraining program
Studying Party history while staying true to the original aspiration, intensifying education onthe Party spirit and carrying forward the Party's fine traditions and conductThe Bank has set up an education and training platform for Party members, and held seven training sessions for 600 participants. TheHead Office organized two CPC member training sessions for 120 Party members, covering Party history, professional expertise and skills,the essence of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the glorious history of the CPC over the pastcentury, the campaign to exercise full and strict Party discipline, improve Party conduct and build a clean government, etc. Through lectures,field visits, seminars, competitions, etc., the trainees gained a better understanding of the Party's history and spirit, learned about currentpolitics and situations, integrated Party building with their daily responsibilities, shared information and communicated with others moresmoothly, and improved their competence and ability, contributing to high-quality development.
CASE
Acting for People to Fulfill our PromisesExercising Strict Governance over the Party to Promote DevelopmentIn 2021
In 2021
While applying the new development philosophy, the Bank launched the "Serve the People with Concrete Action" campaign to serve first-lineemployees, fulfill social responsibility, and care for employees by solving their most pressing and immediate concerns.Focusing on employee care and addressing customer concerns in practice, the Standing Committee of the Party Committee of the HeadOffice has clarified five tasks of practical value, including caring for employees' mental and physical health, popularizing financial knowledge,and organizing thematic education activities. All primary-level Party committees have integrated the "Serve the People with Concrete Action"campaign with improving the financial-service capacity, fulfilling the social responsibility as a state-owned enterprise (SOE), and helpingemployees in need, aiming to promote the implementation on an item-by-item basis.
We always put the Party's political building first, and arm ourselveswith the Party's theories. We fully study and implement the guidingprinciples of the 19th National Party Congress and the plenarysessions of the 19th CPC Central Committee, and earnestly followXi Jinping Thought on Socialism with Chinese Characteristics for aNew Era as well as Xi's latest important speeches and instructions.We champion the Party's decision to establish Comrade XiJinping's core position on the Party Central Committee and in theParty as a whole, and define the guiding role of Xi Jinping Thoughton Socialism with Chinese Characteristics for a New Era. We aredeeply conscious of the need to maintain political integrity, think inbig-picture terms, follow the leadership core, and keep in alignmentwith the central Party leadership. We have always stayed confidentin the path, theory, system and culture of socialism with Chinesecharacteristics, and upheld the core position of Xi Jinping on theParty Central Committee and in the Party as a whole, and upheldthe Central Committee's authority and its centralized, unifiedleadership.We strengthened the accountability system for ideological workand continued to implement the "1+1+N" system for ideologicaland publicity work. We conscientiously implemented the rules andpolicies on consultation-based judgment, situation reporting, riskprevention and control, supervision and assessment, etc., andsupervise and report the progress on ideological work.
In strict compliance with the central Party leadership's eight-point decision on improving work conduct and requirements ofthe Municipal Party Committee, we strengthened education onintegrity and the Party's discipline by holding education conferencesto disseminate real-life anti-corruption cases and continueto crack down on the practice of formalities for formalities'sake, bureaucratism, hedonism, and extravagance. In 2021,we comprehensively rectified the problems identified by thesuperior Party Committees and Disciplinary Committees in theirassessment, striving to address root causes to avoid repeatingthe same mistakes. Meanwhile, we conducted self-investigationinto overseas corruption cases, drew lessons, and strengthenedthe regulation over overseas assets to guard against cross-bordercorruption risks.
The Bank has formulated and implemented the List of Major Issuesfor and Proceduresof Advance Discussion by the Communist PartyCommittee of Hua Xia Bank Co., Limited, revised the WorkingRules of the Communist Party Committee of Hua Xia Bank Co.,Limited,and theHua Xia Bank Implementation Measures forDecision-Making on Major Issues, Appointment and Dismissal ofImportant Officials, Investment Decisions on Major Projects, andthe Use of Large Amounts of Funds.We have also implementedthe Implementation Measures for the Communist Party Committeeof Hua Xia Bank to Report Major Matters to the Municipal SASACParty Committee for Instructions (Trial),and theSample Textof Working Rules for Party Committees of Branches (Trial).Thepolicy framework is better.We uphold the principle of "universal standards for the HeadOffice and branches, consistent requirements inside and outsideBeijing, and the same pace throughout the whole system", followclosely the general election of grass-roots Party organizations, andstandardize Party organizations. We coordinate the centralizedtraining for Party organization secretaries, grass-roots Party affairsemployees, new Party members, and ordinary Party members topromote the overall progress of grass-roots Party building.
We have formulated theThree-Year Action Plan for Strengtheningthe Top Leadership and Management Team (2021-2023), totrain and select outstanding young managers, and improve market-based competitive selection. We have accelerated the building ofprofessional teams, and optimized the career development path ofprofessionals, to guide employees to further develop their skills.
We paid visits to Party members in needand front-line cadres, bringing with usthe warmth and care from the Partyorganizations.we visited a total of
Party members and cadres,
The Bank's 6,509 Party members andemployees actively participated in fund-raising activities and donated a total of RMB697,451.32
.
gave themRMB605,000
in allowance
A Party-member volunteer of the Hohhot Branch
Joint community service by volunteers of the Taiyuan Branch and the Bindong Sub-distric
Strengthening ideological and political building tofoster a healthy political atmosphere
Stepping up efforts to improve Party conduct,uphold integrity and combat corruption
Improving the policy framework to exerciseeffective Party self-governance
Strengthening the organizational system to create asolid base
Building a talent team to lay a foundation fordevelopment
sessions of Partyconduct and clean governanceeducation
posts of cleangovernance
over16,000participants
professional trainingsessions on legal compliance
The Bank and 23 other institutions jointlylaunched a public information campaignon credit to mark the 100th anniversaryof the founding of the CPC. Startingfrom our status as a practitioner of andcorporate social responsibility for creditbuilding, we applied innovative guidingconcepts to better serve residentialconsumption, maintain national financialsecurity, and explore the path towardhigh-quality development.
Jointly launching a public information campaign on "credit to mark the 100th Anniversary of the Founding of the CPC"CASE
More Steadfast
Remaining True to the Original Aspiration of theFinancial Industry to Support the Real Economy
Aligning with China's regional development strategies andsupporting the coordinated development of key regions
Serving the efforts to build Beijing into the national political,cultural, international communication and technological innovationcenters with more financial support
Supporting industrial transformation and strengthening credit,investment, and financing policies
Contributing to China's opening-up to the outside world andimproving the cross-border financial system
Guided by national strategies, Hua Xia Bank actively shoulder thefinancial mission under the new development paradigm, promotesregional integration and development, drives transformation andupgrade across industries, contributing to China's opening-up and ahigh-quality real economy.
Sustainability practices
In 2021
As of the end of 2021
As of the end of 2021The balance of loans in the Beijing-Tianjin-Hebei Region has exceeded RMB
569.5
billionThe balance of loans in the Yangtze RiverDelta has exceeded RMB
617.1
billionThe balance of loans in Guangdong, HongKong, and Macau has exceeded RMB
billion
Hua Xia Bank provided a total of RMB
261.9
billion of investment and financingservices for Beijing.
The balance of loans to strategicemerging industries had exceeded RMB
97.3
billionThe Bank had opened
correspondent banks in BRI markets.
Strengthening financialsupport for central SOEsin Beijing
Improving financial servicesfor municipal-level SOEs andkey projects
Serving keyenterprisesand projects
In 2021our investment and financing in Beijingamounted to RMB
261.9
billion
the Bank had signed strategic cooperationagreements with
SOEs,
government agency and
private enterprise in Beijing
We developed new products and bettered the service model to strengthen the key areasin the city’s economy. We took the initiative to reach out to major enterprises and projectsand provide targeted support for MSEs
the Bank lent RMB
33.2
billionto MSEs in Beijing
We moved into the Beijing Initial Loan Service
Center, and launched exclusive credit loanproducts to expand the coverage of inclusivefinance
Enhancing initialloan services
Designinginnovative products
To increase MSEs' access to loans at a lower cost,Beijing Branch developed the Gold Credit Loan (JinXin Loan) on the Innovation Credit and Financeplatform, effectively meeting the financing needs oflight-asset and collateral-free MSEs Gold CreditLoan's product design, system development, andpost-testing took only one month.
We introduced theHua Xia Bank High-Level Management Marketing Plan for Central SOEs (Trial)andimplemented the Central SOE Marketing Action Plan, through which strengthened financial support forkey central SOEs in Beijing. Several bond underwriting, fundraising supervision, cash management andother businesses were implemented
We responded to the financing needs of the "Three Hundred" projects (including 100 keytechnological innovation and high-tech industrial projects, 100 key infrastructure projects, and100 projects vital to public wellbeing), prepared a list of key projects and enhanced comprehensivefinancial services for these projects by combining commercial banking and investment banking
We strengthened financial support for municipal-level SOEs in Beijing, especially Shougang Group,Beijing State-owned Capital Operation and Management Company Limited, Beijing Electronic ZoneHigh-tech Group Co., Ltd., Beijing Jingcheng Machinery Electric Co., Ltd., and Beijing CapitalAgribusiness & Foods Group. By the end of 2021, our financial services had reached almost all SOEsin Beijing
Serving China'sRegional Strategies
Guided by major regional development strategies, the Bank has formulated the overallstrategy of "Three Zones, Two Lines, Multiple Outlets" and taken multiple measures topromote the coordinated development of the Beijing-Tianjin-Hebei Region, the integrateddevelopment of the Yangtze River Delta, and the Guangdong-Hong Kong-Macao GreaterBay Area, accelerating the effective implementation of these strategies.
Headquartered in Beijing, we formulated theWork Plan on Serving the EconomicDevelopment of the Capital and the Coordinated Development of the Beijing-Tianjin-Hebei Region.Focusing on building Beijing into the national political, cultural, internationalcommunication and technological innovation centers, we channel financial resources to suchfields as scientific and technological development, cultural prosperity, and internationalexchanges to boost the city's high-quality development.
Serving the overall development of the capital
The innovative Gold Credit Loan
Supporting economic development
In 2021we invested and financed nearly RMB
billion in key projects in Beijing,including industrial parks, infrastructureprojects and environmental facilities
we underwrote RMB
14.5
billionof bonds issued by the Beijing government
Serving MSEs
and farmers
We launched Heart Warming Loan (Nuan Xin
Loan), Farmer and Commerce Loan (Hui NongXing Shang Loan), Homestay Loan (Min Su Loan)to support the development of agriculture, ruralareas and farmers in the capitalBased on the decision engines of small enterprises,
we developed Inclusive Farmer Loan to providetargeted financial support for farmers
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The Bank assists the industrial upgrading in the western part of Beijing
In 2021the Bank invested and financed nearly RMB
billion in 445 tech companies in Beijing
financed RMB
20.6
billion for 388 companies from the top10 high-tech industries in the citySupporting technological innovation
To build Beijing into an international science, technology and innovation (STI) center, we earnestly improve the top-level design, strengthenproduct innovation, and constantly improve our financial services for high-tech enterprises and talents in the capital, to make Beijing a globalleader in technological innovation.
Supportingthe capital'stechnologicalinnovation
Improvingthe top-leveldesign
DesigninginnovativeproductsDeepeningstrategiccooperation
TheWork Plan of Hua Xia Bank on Supporting Beijing to Growinto an International Science, Technology and Innovation Center
was formulated, 20 innovative measures introduced, and a taskforce headed by the President of the Head Office set up to form acollaboration mechanism covering the Head Office, branches, andsub-branches, as well as different business lines
The Bank has joined the ChinaMaker Eco Alliance and become
a vice-chairman member of the Zhongguancun Digital EconomicIndustry AllianceThe Bank signed strategic cooperation agreements with China
Electronic Corporation and other enterprisesHuaxia Wealth Management Co., Ltd. signed an agreement with
Beijing Zhongguancun Capital Fund Management Co.,Ltd.
TheWork Plan of Hua Xia Bank on Supporting the Developmentof High-tech Industries in Beijing during the 14th Five-Year PlanPeriodwas released to support the industrial transformation andupgrade of the capital
Hua Xia Bank launched the first relay fund exclusively for pre-
IPO companies on the Beijing Stock Exchange – BSTIG-Hua XiaLongying Technological Investment Relay Fund, to make equityinvestment in private companies engaged in such high-techindustries. As of the end of 2021, the fund had exceeded RMB200 million in sizeThe Bank rolled out a financial service package for tech enterprises
in the capital to provide integrated financial services for themThe Bank rolled out a financial service package for tech specialists
and promoted multiple characteristic products and services for
them, including the Tech Elite (Ke Chuang Jing Ying) debit card and
the Tech Elite Loan (Ke Chuang Jing Ying Loan) to serve people in
the high-tech industry in Beijing
Contributing to building Beijing into an international STI centerAt the 2021 ZGC Forum, the Bank signed a strategic cooperation agreement with ZGC Group. The two sides will strengthen cooperation in the fieldsof industrial park construction, investment in industrial development, science and technology services, TechFin, FinTech, and the development of theZGC Forum, and jointly support Beijing's drive to build an international STI center.
Signing ceremony of the strategic cooperation agreement between Hua Xia Bank and ZGC Group
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The Bank becomes a strategic partner of the 2021 ZGC Forum
The Bank provides financial services to Beijing time-honored enterprisesScan to see ourparticipation in the ZGCForum
The digital RMB system has been launched and put into production.In particular, the digital RMB ticket payment project for the WinterOlympic Games was named a demonstration project for applyingFinTech in providing financial support in BeijingWe independently developed the industrial digital FinTech platform
to empower digital customer acquisition, credit extension, andfinancingFocusing on scenarios such as warehousing and logistics, industrial
parks, smart cultural tourism, we strengthened business innovationand diversified two types of digital products: financing andsettlement
We deepened cooperation with FinTech companies in Beijing to
steadily promote syndicated loansThrough cooperation with prestigious universities such as Tsinghua
University, we explored the construction of new ecosystems and
new scenarios for the application of new technologiesWe promoted the application of quantum AI algorithms in precision
marketing, AI-enabled risk control, AI-enabled asset management,
and other processes, and explore the commercialization of new
technologies
The Huaxia Craftsmanship (Hua Xia Jiang Pin) series of productsprovided comprehensive financial services covering paymentand settlement, cash management, investment and financing forenterprises of time-honored brands, aiming to promote the culture ofBeijing's time-honored brands and carry forward the craftsmanship
The Bank participated in Beijing's First Patent-Licensed IntellectualProperty Securitization Project that involved an investment of RMB1 billion, the first securitization product with patents as underlyingassets in the citySupportingthe capital'stechnological
innovation
Boostingculturalprosperity
EnhancingFinTechdevelopment
StrengtheningFinTechcooperation
Continuing to implementthe Time-HonoredBrand Action Plan
Deepening innovationin intellectual propertyfinancing models
Serving key digitaleconomy projects
We participated in the construction of scenarios
surrounding the Beijing Big Data Action Plan and the 100Villages Poverty Alleviation Project,We promoted online, digital and intelligent supply chain
financing and consumer financing
To build Beijing into a national cultural center, the Bank actively responded to the financialneeds of cultural and creative enterprises in the capital, and continued to improve andupgrade financial products and services for the cultural and creative sectors to empowerhigh-quality cultural development of Beijing.
Boosting cultural development
In 2021the Bank provided RMB
20.6
billion of financing servicesfor cultural and creative enterprises in thecapital
In response to the call for building Beijing into an international exchange center, we havegradually improved cross-border products and services and enhanced our financial servicecapacity, to help local enterprises "go global."
Giving priority to relieving Beijing of functions nonessential to its role as the capital, we stepup financial support in key areas such as transportation integration, infrastructure, and ruralvitalization to develop the municipal administrative center.
Serving international exchangesSupporting the development of Beijing Municipal Administrative Center
The Bank has opened the Sub-
Branch of the InternationalBusiness Service Area of theChina (Beijing) Pilot Free TradeZone and the Sub-Branch ofthe Daxing Airport Area ofHebei Pilot Free Trade Zone
We offered development
financing services and undertookthe overseas debt business ofmultiple other enterprises basedin Beijing, helping them "goglobal"
Based on digital financial
means, the Bank has launchedthe online business of non-recourse factoring to empowerthe development of MSEMsand created the "scenario plusplatform" financial servicemodel for supply chains
The Bank provided financial services, suchas home mortgage loans, for four projects inTongzhou including the Jingmao InternationalMansionThe Bank provided nearly RMB 4 billion ofinvestment and financing services for keyenterprises in TongzhouIn response to the policy of
facilitating foreign exchangeincome payments under capitalaccounts throughout Beijing,we improved cross-bordertrade and investment services.We connected our system with
the "Single Counter"projectof the National PortAdministration Office to realizeone-click access to one-stopservices
Accelerating toopen sub-branchesin free trade zones
Strengtheninginnovation of tradefinance products
Supporting keyenterprises
Improving housingconditions
Improving the
efficiency offinancial servicesOpening upoverseas financingchannels forenterprises
Supportingthe opening-up of thecapital
Supporting thedevelopment ofBeijing MunicipalAdministrativeCenter
As of the end of 2021the Bank had extended over RMB
19.8
billion credits to thedevelopment of Beijing MunicipalAdministrative Center
The Bank supports the construction of Beijing Municipal Administrative Center
Supporting the development of Universal Beijing ResortCASEThe Universal Beijing Resort project is a national key tourism project, and a model project ofgreen and energy-saving construction in the Beijing Municipal Administrative Center. Our BeijingBranch mobilized internal resources and provided a syndicated loan of RMB 600 million for theproject, effectively promoting the transformation and upgrading of the capita's tourism industry,and the development of low-carbon economy.
We took the initiative to partner with Xiongan-based companies, such as StateGrid Xiongan Fintech Group, joined the syndicate lending to a resettlementhousing project in Rongdong area of Xiongan New AreaHua Xia Bank has obtained the qualifications as the "commissioned bank
of centralized payment of national treasury in Xiongan New Area" and the"custodian bank of Hebei Xiongan Industry Guidance Fund."The Bank is designated as the manager of the"payroll deposit and account for
migrant workers engaging in construction projects in Xiongan New Area"We have cooperated with the government fund disbursement blockchainplatform run by the Xiongan New Area Management Committee, and jointlydeveloped the Comprehensive Smart Elderly Service Platform of Xiongan NewArea with Digital City Technology Co., Ltd. under China Xiongan Group
With a variety of financial tools, we provide financial support for highway, subway as wellas road and bridge enterprises in Tianjin and Hebei, thereby facilitating transport connectivityin the Beijing-Tianjin-Hebei region. At the same time, we continue to promote the debitcard themed on the coordinated development of the Beijing-Tianjin-Hebei region and theHua Xia Express (Hua Xia Su Tong) card andprovide financial services to support Beijing-Tianjin-Hebei integrated transportation. .
Ecological governance and protection
With our strengths in green finance, we have provided comprehensive financial services forregional air pollution control, water pollution control, and clean-energy development, as wellas enterprises engaging in energy conservation and environmental protection.
Supporting marine environmental protection in the Beijing-Tianjin-Hebei region
Promoting the transformation and upgrade of heat supplyprojects in the Beijing-Tianjin-Hebei region
Tianjin Branch granted a loan of RMB 912 million to Tianjin Lingang Construction Development Co.,Ltd. for comprehensive improvement of sea areas, coastal zones and islands, strongly supporting thelatter in improving the regional marine environment.
In response to the government call for air pollution control, Shijiazhuang Branch provided nearly RMB300 million for the centralized heat supply peak-shaving boiler room and pipe network renovationproject in the southern area of Luquan, Shijiazhuang, easing the pressure of heat supply andcontributing to local environmental protection.
In 2021the Bank provided RMB
billion offinancing services for key projects relatedto the coordinated development of theBeijing-Tianjin-Hebei regionAs of the end of 2021the balance of loans in the Beijing-Tianjin-Hebei Region had exceeded RMB
569.5
billion, a year-on-yearincrease of
5.9
%
As of the end of 2021the Bank had issued
2.53
milliondebit cards themed on the coordinateddevelopment of the Beijing-Tianjin-Hebeiregion and
1.93
million ETC cardsin the region
As of the end of 2021the green loan balance of our branches inthe Beijing-Tianjin-Hebei region was closeto RMB
32.1
billion
the Bank had opened
bankingoutlets in the Beijing-Tianjin-Hebei region
We have continued to strengthen collaboration with construction entities such as ChinaXiongan Group, and lent support to such projects as the "Technology Free Port" and "SmartXiongan", thereby contributing to building a digital, intelligent and integrated Xiongan.
Focusing on the construction of the "2+4+N" functional zones for strategic cooperation andplatforms for accommodating relocated businesses, we have provided investment and financingsupport for construction entities and operating companies of platforms for accommodating therelocated businesses in Tianjin, Caofeidian, Cangzhou, Handan, etc.
TheHua Xia Bank Action Plan for the Development of the Beijing-Tianjin-Hebei Region2021-2025was formulated. Positioned to be "a major financial service provider for theBeijing-Tianjin-Hebei region", we continue to increase financial support for the coordinateddevelopment of the Beijing-Tianjin-Hebei region, especially for key projects, key customersand key areas.
Facilitating the coordinated development of the Beijing-Tianjin-Hebei Region
Supporting the development of Xiongan New Area
Supporting integrated transportation
Empowering the development of key functional zones
Supporting the development of Xiongan New Area
Meeting the needs of platforms for accommodating relocated businesses
Financing the construction of transportation facilities for the Beijing 2022 Winter Olympics
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In the forms of traditional credit loans and investments, Tianjin Branch has provided RMB 6 billionfor districts in Tianjin, , effectively supporting the development of 12 platforms accommodatingrelocated businesses, including the Tianjin Economic-Technological Development Area, TianjinBinhai New Area Airport Industrial Zone, Tianjin Beichen High-end Equipment ManufacturingPark, and Wuqing Beijing-Tianjin Industrial New City.
The Bank promptly responded to the needs for building high-level transportation for the Beijing2022 Winter Olympics, and provided financial support for key companies building road and othertransportation infrastructure in Zhangjiakou, contributing to the success of the Winter Olympics.
The Bank supports the construction of high-speed railway station in Tianjin Binhai New Area
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We strengthened the collaboration andcoordination among local branches in projectmarketing, credit line approval, risk control,etc., to promote their integrated developmentWe authorized local branches to developspecial products for the Yangtze River Deltaregion and launched innovative servicesincluding the digital supply chain and digitalfactoring, based on our product pools,effectively improving the service quality andefficiency
Shanghai Branch: Serving the development of the"five new towns"
Shanghai Branch invested RMB 350 million in thecorporate bond issued by an urban developmentinvestment group in Shanghai, to finance municipaldevelopment and city operations, the developmentof Shanghai's "five new towns," namely Jiading,Qingpu, Songjiang, Fengxian and Nanhui, andfacilitates the development of city clusters in theYangtze River Delta.Hefei Branch: Serving high-tech industriesHefei Branch has tailor-made a High-Tech Loan product for Hefei High-tech Industrial Development Zone to boost the development of high-techindustries. This product focuses on high-tech micro- and small-sized customers invested or to be invested by a high-tech construction investmentcompany in Hefei and a high-tech industry investment company in Anhui. The Branch provides them with credit or “new-type government-bankguarantee" credit guarantee services, with the credit cap reaching RMB 10 million.
Nanjing Branch: Supporting key projects in the Yangtze River Delta regionResponding to the call for the integration of the Yangtze River Delta region andNanjing"s four action plans to boost infrastructure construction, consumption, industryupgrade and urban development, Hua Xia Bank had made every effort to support majorprojects for promoting local transportation connectivity and new-type infrastructureconstruction, developing strategic emerging industries, advancing urbanization, meetingpeople"s basic needs, and protecting the environment, etc. As of the end of 2021, theBank had accumulatively provided RMB 100 billion to finance such key projects as theexpansion of the Eastern Route of the South-to-North Water Diversion Project and theconstruction of supporting projects along the route, the Lianyungang-Zhenjiang high-speed railway project, the rail transit project in the Nanjing metropolitan region, and theecological restoration project of Dazong Lake.
Hangzhou Branch: Providing credit support for the construction of Hangzhou West EMU DepotYuhang Sub-Branch, Hangzhou, provided a fixed-asset loan of RMB 1 billion to a local transportation hub development company for the constructionof the roof cover project of Hangzhou West EMU Depot. As China’s first super TOD cluster project that covers both subway and railway lines and ledby the high-speed rail, the EMU depot will play a key role in guaranteeing smooth transportation services for the 2022 Asian Games and set a modelfor the integrated development of the Yangtze River Delta region.Developing newfinancial products
Hangzhou Branch provides financial support for the Yangtze River Delta integrated transportation project
We coordinate branches in the Yangtze River Delta region so that they can provide financialsupport for key areas such as public services and infrastructure construction, environmentalprotection, and industrial transformation to help build the "Oriental Pearl" in China's high-quality economic development.
Supporting the integration of the Yangtze River Delta region
TheHua Xia Bank Action Plan for the Development of the Yangtze River Delta Region 2021-2025
was formulated. Focusing on the two keywords of "integration" and "high-quality," it proposes 45measures, and laying out the top-level scheme for the development of regional branches in the newplanning period
As of the end of 2021the balance of loans of our branchesin the Yangtze River Delta region hadreached RMB
617.1
billion,a year-on-year increase of
6.4
%;
the deposit balance had reached RMB
569.6
billion, up
6.7
%.
Enhancing thetop-level design
Improving servicemechanisms
Supporting theintegration of the
Yangtze RiverDelta region
The Bank holds the Yangtze River Delta work promotion meeting
CASESupporting the integration of the Yangtze River Delta region
4041
Focusing on key areas, such as infrastructure construction and industry transformation and upgrade, we introduced new service models,increased the financial supply, and urged local branches to form synergy with overseas branches and upgrade the cross-border financialservice system, with an aim to help build the Guangdong-Hong Kong-Macao Greater Bay Area into a world-class bay area and city cluster.Accelerating the development of the Guangdong-Hong Kong-Macao Greater Bay Area
Hong Kong Branch obtained Type 1 and Type4 licenses issued by the Securities and FuturesCommission, becoming a direct clearingmember of OTC Clearing Hong Kong Limitedestablished by Hong Kong Exchanges andClearing Limited (HKEx)
Guangzhou Branch and Shenzhen Branchcontinued to enhance comprehensive financialservices and developed characteristicinvestment banking servicesRetail finance, Trade finance,Financial market, FinTech
Infrastructure, Green finance
Building fourbusiness pillars
Realizingbreakthroughsin two sectors
Building a regional
cross-borderfinancial servicesystem
Workpriorities
Social Responsibility Report 2021HUA XIA BANK CO., LIMITED
Keeping up with the latest development of the Yangtze River Economic Belt, we continue to provide high-quality financial servicesfor infrastructure construction, industry transformation and upgrade, and environmental protection, so as to facilitate the high-qualitydevelopment of the region.Serving the development of the Yangtze River Economic Belt
Serving the urban cluster in the middle reaches of the Yangtze River
Contributing to the development of the Chengdu-Chongqing economic circle
An industrial investment group in Hubei is regarded as a provincial-level AAA investment and financing entity in ecological protection and greendevelopment of the Hubei Yangtze River Economic Belt. Its focuses on support to strategic emerging industries and key industries in the YangtzeRiver Economic Belt and the construction of port infrastructure in the “Golden Waterway” of the Yangtze River. Wuhan Branch signed a bank-enterprise strategic cooperation agreement with the group and provided credit worth RMB 2.73 billion. By the end of 2021, the branch had deliveredloans reaching RMB 820 million to serve the construction of the Yangtze River Economic Belt.
Chengdu Branch actively undertakes local government special-purpose bond projects. It has successfully issued bonds for a series of significantprojects, including the new engineering construction project (Phase I) of Jiujiang Wastewater Treatment Plant, the comprehensive ecotourism resourcedevelopment project along the Yangtze River in Nanxi District, Yibin City, etc., providing strong financial support for environmental governance andprotection in the Yangtze River Economic Belt.
The Pearl River Delta Intercity Rail Project supported by Guangzhou Branch
Supporting infrastructure construction in the Greater Bay Area
Baguang Area of Dapeng New District is one of the innovation platforms along the Guangdong-Shenzhen-Hong Kong-Macao Innovative TechnologyCorridor, and Baguang International Bio-Valley project is its first industry carrier, tasked with housing the high-end life science industries includinglife information and biomedicine. Shenzhen Branch has won the bid to become the sole escrow-account bank for the RMB 400 million governmentbond issued for the Baguang International Bio-Valley, contributing to the development of life science industries in the Greater Bay Area and in the PilotDemonstration Zone of Socialism with Chinese Characteristics.
Hong Kong Branch issued a loan of HKD 400 million to a Shenzhencompany to support the construction of the most influential complex,also a new urban landmark, on the west bank of the Greater BayArea, thereby supporting infrastructure construction in the region.
The first World Bank-financed battery energy storage project in theGuangdong-Hong Kong-Macao Greater Bay Area
Nantou Sub-branch in Shenzhen is listed among the first group of “Shenzhen Green FinancialInstitutions” by Shenzhen Local Financial Supervision and Administration Bureau
As of the end of 2021the balance of loans for the Guangdong-Hong Kong-Macao Greater Bay Areahad exceeded RMB
billion, ayear-on-year increase of
10.3
%
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Serving life science industry in Shenzhen
With a variety of financial tools, such as credit, investment and financing, and letter ofguarantee, we keep improving the quality and efficiency of financial services, and providesubstantial support for the transformation and upgrade of traditional industries, such asmanufacturing and agriculture. We also drive the rapid development of strategic emergingindustries, such as chip and integrated circuit manufacturing, industrial internet, andartificial intelligence by serving a large number of leading companies in these industries,such as a leading integrated circuit producer in Beijing, a large precision componentmanufacturer in Shenzhen, and a leading software developer.
Promoting the development of emerging industries
We provide financial services for the transformation of a bearing shell company in Zhejiang
Supporting the development of the chip industry
Boosting the development of the high-tech industry
A memory company, one of our clients, is one of the major implementation platforms for theNational Memory Base Project. It is specialized in the manufacturing of NAND flash memory,has already taken the lead at home and is catching up with the world’s best. Wuhan Branchactively provides it with financial services such as syndicated loans, trade financing and letter ofguarantee, supporting its R&D projects, and contributing to the development of China’s flashmemory manufacturing industry.
A Suzhou-based semiconductor manufacturer that produces third-generation gallium nitride (GaN) and its finished products is the world’s onlymanufacturer capable of mass-producing low-voltage and high-voltage GaN chips Suzhou Branch supported the company’s chip production capacityexpansion project with an RMB 60 million credit line. The project, once completed, will make the company the world’s largest 8-inch silicon-basedGaN producer and will effectively promote the development of the domestic chip industry.
The Hotland Innovation Smart Manufacturing Hybrid Fund has completed subscription, raising RMB 232 million from a variety of channels. The fundwill target growth companies in high-end manufacturing, new materials, 5G, photovoltaic energy, new energy vehicles, etc. The Bank will serve asthe custodian bank of the fund to support its high-quality operation and promote the rapid development of domestic high-tech industries.
Nanning Branch has provided nearly RMB 1.5 billion for a large machinery group in Guangxi Province. The loans have strongly supported thecompany’s modern agricultural machinery and robotic system projects, and given impetus to the development of its new business in areas including thedevelopment of aerial work platforms, environmental protection, and forestry machinery.In 2021, Changsha Branch made the third issue of medium-term notes for an expresswayconstruction group in Hunan Province, with a size of RMB 2 billion, including RMB 300million contributed by the bank. The issuance has effectively reduced the financing cost of theexpressway company and supported the construction of regional transportation facilities.
Accelerating IndustryTransformation andUpgrade
TheHua Xia Bank Credit, Investment and Financing Policies 2021was formulated inaccordance with theNational Catalogue for Guiding Industry Restructuring.We movedfaster to optimize our investment portfolio and increased financial support in key areas suchas new-type infrastructure construction, advanced manufacturing, and strategic emergingindustries to accelerate industry transformation and upgrade.
Based on regional development strategies and city-cluster positioning, we reached out tokey customers and provided credit loans and investment & financing support for majorprojects related to transportation and water conservancy, striving to advance new-typeurbanization.Closely following the regional development strategy and key infrastructure projects, weidentify key customers, deepen the"commercial banking and investment banking" servicemodel, and diversify products to improve service quality and efficiency.
Accelerating infrastructure construction
Supporting regional transportation
Supporting the development of the memory manufacturing
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Promoting agricultural modernization
As of the end of 2021the balance of loans to advancedmanufacturing had reached RMB
190.744
billion
the balance of loans to strategic emergingindustries had exceeded RMB
97.3
billion
Strengthened support for export in BRIregions and helped Chinese companies reducefinancing costs
Launched the foreign exchange swaps .Diversified cross-border financial services through capital financing and other means.Promoted R&D of innovativeproducts, such as interest-rate swaps and foreign exchange swaps for customers, to enrich the trade finance product portfolio to improve trade financialservices
The Suolongsi-Mengzi Expressway financed by Kunming Branch
Serving China'sOpening-up
We actively serve the formation of the new development pattern of "dual circulation,"and constantly improve our cross-border financial services to support the development offree trade zones, the Belt and Road Initiative, and Chinese enterprises seeking to expandoverseas presence, thus helping China open up at a higher level.
Hua Xia Bank continues to optimize its correspondent bank network in BRI partnercountries, continues to develop new trade finance products, debt instruments and inter-bank investment services, and expands overseas business to effectively support the BRIimplementation.
Supporting the Belt and Road InitiativeAs of the end of 2021the Bank had opened
correspondent banks in BRI markets
Actively responded to the demand for theBRI implementation, and opened morecorrespondent banks in BRI countries
Improvingthe productportfolio
Optimizing thecorrespondentbank networkExpandingbusinessesof overseas
branches
Majorapproaches
While supporting the construction of transportation hubs, water conservancy projects andagricultural irrigation projects in core regions along the Silk Road Economic Belt, Urumqi Branchhas exploited its product innovation capability in business lines such as investment banking,financial market and asset management, and applied a range of new financial instruments, includingnon-financial corporate debt-financing instruments, structured finance, industry funds, debt forequity swaps, and active investment.
Serving major BRI projectsCASE
We improve the institutions and supporting financial services in free trade zones andprovide financial support for a new highland of opening up to the outside world. We givefull play to the advantages of free trade accounts, promote supporting financial servicesbased on free trade accounts, and meet the financing needs of multinational enterprises,overseas institutions, and Chinese enterprises to go global.
Supporting the development of free trade zones
Haikou Branch has assisted a large state-owned agricultural reclamation group in Hainan in issuingoverseas bond as a cornerstone investor, helping the company to raise funds at low costs throughmultiple channels. It was the first overseas bond issued by a state-owned enterprise in the HainanFree Trade Port, and also by an agricultural reclamation enterprise in China.
Shanghai Branch has supported a local private high-tech enterprise with the issuance of the freetrade zone (FTZ) USD bond, with an investment of USD 40 million. This was the first FTZUSD bond issued by a Chinese private enterprise, expanding the financing channels for privateenterprises in the FTZs.
Supporting cross-border financing of enterprises in free trade zones
Helping private enterprises in free trade zones to open up overseas financing channels
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Accelerated the construction of overseasbranches by starting the application andpreparation for opening the representativeoffice in EuropePromoted the development of domesticand overseas correspondent bank networksto offer customers integrated internationalfinancial services in RMB and foreign currenciesOffered international services through online
channels such as online banking and mobilebanking, and optimized functions such asbatch remittance to improve the customerexperienceUpgraded the e-banking’s batch outward
remittance service to foreign exchangepurchase plus remittance, and allowedcorporate clients to transmit images whilemaking batch outward remittance on theonline banking channel to improve the onlineservice capability of cross-border payment andsettlement services
Enhanced micro, small and medium-sizedenterprises' awareness of foreign exchangerisks through more efforts in publicityOffered customized, whole-process foreign
currency hedging solutions involving multipleforeign currencies and foreign exchangepolicy consulting service
Vigorously promoted convenient cross-border
RMB settlement and improved services fornew formats of international trade
Provided integrated financial services for
cross-border enterprises and introducedthe"bill-certificate-capital-integrated"schemeLaunched the Salary Pass (Xin Zi Tong)
cross-border financial service scheme tomake cross-border wage payments in a moreefficient and convenient manner
Provided forward foreign exchange
settlement inquiry services for micro, smalland medium-sized enterprises to reducetheir hedging costsOffered inquiry services of spot exchange
settlement and sale business in batchesfor some micro, small and medium-sizedenterprises to tailor to their foreign exchangetransactions of "small amount and highfrequency"
Stepped up efforts to promote forfaiting and
two-factor export factoring in view of therelatively weak financial strength of privateSMEs and their lack of collaterals Strengthened the application of the cross-
border financing blockchain platform of theState Administration of Foreign Exchangeand enriched business scenarios to improvethe efficiency of trade finance after exportshipment
The Bank accelerated the expansion of online and offline service channels to supportthe internationalization of Renminbi. Meanwhile, the Bank has continued to build an all-dimensional, tiered cross-border comprehensive financial service system to provideconvenient, efficient financial services for Chinese enterprises "going global."
Optimizing cross-border transactions
In 2021the Bank handled RMB
70.1
billionof cross-border RMB transactionscompleted USD
164.7
billion ofinternational settlements
As of the end of 2021the Bank had set up
1,196correspondent banks in
citiesin
countries and regions across theworld
Optimizing Cross-Border Business
Supporting MSEs in "going global"
Innovative trade finance products
Supporting Renminbi internationalization
Expanding global service channels
Strengthening online service capabilities
Assisting MSEs in guarding against
foreign-exchange risks
Reducing hedging costs
for MSEs
Effectively improving service quality
and efficiency
Expanding offshore funding channels for a private company in Chongqing
Supporting the steady development of foreign trade enterprisesWith the innovative one-stop comprehensive offshore bond service solution, Chongqing Branch has assisted a Chongqing-based industry group intaking out a 4-million-euro overseas loan under domestic guarantees, effectively expanding the client's financing channels.
Wenzhou Branch held the meeting of "exchange rate hedging and cross-border RMB business online promotion" to analyze COVID-19-inducedobstacles for more than 30 foreign trade enterprises. It aimed to meet the needs of foreign trade enterprises through four customized exchange ratehedging products with differentiated and dynamic services.
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More InclusiveInvigorating the Market andPromoting Common Prosperity
Creating a characteristic inclusive finance system and diversifiedproduct lines to make financing easier and cheaper for MSEs andfacilitate healthy development of the private sector
Improving services for"agriculture, rural areas, and farmers" tocontribute to rural vitalization
Creating new convenient lifestyle services to the people andgoing all out to serve public wellbeing
We have been making ceaseless efforts to deepen financialservices for small and medium enterprises (SMEs) and create acharacteristic inclusive financial system. Through these efforts,we aim to solve SMEs' difficulties in financing, facilitate healthydevelopment of the private sector, support rural vitalization, andgo all out to improve public wellbeing.
Sustainability practices
As of the end of 2021The balance of loans for MSEs reached RMB
490.749
billion,an increase of RMB
34.337
billion compared with the year before
The balance of inclusive finance loans related to"agriculture, rural areas and farmers" was RMB
16.736
billion
The number of customer who received loans to MSEswith no more than RMB 10 million each reached
634,700The balance of loans to MSEs with nomore than RMB 10 million reached RMB
138.039
billion
The balance of personal consumption loans was RMB
471.047
billion
Supporting MSEs
Through innovation in products, business models and management, the Bank providesprofessional, characteristic and inclusive financial services for micro, small, and medium-sized enterprises and other private enterprises, continuously improving the quality andefficiency of financial services.
We strengthened the empowering role of technology, optimized financial products and expanded service channels. We lowered fees whileimproving the quality and efficiency of services, to support the financing and development of MSEs.Improving the quality and efficiency of services
Creating"characteristicservices"
Promoting the"credit factory"model
Upgradingproducts andservices
Creating new
productsOptimizingonline loansExpanding"innovativebusinesses"Strengthening"building aprofessionalteam"
Breakthroughs infour aspects ofinclusive finance
Optimizingfinancial products
As of the end of 2021the balance of loans for MSEs wasRMB
490.749
billion
The Bank upgraded its flagship products,such as House Loan Express, launched thededicated WeChat official account, expandedonline service channels, introduced functionssuch as online mortgage and intelligent post-loan management, and developed financialservices targeting MSEs
The Bank promoted the "credit factory"model,continuously optimized the whole process ofcredit loans, and applied the small-businesscredit decision engine platform for intelligentdecision making and post-loan management
We launched online channels and moved related servicesonline. We introduced online credit evaluation, and usedbig data to realize automatic post-loan management, thuscomprehensively improving the service efficiency and customerexperience
The "Hua Xia Bank Smart Loan for MSEs"series of products were upgraded with suchfunctions as online loan application, approval,contract signing, and withdrawal, making theproducts more high-techThe Bank actively explored new models foronline lendingand enriched financial productsand services for MSEs to ease their financingpressure
Following national policies supporting techcompanies, strategic emerging industries, andmanufacturing enterprises, the Bank expandedfinancial services for key enterprises in thesupply chainThe Head Office recruited more professionalsand the branches set up special teams tobuild a high-quality and high-caliber team ofprofessionals
accounting for
23.68
% of the total balance of alltypes of loans issued by the Bank
an increase of RMB
34.337
billion
Shaoxing Branch provides tailor-made financial service solutions for the self-employed
Xiamen Branch sets up an express service channel for MSEs to open bank accounts
Building a more powerful app for MSE finance
Exploring customer demands in diverse scenariosImproving online interaction of businesses
Creating an integrated customer acquisition
channel for MSE financeUpgradingservice channels
The Bank strengthened the customer system, improved the integrationof online financing, fund supervision and cash management, and graduallymoved more services online
By strengthening technology cooperation, the Bank better alignedusers'financial needs with business scenarios of leading platforms andoptimized the customer experienceBy optimizing the risk control model through iterative methods andimproving the efficiency of approval and response, the Bank managedto meet customers' needs for convenient and fast loans and improve thecustomer experience
The Bank launched a special WeChat official account for its inclusivefinance business - Hua Xia Bank Inclusive Financial Services for PrivateEnterprises, where MSEs can file a loan application, withdraw themoney, and sign e-contracts. The service expands the coverage offinancial services
Supporting MSEs with convenient payment service
In response to the state's call for supporting MSEs and the real economy and in line with theprinciple of "payment for the people," we have launched the Hua Xia e Cashier, a digital financialproduct. By putting "scenario-based services before financial services," it allows merchantsto collect payments conveniently through various mainstream payment methods, and managetheir finances and operations on the digital management platform, thereby effectively improvingbusiness performance.
CASE
As of the end of 2021the number of productstargeting MSEs hadreached
the balance of online businessloans for MSEs had reachedRMB 19.772
billion
the number of MSE customersof online business loans hadreached
569,500
the number of outletsproviding inclusive financialservices for MSEs hadreached
Shenzhen Branch visits an optoelectronic technology enterprise
Wenzhou Branch visits local MSEs
To "ensure stability on six key fronts and maintain security in six key areas" and follow theregulatory requirements, we made great efforts to provide financial services for enterprisesin resuming production and work during local outbreaks of COVID-19 cases. We formulateddifferentiated financial service schemes, implemented a package of favorable policiestargeting MSEs, including delayed payment of principal and interest, reached consumersthrough online platforms, and moved services online to provide contact-less services,supporting the MSEs amid routine COVID-19 control
Tackling obstacles in development
Bailing farmers out of difficulties
The High-Tech Loan (Ke Chuang Loan) empowers high-tech enterprises
Xiamen Branch, in accordance with the business characteristics of agricultural enterprises,launched the House Loan Express inclusive finance product, with one scheme for one client. Bythe end of 2021, it had granted RMB 9.4 million of loans to six farmers, easing their shortage ofoperating funds and effectively boosting rural economic development.
Actively responding to the state's call for supporting the growth of micro, small and medium-sized enterprises, Hangzhou Branch has provided quality services for building a digital and smartHangzhou and remained true to its strategic positioning as "a financial service provider for SMEs."It launched the High-Tech Loan, a customized product for and widely praised by micro and smallhigh-tech enterprises. As of the end of 2021, the branch had issued a total of RMB 19 millionof credit lines, strongly supporting the sustainable development of micro and small high-techenterprises.
CASE
POS-E Loan helps POS merchants stabilize business and employment
To solve the problems faced by POS merchants, including the red tape of financing, difficulties insubmitting materials during COVID-19, and unsecured, costly and inefficient microloans, ChengduBranch upgraded traditional POS lending to the high-tech POS-E LoanCASE
Long Shang Loan meets the diverse financial demand of enterprises
Shenzhen Branch launched its version of Long Shang Loan, and built a new O2O online financialservice model that serves the financial needs of self-employed businesses and MSEs. As of theend of 2021, the branch had issued RMB 1.36 billion of such loans to 14,400 MSEs.CASE
Enlarging the group of first-time loan borrowers
Wenzhou Branch took the initiative to communicate with the local market regulation bureau andother relevant departments and served first-time loan borrowers, effectively addressing thefinancing problem facing SMEs. As of the end of 2021, Wenzhou Branch had counted 91 MSEsamong first-time loan borrowers, accounting for 46.68% of the total.
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As of the end of 2021The balance of loans to MSEswith no more than RMB 10 millioneach increased by
23.69
%from the beginning of the year,
19.81
percentage pointshigher than the average growthrate for all loans of the Bank
Supporting RuralVitalization
Actively responding to the national rural vitalization strategy, we have established aservice mechanism that supports the vitalization work, and consolidated our achievementsin poverty alleviation while advancing rural vitalization. We have continued to serve"agriculture, rural areas and farmers" with enhanced depth and breadth to facilitate high-quality rural vitalization.
we had opened
rural outlets
the Bank newly opened
county-level sub-branchesand
outlets in centraland western Chin
The Bank has installed "smart vending machines for products from poor areas" at outlets
The Bank visits Xitiangezhuang Town, Miyun District for assistance to villages with weak collectives
One-to-one assistance to villages with weak collectives in Miyun District, BeijingThe Party Committee of the Banksent "first secretaries" of one-to-one assistance to villages. Threeoutstanding CPC members fromthe Head Office and brancheswere assigned to serve as the"first secretary" in Shudi Village,Xinwangzhuang Village, and QingdianVillage of Xitiangezhuang Town, MiyunDistrict. A special task force was setup to conduct many visits. We signedtheAgreement on Municipal-levelState-owned Enterprises to HelpVillages with Weak Collectives toIncrease Incomewith the above threevillages and set up assistance schemesfeaturing "one village, one plan."Targeted purchase of agriculturalproducts worth RMB 500,000 wasmade to diversify the production andsales channels of agricultural products.
CASE
As of the end of 2021
As of the end of 2021
In 2021the balance of loans to rural vitalization projects was RMB
255.98
billion, and the balance of inclusive loansto them RMB
16.736
billion, an increase of RMB
3.049
billion from the start of the year, up by
22.28
%,
18.4
percentage points higher thanthe average loan growth rate of the Bank
In poverty-stricken counties and districts in Inner Mongolia, Xinjiang, Qinghai, amongothers, receiving paired assistance from Beijing, we had accumulatively provided RMB
5.238
billion of loans, including RMB
1.131
billion in 2021 alone, and hadoffered25,000
job opportunities for localsThrough direct purchases, on-demand purchases and online purchases, we had purchased overRMB
millions of agricultural and sideline products from targeted poor areas
we had opened
outletsin old revolutionary base areas,areas inhabited by ethnicminority groups, remote andborder areas, and poverty-stricken areas
We set up a rural vitalization leading group headed by the Li Minji, Party Secretary and Chairman of the Bank to clarify the responsibilitiesof each member unit of the rural vitalization working group and coordinate overall rural vitalization work of the Bank. TheHua Xia BankImplementation Plan for Comprehensively Promoting Rural Vitalization in 2021was issued to ensure effective implementation of relatedmeasures.
Strictly implementing the "four remainings(responsibility, policies, assistance teams,and oversight remaining in areas out ofpoverty)" requirement, we introducedinnovative assistance models andcontinued to provide assistance with afocus on areas receiving paired assistancefrom Beijing to advance high-quality ruraldevelopment, improve the quality andefficiency of rural vitalization.
Improving the top-level design
Consolidating the achievementsin poverty elimination
Enhancing paired-upassistance
Launching morecharity programs
Deepening paired
assistance
Developing innovativecredit productsaccording to local
conditions
Supporting green
agriculturaldevelopment
Vigorously developingagricultural supplychain finance
Enhancing theapplication ofFinTechOffering diversefinancing channels forbusinesses
Consolidating theeffect of povertyalleviation byboosting consumption
of products frompoor areas
We have set up special lines of credit to support the development ofindustries in areas receiving paired assistance from Beijing
We continued to track the progress of existing assistance projectsto ensure the effect of our poverty alleviation efforts. Besides, wehave launched new public-welfare programs to further consolidateour achievements in guaranteeing that rural poor people are freefrom worries over food and clothing and have access to compulsoryeducation, basic medical services and safe housing
We selected and sent cadres to villagesin state-level key counties for ruralvitalization to work as resident anti-poverty officials. They collaborate withall levels of local governments, keyenterprises and credit enhancementinstitutions in poverty-stricken areasto support local businesses withcredit funds, improve employmentand encourage business startups bydeveloping local industries, and thusincrease local income
Based on local resourceendowments and industries,we have innovated in ourproduct and service modelsand developed credit productscatering to local needs, therebysupporting the development oflocal specialty industries
We have set up taskforcesto develop business systemsand apps for promotingthe household PV systemand improving the incomeof farmers. We integratedtraditional planting techniqueswith PV generation and pilotedthe use of PV systems inagriculture, to support greenagricultural production in ruralareasWith the support of big data,cloud computing, and otheradvanced technologies, we haveembedded in business processesfunctions including facialrecognition, online verification,electronic signatures, analysisbased on credit decision engines,online screening and monitoring,significantly facilitating customeridentification and transactionhandling and expanding thescope of customer service
We applied the differentiatedcredit allocation policy for loanssupporting rural vitalizationand granted more suchloans. In accordance withthe characteristics and needsof customers, we designedpersonalized service schemesto support enterprises in raisingfunds through various channels
Through cooperation withkey enterprises engagedin businesses for ruralvitalization, we gave fullplay to the exemplary role ofbusiness entities, connectedupstream and downstreamcustomers, and engaged moresmall farmers in agriculturalmodernization
We increased direct purchase ofagricultural products produced in InnerMongolia as well as in Xinjiang, Qinghaiand Tibet. We launched an e-mall onour banking app to sell products frompoor areas, a new way to boost thesales of specialty agricultural productsfrom poor areas
Urumqi Branch supports Shuguang Village to develop the livestock farming industryUrumqi Branch holds the "visit and gathering" activity
We have developed targeted and characteristic products and refined financial services for "agriculture, rural areas and farmers" to better meetthe diverse and multi-layered financial needs of rural vitalization, and channel financial liquidity to serve rural vitalization.Diversifying financial products and services for rural vitalization
Xinjiang cotton industry assistance project supported by Urumqi Branch
“Inclusive Agricultural Loan” makes loans accessible to farmers
To solve the high threshold of, difficult access to and red tape involved in rural loans, Beijing Branch rolled out the Inclusive Agricultural Loan (Pu HuiZhu Nong Loan) for MSEs in rural areas and farmers. As of the end of 2021, the loan had been granted to nearly 20,000 rural customers with abalance of RMB 1.27 billion, significantly helping consolidate the Bank's poverty alleviation achievements.
On October 21, the Chengfang Fintech Forumand Global Fintech Summit hosted by thePeople's Bank of China and the Beijing MunicipalGovernment was held in the New ActuationFintech Center. The Bank was invited toparticipate in the launch ceremony as one ofthe editors of theResearch Report on RuralVitalization Empowered by Fintech.
Solar PV Loan for green development
The launch of the first "Rural Vitalization" debt financing schemePreparing the rural vitalization research report
Closely following the national new energy plan, Wuxi Branch, capitalizing on the strengths of Wuxi's solar PV industry, launched the Solar PV Loan(Guang Fu Loan) for farmers to buy distributed PV power plants.
Nanning Branch, as the lead underwriter, successfully launched the fifth debt financing scheme, worth RMB 300 million and with a term of 33months, of Guangxi State Farms Group Co., Ltd. in 2021 on Beijing Financial Assets Exchange. This is the first debt financing scheme specially forrural vitalization underwritten by the Bank.
CASE
CASECASE
The launch ceremony of Research Report on Rural VitalizationEmpowered by Fintech
CASE
Kunming Branch promotes the characteristic Flower Grower Loan in the Kunming International Flora Auction Trading Center
Flower Grower Loan (Hua Hui Loan) meeting the financial demands of floriculture
Customizing the Beautiful Village Loan (Mei Li Xiang Cun Loan)
Innovate products and support the development of agricultural industry
In February 2021, Kunming Branch, based on the flower transaction data from the Cloud Flowers Big Data Sharing Platform of the KunmingInternational Flower Auction and Trading Center, built a financial service engine for the floriculture industry. The Flower Grower Loan (Hua Hui Loan)was launched on its WeChat Official Account for flower growers.
To solve financing difficulties in the rural collective economy, Hangzhou Branch launched a financial product for the construction of beautiful villagesin Jiaxing City in the new era. Through targeted credit support, cooperation with the village committee and Party branches, and information sharing,Hangzhou Branch delivered high-quality financial services on the ground to support villages in developing their specialty industries and products andimproving the rural environment, so as to build villages with thriving industries, well-off farmers and a beautiful environment.
By deepening cooperation with key enterprises engaged in agriculture and aquaculture feed in Xinjiang, Urumqi Branch has built a model for servingagricultural enterprises through joint efforts with local credit guarantee companies and agricultural development companies. The branch providesupstream and downstream farmers with Breeding Loan (Yang Zhi Loan) and Cotton Grower Loan (Mian Nong Zhong Zhi Loan) to finance theirmodern agricultural and high-tech agricultural projects to advance agricultural science and technology, develop the modern seed industry, andmanufacture agricultural machinery and equipment.
CASE
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Qingdao Branch supports agriculture, rural areas, and farmers
Yinchuan Branch supports local industries for rural vitalization
The Bank continuously improves the coverage of basic financial services and the availability of loans in rural areas and drives high-quality ruraldevelopment.Diversifying the channels of rural financial services
Expanding the coverage of digital terminals
Improving the financial services of resident
work teams in villages
In towns, villages and other rural areas not covered by our bankingoutlets, we distribute service terminals at partner stores to providefarmers with services such as cash withdrawal and transfer, cashremittance, fee payment, etc. . This practice helps promote inclusivefinance in rural areas while expanding the coverage and accessibility ofconvenient financial services.
We set up a permanent consultation office at the premise of residentwork teams to popularize financial policies and knowledge related toconsumer rights protection, promote financial products and services andenhance financial literacy in rural areas.
The public financial education station donated by Nanning Branch to spread financial knowledgeto the countryside to facilitate rural vitalization
Innovating in FinancialServices to BenefitPeople
Hua Xia Bank goes all out to serve people's wellbeing. Dedicated to enhancing people'ssense of security, gain and happiness, we have reformed the way of running business andproviding financial services that are safe, professional and considerate to meet people'saspiration for a better life.
We have upgraded our consumer financial products, to boost the supply of consumer goodsand consumption in areas vital to people's living standards. Focusing on the "consumption-scenario-ecosystem" model and taking into account residents' core consumption needs forfood, clothing, housing, daily necessities and transportation, we have established a consumerfinance ecosystem covering online and offline scenarios to increase financial support forsmall-amount personal consumptions.
By developing products and services around the third-generation social security card and the debit card themed on the coordinateddevelopment of the Beijing-Tianjin-Hebei region, Hua Xia Bank provides customers with a package of affordable and convenient financial andlifestyle services through flexible and diverse business models.Serving personal consumption
Supporting projects vital to people's wellbeing
As of the end of 2021the balance of personal consumption loanswas RMB
471.047
billion
Hua Xia e Loan
Elite E Loan (Jing Ying E Loan)
Decoration Loan (ZhuangXiu Loan) and ParkingSpace Loan (Che Wei LoanSupportingconsumptionupgrading
Benefiting more customers through optimized functions, diverse withdrawal verificationmethods, extended withdrawal validity period and differentiated credit line grantingIntegrating scenarios of home decoration and parking space into consumer credit services throughdigital technologies to provide customers with more convenient and higher-quality consumerfinancial servicesImproving the customer experience by bringing account opening, contract signing, loan grantingand repayment to the online platform
Two brands of wealth management and private banking released
The third-generation social security card benefiting local residents
The Healthcare Loan (Yi Bao Loan) enhancing health security
Heart Warming Loan (Nuan Xin Loan) to heat supply companies
On October 15, 2021, the Bank launched two brands of wealth management and private banking. Under the theme of "Serving a New Era andBuilding a New Hua Xia Bank", the Bank improved the efficiency of wealth management by putting in place an open wealth management ecosystem.We established the new "olive-type" customer service model and adapted to overall transformation of the big wealth market. Through the innovationof the customer service model, we aimed to add more values for ordinary customers and offer targeted personalized financial services to middle-classand high-end customers.
In Shenzhen and Xining, we offered comprehensive financial services through the Bank's third-generation social security cards for local residents. Thecardholders are exempt from the card production fee or the handling fees.
Through great efforts in the development of innovative digital inclusive financial products and services, Dalian Branch had built a bank-medicalinstitution credit information sharing mechanism. Based on the medical insurance billing data of designated pharmacies and clinics, the Bank developedthe Healthcare Loan (Yi Bao Loan), which is connected with the medical insurance date sharing platform to provide health service loans for clients.
We continuously improve the functions of the debit card themed on the coordinated development of the Beijing-Tianjin-Hebei region, andprovide local cardholders the same access to integrated outlet services, rate discounts, wealth management services, VIP services, loan andfinancing services, group card use, and convenient payment services.
Based on a comprehensive understanding of residents' heating demand and the operation of heat supply companies, the Bank launched the HeartWarming Loan (Nuan Xin Loan) for micro and small heating enterprises, including private ones, with fast application review and credit line granting,thereby helping ensure stable heating supply during winter.CASE
CASE
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The launch ceremonyShenzhen Branch staff visits self-employed customers in Huaqiangbei
CASEProviding integrated services for residents in the Beijing-Tianjin-Hebei Region
In 2021
As of the end of 2021
the mobile banking app handled
80.0786
million transactionsthe Bank organized16,743
public financial education
and publicity activities
the Bank had set up prioritycounters for vulnerable groups at
outletsthe Bank had put in placeaccessible facilities at
outlets
Smarter
Accelerating Digital Transformationand Upgrading Financial Services
Facilitating the digital transformation and promoting thedevelopment of the digital economy
Creating an industry-wide digital ecosystem, building an online-offline integrated service model, enhancing product and serviceinnovation
Protecting customer privacy and other rights and interests,actively serving elderly customers and other special customergroups, and continuing to carry out financial knowledge publicityand education activities
Always pursuing innovation-driven development and beingoriented toward customer demand, we keep promoting the digitaltransformation and strive to realize the leap from digital value todigital credit. In order to improve the efficiency of financial servicesand improve customer experience, we keep expanding onlineand offline service channels. Through the organization of financialknowledge publicity and education activities, we firmly guaranteethe legitimate rights and interests of customers.
Sustainability practices
Granted the
“2021 Outstanding DataContributor”
issued by the People’s Bank of ChinaListed by the China Banking and InsuranceRegulatory Commission as a“Member of the Data GovernanceSenior Expert Guidance andCoordination Committee”
Promoting DigitalTransformation
The Bank pursues innovation-driven development, and strengthens the empowering roleof FinTech. Driven by the industry-wide digital ecosystem and the consumption digitalecosystem, we strive to deepen digital transformation and provide customers with mobile,digital and intelligent financial service.
TheHua Xia Bank2021-2025 Digital Transformation Action Plan was formulated, definingthe priorities for digital transformation in the next five years We built six platforms withsix themes, namely the open ecosystem, precision marketing, smart operation, smartrisk control, legal compliance, and value management. The platforms will connect variousbusiness lines and subsidiaries horizontally and, the Head Office and all branches vertically,better preparing the whole bank to go digital. We defined 120 key tasks under 40 themesin ten areas, formulated action plans for the digitization of 22 business lines, and advancedthe in-depth implementation of key tasks.
We vigorously advanced the Yuzhi Project, our top digital technology project, deepeneddata governance and digital asset management, facilitated the release of data value andempowered our business with data.
Improving the top-level structure
Strengthening digital governance
Optimizing resource allocation
At the 2021 Global Digital EconomyIndustry Conference, Hua Xia Bank'sindustry-specific digital finance project wasselected as one ofthe top ten cases of digitaltransformation of enterprises in ChinaAt the 2021 Banking Digital Momentum andFinancial Innovation Summit and the 17thPublicity Year Annual Ceremony co-hostedby the China Financial Certification Authority(CFCA) and the China Joint E-BankingPromotion Year, the Bank was awarded
the FinTech Innovation Award andthe Digital Finance Innovation Award
At the planninglevel
At the businessapplication leve
Building innovationplatforms
Pay attention to talenttraining
Creating a pro-innovationatmosphere
The organizationalstructure forpromoting digitaltransformationThe Bank has set up two groups and
two committees, namely the digitaltransformation leading group, the YuzhiProject leading group, the innovationcommittee, and the adjudicationcommitteeThe digital transformation promotion
office headed by the Vice Presidenttakes charge to advance the digitaltransformation tasks across the bank
The Bank has appointed 801 data officersand data management specialists in theHead Office, branches and subsidiaries tocoordinate data management across thebankWe also established the Industry-Specific
Digital Finance Department responsible forinnovation in the field
Launching a thousand-people pilot programfor digital talents, and developing newcourses and training systems for digitaltalents in innovation areas; carrying out basictraining for data analysts, and organizingspecial training camps in modeling to improvethe data analysis and modeling capabilities ofbusiness personnel
Reshaping the three-tiered pyramid organizational structure of datagovernance, establishing the accountability mechanism for data governance,and clarifying 1,659 pieces of basic data and 291 indicator departments
Building a data asset management system, and rapidly implementing pilotprojects around the four major data application themes including precisionmarketing, intelligent risk control, regulatory compliance, and intelligentmanagement
Promoting construction of the "two warehouses and two lakes", building ancorporate-level data technology foundation based on the data lake, virtual lake,graph technology, and blockchain for the establishment of a corporate-leveldata center; aggregating internal and external data and breaking down datasilos with the "four horizontal and two vertical" data architecture
We have opened digital innovation workshops,introduced the horse racing mechanism, andmobilized digital research and innovationresources of the bank to support digitalinnovation projects
We have increased support for digitalinnovation, set up innovation incubation fundsand innovation risk reserves, and createda favorable innovation atmosphere thatencourages trials and is fault-tolerant
Hua Xia Bank has strengthened communication with partners such as upstream and downstream customers of the industry chain and researchinstitutions, and carried out technology cooperation to promote the R&D and commercialization of R&D results.
We strengthen FinTech risk management and technology support to protect customer privacy and property. In 2021, the overall availabilityrate of important information systems during main business hours reached 100%.
Building a win-win ecosystem
Guarding against technology risks
Joint innovation
Cooperation withuniversities andcollegesInnovativeservice models
Strengtheningthe control overoperation andmaintenance risks
Providing high-quality resources
Multi-taskingconstruction
Intelligent operationand maintenance
Establishing joint innovation laboratories withleading high-tech companies such as Huaweiand Tencent to promote the R&D andapplication of key technologies
Cooperating with well-knownuniversities such as Tsinghua Universityand the University of Science andTechnology Beijing to build theecosystem and application scenarios fornew technologies
Through cooperation with partnersfrom manufacturing, energy, logisticsand other state-level key strategicindustries, developing a number ofindustry-specific ecosystem servicesolutions, such as the developmentof vertical industrial-chain ecosystembased on core enterprises and thedevelopment of horizontally interwovenecosystem based on the energy internetplatforms
Improving the operation andmaintenance management systemto keep risks in operation andmaintenance under control;eliminating hidden risks andenhancing the ability to continuouslyensure business stability throughpractical exercisesBuilding a work environment basedon the full-stack cloud platformto offer basic cloud services oncomputing, network, storage,database, container, etc.
Realizing the dual-task and multi-task deployment for importantinformation systems, and steadilyimproving the robustness andcapacity of the systems
Continuing with data governanceand strengthening the managementof information technologyoutsourcing risks
Participating in the ChinaCybersecurity Week campaign;offering special training for allemployees through multiplechannels
Conducting compliance monitoringof all mobile transaction apps andrectifying problems identified;improving the organizationalmechanism; testing securitytechnologies across the bankon a quarterly basis; performingpurpose-specific rectification tasksContinuing to strengthendata protection for remoteworking, terminal authenticationmanagement and terminal securitycontrol, and cleaning up sensitiveinformation in time
Building a unified operation andmaintenance platform for the HeadOffice and branches to realizeautomatic, mobile and intelligentoperation and maintenance as wellas rapid fault handling
Ensuring the safeand stable systemoperation
Hua Xia Bank attends the China International Fair for Trade in Services (CIFTIS) 2021
Employees of the Bank paint on Chinese circular fans for customers at CIFTIS 2021An employee of the Bank introduce products to visitors at CIFTIS 2021
Scan the QR codeto watch the Bank'sexhibition at CIFTIS2021
Institutionalarrangements
Publicity andtraining
Self-inspectionand monitoring
Technology-enabledprotection
Protectingthe securityof customerinformation
The Bank has deepened the integration of finance and technology, promoted thetransformation and upgrading of models for offering corporate banking services, andinnovated in products and services according to transaction scenarios in the upstream anddownstream of the industry chain, thereby creating an interconnected business ecosystem.Improving CorporateBanking Services
Focusing on national strategic industries, such as advanced manufacturing, new energy, and smart logistics, we have developed industry-specific digital finance solutions in vertical domains of the ecosystem. Meanwhile, centering on transaction scenarios in the upstream anddownstream of the industry chain, we have enriched digital product lines for financing and settlement purposes, so as to enhance the abilityto provide follow-up services for capital transactions and the comprehensive coverage of opportunistic services, and better serve the realeconomy.
We continued to support the reform and development of large central SOEs and local SOEs, increased our efforts to serve listed companies,leaders in emerging industries and growth enterprises, and strengthened strategic cooperation with them. In 2021, we implemented theAction Plan for the Development of Central SOE Clients in accordance with the Three-year Action Plan for SOE Reform. We held talks withmore than 20 central SOEs and actively provided diversified financial services for them. We signed strategic cooperation agreements with twolarge central SOEs and four provincial (municipal) governments.
Building service platforms
Pursuing product innovation
Deepening strategic cooperation
Mobile corporatebanking
The cashmanagementplatform
Digital productsfor financing
Digital productsfor settlement
The cloud platformfor intermediaryservice
WeChat-basedbanking servicesIn order to meet the demand for remoteworking, the Bank has launched a seriesof online corporate banking services,such as account opening by appointment,issuance of certificates of deposit, andpayment through code scanning. By theend of 2021, we had signed a totalof 134,100 accounts, an increase of28,400 or 26.89% year on yearIt had served more than 600 enterprisesin more than a dozen industries, suchas transportation, wholesale, retail, andforeign trade
We have launched the digital productpool, digital factoring, pledge loan againstwarehouse receipt, and digital logistics loans.By the end of 2021, we had granted morethan RMB 2.8 billion to more than 120enterprisesTo provide clearing and settlement services forbusiness entities conducting spot commoditytransactions, Hua Xia Bank has cooperatedwith the Shanghai Clearing House in launchingthe commodity "Clearing Pass" (Qing SuanTong) service. By the end of 2021, it hadcompleted more than 18,000 transactions forover 150 clients, with the unilateral tradingvolume close to RMB 24 billion
We have opened a supermarket ofFinTech products on it, supporting nearly300 characteristic services in 14 businessscenarios
After restructuring based on the cloudnative development platform, we issueletters of confirmation online
Hua Xia Bank, as one of the first cooperative banks, and the Shanghai Clearing House have joint launched the commodity "Clearing Pass" (Qing Suan Tong) service
An energy supply project supported by Nanjing Branch
Issuing the first bond to guarantee energy supply for a subsidiary of a central SOE
On December 2, 2021, Nanjing Branch underwrote a central SOE Jiangsu energy company's 42nd tranche of super & short-term commercial paper(for guaranteeing energy supply) in 2021, with an issue size of RMB 600 million. This was the first bond for energy supply security issued by theclient and underwritten by the Bank.CASE
Committed to providing customer-centric financial services, we continued to optimize onlineand offline service channels, collect and respond to customer feedback, and improve theoverall availability of financial services.Improving CustomerServices
We continued to optimize the distribution of banking outlets, deepened their upgrading, andmade online services more convenient and user-friendly.According to the Hua Xia Bank Work Plan for Outlet Transformation and Upgradingformulated, we built modern, intelligent, scenario-based outlets that offer a smooth,convenient customer experience. As of the end of 2021, eight branches had started toupgrade their banking outlets, and Beijing Branch, Shenzhen Branch and four others hadcompleted the upgrade of 15 outlets.We have upgraded to the new-generation self-service banking machines and reconstructedthe new-generation self-service banking system with big data and smart technologies,to improve the equipment performance and customer interaction performance. The self-service banking system has significantly improved the customer experience by shorteningthe average duration of self-service transactions by 40%, increasing operational efficiencyby 30%, and can handle more than 80% of personal banking services.
We have also deepened the application of advanced technologies such as 5G and AI toprovide more convenient services online.
Expanding service channels
As of the end of 2021the Bank had
1,008
branches in total,covering all provincial capitals(except for Tibet) and
cities above prefecture-level across the country1,042
self-service bankingfacilitiesIn 2021the Bank opened
new banking outlets
As of the end of 2021the Bank had installed2,736
self-service banking machinesin total
In 2021The monthly active users of ourpersonal banking app increased by
36.35
% from the previous yearwith
2.71
self-servicebanking machines peroutlet
Intelligent service provided at an outlet of Shenyang Branch
WeChat mini-program
Mobile bankingIt provide users with services includingfinancial information, select products,energy points, one-click appointment,online account opening, and e-contractsigning
We always put customers first andcontinue to provide mobile bankingservices that are "fast, user-friendly,appealing, economical, and enjoyable."
We take multiple measures to continuously improve the service quality and efficiency, andenhance customer satisfaction and social influence.
We improved the service management system, strengthened employee training, and supervised and checked the delivery of services, toprovide better financial services. Twenty-four of our banking outlets were awarded the title of Top 1,000 Banking Outlets for CustomerFriendly and Standardized Services of 2021.
The Bank has always attached great importance to complaintmanagement. Under the leadership of the Board of Directors, theParty Committee of the Bank and the management team, Hua XiaBank has always regarded complaint management as a key task inapplying the people-centered development philosophy as an SOE.We offered unimpeded channels, listened to customers, addressedtheir concerns, and proactively fulfilled our due responsibility asa banking institution for consumer rights protection. We gavefull play to the positive role of consumer complaints in improvingcorporate governance, promoting business development, andoptimizing financial services, thereby laying a solid foundation forhigh-quality development. In 2021, we resolutely implementedregulatory requirements. We orderly improved the complaintmanagement mechanism for the emergency management of seriouscustomer complaints, diverse ways of resolving financial disputes,assessment of complaint management, etc. We further cleared thecomplaint handling channels, diversified the disclosure forms forcomplaint channels, regulated the complaint handling process toproduce better effects, strengthened complaint analysis, enhancedtraceability and rectification, and introduced diverse ways to resolvefinancial disputes. These efforts have enabled us to effectively
Improving the service quality and efficiency
Optimizing service performance
Responding to customer complaints
The "library bank" opened by Beijing Branch
Incorporating service supervision,inspection and improvementinto consumer rights protection,and promoting the work in asystematic manner
Actively promoting the buildingof top 1,000 model outlets,and exploring new practices ofcustomer-friendly and well-regulated service management
Organizing training on servicefor customers with specialneeds and on skills forhandling customer complaints,and strengthening dailycommunication and assistance
Comprehensively conductingintensive, routine service-themed publicity activities, andlaunching diversified serviceprojects
We improved traditionalcustomer complaint channelssuch as letters and visits, anddisclosed complaint handlingchannels and procedures onour WeChat official account toimprove transparency
We train employees oncomplaint handling to improvetheir ability to resolvedisputes. By the end of 2021,five such training sessionswere organized for more than180 participants
We have earnestly assumed the responsibility for resolving financial disputes, actively promoteddiversified resolution of disputes, and provided mediation promptly to avoid conflict escalation. In2021, we successfully mediated in more than 160 disputes
TheHua Xia Bank Administrative Measures for the Assessment of Customer Complaint Management(Trial), theHua Xia Bank Administrative Measures for Diversified Resolution of Financial Disputes(Trial), and the Hua Xia Bank Contingency Plan for Handling Serious Customer Complaintswereissued. The complaint management mechanism was improved
Strengtheningsupervision and
improvement
Carrying outspecial training
Optimizing
publicitymethods
Improving themanagementmechanism
OptimizingcomplaintchannelsEnhancing skill
training
Diversifying
ways ofresolution
Building model
outlets
Measuresfor serviceimprovement
Improving thecomplaint handling
mechanism
assume our main responsibility for complaint handling and continueto improve complaint management.We handle complaints in a timely and proper manner in strictaccordance with the procedures, and never reject any complaintwithout justifiable reasons. In 2021, the Bank received a total of40,154 customer complaints (including all complaints receivedby the Head Office, the credit card center and all branches, andthrough the customer feedback worksheets). We completed thehandling of 99.15% of customer complaints within 15 days, andresolved all customer complaints we received in 2021, winninga 92.88% customer satisfaction rate for complaint handling.Taking into account the impact of COVID-19 and other factors,we stepped up efforts in cause analysis and problem rectification,particularly for the majority complaints concerning consultation forloan repayment and debt collection and based on the local realityof Guangdong, Shandong, Jiangsu and Beijing where customerscomplaints are concentrated, consolidated the basis of complaintmanagement, and improved our ability to offer better financialservices.
With a scientific and systematic questionnaire design, tracking andanalysis mechanism, we are able to carry out systematic customersatisfaction surveys, and ensure ongoing effective collection,analysis and evaluation of customer feedback. This has allowed usto grasp the changes in customer demand, continuously strengthen
The Bank provides considerate services, both online and offline, for customers with special needs, including the elderly, military personnel andveterans, and rural migrant workers.
Customer satisfaction management
Serving customers with special needs
customer experience management, and respond to customerconcerns and the market demand more quickly, thereby enhancingcustomer satisfaction and our brand image. In 2021, customersatisfaction with the Bank's 95577 hotline was 99.66%.
Convenient service facilities in outlets of Hua Xia Bank
Shanghai Branch offers high-quality services to elderly customers
In 2021the Bank had5,353,800
elderly clients, an increase of610,000
or
12.86
% from the beginning of the year
set up priority countersfor vulnerable groups at
outlets
put in place accessiblefacilities at
outlets
Expandingservice channels
Organizingeducational
activitiesDiversifying
productportfolios
Financialservicesfor seniorcitizens
We have launched a more user-friendly version of the mobile banking app that offers specialfinancial services through large fonts, voice service, etc.We have promoted the construction of banking outlets, and improved accessible passages and
other facilities to provide convenient financial services for elderly customers
Through a variety of
educational activities, wepublicize financial basicsamong elderly customersand help them with the useof smart devices, therebyclosing the digital gap forthe elderly
We select various wealth
management productssuch as fund of funds(FOF) for senior careWe offer customers
diversified insuranceproducts and high-quality pension services
Attaching great importance to consumer rights protection, the Bank is committed toproviding consumers with safer and higher-quality financial services.Protecting ConsumerRights and Interests
Putting people first, we continued to step up comprehensive consumer rights protection by engaging all employees in all business lines andprocesses, and improve the consumer rights protection mechanism. We exert the positive impact of consumer rights protection on corporategovernance, business development, financial services, and the building of corporate culture and brand, so that we can provide consumers withbetter financial services.
The Bank actively participated in financial education activities organized by the People'sBank of China, China Banking and Insurance Regulatory Commission, Ministry of PublicSecurity, China Banking Association, and Payment & Clearing Association of China forconsumers. A long-term financial education mechanism is established to improve financialliteracy by means of extensive and targeted education activities online and offline to raiseconsumers' awareness of financial risks.Strengthening basic management
Public education on finance
Integrationinto corporategovernance
A professionalorganizationalstructureSystematicassessment andevaluation
A growingconsensus of
opinionRoutine supervision
and rectification
An institutionalizedreview consumerprotectionA publicitymatrix
"Seven-sphere"consumer rightsprotection
The Board of Directors, the Board of Supervisors, and thesenior management strengthened overall coordination, research,and guidance for consumer rights protection. Relevant strategicgoals of consumer rights protection were written in the2021-2025 Corporate Development Plan
The Bank optimized themanagement system, andcontinued to build teams forconsumer rights protectionin all relevant business linesof the Head Office and thebranches, so as to offerindependent, authoritativeand professional protectionof consumer rights andinterests
The Bank enhanced politicalstance, enabled employeesto think in big-pictureterms and holistically, anddeveloped a fair and honestculture and concepts ofconsumer rights protectionto realize the integrationand mutual promotion ofconsumer rights protectionand business development
The Bank improved thesupervision and inspectionof the protection ofconsumer rights andinterests, and combinedproblem identificationwith internal control toimprove the quality andefficiency of rectification,thus promoting thepenetration of consumerrights protection intobusiness management andoperations
The Bank improvedthe setup of internalevaluation indicators withstrengthened assessmentand evaluation, tracking ofrectification, monitoring andevaluation. The bank alsoenhanced the applicationof assessment results inbusiness management, andincorporated the resultsinto the comprehensiveperformance evaluationsystem according to strictstandards
The Bank strengthened control and managementat the source, optimized the review process,and took proactive actions, so as to implementthe whole-process management and control ofconsumer rights protectionTo promote the institutionalization, normalizationand diversification of education and publicity onconsumer rights protection, the Bank createdan education and publicity network onlineand offline, consisting of intense group studysessions and education and publicity bases
By the end of 2021,the Bank hadinvested RMB
5,567,500in public education on financeheld16,743
activitiesreached an audience of
millionand distributed3,280,800copies of brochures and leaflets
Guangzhou Branch popularizes financial knowledge in a primary school
A radio program to improve public financial literacy
From September 1 to 3, 2021, Shanghai Branch, together with the Office of the JointWorking Conference on Counterfeit Deterrents of the Shanghai Municipal People's Governmentand Shanghai Traffic Radio Station, launched a live-broadcast radio program to crack down oncounterfeit money and communicate concise and easy-to-understand financial knowledge tothe audience. The program was widely recognized, attracted a total of 100,000 interactions,and was forwarded twice by the official WeChat account of the Office of the Joint WorkingConference on Counterfeit Deterrents, producing the desired publicity effect.
CASE
Lower Carbon EmissionsPromoting Green Development and Contributingto China's 30·60 Decarbonization Goal
Developing green finance, strengthening international cooperation,adopting the ESG investment philosophy, actively responding toenvironmental risks, and building a green financial brand with HuaXia Bank's own characteristics
Supporting green transportation, and promoting greentransactions
Carrying out responsible sourcing, practicing green operation, andengaging in environmental protection public-interest activities
Hua Xia Bank is committed to promoting green and low-carboneconomic and social development through financial services. Guidedby the strategic goal of "making every effort to develop greenfinance as a new characteristic", the Bank continues to deepeninternational cooperation, optimizes the investment and financingstructure, and continuously introduces new green financial products.The Bank strives to achieve carbon neutrality while building itselfinto a "climate-friendly bank in China", and works for "GreenGrowth for a Better Hua Xia".
Sustainability practices
As of the end of 2021
Balance of green loansRMB
208.477
billionBalance of climate-related financingbusinessRMB
206.567
billionThe accumulative value of ESG-themed assets under managementRMB
26.338
billionETC cards issued3,277,400
Social Responsibility Report 2021HUA XIA BANK CO., LIMITED
Over the years, the Bank has highly valued the development of green finance, and activelypromoted green development. In our latest corporate development plan, we put forward thestrategic goal of "making every effort to develop green finance as a new characteristic," andpropose to transform the credit structure, launch new green financial products and services,promote international cooperation and support biodiversity conservation. After years ofexploration, a green finance development mechanism with controllable risks and commercialsustainability has taken shape. The Bank will continue to deepen the green finance developmentstrategy and strive to develop green finance as a new characteristic and a new edge.
Developing Green Finance
To achieve the carbon peak and neutrality goals, we continued to raise the proportion of green credit business. While strictly controlling creditgranting to industries with high pollution, high energy consumption, and overcapacity, we ramped up financing for green and low-carbonindustries and built a greener credit structure. With a focus on low-carbon industries such as renewable energy, green transportation, andgreen buildings, we supported industries adapting to climate change such as green infrastructure construction and water resources.
Focusing on green credit
The Head OfficeBranchesThe Green Finance Management Committee is set up to coordinate thedevelopment of green finance across the Bank, and the Green FinanceCenter to promote green finance business
The Green Finance Department is set up in 15 branches including theBeijing and Nanjing Branches, responsible for green finance managementand risk control. Another 12 institutions are selected to pilot green financebusiness, with pioneering practices encouraged in institutional building,business management, specialization, and capacity building
As of the end of 2021The balance of green credit had amounted to RMB
208.477
billion,an increase of RMB
28.434
billion or
15.79
% over the beginning of the year,equivalent to saving
1,327,200
TCEs and the emissions of
3,111,100
tons of CO
and saving
11,137,200
tons of water.
Offering financial support to an onshore wind power project
Supporting a hazardous-waste treatment project
Improving the mining environment
Urumqi Branch granted a RMB 320 million credit line to a 49.5MW wind power project constructed by a wind power limited liability company inMulei Kazakh Autonomous County. After completion, the project is expected to transmit 130,456.3 MWh of electricity to the power grid annually.Compared with thermal power plants of the same scale, the project is expected to save about 53,600 tons of coal equivalent (TCE), and reduceabout 37.9 tons, 26.1 tons, 52.2 tons, and 173,500 tons of smoke and dust emissions, sulfur dioxide emissions, ammonia dioxide emissions, andcarbon dioxide emissions, respectively.
Hangzhou Branch granted a eight-year loan of RMB 45 million to a hazardous-waste landfill project undertaken by a Zhejiang environmentaltechnology company, which is the first rigid landfill in the province. Compared to a flexible landfill, the rigid landfill can more effectively isolate leakageand reduce soil and water pollution. As of the end of 2021, Hangzhou Branch had issued RMB 38.5 million. After put into operation, the project isexpected to treat 2,800 tons of hazardous waste for the local area every year, helping improve the local environment.
Nanjing Branch issued a green loan of RMB 217 million to an environmental governance company in Zhenjiang City, to improve the environment of thelocal mining area that was severely damaged due to disorderly mining, restore the local water environment, solve stagnant water pollution, and betterthe production and living environment near the mining area.
CASE
CASE
CASE
Serving the key areas for China's carbon peak and neutrality, the Bank has improved thecomprehensive service scheme for green finance and implemented the national guidelinesand policies for promoting the healthy development of the renewable energy industry.We actively develop green leasing and continue to introduce new climate-related financialproducts and service models. The Bank has launched a series of carbon-related financialproducts. On the day the carbon market was unveiled, the Bank launched the first carbon-related forward transaction L/G product in the banking industry, becoming one of the firstsettlement banks in the carbon market.
The Bank has incorporated ESG concepts into the core investment and financing strategies,and completed the comprehensive integration of ESG into the wealth management and assetmanagement systems based on the entire investment process management framework. Wehave also independently developed ESG evaluation and data systems to score all types ofassets.As a signatory to the UN Principles for Responsible Investment Association (PRI), the Bankindependently assessed and reported responsible investment status in 2020 to the PRI. In2021, our practices were shared, in both Chinese and English, in the"Signatory Story"
column on the PRI official website and WeChat official account, showing to the globalmarket a Chinese asset management institution's practices of responsible investment.
Focusing on areas such as climate investment and financing, theBank continues to deepen international cooperation in green financeby actively engaging with international organizations such as theWorld Bank and AFD, thus steadily raising its global influence.In 2021, through the Small Grants Program of the Global
Launching new green products
ESG practices
Deepening international cooperation
As of the end of 2021
In 2021
As of the end of 2021
As of the end of 2021
The Bank's green investments had reachedRMB
14.263
billion, includingRMB
3.33
billion in funds of green-themed bond special accountsRMB
billion in green industry fundsRMB
7.167
billion in green bonds
RMB
million in asset-backedsecurities
RMB
2.062
billion in green bondsissued by financial institutions
USD
million of foreign-currencybonds
Environment Facility (GEF), the Bank completed the environmentalstress testing and carried out research on multiple topics suchas the opportunities facing the regional smart energy and energyefficiency market in the new situation as well as the plan forbuilding information systems of green finance.
the Bank issued
ESG-themed wealthmanagement products
the cumulative value of ESG-themed wealth products undermanagement amounted to RMB
26.338
billion
and raised RMB
7.543
billion
the Bank's sub-loan projectshad introduced USD
billion of foreign capital
provided financingservices for
projects in
provincialregions acrossthe country
saved
3.73
milliontons of standard coal everyyear from the portfolioprojects
reduced28,300
tons of sulfur dioxidereduced
9.12
milliontons of carbon dioxide
and reduced
28,000
tons of nitrogen oxideinvested RMB
10.8
billionin local and foreign currencies incooperation projects
China Renewable Energy and Battery Storage Promotion Project supports clean energy developmentChina Renewable Energy and Battery Energy Storage Promotion Project is the World Bank's largest energy storage project and China's first financialproject dedicated to energy storage. Its sub-projects have been implemented in Hefei, Guangzhou, Nanjing, and Hubei. Starting with the project andthe ongoing Innovative Financing Project for Air Pollution Control in the Beijing-Tianjin-Hebei Region, the Bank has extended financial support from theproduction to the storage, transportation, and innovative utilization of clean energy, effectively providing financial services for the entire industry chainand building a financial service platform that supports the development of clean energy, thus contributing to building a clean, low-carbon, safe andefficient energy mix in China.
CASE
Supporting the development of green industries with green financial bonds
Releasing the ESG bond index
Hong Kong Branch and Wuxi Branch working together to undertake thefirst overseas green bonds
In 2020, the 20 Hua Xia Bank Green Finance 01, the first issue of Hua Xia Bank's green bondsin 2020, was listed in the National Interbank Bond Market to raise RMB 10 billion for greenindustrial projects, with a three-year fixed rate.As of the end of 2021, all the money raised had been invested in 84 projects in six areas:
energy conservation, clean transportation, clean energy, ecological protection and climate changeadaptation, pollution prevention and control, resource conservation and recycling.
In December 2021, the Bank and China Securities Index Co., Ltd.jointly released the CSI-Hua Xia Bank ESG Select Index. The indexis designed to measure bonds with sound ESG evaluations and highreturns and highlights the proportion of strategic emerging industriessuch as information technology and new energy to guide capital flowsto high-quality companies with good ESG performance. In the future,the Bank will promote the application of the index and related andinvestment, closely follow the trend of China's strategic transformation,and promote ESG investment in China.
On December 7, 2021, Wuxi Construction and Development Investment Co., Ltd. issuedoverseas bonds worth RMB 1.914 billion, the first overseas green bonds underwritten bythe Bank. Our Hong Kong Branch and Wuxi Branch, through investment and underwritingcooperation at home and overseas, deployed targeted marketing strategies, and beat many otherunderwriters to become the global coordinator of the issuance. The deal further improved theBank's reputation and influence in the overseas bond market.
CASE
CASE
CASE
Branding: The Bank has launched green finance brands, registeredthe slogan "Green Growth for a Better Hua Xia" and fivetrademarks, updated and released theHua Xia Bank Handbook forthe Visual Identity System of Green Finance,and prepared a newgreen finance comprehensive service scheme as well as key visualsto strengthen its brand communication capabilities.
During the 15th meeting of the Conference of the Parties to the UNConvention on Biological Diversity (COP 15) held in 2021 in China,the Bank, together with the International Finance Forum (IFF) andthe World Resources Institute (WRI), initiated and joinedthe
GlobalJoint Initiative on the Partnership of Biodiversity and Finance.Wealso signed theChina Banking Association"s Joint Declaration of theBanking Sector to Support Biodiversity Conservation, contributing toglobal biodiversity conservation with concrete actions.
Training: The Bank held three training sessions on green finance in2021, covering policy interpretation, carbon emissions reductiontools, environmental and social risk management, to 3,000participants including green finance professionals, credit grantingprofessionals, and account managers.
Building a green culture
Supporting biodiversity conservation
In the future, we will act upon the Initiative, tighten control overbiodiversity risks, guide biodiversity investment, and increasebiodiversity investment and innovation. We will also promotebiodiversity publicity and cooperation to mobilize more financialresources for biodiversity conservation.
In line with theGuidelines for Establishing the Green Financial Systemand the GreenCredit Guidelines jointly issued by the People's Bank of China and the China Bankingand Insurance Regulatory Commission, etc., the Bank has strengthened environmentaland social risk management, and improved the ability to identify, measure, monitor andcontrol environmental and social risks in its credit business. Relevant policies and processmanagement are improved and a sound environmental and social risk managementframework is in place.
In order to better identify and respond to opportunities risks facing the economic systemin the process of climate change, the Financial Stability Board, which includes the centralbanks of major countries around the world, established the Task Force on Climate-relatedFinancial Disclosures (TCFD) in December 2015 to assist companies in climate-relatedfinancial information disclosure.Aiming to become a“climate-friendly bank”, the Bank became a TCFD supporterin August 2021. In the future, from the four aspects of governance, strategy, riskmanagement, indicators, and goals, the Bank will clarify the impact of climate-related risksand opportunities on the Bank’s business, strategies, and financial planning at the strategiclevel, improve the business process and disclosure methods for climate risk management,better environmental information disclosure and comprehensive risk management, and buildup the brand of green finance.
Addressing EnvironmentalRisks
ManagementProcess
Policies
Three improvementsin environmentaland social riskmanagement
Following the principles ofblanket coverage, classifiedmanagement, and dynamiccontrol, the Bank made alist of accounts vulnerableto environmental andsocial risks and providedcorresponding accountmanagement services
The Bank improved thecredit business environmentand social risk managementprocess for legal personsthat are non-financialinstitutions
The Bank prudentlycontrolled risks in creditinvestigation, credit reviewand approval, contractsigning, granting, and post-issuance services
Supporting biodiversity conservation projectsTiaozini Wetland in Dongtai City, Jiangsu Province is the 54th UNESCO World Heritage site and the 14th natural World Heritage site in China. Asan important stopover and habitat for migrant birds, the wetland welcomes millions of migratory birds of nearly 200 species every autumn. TheBank granted a loan of RMB 150 million to fund the renovation of the wetland park, the construction of wetland exhibition hall and the themed hall ofcritically endangered species, and the improvement of bird monitoring systems, contributing to biodiversity conservation.
CASE
Shenzhen Branch is one of the first in China to launch the pilot climate investment and financing reform in Shenzhen
Participating inclimate risk stresstesting
Carrying outenvironmental stress
testing
The Bank participated in the climate risk stress testing organized by the People's Bank of China to evaluatethe potential impact of the low-carbon transition on our credit assets
The Bank launched environmental stress testing in key industries. By quantifying the impact of environmentalstress factors on the operating costs of sampled industries, an environmental stress transmission data modelwas built to estimate enterprises' stress and risk tolerance, thereby enhancing the Bank's ability to deal withenvironmental changes. In 2021, the environmental stress testing report was completed, marking that theBank's environmental risk management capability was leading the industry
Major responses toenvironmental andclimate risks
Keeping up with national policies, the Bank issues ETC cards which allow cardholders fast pass through toll gates without stopping, reducingexhaust emissions and contributing to the building of a low-carbon society.
The Bank has achieved paperless counter services, continued tointegrate counter transactions, and advocated green and low-carbon financial services. In 2021, using the big data-based pathanalysis algorithm, the Bank consolidated 252 over-the-countertransactions and realized 177 video front-end transaction scenarios.By the end of 2021, 97% of over-the-counter transactions weremade paperless, reducing paper consumption and improving theservice efficiency and customer experience.
Serving a Green Life
Facilitating green travel
Promoting green transactions
As of the end of 2021
As of the end of 2021
The Bank had signed2,548,100
ETC users,an increase of
108,000
overthe end of the previous yea
Issued
3,277,400
ETC cards,an increase of
21,200
or
0.65
% over thebeginning of the year
It's estimated that for ordinary light vehicles,the use of ETC cards can reduce the emissionof nitrogen oxides by
16.4
%,carbides by
71.2
%,carbon monoxide by
71.3
%,and carbon dioxide by
48.9
%, respectively
the Bank processed3,226,559,800
electronic transactions, up by2,079,367,200over the beginning of the year
98.34
% of the services werehandled via the main e-channels
①The main reason for the increase in the total water
consumption of the Head Office in 2021 compared with2020 is that there were fewer people working on siteduring COVID-19 in 2020.
② The main reason for the increase in the total power
consumption of the Head Office in 2021compared with2020 is the addition of 1,820 pieces of equipment andthree new office spaces.
③
The main reason for the increase in the total fuelconsumption of company-financed vehicles of the HeadOffice in 2021 compared with 2020 is that there wereless rides during the COVID-19 epidemic in 2020.
Indicators201920202021
Total office water consumption of the Head
Office (ton)
40,809.633,193.1334,423.6
①Total office power consumption of the Head
Office (kWh)
47,169,874.8451,340,078.6260,577,508.3
②Total fuel consumption of company-financedvehicles at the Head Office (liter)
30,149.8624,607.2627,808.22
③Total office paper used at the Head Office (ton)20.5220.8320.89
In early 2021, the Bank formally proposed the goal of achieving its carbon neutrality by2025, becoming the first bank in China to propose such a target. As of the end of 2021,we had a clear picture of our carbon emissions status. Next we will make science-basedprediction of the trend of carbon emissions changes during the 14th Five-Year Plan periodand the medium and long term based on our development goals, formulate our own carbonneutrality goals and roadmap, and decarbonize by employing low-carbon technologies,creating a low-carbon workplace, implementing the offset mechanisms, and afforestation.
We champion environmental protection, are conscious of our environmental impact, practice frugality and raise employees'awareness ofresource conservation. We fully embrace green offices, intensify efforts in energy conservation and emissions reduction, and reduce theemission of environmentally harmful substances in response to relevant policies on energy conservation and environmental protection, continuingto promote low-carbon and zero-carbon operations.
The Bank has formulated more thanten policies such asAdministrativeMeasures for Centralized Procurement,Administrative Measures for Tendering,Bidding and ProcurementandWorkingRules of the Centralized ProcurementCommittee.We have incorporatedenvironmental performance and CSRperformance into the criteria for selectingsuppliers, and made clear that supplierswho have been named and shamed forfailing to fulfilling social responsibilities shallbe excluded from the supplier database.In 2021, one of the priorities was to buildan online procurement platform and makeprocurement open, transparent, and well-regulated, contributing to low-carbon andzero-carbon operations.
The Bank organizes non-profit environmental protection activities to effectively improve theenvironment and promote the green and low-carbon lifestyle. We promote waste sorting tohelp build a green and beautiful living environment. As of the end of 2021, the Head Officeand the Beijing Branch were designated as model units for household waste sorting, with atotal completion rate of 79%.
Promoting GreenOperations
Green office
Green procurement
Environmental protection activities
The Beijing SASAC inspection team guides the Bank's domestic waste sorting efforts
Improving the whole-process design of thecentralized procurementplatform to facilitateproject implementation
Convening the CentralizedProcurement Committeemeetings and projectreview meetings online toreduce paper consumption
Developing e-commercemanagement and protocole-mall modules to realizequick ordering
Adding functions such assupplier risk verificationand strengthening supplierqualification review andrisk management
Major approaches
for buildingthe onlineprocurement
platform
Organizational
guarantee
ImprovedmechanismSupervisionandinspection
Publicityand trainingThe "EmptyPlate"campaign
An organizational structure wasestablished and the Head Officeset up a task force to advancerelevant work
The Bank improvedthe mechanism ofdomestic waste sortingand reduction andassigned responsibilitiesto specific individuals
The Bank strengthenedthe supervision ofand guidance for allbusiness premises andstrictly implementednorms and standardsfor waste sorting
The Bank organizedthemed informationsessions, trainingsessions, and onlinetests on waste sorting
The Bank reducedkitchen waste fromthe source such asfood procurementand preparationin restaurants andencouraged employeesnot to take more thanneeded and reducefood waste
Major measuresfor waste sorting
the Head Office set up
waste sorting bins
2,710
employees based inBeijing, including1,432
Party members,volunteered to assist in waste sortingby the bins on weekends
In 2021the Bank put up more than
postersand distributed more than
4,000
copies of brochures
% employees signed the
Commitment on Domestic Waste Sorting
More Prudent
Managing Compliance Risks to Secure Long-TermStability and Development
Ensuring compliance in operations while following laws andregulations, improving the internal control and compliancemanagement mechanism, and building the culture of rule of lawacross the Bank
Cementing the bottom line of risk control, improving the long-term risk management mechanism, and pursuing professional riskmanagement
We stick to prudent operation, and continue to strengthen internalcontrol and compliance management to consolidate the foundationfor compliance operations. Having made it a top priority to guardagainst systemic financial risks, we continue to elevate our riskmanagement, always think about worst-case scenarios, and solidifythe defense lines of risk control.
Sustainability practices
In 2021
As of the end of 2021
3,877
training sessionson compliance
the non-performing loan (NPL)ratio
1.77
%
4,722
anti-money laundering(AML) training sessions
provision coverage ratio (PCR)
150.99
%.
Safeguarding the bottom line of compliance, the Bank builds a compliance framework,cultivates a rule-of-law culture, and improves the internal control and compliancemanagement mechanism to ensure that its operation and management conform to theregulatory requirementsEnsuring Compliance
We ensure compliance in operations, integrate external compliance requirements into internalmanagement, and build a long-term mechanism for compliance management to work forstable operation and maintain financial security and stability.Improving the internal control and compliance system
In 202the Bank held
3,877
training sessions on complianceattracting
133,130
participantsorganized
lectures and training sessions onanti-financial crimesinvolving
41,047
participantsheld4,722
AML training sessions
engaging
135,000
participantsconducted
legal training sessionsattracting
31,803
participants
Establishing thepolicy framework
Strengthening branchsupervision andinspection
Improving themechanism ofcredit responsibilitydetermination
Holding the bank-wide complianceseminar
High priorityand high-levelleadershipCasepresentation toraise awareness
Bank-widecooperation forsolid progressEnhancedsupervision toensure the effect
Enhancing employeeconduct management
Focusing onrectifying recurringproblems
With theHua Xia Bank Compliance Policy, the Bank optimized thetop-level design of internal control governance, and established acompliance management framework system at the group level forthe first timeThe Notice on Strengthening the Supervision and InspectionManagement of Brancheswas issued to effectively improve thequality and efficiency of work in this regard and shored up theweakness in daily management and risk control of the "first andsecond lines of defense" of the branches
The Hua Xia Bank Administrative Measures for Online Loan DueDiligenceandHua Xia Bank Administrative Measures for ComplaintHandling in Credit Granting Due Diligencewere formulated tobetter regulate online business due diligence and the due diligencecomplaint handling procedures, and improve the credit responsibilitydetermination system
The Code of Conduct for Employees of Hua Xia Bankwas revisedto refine the code of conduct, strengthen management, and guideemployees to maintain good professional ethics and help build up aclean financial culture
We pressed ahead with the Year of Improving Internal Controland Compliance Management campaign, and stepped up efforts toaddress recurring key problems and reduce the incidence of thoseproblems
We warned employees of the consequences of non-complianceaccording to the compliance situation, and with violation cases, andtypical cases. We advanced rectifications in a solid manner, andpursued accountability seriously. We emphasized the need to build along-term compliance mechanism, and built a compliance culture
The Head Office set up a task force co-headed by the Chairman of the Boardand the President of Hua Xia Bank, andadvanced the Year of Improving InternalControl and Compliance Managementcampaign across the bank
The Bank publicized non-compliancecases at the grassroots to raiseemployees' awareness of disciplines, lawand compliance, and deter them fromviolating laws and regulations
The Bank conscientiously implemented workrequirements to make sure that a consensuswas reached, the campaign was well-organizedand in excellent hands, problems were identifiedand fixed, and accountability was pursuedThe Office of the Leading Group at the HeadOffice tracked the progress on a monthly basisand reported it in a timely manner. It conductedoff-site analysis and on-site inspections based ondifferent regions, industries, products, and assetquality to ensure the effect of the campaign
The Year of Improving Internal Control and Compliance Management campaignTo thoroughly implement the decisions and policies made by the CPC Central Committeeand the State Council on finance, the Bank consolidated and expanded the rectificationoutcomes, strengthened internal control and compliance management, and built up a cultureof sound and prudent operation. According to theNotice of the China Banking and InsuranceRegulatory Commission on Carrying out the "Year of Improving Internal Control and ComplianceManagement" Camapign in the Banking and Insurance Industry,the Bank organized relatedactivities from June to December 2021.
CASE
The bank holds the bank-wide compliance seminar
The Bank promotes the rule of law and consolidates the foundation for it. We strengthen active management, guard against legal risks, andcarry out publicity and education on the rule of law in an orderly manner to build a workplace of integrity and ensure compliance.
The Bank continues to ramp up investment in anti-money laundering (AML) to strengthen the communication of AML risks and carry outpublicity and training activities to achieve better AML effectsStrengthening the rule of lawEnhancing AML management
The Bank improved the legal-riskmanagement system, optimized themanagement process, and specified themanagement requirements to strengthenthe collaborative management of legalrisks, keep risks under control, andstrengthen rights protectionThe Bank launched the pilot program
of legal counseling professionals, andestablished a training and incentivemechanism for legal professionalsThe Bank optimized the legal affairs
system to make it more efficient,versatile, and high-tech
The Bank organized legal education and
training for all employees to enhance allemployees’ awareness of complianceand their ability to guard against legalrisksThe Bank also popularized the law to
the general public in various forms. Wecreated an atmosphere encouraginglaw learning, and improved the public'sawareness of the rule of law through avariety of multimedia platforms
The Bank checked the
implementation of contractmanagement responsibilitiesof the Head Officedepartments, stepped upefforts to guard againstcontract-related risks,and urged the businessdepartments of the HeadOffice to fulfill their role asthe first line of defense forpromoting the rule of law andmanaging legal risksThe Bank developed and
released a list of validregistered trademarks,encouraged the exercise ofthe exclusive right to thesetrademarks in compliancewith laws and regulations,regulated the licenseduse of these trademarks,facilitated brand buildingand safeguarded the Bank'strademark rights and interests
The Bank set up an AML center,
and allocated more manpowerand other input to make AMLmanagement more professional
We carried out comprehensiverectification and improvement,and identified and shored up theweak links in AML managementto enhance risk managementcapabilities
The Bank launched the publicity
works competition to guardagainst money-laundering risksThe Bank organized AML training
for directors and supervisors,to enhance the awareness ofmoney-laundering risks
The Bank watched closely money laundering
risks in key businesses, and gave prompts.We analyzed and summarized typical AMLproblems, and AML dynamics at home andabroad and typical cases, to better guardagainst risks
The Bank advanced AML data governance,
developed transaction monitoring models for newbusinesses, improved the money-laundering riskassessment model for customers, and expandedthe coverage of transaction monitoring to moreaccurately identify and warn against money-laundering risks
The Bank improved the
systemic guidance forguarding against legal risks inkey areas, and formulated andissued judicial interpretationsand actual business operationsto offer professional guidancefor corporate complianceThe Bank reviewed and
released contract templatesfor key business areas suchas factoring and supply chainfinancing, and standardizedtransaction documents
Consolidatingthe foundationof rule of law
Carrying outpublicity andeducation onthe rule of law
Strengthening
activemanagement
Optimizingresourceallocation
Comprehensiverectification and
improvementCarrying outpublicity andtraining activities
StrengtheningriskcommunicationImproving themonitoring andearly-warningcapacity
Guardingagainst legal
risks
Training on anti-fraud and AML held by Wenzhou Branch
Guiyang Branch raises the public awareness of AML on the street
We always take a hard line against crime risks, and severely crack down on illegal financial activities. We stepped up efforts to investigateemployees' abnormal conduct, and deterred employees from committing any financial crime with accountability pursuit and punishment, toresolutely guard against financial-crime risks.Ramping up to guard against crime risks
TheHua Xia Bank Letter of Responsibility for Fulfilling the Crime Risk Control Targetwas revised and signed by all employeesto strengthen the duty performance at all levelsThe Bank defined four dimensions of crime risk prevention and control, issued two crime briefings and five risk warnings, andkept an eye on key areas vulnerable to financial crimes to curb risksThe Bank set up and conferred the Award for Stopping Financial Crimes and Handling Risk Events to encourage employees tostop and defuse crime risks
TheHua Xia Bank Administrative Measures for Investigations on Employees' Abnormal Conductwas revised to better regulatethe investigation, handling, and supervision mechanism concerning employees' abnormal conductA stricter routine investigation mechanism is in place for abnormal conduct of personnel in important positions to improve the
quality and efficiency of such investigationsThe Bank strengthened the closed-loop management of abnormal conduct investigation, established abnormal-conduct records,
pursued accountability, and summarized typical cases to strengthen the effect of deterrence
The Bank released theNotice on Further Strengthening Accountability Pursuit and Guidelines on Accountability Pursuitto refine
accountability standards and standardize and strengthen accountability pursuitThe Bank strictly and quickly held serious violations accountable to create an atmosphere of rigorous accountability pursuit in the
entire bankThe Bank forwarded theChina Banking Association's Administrative Measures for the Information on Law and Rule Violations of
Banking Practitioners (Trial),established a mechanism for submitting a "blacklist" of practitioners to the Association, and urged
employees to abide by the professional ethics and code of conduct
The Bank carried out a special campaign targeting financial crimes. We assisted local governments, public security, judicial,
disciplinary inspection, and supervision agencies to recover stolen money and losses, look deep into existing crime risks, and clearthe backlog of casesThe Bank cracked down on gang crimes on an ongoing basis to effectively support its intensive rectification of financial chaos and
defusing of major financial risksThe Bank launched a month-long information campaign to enhance the awareness of the public and employees about illegal
fundraising and protect them from the risk of illegal fundraising
Guarding against crime risks
Cracking down on illegal financial activities
Strengthening the investigation of abnormal conduct of employees
Strengthening the pursuit of accountability
Training on anti-fraud and AML held by Wenzhou Branch
Intelligent risk control to guard against business risks dynamically
In order to improve the efficiency and accuracy of risk control, the Bank built the big data risk identification and early warning system whichcomprehensively integrates internal and external risk data; meanwhile, we developed the enterprise risk database, risk view, as well as risk controlrules and models using technologies such as big data and knowledge maps.
CASE
Focusing on deepening the reform of the risk management system and improving therisk governance system, we strengthen risk prevention and control in key areas andlinks, improve the professional management for individual risks and the long-term riskmanagement mechanism, and make risk management more "comprehensive, professional,and forward-looking."
Strengthening RiskManagement
The Bank has formulated the five-year risk management action plan to make strategicadjustments to the risk management system and mechanism during the new period.
We strengthen the management of key areas and major risks, apply digital technologies and upgraded the tools for risk control, and consolidatethe foundation for guarding against systemic risks
Optimizing the management system
Strengthening risk prevention and control
Three-stageasset lifecyclemanagement
Managementof the"fiveprojects"
Construction ofthe four long-term mechanisms
Credit riskmanagement
Business continuitymanagement
Market riskmanagement
?Reputationalrisk management
Hua Xia Bank strengthened the assetlife-cycle management coveringthe "three stages" of scientific andeffective allocation of new assets, strictprevention of the deterioration of normalstock assets, and orderly addressing ofexisting risks
The Bank vigorously promoted theconstruction of the "four long-termmechanisms" for risk management,including the mechanism for riskpreference and policy transmission andimplementation, the mechanism fordivision of labor and cooperation betweenbusiness lines and institutions, thebusiness and product risk managementand control mechanism, and the risk-cost-benefit balance mechanism
The Bank determined to implement the "five projects", including empoweringthrough technology, retail business, corporate finance, market-orientedbusiness, and strengthening of environmental and social risk management
Action plan
The Bank analyzed the economic situation, implemented the economic and financial policies and regulatory
requirements by the central government, and made credit, investment, and financing policies more forward-looking and adaptableThe Bank strengthened the asset quality control, optimized the structure of newly added assets, handled
troubled stock assets, strengthened the management of credit extension of stock assets, and ensured stableasset qualityThe Bank employed various tools such as the bottom line for access, classified management, lists and quota
control to better identify and manage credit business risks and guard against risk transformationThe Bank strengthened risk mitigation, maintained "the first source of repaymen" as the rationale for credit
granting, enhanced collateral value evaluation management, and strictly controlled guarantee risksThe Bank carried out concentration risk limit control from multiple dimensions such as industry, region,
customer, and risk mitigation, refined the internal management of large exposures, and improved the
management of concentration risks
The Business Continuity Plan of Hua Xia Bank was revised. We updated the list of business priorities and sub-
priorities according to the latest comprehensive business impact analysis results, and specified the deadline for
business recovery, business recovery point targets, and the scope of various key resourcesThe Bank strengthened the management of emergency drills to make them better regulated, routine and
practical. A total of 46 drills were carried out throughout the year, covering 8 scenarios, improving the
emergency response capabilityImproving systems and mechanisms. Hua Xia Bank revised the Measures for Reputational RiskManagementof Banking and Insurance Institutionsand theImplementation Rules for Public Opinion Management. The Bankdeveloped a reputational risk management mechanism for joint prevention of risks from complaints, whistle-blowing, and lawsuits, and strengthened the coordination among different tasksStrengthening reputational risk management at the source. The Bank ensured the fulfillment of responsibility
for management and control, enhanced the awareness of risk prevention. The Bank also conducted real-time investigation of risks, and issued early warnings, so as to address risks in time and effectively improvemanagement capabilitiesBuilding a culture against reputational risks. The Bank intensified training and assessment, exhorting employees
to perform their responsibilities for reputational risk management more proactively
The Bank optimized the market risk limit management system and strengthened dynamic adjustmentThe Bank explored the establishment of a risk-adjusted return on capital (RAROC) system to provide a basis
for rationally setting quotasThe Bank implemented market risk management requirements ofBasel IIto promote regulatory compliance andimprove managementThe Bank improved risk sensitivity and strengthened risk management for key businesses of bonds, foreign
exchange, and derivativesThe Bank improved the counterparty credit risk management system, optimized relevant policies, and
strengthened counterparty credit risk control
More FulfillingPutting People First inCreating a Better Life
Earnestly safeguard the rights and interests of employees, andadhering to equal employment and democratic management
Providing job skills training for employees
Creating a warm and welcoming working environment foremployees
Promoting community welfare and helping improve people'swellbeing
Always being people-centered, the Bank protects the rights andinterests of employees, actively responds to their concerns, andcares about their career development and wellbeing. We activelyinvolved in promoting community welfare, combating COVID-19,and disaster relief, to enhance the sense of happiness among localresidents.
Sustainability practices
In 2021the Bank organized5,200
employee training sessionssent assistance to
employees in needmade charitable donations worthRMB
14.515
million
Safeguardingemployeeright
Strictly abiding by the Labor Law, Labor Contract Law and other relevant laws andregulations, the Bank has established a complete human resources management systemcovering recruitment, employment, performance evaluation, salary and benefits to protectemployee rights and build a harmonious and stable labor relationship.
Safeguarding EmployeesRights
Recruitment
Salary and benefits
Promoting equal employment
Performance evaluation
The Bank set up a variety of recruitment
channels and ensured that the recruitmentprocess was open and transparent
The Bank continued to improve
the performance-based incentivemechanism that matches employeeperformance with remuneration.The performance evaluation coversthe service quality, consumerrights protection, green finance,MSE services, and rural povertyalleviation to guide employees tofulfill their social responsibilities
The Bank signs collective contracts,
collective contracts on salary, and laborcontracts with employees in accordancewith the law, and pays various socialinsurances for employees on time and in fullThe Bank schedules reasonable working
hours and pays remuneration in full and ontimeEvery employee is entitled to statutory
holidays and paid leaves
Strictly abiding by relevant laws and regulations such as the Employment Promotion Law and theLaw on the Protection of Women’s Rightsand Interests,the Bank provides equal employment opportunities to workers and says no to discrimination based on nationality, race, region,age, gender, or disability.Promoting equal employment
As of the end of 2021
The Bank sets no gender or ethnicityrestrictions in recruitment and bansdiscrimination and unfair behavior
The Bank treats every employee fairly andprovides employees with equal training anddevelopment opportunities
the Bank had
39,175
employees,
51.43
%of whom were female,including
7,220
newrecruits and
1,912
ofethnic minorities
Regarding the educational background,
14.06
% of the employeesheld the master's degree or above,
64.01
% the bachelo's degree,and
21.93
% the associatedegree or below
Regarding the age structure,
58.77
%of them were aged 35 and below,
28.94
% aged 36-45,
10.60
% aged 46-55, and
1.69
% aged 55 and above
As of the end of 2021the labor contract signingrate was
%the social insurance coveragerate was
%
We promote democratic management which takes the basic form of the Employees' Congress. We disclose information and communicate withemployees via various channels such as the Employees' Congress, the Homes of Employees, the bulletin boards of Party and administrativeaffairs, the President's mailbox, and the President Day, and address the most common and concerned problems. We move faster to form ademocratic management system that is under the leadership of the Party committee and jointly run by the Party and administrative organs,with labor unions playing an active role, support from relevant departments and extensive participation of employees.
Advancing democratic management
In 2021The Bank received1,524
constructive suggestions,adopted and implemented
97.63
% of them
held
Employees' Congress meetings,with
4,996
participants, and received
proposalsand
% of them were handled
held
staff meetings,with
1,774
participants working on the ground
opened
e-mail addresses for soliciting opinionsand employed
supervisors
Advancingdemocraticmanagement
Improvingthe trainingsystem
Improving thedemocratic managementmechanism
Fulfillingnegotiationand mediationresponsibilities
Promotingbusinessinformationdisclosure
The Bank held the Employees'Congress to review policies
or major matters concerning the interests of employees, andencouraged employees to involve in democratic managementand supervision
The Bank conducted collective
negotiations on employee careerdevelopment, labor protection,labor remuneration, etc.The Bank formulated the InterimProvisions of Hua Xia Bank onLabor Dispute Negotiation andMediation,and set up mediationcommittees responsible forpublicizing laws, regulations andpolicies governing labor relations
We piloted business information
disclosure in the four branches ofChangchun, Hohhot, Wuhan, andKunming
Valuing the improvement of job skills and abilities, the Bank continues to invest high-qualityresources, optimize the training system and instructor team, and build a well-roundedand multi-level training system to provide a platform for employees at different levels andpositions to enable them to grow with the Bank.Empowering CareerGrowth
Expandingthe trainingcoverage
ExpandingtrainingavenuesEnriching
trainingcontent
The training covered all business lines andpersonnel at all levels of the Head Office andbranches to support the development of eachemployee
We provided moretraining opportunitiesthrough live-streaming, mini-lectures, knowledgecompetitions, etc.,enabling employeesto acquire knowledgemore conveniently
In order to makeour employees morecompetent, welaunched variousforms of trainingprograms foremployees fromdifferent professionalfields at all levelsof the Head Office,branches and sub-branches
Training internal trainers
The Bank continued to train the internal trainers to build a more competent training team
The Bank has in place clearly-defined criteria and procedures for becoming internal trainers anddesignates internal trainers on a yearly basis
The Bank continued to enrich the training content by inviting senior experts to give lectures andorganizing competitions
The Bank has in place clearly-defined criteria and procedures for becoming internal trainers Thetraining was conducted both online and offline
CASE
Internal trainers receiving training at Nanjing BranchA competition of internal trainers at Shijiazhuang Branch
In 2021the Bank held5,200
employee training sessions for531,553
participants including
training sessions on CSR,with73,877
participants,and 147
training sessions onenvironmental protection,with10,540
participants
We care about the physical and mental health and quality of life of employees. A varietyof cultural and sports activities are organized to enrich their after-work life. The Home ofEmployees is upgraded. We offered sympathy and aid to employees in need. All this is tocreate a caring workplace.Promoting Work-LifeBalance
Caring about retired employees
The farewell party held by the Head Office for employees who retired in 2021
The cake-making party held by Chengdu Branch on Women's Day
The Head Office organizes a creative painting activity themed "sustainability for a better future" for employees
Female employees of Guiyang branch try batik on Women's Day
Employees of Nanchang Branch at the autumn team building eventEmployees of Guiyang Branch at outdoors for brisk walking
We organize a variety of cultural and sports activities, build a platform for employees to show their talents, and advocate a healthy lifestyle.
The Bank attaches great importance to the health and career development of female employees, and organizes activities of various themes forthem, taking care of females with practical actions.We pay attention to the care of retired employees, carry out extensive condolence activities, and convey the warmth to the hearts of everyemployee.
Organizing cultural and sports activities
Caring about female employees
The Bank continues to upgrade the Home of Employees. Branches and outlets equippedtheirs with fitness equipment, TV sets, reading rooms, lounges, etc. so that employeescan do exercises and relax there. The Home of Employees is positioned to be a place forlearning, for business startups, a place that is democratic, happy, and caring.
We actively participated in COVID-19 control and disaster relief and supported epidemiccontrol and post-disaster reconstruction with donations, volunteer services and blooddonations. We stood with the people hit by the epidemic and natural disasters and did ourbest to tide them over.
The Bank sets up an employee relief fund and sends employees in need sympathy andassistance on major festivals. We offer unimpeded channels to deliver aid to employees inneed and help solve their biggest and most pressing concerns to improve their sense of gain,happiness, and security.
Building the Home of Employees
Pooling strength for COVID-19 control and disaster relief
Helping employees in need
In 2021the Bank had opened a total of
Homes of Employees,
of which had passed the review and
acknowledged as model ones
In 2021the Bank helped
employees in needdistributed RMB
1.2409
million of living allowancesRMB
2.1749
million ofmedical subsidiesRMB830,500
ofdisaster relief subsidies
In 2021the Bank organized
2,355
volunteer activities,involving
14,789
employeesand
20,890
hours of volunteeractivities
Tianjin Branch visiting and showing support for an employee in need
The anti-pandemic volunteer team from Shaoxing Branch
Shijiazhuang Branch donates anti-pandemic supplies to a local hospital
The volunteer team from Zhengzhou branch offers assistance in flood-hit areas
Lanzhou Branch donates anti-pandemic supplies to local communities
Guangzhou Branch's labor union visiting an employee at home
Focusing on what society needs, we actively engage in various forms of charitable activitiesfor COVID-19 control, disaster relief, special education, elderly care, and donations to giveback to society and improve people's wellbeing.Building a HarmoniousSociety Through JointEfforts
Supporting COVID-19 prevention and control
In December 2021, Shaoxing was hitby a sudden wave of COVID-19 casesand decided to do a city-wide nucleicacid testing. At this critical moment,Shaoxing Branch quickly set up avolunteer team and sent them to thetesting sites to help maintain the order,take people's temperature, check theirtravel history, record their personalinformation, and transport the testingsamples, contributing to the city's fightagainst COVID-19.
CASE
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With strong enthusiasm, the Bank continues to carry out charitable activities such as donations and volunteer services with the support oflike-minded employees, customers and people from all walks of life. We are committed to Beijing's cultural undertakings, helping pass ontraditional Chinese culture.
Conducting charitable and cultural activitiesImplementing the "Plan for the Growth of Children of Sanitation Workers" for seven consecutive yearsHua Xia Bank launched the camp themed on green and sustainable development, as part of the 2021 Plan for theGrowth of Children of Sanitation Workers, at the Shougang Park, the seat of the Beijing Organising Committee forthe 2022 Olympic and Paralympic Winter Games. This year, the camp would lead the children into the world of greenenergy, bring them lectures on winter sports, and teach them figure skating, to broaden their horizons and show themthe meaning of sustainable development. As of the end of 2021, the "Plan for the Growth of Children of SanitationWorkers" had been carried out for 7 years, with a total donation of RMB 9 million.
CASE
Scan to watch activities ofthe "Plan for the Growth ofChildren of Sanitation Workers"
Xiamen Branch makes donations to a children's library in "a village in the city"
Hua Xia Bank has become the sole title sponsor of BTV'sSinging for the Central Axis of Beijing, supporting the capital in applying for the World Heritage Status for its Central Axis.
Filming location of BRTV's Interpretation of theCivil Code
Suzhou Branch organizes a charitable activity to care for exceptional children
Supporting the Central Axis of Beijing to apply for the World Heritage Status
Promoting the popularization of theCivil Code
As the sole title sponsor of the reality showSinging for the Central Axis of Beijing, a program of BTV, the Bank fully supported Beijing in applyingfor the World Heritage Status for its Central Axis to promote the development of the capital's cultural industry and carry forward traditionalChinese culture.
Having become the sole title sponsor ofInterpretation of the Civil Code, a TV program of the Science and Education Channel of Beijing Radio andTelevision Station, the Bank has played its part in promoting the popularization of theCivil Codefor raising the public awareness of the rule oflaw, fostering the spirit of the rule of law, and promoting law-based governance of the country.
CASE
CASE
Sponsoring the Miyun Eco Marathon 2021
As the title sponsor of the Miyun Eco Marathon 2021, theBank participated in the whole process of event organization.The Credit Card Center and Beijing Branch jointly set upa cheerleading team of 100 employees and sent 20 staffmembers to serve the event, spread the idea of ecological andenvironmental protection and inspire more people to protectthe environment.
CASE
The Miyun Eco-Marathon2021 sponsored by HuaXia BankEnsuring orderly traffic for theBeijing 2022 Winter Olympics
To prepare for the Beijing 2022Winter Olympics, the Bankresponded to the call of the Beijing Municipal Committee ofCommunist Youth League and organized young employeesin Beijing to help maintain order at zebra crossings, guidevehicles and pedestrians to cross the crossings at the sign ofthe traffic lights, enhancing road safety in Beijing. In 2021,more than 100 employees volunteered for this service.
CASE
Employees of the Bank as volunteers maintain the order at zebra crossings
The Miyun Eco-Marathon 2021 sponsored by Hua Xia Bank
121120Social Responsibility Report 2021HUA XIA BANK CO., LIMITED121120Social Responsibility Report 2021HUA XIA BANK CO., LIMITED
Outlook
In 2022, the 20th CPC National Congress will be held. It is a crucial year forChina to continue with the 14th Five-Year Plan. The year 2022 will also markthe 30th anniversary of the inception of Hua Xia Bank. Over the past 30 years,we have focused on reform, innovation, transformation and development. We haveforged ahead, and achieved fruitful results. In the future, we will continue to applythe philosophy of sustainability, seize strategic opportunities, and serve the realeconomy. We will continue to explore inclusive finance and green finance, advancerural vitalization, and contribute to China's 30·60 Decarbonization Goal. At thesame time, we will vigorously undertake CSR initiatives, and work with all parties topursue a path of sustainable development and build a better future.
Scan the QR code toknow more about "Sustainable, Wonderful"
Reporting IndexGRI Content Index
Appendix
Standard number and descriptionPageNoteGRI 101：FoundationGRI 102：General disclosures
Organization Profile
102-1 Name of the organizationP6102-2 Activities, brands, products, and servicesP6102-3 Location of headquartersP6102-4 Location of operationsP6102-5 Ownership and legal formP6102-6 Market servedP6102-7 Scale of the organizationP6102-8 Information on employees and other workersP6102-11 Precautionary Principle or approachP96-105102-12 External initiativesP9102-13 Membership of associationsP9Strategy
102-14 Statement from senior decision-makerP4-5102-15 Key impacts, risks, and opportunitiesP4-5
Ethics and Integrity
102-16 Values, principles, standards, and norms of behaviorP6、P9102-17 Mechanisms for advice and concerns about ethicsP9
Governance
102-18 Governance structureP8102-19 Delegating authorityP9102-20 Executive-level responsibility for economic, environmental, and socialtopics
P9-19102-21 Consulting stakeholders on economic, environmental, and social topicsP10-11102-22 Composition of the highest governance body and its committees P8102-23 Chair of the highest governance bodyP4-5102-26 Role of highest governance body in setting purpose, values, andstrategy
P8102-29 Identifying and managing economic, environmental, and social impactsP9-11102-30 Effectiveness of risk management processesP103-105102-31 Review of economic, environmental, and social topicsP9-11102-32 Highest governance body’s role in sustainability reportingP9102-33 Communicating critical concernsP11102-34 Nature and total number of critical concerns P10-11Stakeholder Engagement
102-40 List of stakeholder groupsP11102-42 Identifying and selecting stakeholdersP10-11102-43 Approach to stakeholder engagementP11102-44 Key topics and concerns raisedP10-11
Reporting Practices
102-45 Entities included in the consolidated financial P1102-46 Defining report content and topic BoundariesP1102-47 List of material topicsP11102-48 Restatements of informationP122-125
No informationis restated102-49 Changes in reportingP122-125
There were no majorchanges in topicsdisclosed in the report102-50 Reporting periodP1102-51 Date of most recent reportP1
Standard number and descriptionPageNoteReporting Practices
102-52 Reporting cycleP1102-53 Contact point for questions regarding the report P1102-54 Claims of reporting in accordance with the GRI Standards P122-125102-55 GRI content indexP122-125102-56 External assuranceP126-128GRI 200Economictopics
GRI 103Management approach
103-1 Explanation of the material topic and its boundaryP10、P26-49103-2 The management approach and its componentsP26-49103-3 Evaluation of the management approachP26-49GRI 201 EconomicPerformance
201-1 Direct economic value generated and distributedP13201-2 Financial implications and other risks and opportunities due to climate changeP84-95GRI 203 Indirect Economic Impacts
203-1 Infrastructure investments and services supportedP29、P35-43203-2 Significant indirect economic impactsP35-43GRI 204ProcurementPractices
GRI 103Management approach
103-1 Explanation of the material topic and its boundaryP94103-2 The management approach and its componentsP94103-3 Evaluation of the management approachP94GRI 205Anti-corruption
GRI 103Management approach
103-2 The management approach and its componentsP101-103205-1 Operations assessed for risks related to corruptionP101-103GRI 300Environmentaltopics
GRI 103Management approach
103-1 Explanation of the material topic and its boundaryP10、P84-95103-2 The management approach and its componentsP84-95103-3 Evaluation of the management approachP84-95GRI 302 Energy
302-1 Energy consumption within the organizationP94302-4 Reduction of energy consumptionP87、P89302-5 Reductions in energy requirements of products and servicesP87、P89
GRI 304 Biodiversity304-3 Habitats protected or restoredP90GRI 305 Emissions305-5 Reduction of GHG emissionsP87、P89、P93GRI 400Social topics
GRI 103Management approach
103-1 Explanation of the material topic and its boundary
P10、P20-25、P106-119103-2 The management approach and its componentsP20-25、P106-119103-3 Evaluation of the management approachP20-25、P106-119
GRI 401 Employment
401-1 New employee hires and employee turnoverP109401-2 Benefits provided to full-time employees that are not provided totemporary or part-time employees
P112-114
GRI 404 Training andEducation
404-1 Average hours of training per year per employeeP111404-2 Programs for upgrading employee skills and transition assistance programsP111GRI 405Diversity and EqualOpportunity
GRI 103Management approach
103-1 Explanation of the material topic and its boundaryP108-109103-2 The management approach and its componentsP108-109405-1 Diversity of governance bodies and employeesP108-109
GRI 413LocalCommunities
GRI 103Management approach
103-1 Explanation of the material topic and its boundaryP66-67、P83103-2 The management approach and its componentsP66-67、P83103-3 Evaluation of the management approachP66-67、P83GRI 416CustomerHealth andSafety
GRI 103Management approach
103-1 Explanation of the material topic and its boundaryP76-83103-2 The management approach and its componentsP76-83103-3 Evaluation of the management approachP76-83416-1 Assessment of the health and safety impacts of product and service categoriesP82-83 GRI 417 Marketing and labeling417-1 Requirements for product and service information and labelingP82-83
Principles forResponsibleBanking
Reporting and Self-Assessment RequirementsPage
Principle 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 the technologies financed across the maingeographies in which your bank has operations or provides products and services.
P4-6、P9-11、P27、P51、P69、P85、P97、P107
1.2 Describe how your bank has aligned and/or is planning to align its strategy to be consistent with and P87, P95contribute to
society's goals, as expressed in the Sustainable Development Goals (SDGs), the Paris Climate Agreement, and relevant nationaland regional frameworks.
Principle 2: Impact andTarget Setting
2.1 Impact Analysis
Show that your bank has identified the areas in which it has its most significant(potential) positive and negative impact through an impact analysis.
P4、P9-12、P15、P37、P84-95
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 and Time-bound (SMART)targets, which address at least two of the identified “areas of most significantimpact”, resulting from the bank’s activities and provision of products and services.Show that these targets are linked to and drive alignment with and greatercontribution to appropriate Sustainable Development Goals, the goals of the ParisAgreement, and other relevant international, national or regional frameworks. Thebank should have identified a baseline (assessed against a particular year) and haveset targets against this baseline.Show that the bank has analysed and acknowledged significant (potential) negativeimpacts of the set targets on other dimensions of the SDG/climate change/society’sgoals and that it has set out relevant actions to mitigate those as far as feasible tomaximize 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 set targets.Show that your bank has put in place the means to measure and monitor progressagainst the set targets. Definitions of key performance indicators, any changes inthese definitions, and any rebasing of baselines should be transparent.
2.4 Progress on
Implementing Targets
For each target separately:
Show that your bank has implemented the actions it had previously defined to meetthe set target.Or explain why actions could not be implemented / needed to bechanged and 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 in yourfirst reporting after becoming a signatory) towards achieving each of the set targetsand the impact your progress resulted in. (where feasible and appropriate, banksshould include quantitative disclosures)
Principles forResponsible
Banking
Reporting and Self-Assessment RequirementsPage
Principle 3: Clients andCustomers
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 on any programmes and actions implemented(and/or planned), their scale and, where possible, the results thereof
P26-67、P74-93
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 information on actions planned/implemented, products andservices developed, and, where possible, the impacts achieved.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’s impacts. This should include a high-level overviewof how your bank has identified relevant stakeholders and what issues were addressed/results achieved.
P11
Principle 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 effective implementation of the Principles.
P7-11、P90、P93-95、P111
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 capacity building, inclusion in remuneration structuresand 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 impacts being detected.
Principle 6: Transparency& Accountability
6.1 Progress on Implementing the
Principles for Responsible Banking
Show that your bank has progressed on implementing the six Principles over thelast 12 months (up to 18 months in your first reporting after becoming a signatory)in addition to the setting and implementation of targets in minimum two areas (see
2.1-2.4).
Showed in thisreport andAnnualReport 2021 ofHua Xia Bank Co.,LimitedShow that your bank has considered existing and emerging international/regionalgood practices relevant for the implementation of the six Principles for ResponsibleBanking. Based on this, it has defined priorities and ambitions to align with goodpractice.Show that your bank has implemented/is working on implementing changes inexisting practices to reflect and be in line with existing and emerging international/regional good practices and has made progress on its implementation of thesePrinciples.
PRB Content Index
Independent Assurance Report
Thank you for reading the Hua Xia Bank Co., Limited Social Responsibility Report 2021. In order to provide you and other stakeholders with morevaluable information and improve our CSR fulfillment, we sincerely invite you to share your comments on this report and send your feedback asfollows:
Tel: 010-85237056Fax: 010-85239000Email: zhshzr@hxb.com.cnPostal code: 100005Address: 22 Jianguomennei Street, Dongcheng District, BeijingWhat kind of stakeholders do you belong to?
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