HUA XIA BANK CO., LIMITEDSocial Responsibility Report
Social Responsibility Report 2022HUA 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:600015
Scan the QR codefor more information
2022
Scan the QR code to watchimage publicity film of the bank
About This ReportReporting ScopeReporting Period:Unless otherwise stated, the report covers the period between January 1 to December 31, 2022.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, 2022Preparation BasisThe report was prepared in accordance with theGuidelines on Environmental Information Disclosure for Financial Institutionsissued by thePeople's Bank of China, theOpinions on Strengthening the Corporate Social Responsibility of Banking Institutionsissued by former BankingRegulatory Commission (CBRC), theGuidelines on Environmental Information Disclosure for Financial Institutionsissued by the People’s Bankof China, andGuidelines No.1 for Self-Regulation of Listed Companies- Standardized Operationissued by Shanghai Stock Exchange (SSE), andreferred to thePrinciples for Responsible Banking(PEB)issued by United Nations Environment Programme,Guidance on Social Responsibility(ISO 26000:2010)issued by International Organization for Standardization (ISO),GRI Sustainability Reporting Standards (GRI Standards)issued by Global Sustainability Standards Board (GSSB)and theRecommendations of the Task Force on Climate-related Financial Disclosures.ReferenceFor better readability, "Hua Xia Bank Co., Limited" is referred to as "Hua Xia Bank" , "the Bank" or "We" in the reportData SourcesThe financial data in the report come from the audited Annual Report 2022 of Hua Xia Bank Co., Limited and other data come from internaldocuments 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 Information
Hua Xia Bank Co., LimitedAddress: 22 Jianguomennei Street, Dongcheng District, BeijingPostal code: 100005Tel: 010-85237056Fax: 010-85239000E-mail: zhshzr@hxb.com.cn
9010278
365668Message from the ChairmanAbout UsCSR ManagementCSR Performance
OutlookAppendix
Reporting IndexIndependent Assurance ReportFeedback Form
Focusing on Innovation toAccelerate Empoweringthrough Technology
Accelerating Digital TransformationUpgrading Corporate Banking ServicesImproving Service Quality and Eciency
Guarding and
Practicing the Green
PhilosophyDeveloping Green FinanceAddressing Climate ChangeProtecting BiodiversityBuilding Greener LifePracticing Green Operations
Operating Honestlyto Achieve SoundDevelopment
Ensuring ComplianceBuilding a Firm Defense LineProtecting customer rights and interests
Building a HarmoniousSociety Through JointEorts with Loving Care
Paying Close Attention to Employees RightsCaring About Employee DevelopmentCaring About Employee Well-beingEngaging in Public Welfare Undertakings
Oering High-QualityServices in InclusiveFinance
Supporting the Development of MSEsSupporting Rural VitalizationOering Financial Services to Benet the People
Facilitating the Development of National Strategic DevelopmentAccelerating Industrial Transformation and UpgradingServing China’s Opening-up
Serving the Real Economy
under the Guidance of Our
Original Aspiration
Forging ahead in ThreeDecades to Strive for aNew Hua Xia with OneHeart
Spotlight
CONTENTS
In 2022, the 20th CPC National Congress concluded successfully,marking a new milestone for the Party and the Country in the newera. Hua Xia Bank celebrated its 30th anniversary and rose to therank of the top 50 world banks. This motivated our employees tostrive towards greater heights in nancial exploration to better servenational strategies, the real economy, and a better life. With nationaldevelopment as our ultimate aim, we gave play to the leading role ofParty building and actively responded to the national calls to stabilizethe economy for a paradigm of new developments. We also continuedto serve the real economy with greater eciency with more concertedefforts, as we achieve the tasks set out in the three-year action planfor SOE reform. We strive to fulll our responsibilities as a state-ownedfinancial enterprise for China’s economic and social development tomeet the people’s growing expectations for quality nancial services.We remained steadfast in our commitment as a nancial playerserving the real economy. We improved the quality and eciencyof our services and are committed to high-quality development inour nation. We put in signicant eorts and mobilized many nancialresources to build Beijing into an integrated national center for political,cultural, international communication, and technological innovation.Meanwhile, we continued with our regional development strategies anddeepened our differentiated regional development strategy of “ThreeZones, Two lines, Multiple outlets”. We placed our focus on settingup the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and theGuangdong-Hong Kong-Macao Greater Bay Area as the pacesetters fordevelopment. By reinforcing and upgrading weak links in the industrialchain, we improved the quality and eciency of our services to bettersupport new-type infrastructure construction, manufacturing, strategicemerging, and other industries. We also actively integrated ourselvesinto the dual circulation of domestic and overseas markets to contributeto high-quality opening up.We focused on delivering high-quality services and henceexpanded our scope of inclusive nancial services. To deepen ourposition as a nancial service provider for small and medium enterprises(SMEs), we explored various development models for inclusive nance.By prioritizing product innovation and improving service quality, weimplemented measures to alleviate the difficulties faced by SMEsand supported the stable long-term development of micro, small, andmedium-sized enterprises (MSEs). These contributed to the stabilizingof the market and its entities. We also boosted personal consumptionand supported projects that are vital to people’s well-being. Services for“agriculture, rural areas, and farmers” were improved with enhancedallocation of financial resources to rural areas, thus promoting therural vitalization. Such a wide coverage of nancial services to anyoneanywhere contributed significantly to the revitalization of the ruralareas.We have taken the lead in innovation by enhancing ourquality and services with technology. To facilitate our digitaltransformation, we embraced the digital era with the developmentof the digital economy. We improved our digital infrastructure and
Message from the Chairman
strengthened the integration of scenarios and ecosystems, whichensured our efficient and smart financial services are tangible andaccessible. To enhance the ability of digital finance to serve the realeconomy, we innovated in our industrial digital system, FinTech, to meetthe specic nancial needs of dierent industrial ecosystems. Throughdigital transformation, we are able to meet the diversified needs ofour customers and provide them with a high-quality financial serviceexperience.We embraced wholeheartedly to safeguard and accelerate thedevelopment of green nance. Seizing the opportunity presented byChina’s ecological conservation and the 30?60 Decarbonization Goal,we further drove innovation within our green nancing. We transformedour credit structure and accelerated the development of a “climate-friendly bank”, incorporating the ESG philosophy to create new featuresand advantages. In 2022, the growth rate of our green loans surpassedthe average growth rate of all loans in our Bank. This proportion ofgreen loans was also among the highest within the industry. We jointlyissued a “Joint Declaration of the Banking Sector to Support BiodiversityConservation” withChina Banking Association, in support ofbuilding acommunity of life on Earth.We commit to honest operations for safe and steadydevelopment. By adhering to prudent operation and risk management,we improved our long-term risk management mechanism, strengthenedour risk prevention and resolution in key areas, with enhanced internalcontrol. We reinforced our collective legal risk management to cultivatea clean workplace. We also accelerated the digitalization of our riskcontrol system and fostered a culture of risk awareness to improveour overall control of risks. With such high-quality risk control andmanagement, we facilitated stable operations to protect financialstability and security. Our strict adherence to customer protectionrequirements ensured better protection of their rights and interests.We at Hua Xia Bank seize every moment, braving and riding thewaves and the winds that come our way. As we embark on a newjourney of building a modern socialist country in all respects, HuaXia Bank remains committed to financial development with Chinesecharacteristics guided by the principles of the 20th CPC NationalCongress and aims to integrate political consciousness and a people-centered philosophy within our work. As an active contributor to high-quality development, we strive tirelessly to become a large and robustmodern nancial group with stable and outstanding performances. Ourconcerted efforts shall contribute to our Chinese modernization andnational rejuvenation on all fronts.
Party Secretary and Chairman of Hua Xia Bank
Li Minji
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20220504
About UsCompany ProleCorporate GovernanceHua 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), withregistered capital of RMB 15.387 billion.Since its inauguration, the Bank has been forgingahead and made great achievements despite alldiculties. By the end of 2022, the Bank had a totalasset of RMB 3,900.167 billion, 44 Tier-1 branches,78 Tier-2 branches, 987 outlets in 122 cities at orabove the prefectural level nationwide, and 39,938employees, which had formed an institutional systemof building presence in developed cities and reachingout to the whole country. The Bank has set up 1,189agencies in and out of China, covering 305 cities in98 countries on all ve continents of the world. Its settlement network covers all major trade areas in the world.Hua Xia Bank was ranked 46th in The Banker’s top 1000 world banks ranking published in July 2022, in terms of Tier 1 capital. This was an improvementof ve places from the previous year, signifying the Bank's position as one of the top 50 world banks.
The Bank implements the concept of sustainability in corporate governance, advances modernized corporate governance, and continues to optimizegovernance structures, mechanisms, and policies. Under the leadership of the Party Committee, we have established a corporate governance structuremainly comprising of the Shareholders’ Meeting, the Board of Directors (the Board), the Board of Supervisors, and the senior management. The PartyCommittee provides leadership, the Board is the decision-maker, the Board of Supervisors serves strict supervision functions, and the management is incharge of the operation.
As of the end of 2022
In 2022
Non-executiveDirectors
External Supervisors
ExecutiveDirectors
Shareholder Supervisors
Independent Directors
Employee Supervisors
Directors in the Board
Supervisors in the Boarof Supervisors
Development Vision
Innovative,coordinated, green, open andshared development
FocusServing the real economy and creatingvalue for customers and shareholder
Strategic PointsTaking deposits as the foundation,building the Bank's through FinTech andtalents, and ensuring stable operationthrough risk contro
Development DirectionsKeeping to the direction of featured, digital,asset-ecient, specialized, comprehensive,and world-oriented developmentl
Corporate Development VisionStrive to develop into a modern nancialgroup that is "large and strong with stableand excellent performance"
Basic PrinciplesServing the overall interests of thecountry, staying market-oriented, followingstrategies, promoting reform and innovation,creating value, and developing strengths tomaking up for weaknesses
among themamong them
Shareholders' Meetingsheld
Resolutions adopted
Board meetings held
Resolutions adopted
Board of SupervisorsMeetings held
Resolutions adopted
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20220706
To strengthen investor relations management, the Bank strictlyimplements the Working Measures of Hua Xia Bank Co ., Ltd. on InvestorRelations, and designated a dedicated investor relations manager underthe Oce of the Board of Directors to take charge of relevant work.The Bank has promoted interactions and exchanges with investorsand analysts through various channels and forms. We have organized
The Bank abides by the regulations to improve the timeliness andeffectiveness of information disclosure. We have formulated theAdministrative Measures for Information Disclosureto standardize theinformation disclosure and reporting process. To enhance the depthand breadth of information disclosure, we have fulfilled informationdisclosure obligations via various channels, includingChina SecuritiesJournal, Shanghai Securities News, Securities Times, Securities Daily,Shanghai Stock Exchange website, and the ocial website of Hua Xia
Investor RelationsInformation Disclosure
Branches and Sub-branches
Strategy and Asset Management CommitteeRisk Compliance and Consumer Rights Protection CommitteeRelated Party Transaction Control CommitteeNomination and Compensation Assessment Committee
Nomination CommitteeBoard of Directors
Oce of the Board of Directors(Securities Aairs Department)
Oce of the Board of Supervisors
Headquarters DepartmentsBranches and Sub-branches
Senior Management
Audit Department
Oversight CommitteeNomination CommitteeBoard of Supervisors
Shareholders' Meeting
Credit, Investment and Financing Policy CommitteeRisk Management and Internal Control Committee
Credit Approval Committee
Product Management CommitteeAsset Risk Disposal Committee
Green Finance Management Committee
Asset Liability Management Committee
Performance Management CommitteeConsignment Management Committee
Digital Product Innovation CommitteeOnline Loan Project Management Committee
Centralized Procurement Committee
nformation Technology Management Committee
Bank. In 2022, we prepared and disclosed four regular reports and 64interim announcements, informing investors of signicant informationsuch as changes in directors, supervisors, and senior management,as well as the operation of the Shareholders’ Meeting, the Board ofDirectors and the Board of Supervisors, earnings guidance, profitdistribution, the progress of renancing, related party transactions, andasset purchases.
meetings and activities such as the Shareholders’ Meeting andthe performance briefing to showcase our results of high-qualitydevelopment. We have won the Best Shareholder Relations Award in theFifth China IR Annual Awards.
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20220908
Studying and implementing the guiding principles of the 20thCPC National Congress
PartyBuilding as aLeading Role
Upholding the philosophy of exercising full and strict Party discipline, placing the Party’s politicalbuilding at the forefront, and arming ourselves with the Party’s theories to eectively improve Partyconduct, build a clean government, promote the high-quality development of Party building, andcultivate a positive and healthy intraparty political culture.
We hold meetings to deploy and promote the studying of the guiding principles from the 20th CPCNational Congress, uphold the highest standard, with the aim of gaining a deep understanding of thedecisive signicance of establishing Comrade Xi Jinping's core position on the Party Central Committeeand in the Party as a whole, as well as the guiding role of Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era. We organize Party organizations at all levels, coordinate Party ocials, andemployees to carry out special training and study the guiding principles of the key speech. We have issuedbriengs to fulll publicity work so that the guiding principles are thoroughly studied and implemented,and coordinated primary-level Party branches to carry out the Party Day events to promote the high-quality development of the whole bank.Strengthening ideological and political building
Strengthening the building of a talent team
Stepping up eorts to improve Party conduct
We have intensied our eorts to strengthen the ideological and political building of the leadershipteam and established a dedicated study plan. We have enhanced the accountability system forideological work, implemented the “1+1+N” system for ideological and publicity work, and conductedinvestigations into ideological risks. we have launched initiatives to promote a civilized society,established a "Volunteer of the Capital" image, and promoted high-quality Party building through theintegration of theory and practice.
We remain committed to improving the political capacity and specialized skills of the talent team,deepening the construction of the talent training system, optimizing the incentive and restraintmechanism, and improving market-based competitive selection. We have organized talent poolrecruitments to invigorate more talents.
In strict compliance with the central Party leadership’s eight-point decision on improving workconduct and instructions of the Municipal Party Committee, we continue to crack down onformalities, bureaucracy, hedonism, and extravagance. We have formulated the Measures forStrengthening the Building of a Clean Financial Culture, held education conferences to instillthe importance of honesty and integrity among our staff. In addition, we have strengthened theassessment of full and rigorous discipline over the Party and conducted complete inspections toensure that we fulll our due responsibilities.
Issues of Party conduct andclean governance education
Training sessions on ghtingcorruption
Employees reported to thetalent pool in 2022
Posts of clean governance onWeChat
9,000Participants invovled
In 2022
As one of the initial signatories to the Principles for Responsible Banking issued by the UnitedNations Environment Programme and a strong supporter of the Task Force on Climate-relatedFinancial Disclosures (TCFD), we uphold our brand philosophy of “Sustainability for a BetterFuture” under which we prioritize achieving sustainable operations to maximize our economic,environmental, and social values. The Head Oce takes the role to manage CSR aairs. Our CSRmanagement architecture the management performance continues to improve. With outstandingCSR practices, we aim to realize the vision of “harmony brings a bright future and Hua Xia continueswith its public spirit” while striving to develop into a modern nancial group that is large and strongwith stable and excellent performance.
CSRManagement
CSR Philosophy
Ningbo Branch carries out the theme Party Day events
Sustainable, Wonderful
Brand philosophy
Vision of CSR fulllmen
CSR goalsMaximizing 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 prioritiesServing the real economy, Practicing inclusive nance, Promoting ecological progress, Pursuing safe and steadydevelopment, Empowering through FinTech, Putting people rst
SustainableIt is an action guide that incorporates the concept ofsustainability into business activities
Harmony brings a bright futureThe Bank pursues harmonious co-existence, opencooperation, sharing of benets with stakeholders,and works towards balance between economic,environmental and social benets, making itscontribution to a harmonious socialist society
Hua Xia continues with its public spiritLeveraging on its advantages in specialty, location andresources, the Bank takes the initiative to shouldereconomic, environmental and social responsibilities,and strives to bring benets to every corner of Chinaand every Chinese
Harmony brings a bright future and Hua Xia continues with its public spiritChina's culture is at the core of the Bank's development and prosperity, and the value created shall be shared by allpeople of the Chinese nation
WonderfulIt is the goal to realize people's aspirations for abetter life through nancial services to promotecommon prosperity
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20221110
We prioritize the interests of our stakeholdersand continue to identify, assess, screen, andupdate related issues. We prioritize issuesbased on two dimensions: the importance ofsustainable development to Hua Xia Bank andthe importance to stakeholders. Through thisprocess, we identify substantive issues thatare important to both Hua Xia Bank and itsstakeholders.
In September 2015, the United Nations Sustainable Development Summit adopted the 2030 Agenda for Sustainable Development. The agenda covers 17Sustainable Development Goals (SDGs), pointing out the direction for countries and enterprises globally to promote sustainable development. Focusing onthe vision of building a modern nancial group that is large and strong with stable and excellent performance, the Bank evaluates from two dimensionsof materiality and importance, distinguishes 9 core goals and 8 related goals, and devotes resources to core targets to realize sustainable developmentgoals.
Matrix of substantial issuesAnalysis of Substantial Issues
UN SDGs
Importance to stakeholders
Importance to the sustainable development of Hua Xia Bank
related goals
Core goals
StakeholderCore ExpectationsMain Response
Government
Serving the real economy Supporting national strategyDeveloping inclusive nanceSupporting rural vitalization Paying tax in full according to law
Serving coordinated regional developmentSupporting the growth of private micro- and small-sized
enterprisesSupporting China’s opening-up Advancing rural vitalization
Regulatory authorities
Compliance Strict risk management
Implementing regulatory policiesReceiving supervision Strengthening risk prevention
Shareholders and
investors
Improving corporate governanceEnsuring sustained and stable returnProtecting shareholders’ rights and interests Achieving transparent operation
Improving corporate governanceRealizing stable operationCreating values for shareholders Strengthening information disclosure
Environment
Focusing on climate change Facilitating green development
Developing green nancePromoting green oces Participating in eco-friendly public activities
Customers
Safeguarding customer rightsImproving customer experience Accelerating product innovation
Strengthening the protection of consumer rightsProviding high-quality and ecient servicesEnhancing nancial innovation Advancing digital transformation
Partners
Fairness and transparencyContract fulllment with integrity Win-win cooperation
Strengthening exchanges and cooperation Improving procurement management
Employees
Protection of rights and interestsRemuneration and benetsWorking environment Career development
Protecting the basic rights and interests of employeesFacilitating career development channelsProviding job skills training Carrying out diverse cultural and sports activities
Communities
Financial knowledge popularizationSupport for community development Engagement in public welfare undertakings
Publicizing nancial knowledge Participating in charitable activities
Stakeholder Communication
Addressing climate changeDevoting more eorts to green nanceSupporting community developmentCaring for employeesPromoting nancial knowledge
Serving the real economyContributing to national strategiesGuarding against nancial risksPromoting inclusive nanceStandardizing corporate governanceContributing to rural vitalization
Dedicating to charityPracticing green operationPromoting industry development
Pursuing FinTech innovationsProtecting customers' rights andinterestsImproving service qualityHelping employees grow
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20221312
CSR Honor
China Banking and Insurance News
Golden Commitment ? China Financial Annual Excellent Social Responsibility Project - "Experiencethe Charm of Green Sustainability with Us" 2021 Sanitation Workers’ Children Growth PlanSecurities Daily
2022 Digital Economy Pioneers Summit - Digital Transformation of Listed Companies ? Case ofExcellent Application Products
National Business Daily
The 13th Golden Tripod Awards-Annual Inclusive Finance Award
Sina
Bank for Responsible Investing of China ESG Golden Award 2022Hexun
Annual Social Responsibility Pioneer Bank of the 20th Financial List
China Financial Certication Authority (CFCA)
Best Business Innovation Award of Digital FinanceChina Digital Finance Forum
Technology Application Scenario Innovation Award of China Financial Industry
The Green Credit Committee of China Banking Association
Advanced Unit of Green Bank
Beijing Evening NewsOutstanding Contributions to Green Finance
21st Century Business Herald
2022 Brand Building Bank
China Banking Association
2022 “Inclusive Finance” Good News Award
Trade Finance
12th Golden Trade Award - Best Trade Financing Bank
china.com
Outstanding Case of Corporate Governance in the Banking Industry in 2022
The Economic Observer
The 11th Outstanding Financial Enterprise - Annual Outstanding Social Contribution Bank
Economic
Balance ofloans in supportof strategicemergingindustrieUnit:RMB billion
79.689
97.321
104.587
Total assetUnit:RMB billion
3,399.816
202020212022
202020212022
202020212022
202020212022
202020212022
202020212022
202020212022202020212022202020212022
Operating revenueUnit:RMB billion
95.309
95.870
Total protUnit:RMB billion
27.153
31.493
Net protUnit:RMB billion
21.568
23.903
3,676.287
3,900.167
93.808
33.583
25.490
Total loansUnit:RMB billion2,108.993
2,213.529
2,272.973
Growth of loansto MSEsUnit:RMB billion
60.024
34.337
74.721
Balance ofloans to MSEsUnit:RMB billion
456.412
490.749
565.470
Total depositsUnit:RMB billion
1,818.330
1,904.363
2,063.874
CSR Performance
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20221514
International settlementUnit:Dollar billionRMB cross-border settlementUnit:RMB billion
CARUnit:%Allowance-to-NPL ratioUnit:%
Balance ofagriculturerelated loansUnit:RMB billionBalance of loans in supportof manufacturing industryUnit:RMB billionROAUnit:%ROEUnit:%
Shareholder equityUnit:RMB billion
Environmental Performance
180.043
208.477
247.035
244.01
254.81
261.79
Balance of green loansNumber of ETC cards usersUnit:RMB billionUnit:10,000
202020202021202120222022
202020212022202020212022
202020212022
202020212022202020212022202020212022202020212022
202020212022
202020212022
192.254
0.67
282.655
142.855
13.08
249.421
8.64
46.314
147.22
190.744
0.67
300.702
164.667
12.82
255.980
9.04
70.134
150.99
210.4060.67
323.322
162.105
13.27
271.538
9.00
140.878
159.88
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20221716
Social Performance
Number of online corporatebanking transactionsUnit:10,000
Number of online personalbanking transactionsUnit:10,0002,344.73
1,651.14
1,597.29
Number of outletsNumber of rural outlets
Outlets in old revolutionary base areas, areasinhabited by ethnic minority groups, remoteand border areas and povertystricken areas
Unit:/
Unit:/Unit:/
1,022
1,008
3,018.07
2,759.33
2,661.08
202020212022202020212022
202020212022
202020212022
202020212022
Settlement rate of complaints lodgedthrough 95577 customer service centerUnit:%
100.00
100.00
100.00
95577 call-backsUnit:/
130,559
130,637
580,710
Complaints and problems solved throughthe joint handling mechanism of the 95577customer service center
Unit:/
13,126
14,931
27,502
Customer satisfaction rate for95577 customer service centerUnit:%
99.63
99.66
99.61
202020212022
202020212022
202020212022
202020212022
The 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
325.62
327.74
327.88
114,719.26
322,655.98
405,259.04Number of ETC cardsNumber of e-transactionsUnit:10,000Unit:10,000
202020212020202120222022
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20221918
51.14
51.39
51.43
Percentage of female employeesUnit:%
1,451.5
8,023.3
2,138.53
Total charitable donationsUnit:RMB 10,000
20211,91220221,962
20201,785Total number of employees from ethnic minority groupsUnit:/
202239,938
202039,284202139,175
Total number of employeesUnit:/
202020212022202020212022
135,00098,710
137,755
Number of participantsof AML training sessionsUnit:/
1,210
3,7344,722
Number of AML training sessionsUnit:/
28,005
39,741
31,803
Number of legal training sessions
Number of participants of legaltraining sessionsUnit:/Unit:/
202020212022
202020212022202020212022
202020212022
4,365
6,9135,200
202020212022202020212022
Number of employee training sessionsUnit:/
370,748
640,050
531,553
Number of participants ofemployee training sessionsUnit:/
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20222120
Forging ahead in Three Decades to Strivefor a New Hua Xia with One Heart
As a state-owned nancial institution founded in the era of reform and opening up, Hua Xia Bank is committed tothe customer-centered business philosophy and fullling its mission of utilizing nancial services to serve the realeconomy. By aligning with the national strategy and collaborating closely with stakeholders, we have embarked ona sustainable development path with our own characteristics.SPOTLIGHT
SpotlightHUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022Spotlight
In 1995, Hua XiaBank held its foundingassembly and firstgeneral meeting ofstakeholders at theGreat Hall of thePeople. During thismeeting, the Bankunderwent joint-stockreform to modernizeand commercialize itsoperations.
Li Peng, then Premierof the State Council,attended the ribbon-cutting ceremony forHua Xia Bank.
At 15:48, May 17,2001, Hua XiaBank completedits first onlinebusiness, markingthe beginning of itsInternet era.
In 2002, the firstCPC Congress ofHua Xia Bank washeld in Beijing.
1995
2001
2002
Since 2003, Hua Xia Bank has been actively implementing a series of major decisions andarrangements of the CPC Central Committee and State Council to optimize the socialist marketeconomy system. Our unwavering focus on stable operations, standardized management, andpursuit of higher quality, eciency, speed, and architecture have enabled us to facilitate publictrading, and international expansion, thus promising a modern commercial bank with impressivecomprehensive strengths and unique brand features.
We step into a new era where thereform- and innovation-drivendevelopment of listed banksremains our priority.
On September 12,2003, Hua XiaBank made its initialpublic offering byissuing ordinaryshares worth RMB 1billion and becamethe fifth listedbank in China, withits shares listedon the ShanghaiStock Exchange(600015).
2003
Hua Xia Bank was established in the spring of 1992 as a wholly-owned subsidiary of the ShougangGroup. The Bank was entrusted with the important mission of serving as a demonstration unit forChina's nancial reform and played a key role in building a socialist market economy with Chinesecharacteristics. While pursuing greater opening up, Hua Xia Bank strived to build itself into amodern commercial bank.
Three Decades of Dedication
We launched new practices todevelop a national joint-stockcommercial bank.
In 1992, during a visit to Shougang Group, Comrade Deng Xiaoping expressed his support for building a subsidiary bank. ZhuRongji, then Vice Premier of the State Council, also visited and encouraged the construction of Hua Xia Bank.1992
SpotlightHUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022Spotlight
In 2019, Hua Xia Bank became the rst commercial bank to join the Principles for Responsible Investment Association (PRI),one of the 130 signatories to the Principles for Responsible Banking issued by the United Nations Environment Programmeand a diamond partner in a series of winter sporting events of the “Experience Beijing” program.
Since 2017, the Bank has been committed to the guiding principle of Xi Jinping Thought onSocialism with Chinese Characteristics for a New Era and practicing the new developmentphilosophy in a complete, precise and comprehensive manner. We focus on serving the realeconomy, preventing financial risks, and promoting financial reform. With the goal of buildingourselves into a modern, large and strong nancial group with stable and excellent performance, weredouble eort to move from quality development to high-quality development.
We has entered a new erawhere we strive to build HuaXia Bank into a modern, largeand strong nancial groupwith stable and excellentperformance.
2005
2014
2016
In 2005, Hua Xia Bankattracted internationalstrategic investors and signedan Agreement on Long-term ComprehensiveStrategic Cooperationwith Deutsche Bank inBerlin, Germany. Thissignificant event waswitnessed by Hu Jintao,then State President andGeneral Secretary of theCPC Central Committee,and Horst K?hler, thenGerman President.
In 2014, the first debitcard themed on thecoordinated developmentof the Beijing-Tianjin-Hebei region wasspecifically issued inChina as part of ourefforts to support theinitiative.
In 2016, we successfullyundertook the InnovativeFinancing Project forAtmospheric PollutionControl in the Beijing-Tianjin-Hebei Regionfrom the World Bank,which was then theWorld Bank's largestsingle loan project inChina.
In 2017, the Bank established Anxin Branch, the rst nancial agency in Xiong’an New Area since the Area was set.2017
2019
2020
From 2017 to
2020, the Bank
provided paired-up
assistance for poor
counties in Inner
Mongolia, Xinjiang
and Qinghai that
were designated to
Beijing, investing
RMB 1.06 million
in targeted poverty
alleviation and
helping 195,000
people in difficulty
and enabling them
to register in the
national poverty
alleviation network.
China Renewable
Energy and Battery
Energy Storage
Promotion Project
of the World Bank
undertaken by the
Bank came into
force.
SpotlightHUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022Spotlight
We follow the unied guidance of the Party on the nancial sector while integrating the Party leadership inthe modern business architecture and our operation and development. In 2017, we placed great importanceon both Party building and corporate growth. We rmly believe in the overall Party leadership of Hua XiaBank and strive towards the goal of building a modern nancial group that is “large and strong with stableand excellent performance”.Advances in PartyBuilding
With national development being our ultimate aim, we act in compliance with major national strategies tofulll the due mission and responsibility we carry as a nancial institution, better serving the country in anew era. Our brand concept of “Sustainability for a better future” reects our commitment to serving thenational strategy for regional development by mapping out the layout for “three regions, two lines, andseveral spots” and developing comprehensive nance, science and innovation-driven nance, and greennance. By doing so, we aim to improve the quality and eciency of real economic nance, provide intensivesupport for rural vitalization, and underpin high-quality national social and economic development.
Higher quality andeciency of servingthe real economy
To align with the reform and opening up, we continue to optimize our business structure through major actions,including joint-stock reform, listing and attraction of foreign investment. Our focus is on serving market-orienteddevelopment, inheriting corporate strategy, driving innovation, and creating value. We leverage our strengthswhile mitigating our weaknesses and always keep the bigger picture in mind. Furthermore, we employ integratedfinancial services to consolidate our corporate banking services and foster new drivers for digital and retailbusinesses and new features for green nance and wealth management.
Support forUpgrading throughFinancial Reforms
We proactively respond to dynamic changes in both internal and external risks with eective prevention measures.Our asset quality management is implemented eectively across the entire cycle, involving industry selection,customer access, product design and service mode to realize the full-lifecycle management of asset quality basedon better risk governance system and avoid potential risks. We have established a compliance managementstructure at the Group level and continuously strengthen internal control and compliance management. The auditsystem reform has been implemented to further improve internal audit system.
RemarkableAchievements inRisk and ComplianceManagement
Over the past 30 years, Hua Xia Bank has grown into a national joint-stock commercial bank with unique features,a competitive edge, and quality service. We keep developing integrated management to provide customers withintegrated nancial services such as deposit and loan, investment banks, trade nance, consumer nance, etc. Wealso prioritize making progress in the coordinated development of nancial businesses, asset management, andasset custody. We continuously improve our service channels, and have established a full-channel service systemthat covers the whole country, centers on economic central cities, and connects the whole world.
ImprovedIntegratedManagementand CorporateStructure
On December 28, the Ceremony Marking the 30th Anniversary of Hua Xia Bank was held in Beijing. The participants witnessed the glorious history ofHua Xia Bank and embarked on a new journey together.
2021
2022
In 2021, the Bank became a supporter of the Task Force on Climate-related Financial Disclosures (TCFD) and signed theCommon Action Plan for Banking Sector to Support Biodiversity Conservation issued by China Banking Association. We alsojoined the Biodiversity Finance Initiative (BIOFIN) and put forward the brand concept of “Sustainability for a better future”.
In 2022, Hua Xia Bank, 46th in the Tier1 Capital ranking, was first listed among the Top 50 of "The Top 1000 WorldBanks" ranking published by the Banker.
SpotlightHUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022Spotlight
The ocial mascot “RICH” ofHua Xia Bank unveiled
Scan to watch howthe RICH was born
On October 18, 2022, Hua Xia Bank ‘s mascot was unveiled in Beijing, marking the rst timein the Bank’s history that the company has introduced a mascot representing its brand imagecalled “RICH”. Li Minji, Party Secretary and Chairman of the Bank, delivered a speech at the pressconference held in the lobby on the rst oor of the Head Oce Hua Xia Bank. He, together withWang Minglan, Deputy Party Secretary and Chairman of the Board of Supervisors of the Bank,hung the brand logo of Bank on "RICH", introducing the mascot, which holds the vision and carriesthe meaning of prosperity and auspiciousness, to the guests on site. The three-day event was ajoyous occasion where the Bank's leaders and employees got together to celebrate this momentousmoment.
Bank ocials take photos with sta of the press conference of mascot RUIQI
The prototype of the mascot “RICH” is the mythical beast in traditionalChinese culture - Qilin. It combines the traditional cultural features ofthe Chinese nation with modern aesthetic characteristics, reectingauspicious blessings implied in traditional Chinese culture. As a state-owned nancial enterprise, built on the strengths of Chinese traditionalculture, the Bank is exploring new ways in which traditional Chineseculture can be transformed and developed creatively and revitalizedthrough the spirit of the times. The mascot “RICH” serves as a bridgeand link for Hua Xia Bank to deliver nancial services to customers.RICH
Scan to review thepress conference
In January 2022, we organized employees to join in thecampaign of “Make Wishes for a Better Future – Supportfor Sustainable Development”. Nearly 300 employeesparticipated in the first celebration to mark the 30thanniversary of Hua Xia Bank.
In September, the key visuals to celebrate the 30thanniversary of Hua Xia Bank were released.
The six-day event themed “Three-decade Endeavorto Build a New Future with One Heart”, was held on2022 China International Fair for Trade in Services.The event witnessed near 10,000 attendees whointeracted with each other and took photos to sharethe joy for the 30th anniversary of Hua Xia Bank.
As Hua Xia Bank celebrates its 30th anniversary, we organized a series of brand publicity activitiesthemed “Striving for a Better Future” throughout the year where we communicated with dierentstakeholders including the government, regulators, shareholders and investors, customers,partners, employees, social media, the public and communities and shared the joy of growth. TheBank will proceed with its journey to sustainable development on the new path it has blazed.A series of activitiesto celebrate the 30thanniversary of Hua Xia Bank
Scan to know moreour wishes
Scan to know more
our wishes
Scan to review the
event
SpotlightHUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022Spotlight
The Bank’s publicity film “Be a Better Self” wasreleased, which in the perspective of new hiresshowed the Bank’s care for staff that drives theirgrowth through setbacks and obstacles.
The music video of our original song “Be Your Hero” wasreleased. Sung by employees of Hua Xia Bank, the lyricsexpressed their gratitude for each other’s company in theBank’s three-decade development, reviving the touchingmoments between sta and customers.
Scan to seeemployees’ growth.
Scan to listen tothe song.
The “Hua Xia in Rhythms” campaign was launchedto gather the best wishes of staff from 44 branchesnationwide for the 30th anniversary of the Bank.
Scan to relaytogether
The “History of Hua Xia” wasdrawn by hand for stakeholdersto review the Bank’s three-decade development.
We held “You make Hua Xia Better”photo competition that centeredon the development history ofHua Xia Bank. Based on threetopics of “stories of time”, “sincereservices” and “Hua Xia moments”,we collected 22,944 exquisitephotographs from all walks of life,which showed the monumentalmoments of Hua Xia Bank in itsthree decades.
The 10,957 days of growth sincethe Bank’s establishment owe muchto the hard work of generations ofHua Xia staff who seek to makeHua Xia better with customers.Employees and customers wereinvited to share their indelibleexperience in “Stories with Hua Xia”event.
Scan to see thehighlights
Scan to reviewvideo
Scan to listen to the
story of Hua Xia
SpotlightHUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022Spotlight
Turning 30 marks maturity, greater responsibilities and the beginning of a better future. The 20th CPC National Congress marked thebeginning of a new journey towards achieving the great rejuvenation of the Chinese nation through the path of Chinese modernization. It provided a clear directionfor Hua Xia Bank to achieve high-quality development and served as fundamental guidance for nancial development with Chinese characteristics.We will remain committed to our founding principles and continue to move forward. As we embark on a new journey, Hua Xia Bank will adhere to the nancialrequirements of the Chinese path to modernization, fully implement the new development philosophy in a comprehensive, accurate, and systematic way, and strive tointegrate ourselves into the new development paradigm. Our ultimate goal is to become a key contributor to social and economic development. We will work tirelesslytowards achieving our corporate mission and contribute to building a modern socialist country in all aspects, while also creating new milestones in the history of HuaXia Bank.
A New Journey to Glorious DreamsThe “Promotional Video for the 30th Anniversary of Hua Xia Bank” was released, showcasing the Bank's dedicationto reform, Party leadership, founding aspiration, and inclusive nance, as well as the eorts in risk control andinnovation. It pays tribute to those who have grown with the Bank for thirty years.Scan to watch the series ofactivities to mark the 30thanniversary of the Bank
SpotlightHUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022Spotlight
SERVING THE REALECONOMY UNDER
the Guidance of Our Original Aspiration
Serving major national strategies and promoting coordinateddevelopment of key regions
Making every effort to build Beijing into the national political,cultural, international communication and technologicalinnovation center and providing stronger financial support for thedevelopment of key fields in the capital
Increasing support for the manufacturing industry to drivetransformation and upgrading of the industry
Introducing innovative trade finance products in response to theBelt and Road Initiative
Guided by major national strategies, Hua Xia Bank actively integrates intothe new development pattern of the capital. Our approach is guided by theregional development strategy of "Three Zones, Two Lines, Multiple Outlets"with a focus on the Beijing-Tianjin-Hebei region, Yangtze River Delta, andthe Guangdong-Hong Kong-Macao Greater Bay Area as key areas. Ourgoal is to support the transformation and upgrading of the manufacturingindustry, support China's high-quality transformation of industries and serveits opening up to the world. We remain committed to making contributions tothe high-quality development of the real economy.Sustainability practices
As of the end of 2022
In 2022
RMB 560.897 billionBalance of loans issued in the Beijing-Tianjin-Hebei regionRMB 661.87 billionBalance of loans issued in the Yangtze RiverDelta
RMB 242.127 billionBalance of loans issued in Guangdong, HongKong, and Macau
RMB 300.265 billionInvestment and nancing services for Beijing
RMB 104.587
billionBalance of loans issued to strategic emerging industries
Correspondent banks opened in BRI markets
Supporting economic development
Focusing on key areas of the capital’s economic development, the Bank continues to promote theR&D of innovative products and services. We aim to increase nancial support for key enterprisesand projects, strengthen credit extension for entities in the capital, and provide targeted servicesto private small businesses and farmers. Through these eorts, we strive to enhance the economicdevelopment of the capital.Serving central SOEs in Beijing. The Bank communicates and partners with the headquarters of keyenterprises in the capital, including China National Agricultural Development Group Co., Ltd., State GridCorporation of China, China Poly Group Corporation Ltd. and China Chengtong Holdings Group Ltd.Supporting municipal-level SOEs. We signed a strategic cooperation agreement with Beijing State-ownedCapital Operation and Management Company Limited to deepen our cooperation with Beijing EnvironmentSanitation Engineering Group Co., Ltd., BBMG Corporation Ltd., Beijing Energy Holding Co., Ltd.; signed strategiccooperation agreements with 7 Hong Kong-based SOEs under the control of Beijing Municipality, as part of the“Beijing-Hong Kong Cooperation for a Better Future” campaign.
Supporting government-subsidized housing and urban renewal projects in the capital. The Bank hascompiled and distributed theWork Plan of Hua Xia Bank for Providing Financial Support for Beijing to Acceleratethe Development of Government-Subsidized Rental Housing ProjectsandHua Xia Bank Administrative Measuresfor Urban Renewal Loans. support various projects, including the rental housing project on collectively-ownedland in Lugouqiao, Fengtai District, and Beijing, as well as publicly traded REITs based on government-subsidizedhousing projects in Beijing, and infrastructure REITs projects of Beijing Energy Holding Co., Ltd.
In 2022
Strengthening nancial supportfor key enterprises in the capital
Strengthening nancial services
for key projects in the capital
Serving key projects and
enterprises in Beijing
The Bank has strengthenedcommunication with the BeijingFinancial Loan Service Center toexpand the coverage of inclusivenance.
Strategic cooperation with the Beijing Stock Exchange
In 2022
Serving MSEsand farmers in
BeijingDesigninginnovativeproducts
Improvingservice qualityand eciency
We have launched the Farmerand Commerce Loan (Hui NongXing Shang Loan), the BankGuarantee Loan (Yin Dan Loan),and the Market Loan (Shi ChangLoan) for MSEs, and promotedthe Inclusive Agricultural Loan.Farmers in the capital can applyfor loans online, and we aimto review and approve theirapplications on the same dayand issue the loan online.
Facilitating theDevelopment ofNational StrategicDevelopment
Hua Xia Bank is dedicated to serving the strategic needs of the nation and actively contributesto the development of Beijing as the national political, cultural, international communication andtechnological innovation center. In addition, we strive to support the Beijing-Tianjin-Hebei region,the Yangtze River Delta region, and Guangdong, Hong Kong, and Macau in becoming new highlandsfor development. Through the formation of a collaborative and coordinated development patterncovering “Three Zones, Two Lines, Multiple Outlets,” and we have taken measures to support thehigh-quality development of the real economy.
Hua Xia Bank resolutely fulfills its responsibilities and missions. In line with this, we haveformulated theHua Xia Bank 2022 Work Plan for Serving the Economy in the Capital andCoordinated Development of the Beijing-Tianjin-Hebei Region. The plan is designed to advancethe development of Beijing as the national political, cultural, international communicationand technological innovation center, and provide financial support for the capital’s economicdevelopment, technological innovation, cultural prosperity, international exchanges, among otherkey areas. By doing so, we are paving the way for the capital's high-quality development.
Serving the overall development of the capital
RMB 300.265 billionInvestment and nancing services providedfor Beijing
In investment and nancing services provided for keyprojects related to the coordinated development ofBeijing-Tianjin-Hebei region, with a focus on industrialpark construction, infrastructure, green environmentalprotection, and other elds
Local government bonds in Beijingunderwritten
Financing services provided for MSEs inBeijing
SOEs and
government organization in Beijingsigned strategic cooperation agreementswith the Bank
RMB 36.179 billionRMB 3.09 billionRMB 35.458 billion
14.63%
Year-on-year increase
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20223938
Hua Xia Bank is dedicated to enhancing nancial support for high-tech sectors. To achieve this, wehave made consistent eorts to improve our nancial services by strengthening our top-level designand developing more innovative products. We have supported the construction of the InternationalCenter for Science & Technology Innovation in Beijing, and are committed to assisting Beijing inbecoming a benchmark city for the global digital economy.
Strengthening the constructionof intelligent service terminalsIn Beijing, we have piloted new functions such as themerchant ecosystem and WeChat queuing functionsto enhance intelligent services at our outlets. Besides,to improve remote services, we have launched anonline appointment booking service that covers allbusinesses for corporate clients.
In 2022In 2022
Supporting theconstruction ofthe InternationalCenter for Science &Technology Innovationin Beijing
Improvingthe top-level design
Deepeningstrategiccooperation
Designinginnovativeproducts
To enhance financial support for specialized and sophisticated enterprises, we have issued
the Process of Hua Xia Bank for Issuing Loans to Specialized and Sophisticated MSEs, whichemphasizes one scheme for one client and accelerated approval.We have facilitated re-lending to high-tech companies in Beijing and have increased the FTP tilt
based on the central bank's special re-lending instruments.
We have signed a strategic cooperation
agreement with the Beijing Stock Exchange andthe National Equities Exchange and Quotations(NEEQ) to develop targeted private equitystrategic investment products.We have established comprehensive cooperation
with CAS Holdings under the Chinese Academy ofSciences to support competitive tech companiesand serve people working in the high-tech industryin Beijing.The Bank provided credit support for ZGC Group
and launched the Zhongguancun InternationalSyndicated Loan.
The Bank has issued the Hua Xia Bank
Administrative Measures for Option Loans (Trial)to promote the R&D of investment-oriented loanproducts.We have intensified our efforts in researching,
developing, and promoting featured products.These include upgrading the Science andTechnology Innovation Financial Service Package
2.0 for the Capital, and increasing the maximum
credit line of Smart Loan 2.0 (Zhirongbao 2.0) toRMB 20 million.
Boosting innovation in industrial
digital FinTechWe have completed the development of all functionsof the first phase of the industrial digital FinTechplatform and launched the digital factoring projectof CCCC Fourth Highway Engineering Co., Ltd. whichhas started to issue loans.
Supporting Beijing in building a benchmarkcity for the global digital economyAccelerating the full-scenarioapplication of digital RMBWe have introduced functions such as digital RMBwallets for enterprises and an anti-overreachmechanism for digital currency APPs, and signeddigital RMB cooperation agreements with the fourmajor banks: Industrial and Commercial Bank ofChina, Agricultural Bank of China, Bank of China, andChina Construction Bank.
Boosting technological development
To build Beijing into a national cultural center, the Bank works to develop nancial products andservices for the cultural and creative sectors. We take the initiative to serve national time-honoredbrands. Through supporting key cultural and tourism enterprises and projects in Beijing, we aim tostrengthen the capital’s role as a magnicent center of traditional Chinese culture.
Beijing Branch, in collaboration with China Technology Exchange, has provided intellectual propertyfinancing for high-tech enterprises. This has filled the gap in Beijing for securitization productsbased on patents, which is of great practical signicance for promoting the innovation of nancialproducts based on intellectual property rights.
Focusing on enterprises operating in consumer sectors such as foods, drinks, and daily necessities,we actively promote the Hua Xia Craftsmanship (Hua Xia Jiang Pin) series of products, and take theinitiative to serve national and local time-honored brands, as well as well-known companies culturalheritage and development potential. Our comprehensive financial services cover payment andsettlement, cash management, investment and nancing, and other customized solutions to meetthe unique needs of time-honored enterprises.
Financing the first project of intellectual property securitization through patent licensing
Continuing to implement the Time-Honored Brand Action Plan
Supporting key culturaland tourism enterprisesand projects in the capital
We issued a syndicatedloan for the UniversalBeijing Resort project.
We provide creditsupport for leadingfilm and televisionbroadcasting companiessuch as Poly Culture,New Classics Media, andPerfect World.
As the first financialinstitution to register onthe China Cultural andCreative Industry PublicService Platform, HuaXia Bank signed a jointconstruction agreementwith the platform.
We invested in the rstcultural and creativeparks rental housingREITs project.
Driving cultural development
Case
Case
RMB 32.942 billionRMB 20.152 billionInvestment and nancing services providedfor 489 tech companies Beijing
Financing services provided for cultural andcreative enterprises in the capital
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20224140
Supporting international exchanges
Serving the development of the Beijing MunicipalAdministrative Center
As part of our contribution towards building Beijing into an international exchange center, we haveimproved the organization of free trade zones and developed distinctive trade and nancial servicesto support enterprises in the capital to go global.
We support Beijing in relieving its functions non-essential to its role as China’s capital, andenhance nancial support for the coordinated development of the “one core and two wings,” thuscontributing to the high-quality construction of the Beijing Municipal Administrative Center.
As of the end of 2022
Increasing external communication efforts. In 2022, we sponsored the 2022Zhongguancun Forum, and participated in the 2022 China International Fair forTrade in Services and the Financial Street Forum, striving to publicize distinctivetrade and nance services.Accelerating organizational improvements of free trade zones in Beijing, Tianjin,and Hebei. We have set up a Sub-branch in the High-End Industry Area of the China(Beijing) Pilot Free Trade Zone.
Accelerating organizational improvements of free trade zones in Beijing, Tianjin,and Hebei. We have set up a Sub-branch in the High-End Industry Area of the China(Beijing) Pilot Free Trade Zone.Optimizing cross-border nancial services. We provide support for internationalsettlement and trade nancing, and promote cross-border RMB.
Supporting thedevelopment of the
Beijing Municipal
Administrative
Center
Supporting the capital in going global
We recently established Xinhua East Street Sub-branch and promoted the greentransformation of Yunhe Sub-branch.
We signed a cooperation agreement with the Industry Fund of the BeijingMunicipal Administrative Center for custody business.
We provide credit support for investment and state-run companies in Tongzhou,and support the construction of key projects, including transportation hubs and theZhangjiawan section in Tongzhou District.
Rendering of the new headquarters building of Hua Xia Bank( New Tongzhou Tower)
Hua Xia Bank has actively supported and implemented the Municipal Party Committee and the Municipal Government's decision to relocate the HeadOce to the Beijing Municipal Administrative Center. In the same year, we completed the land acquisition and started construction. The new headquartersbuilding, located on the north bank of the North Canal in Tongzhou, covers an area of about 30,000 m2 and a total above-ground oor area of 120,000m2. The whole building is constructed in accordance with the 3-star green building standard. We aim to complete the new headquarters by October2026. The relocation of the Bank's headquarters is a signicant achievement in Beijing's eorts to relocate high-quality resources such as non-capitalfunctions and the headquarters of municipal-level SOEs to the Beijing Municipal Administrative Center.
Accelerating the relocation of the Head Oce to the Beijing Municipal Administrative CenterCase
RMB 5.7 billion
Credit balance in total after providingnancing for 200 enterprises in TongzhouDistrict
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20224342
We provided financial servicesto residents who have relocatedto Xiongan New Area andparticipated in the paymentprocesses for resettlementhousing in the area
We provided credit services for China Xiongan Group and creditsupport for CCCC Xiong’an Financial Leasing Co., Ltd
We obtained the qualications toregulate pre-sale funds for newcommercial housing projects andfor financial fund payments inXiongan New Area in 2022
We push forward with theHua Xia Bank Action Plan for the Development of the Beijing-Tianjin-Hebei Region 2021-2025. Positioning ourselves to be “a major nancial service provider for theBeijing-Tianjin-Hebei region,” we have improved comprehensive nancing services for key areassuch as Xiongan New Area, and enhanced our support for the relocation of industries and integratedtransportation, thereby injecting new impetus into the coordinated development of the Beijing-Tianjin-Hebei region.
Facilitating the coordinated development of the Beijing-Tianjin-Hebei region
Supporting the development of Xiongan New Area
Empowering the development of key functional zones
To facilitate the high-quality development of Xiongan New Area, a pacesetter that relieves Beijingfunctions non-essential to its role as China’s capital, Hua Xia Bank has increased nancial supportfor construction entities in the Area, explored a new model of optimized development in denselypopulated areas, and cultivated new drivers through innovation-driven development.
The Bank has stepped up eorts to develop the “2+4+N” functional zones for strategic cooperationand platforms for industry relocation, providing nancing support for business entities in variousregions including Tianjin, Caofeidian, Cangzhou, Handan, etc.
In 2022
As of the end of 2022
Xiongan Branch actively provides financial services to relocated residents in the Rongdong andRongxi resettlement areas. The branch has provided nancial support for ve batches of relocatedresidents in the Xiongan New Area and ensured their livelihood.
In 2022, Tianjin Branch has completed the issuance of the rst targeted debt nancing instrumentfor an investment limited company in Wuqing, Tianjin. This funding will support Wuqing District'seorts to relocate industries from Beijing and relieve Beijing functions non-essential to its role asChina’s capital.
Providing nancial support for residents in resettlement areas
Supporting the construction of the platform for undertaking relocation ofindustries in Wuqing District, Tianjin
Supporting thedevelopment ofXiongan New Area
Case
Case
Facilitating integrated transportation
Conducting ecological governance
Focusing on key projects related to the integrated transportation of the Beijing-Tianjin-Hebeiregion, we have been providing nancing support for companies such as Beijing Capital HighwayDevelopment Group Co., Ltd. (DCHD), Shijiazhuang Metro, Tianjin Rail Transit, and Handan TracConstruction, promoting interconnectivity of transportation in the Beijing-Tianjin-Hebei region.
Leveraging our expertise in green nance, we have provided comprehensive nancial services forenvironmental projects focusing on regional air pollution control, water pollution control, as well asfor enterprises engaging in energy conservation and environmental protection, thereby promotingthe integrated development of green nance and the green industry in the Beijing-Tianjin-Hebeiregion.
As of the end of 2022
RMB 42.318 billionBalance of green loans of our branchesin the Beijing-Tianjin-Hebei region
As of the end of 2022
In 2022, Tianjin Branch has successfully completed the issuance of the second medium-term noteof an investment group limited company in Binhai New Area, Tianjin. The funds raised will facilitatethe construction of transportation and infrastructure projects in the Beijing-Tianjin-Hebei region.
Tianjin Branch provided a total of over RMB 1.9 billion in loans to a development limited company inLingang, Tianjin. to support the comprehensive improvement of sea areas, coastal zones, and islands. Thisnancing will contribute to the eorts to improve the marine environment in the region.
Assisting Binhai New Area in accelerating the integrated transportation ofthe Beijing-Tianjin-Hebei region
Supporting marine ecological conservation
Shijiazhuang Branch supports ecological restoration of Beijing-Hangzhou Canal
Case
Case
RMB 75.945 billion
RMB 560.897 billion
2.6212
million
1.3337
million
Investment and nancing servicesprovided for key projects critical to thecoordinated development of the Beijing-Tianjin-Hebei region
Balance of loans to the Beijing-Tianjin-Hebei region
Debit cards themed on thecoordinated development of theBeijing-Tianjin-Hebei region issued
ETC cards users in the region
Outlets established in the Beijing-Tianjin-Hebei region
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20224544
Hua Xia Bank has capitalized on the development opportunities in the Yangtze River Delta regionby providing nancial support to key sectors, including public services, infrastructure construction,and environmental protection, and implemented various measures to promote the integrateddevelopment of the Yangtze River Delta.Contributing to the integration of the Yangtze River Delta regionAs of the end of 2022
Promoting the integrated development of the Yangtze River Delta
Integrating into the mainstream of innovation-driven development
Creating new competitive edges in “commercial banking + investment banking”
Accelerating the construction of a new pattern of retail transformation
Building a bridgehead for o-shore banking business.
Building a new model for oering nancial services to sci-tech innovation. We have participated in sci-tech events initiated by the “Yangtze River Delta G60 Science and Innovation Corridor Financial ServiceAlliance,” and provided exclusive products and services for sci-tech companies while improving our servicecapabilities.Exploring incentive mechanisms for innovation. We have swiftly implemented the “equipment renewal” and
“technological innovation” policies. In doing so, we have introduced a range of incentive policies aimed atpromoting loans for science and technology, and providing increased support through relevant resources.
Promoting the construction of an “industry + customer” hierarchical and classication system. To better
serve strategic emerging industry clusters, as well as specialized and sophisticated SMEs, we have renedour marketing directions and strategies for assets business.Expanding the “commercial banking + investment banking” business. We have explored the “commercial
banking + investment banking” cooperation mechanism as well as the bank-government cooperation modelto strengthen regional resource linkage, and improve the joint loan mechanism in the Yangtze River Deltaregion.
Facilitating access to consumer financing scenarios. We have expanded our services to cover various
scenarios such as transportation, health, and consumption, promoted the development of consumernancing, and carried out cross-regional services to facilitate the inow of funds between regions.
Actively promoting the development of innovative bond business. We have participated in the issuance of
regional free trade bonds to facilitate the development of cross-border nancial products and free tradederivatives. We leverage our free trade platform to provide comprehensive services to companies engagedin overseas businesses.
Deeply integrating into the development of a “green and beautiful Yangtze River Delta”
Promoting the development of key green projects. Leveraging the strengths of our branch in the Lin-gang
Special Area of China (Shanghai) Pilot Free Trade Zone, we have pooled our resources to support initiativessuch as the “project of doubling wind and solar power generation capacities” to promote the developmentof green manufacturing and renewable energy. Furthermore, we have developed innovative models forcooperation in green nance.
Wuxi Branch signs a strategic cooperation agreement with the Wuxi High-TechIndustrial Development Zone to ease the diculties of businesses.
Huai’an Sub-branch, affiliated with Nanjing Branch, signs a strategic cooperationagreement with the Lianshui County Government.
Shaoxing Branch was the only national joint-stock commercial bank that participated in the credit signing meeting for the city's infrastructure projectsorganized by the Shaoxing Municipal Government. During the meeting, the branch signed an RMB 1.5 billion credit cooperation agreement with aconstruction group limited in Shaoxing City to fully support the construction of Area B in Phase I of the Shaoxing International Convention and ExhibitionCenter, as well as other signicant infrastructure projects in the area. By doing so, Shaoxing Branch is making a valuable contribution to the high-qualityintegrated development of the Yangtze River Delta region.
Based on the strategy for integrated development of the Yangtze River Delta, Hefei Branch has actively provided nancial support for key constructionprojects in eight cities, including Hefei, Wuhu, Chuzhou, Ma’anshan, Tongling, Chizhou, Anqing, and Xuancheng, that have been incorporated into thestrategy. As of the end of 2022, the balance of on- and o-balance sheet credit business for these eight cities totaled over RMB 23 billion.
Shanghai Branch has played a crucial role as the exclusive domestic coordinator in supporting the issuance of USD 150 million oshore bonds by a high-tech (group) limited company in Shanghai. in the free trade zone. This marked China's rst US dollar-certied structured oshore bond in a free tradezone, and has eectively promoted the development of the Shanghai International Financial Center.
The national pilot project for comprehensive governance and sustainable development of the water environment in the Taogu area, located in the upperreaches of Taihu Lake, was a key provincial project of Jiangsu in 2022. Changzhou Branch raised funds through wealth management projects for a grouplimited company in Jiangsu, the entity which undertook the project. The nancial support provided by the branch has signicantly contributed to the safetyof Taihu Lake's water and the high-quality integrated development of the Yangtze River Delta region.
Boosting infrastructure construction
Providing nancial support for key projects in the eight cities of the Yangtze River Delta region
Supporting the construction of the Shanghai International Financial Center
Supporting the comprehensive governance of Taihu Lake’s water environment
Case
Case
Case
Case
RMB 661.87 billion
Balance of loans issued in the YangtzeRiver Delta region
7.25%
Year-on-year increase
8.04%
Year-on-year increase
RMB 615.362 billion
Deposit balance
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20224746
With a focus on the strategic locations of the Guangdong-Hong Kong-Macao Greater Bay Area,Hua Xia Bank has increased support for the development of local high-end industries, and improvedfinancial services to assist the Greater Bay Area in becoming a world-class bay area and citycluster.
Boosting the development of the Guangdong-Hong Kong-MacaoGreater Bay Area
Hong Kong Branch completed 73 overseas debt
underwriting transactions in 2022, with a totalissuance amount of over HKD 131.8 billion forbond projects; improved the clearing channelsfor three foreign currencies, including US dollars,euros, and Japanese yen, and established agentbank relationships with 134 banks in total.
RMB 242.127
billionBalance of loans for the Guangdong-HongKong-Macao Greater Bay Area
As of the end of 2022
To promote the development of high-end
manufacturing, Shenzhen Branch has successfullyissued the first scientific and technologicalinnovation bill worth RMB 440 million in theGreater Bay Area.Shenzhen Branch has issued Hua Xia Bank’s rst
risk disposal type M&A loan to support the stabledevelopment of the real estate market.Shenzhen Branch’s private banking center has
been put into operation, while Hong Kong Branchhas obtained the qualification for expandingits wealth management and private bankingbusiness.
Guangzhou Branch has completed Hua Xia Bank’s
first domestic Letter of Credit (L/C) forfaitingasset cross-border transfer transactions.Hong Kong Branch has launched agency foreign
exchange (FX) spot, forward and swap trading,agency cross-currency swap trading, agencyinterest rate swap trading, and agency bondtrading, and completed an annual agency tradingvolume exceeding HKD 12 billion.Guangzhou Branch has completed the first
battery energy storage financing project of theWorld Bank in the Greater Bay Area, and investedin innovative businesses such as green bondsthrough wealth management funds.The proportion of green loans at Shenzhen Branch
exceeds the average level of the banking industryin the city.
Boosting the development of the Guangdong-Hong Kong-Macao Greater Bay Area
Building a “commercialbanking + investmentbanking + private banking”value chain
Achieving innovative
breakthroughs in
trade nance
Focusing on China’s30?60 DecarbonizationGoal while developing
green nance
Actively integrating
into the international
nancial market
Intercity railway constructionproject in the Pearl River Delta
The signing ceremony of industry and nance integration projects at the 11th China (Guangzhou) InternationalFinance Expo
Hong Kong Branch’s 2nd Anniversary Celebration & “Signing Ceremony of StrategicCooperation Agreements with Beijing-Aliated Companies in Hong Kong”
Shenzhen Branch receives the title of “Shenzhen Green Financial Institution”from the Shenzhen Municipal Financial Regulatory Bureau.
Hong Kong Branch has extended a loan of HKD 2 billion to New World Development Company Limited to promote economic growth in the Guangdong-Hong Kong-Macao Greater Bay Area. New World Development has played an active role in the construction of the Greater Bay Area through thedevelopment of a number of iconic large-scale projects, including the Hanxi Changlong land site in Guangzhou and the Prince Bay Project in Shenzhen.
An intercity railway limited liability company inGuangdong is responsible for the operation andmanagement of the urban rail transit systembetween Guangzhou and Zhuhai, and has taken onthe important task of accelerating the constructionof the rail transit system in the Greater Bay Area.Guangzhou Branch has maintained long-termcooperation with the company to support thetransportation infrastructure construction in theGreater Bay Area.
Guangzhou Branch signed a strategic cooperationagreement with a certain group limited companyin Guangzhou Development District duringthe signing ceremony of industry and financeintegration projects at the 11th China (Guangzhou)International Finance Expo, demonstrating Hua XiaBank's focus on providing nancial services for thesci-tech industry in the Greater Bay Area.
Promoting the construction of large-scale projects in the Greater Bay Area
Supporting the intercity railway construction project in the Pearl River Delta
Improving nancial services for the sci-tech industry in the Greater Bay Area
Case
Case
Case
10.54%
Year-on-year increase
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20224948
The Bank is dedicated to staying abreast of the latest developments in the Yangtze River Economic Belt and the Chengdu-Chongqing economic circle, byproviding increased support for key infrastructure construction projects, promoting the transfer of coastal industries and facilitating the development ofnew urban areas. Our goal is to foster high-quality development of the Yangtze River Economic Belt.Serving the development of the Yangtze River Economic Belt
Nanjing Branch has completed the issuance of the rst “Yangtze River Economic Belt” asset-backed security (ABS) based on port revenues in Chinaas well as Hua Xia Bank’s rst ABS on infrastructure, with a total amount of RMB 653 million. Hua Xia Wealth Management Co., Ltd. acted as thecornerstone investor in the issuance. This issuance marks the rst time that Nanjing Branch has issued ABS based on port revenues under the new rulesystem, setting an innovative nancing model for port enterprises.
Wuhan Branch actively responds to the central government’s development strategies for the Yangtze River Economic Belt. In collaboration with a leadingagricultural investment rm in Hubei Province, the branch has launched its rst agricultural loan. As of the end of 2022, Wuhan Branch has extended atotal of nearly RMB 300 million in loans.
Issuing the rst “Yangtze River Economic Belt” asset-backed security (ABS) based on port revenues in China
Boosting agricultural development in the Yangtze River Economic Belt
Nanjing Branch supports port construction and operation
Case
Case
The development of Ganjiang New District, the 18th state-level new area in China, is a signicant part of the future of the entire Yangtze River EconomicBelt. Following the government’s policies, Nanchang Branch has set up an institution in Ganjiang New District to serve the local economy. As of the end of2022, Nanchang Branch had provided a total of over RMB 2.4 billion in credit support for the new district.
Supporting the high-quality development of Ganjiang New District
Chengdu Branch Signing strategic cooperation agreements in a nancing meeting for the city’s key projects in housing construction, transportation, ecological conservation, andenvironmental protection.
Case
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20225150
To strengthen the economy through infrastructure development and accelerate the construction ofinfrastructure projects, we provide support for new infrastructure and new urbanization initiatives,as well as major projects and urban renewal projects, and upgrade the “commercial banking +investment banking” service model.
Boosting infrastructure construction
Implementing the national policies on industrial structure adjustment and following theNationalCatalogue for Guiding Industry Restructuring, Hua Xia Bank has increased support for industrialtransformation and upgrading in its annual credit and investment policies. The Bank is committedto playing a greater role in supporting key sectors, such as new infrastructure, manufacturing,and strategic emerging industries, and pooling resources to promote industrial transformation andupgrading.AcceleratingIndustrialTransformation andUpgrading
Kunming Branch supports Yunnan Provincial Energy Investment Group in constructing an overseas hydropower station.
Xiamen Branch strives to integrate into the “Great Improvement on the Island, and GreatDevelopment Outside the Island” initiative of Xiamen. The branch has extended syndicated loans toan investment limited company in Xiamen. The funds are dedicated to the Phase I Urban Renewalproject of the Cross-Strait Regional Financial Center Area in Xiamen.
Nanchang Branch provided Longtoushan Navigation-Power Junction Investment and DevelopmentCo., Ltd. in Jiangxi with a 17-year loan of RMB 2.147 billion to support the Longtoushan hydropowerinfrastructure project. This loan marks the largest and longest-term loan issued by NanchangBranch since its establishment.
Supporting the urban renewal project
Supporting hydropower station constructionRMB 210.406
billionBalance of loans to manufacturing
RMB 104.587 billionBalance of loans to strategic emergingindustries
As of the end of 2022Case
Case
Focusing on key areas such as specialized and sophisticated SMEs, and strategic emerging industries, our commitment extends to the development ofindustries in Beijing, Shenzhen, Shanghai, Guangzhou, and other strategic emerging industry clusters, as we strive to accelerate the modernization of theindustrial system.
We increase support for the manufacturing industry, promote the transformation and upgrading of high-quality enterprises in the manufacturingindustry and their upstream and downstream enterprises in the industrial chain, injecting nancial momentum into the high-quality development of themanufacturing industry.
Advancing industrial modernization
Facilitating the transformation of the manufacturing industry
Shaoxing Branch showing supports for the development of optoelectronicenterprises.
Chongqing Branch visiting a new energy vehicle manufacturer.
Ningbo Branch providing services at a high-tech company.
Kunming Branch has issued loans to a big data industrial development limitedcompany in Yunnan for equipment upgrading and renovation, making it thelargest equipment upgrade loan ever issued in Yunnan Province. Kunming Branchhas been commended by the State Council’s inspection team for its contributionsto market entities in accelerating important equipment upgrading and renovationprojects.
Promoting the development of the intelligent industry
Nanchang Branch has extended a ten-year RMB 500 million xed asset loan toan investment holding group limited in Jingdezhen City, marking the largest loanissued by a banking institution in Jiangxi Province that is dedicated to equipmentupgrading and renovation. The loan has been used for equipment upgrading andrenovation in seven cultural and tourist attractions, including the JingdezhenInternational Ceramic Culture Expo Tourism Exchange Center, which willeectively promote the development of the local cultural tourism industry.
Boosting the development of cultural tourism
A home furnishing manufacturer in Deqing, Huzhou, has been included in the listof candidates for medium to long-term loans in Zhejiang Province (the fourthbatch), is therefore qualified to apply for medium to long-term loans for keycompanies in the manufacturing industry based on the National Developmentand Reform Commission (NDRC). Hangzhou Branch provided an RMB 7 millionmedium to long-term loan to the furniture company, supporting its capacityupgrading. This was also the rst time that Huzhou Branch extended a medium tolong-term loan to a company on the list.
Boosting the upgrading of the furniture manufacturing industry
A new materials limited company in Xinjiang applied for the "Green Low-Carbon Upgrading Project," a subsidized medium to long-term loan projectfor the manufacturing industry feedbacked by the National Development andReform Commission (NDRC). Urumqi Branch completed project approval andloan disbursement preparation in just 13 working days after receiving feedbackfrom the NDRC's list. The loan amount of RMB 300 million has been utilized forpurchasing equipment for the company's green and low-carbon upgrading project.
Supporting the green development of the new materials industry
Case
Case
Case
Case
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20225352
Hua Xia Bank closely follows national strategies and actively responds to the BRI. The Bank hasbeen optimizing its correspondent bank network in BRI partner countries and developing new tradenance products, debt instruments, and interbank investment services to contribute to the high-quality development of the BRI.Integrating into the BRI
As China opens up at a high level to the world, Hua Xia Bank has actively integrated into thedomestic-international dual circulation and supported Chinese enterprises seeking to expand theirpresence overseas in response to the Belt and Road Initiative (BRI).
Serving China’sOpening-up
Correspondent banks in BRImarkets opened
As of the end of 2022
Urumqi Branch fully supports the development of the core area on the Silk Road Economic Belt, witha special focus on the construction of key infrastructure projects for trade, logistics, transportation,and green finance. In Khorgos, Alashankou, Urumqi Comprehensive Bonded Area and other keyareas, the Branch has supported infrastructure construction and enterprise trade nancing needs,improved port infrastructure construction, and promoted the development of domestic and foreigntwo-way trade.
Kunming Branch is dedicated to responding to the BRI, and has led the issuance of a consortiumloan of RMB 200 million to a cold chain storage center of an international land port in Yunnan ,which is striving to become a zone with the most comprehensive facilities serving the ASEAN andinternational markets. This issuance not only supports the development of the land port, but alsohelps Yunnan Province to achieve its goal of becoming a hub for China's opening-up to South andSoutheast Asia.
Supporting the development of the core area on the Silk Road Economic Belt
Supporting the development of the a cold chain storage center of an internationalland port in Yunnan
1,189Correspondent banks set up,covering
citiesin 98 countries and regionsacross the world
RMB 140.878
billion
Cross-border RMB transactions handled
USD 162.105 billion
International settlements completed
In 2022
Case
Case
While deepening traditional trade services, Hua Xia Bank has actively provided capital and nancial services to supportoutbound investment projects in line with national policies.
Prioritizing the Nanning and Qinzhou Free Trade Zones, Nanning Branch provides cross-border trade nancial services to companies across Guangxi,including cross-border settlement, international trade nancing, foreign exchange derivatives, supply chain products, etc., supporting their expansion intointernational markets.
The Hong Kong, Urumqi, and Shanghai branches of Hua Xia Bank have collaborated to issue the rst oshore bond in central and western China with atotal value of RMB 780 million. This issuance represents China's inaugural free trade zone oshore bond that includes foreign investors and serves as asuccessful example of providing exceptional cross-border nancial services.
Issuing the rst free trade zone oshore bond in central and western China
Empowering the development of cross-border business
Hua Xia Bank is dedicated to optimizing its institutional layout in free trade zones, both within and outside of China, to create a unique product system.The Bank has also utilized products such as free trade zone bonds to provide fast and professional nancial support to Chinese enterprises looking toexpand overseas, multinationals, and foreign institutions.
The Bank has stepped up eorts to build an all-dimensional, tiered cross-border comprehensive nancial service system. We actively serve domestic andforeign markets by leveraging our advantages in the linkage between onshore and oshore RMB, domestic and overseas markets, as well as local andforeign currencies. Meanwhile, we are committed to innovation in trade nance products and the implementation of the Renminbi internationalizationstrategy, with the goal of providing convenient and ecient nancial services for Chinese enterprises seeking to expand overseas.
Supporting the development of free trade zones
Improving cross-border services
Expanding global service channelsInnovating in trade nance
Enhancing online service capabilitiesSupporting Renminbi internationalization
Supporting Chinese enterprisesseeking to expand overseas
Improving cross-border services
Partnering with the General Administration of Customs, we havelaunched the single-window cross-border payment and settlementservice, which is designed to meet the payment and settlement needsof import-export companies.We have vigorously promoted convenient cross-border RMB settlementto provide higher-level services for eligible enterprises and newformats of international trade.
The Bank has intensied its eorts to promote import-export trade nancing and cross-border guarantee products,catering to the demands of Chinese enterprises seeking to expand in international markets. Our comprehensive rangeof services includes trade nancing and credit enhancement in both domestic and foreign currencies. We have alsostrengthened the application of products such as nancing under export credit insurance, international factoring, andcross-border guarantees to help those companies reduce costs and increase eciency.
We have vigorously promoted convenient cross-border RMB settlementto provide higher-level services for eligible enterprises and newformats of international trade.The Bank has promoted the development of domestic and overseascorrespondent bank networks to offer customers integratedinternational nancial services in RMB and foreign currencies.
The Bank has promoted the development of domestic and overseascorrespondent bank networks to offer customers integratedinternational nancial services in RMB and foreign currencies.Hua Xia Bank has continued to improve the electronic channelfunctions for services such as letters of credit and foreign currencyremittances, and improved the online service capability of cross-borderpayment and settlement.
Supporting cross-border projectinvestmentStrengtheningtrade nancingguarantees
Case
Case
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20225554
OFFERING HIGH-QUALITYServices in Inclusive Finance
Deepening product innovation and enhancing service quality andefficiency to boost the long-term stable development of MSEs
Solving MSEs’ pain points in development and helping themovercome difficulties
Improving services for “agriculture, rural areas, and farmers” tocontribute to rural vitalization
Offering financial services beneficial to the people to boostpersonal consumption and support projects vital to people’s well-being
While exploring more development models for inclusive finance, Hua XiaBank has implemented measures to eectively alleviate their diculties. TheBank is also committed to promoting all-around rural revitalization, whichaims to facilitate people's livelihood projects, promote nancial services forpeople's lives, and create a new era of prosperity in rural areas.
Sustainability practices
As of the end of 2022RMB 565.47 billionBalance of loans for MSEsRMB 74.721 billionIncreased over the gure of the year before670,100Customers who received loans to MSEs with amaximum of RMB 10 millionRMB 160.904 billionBalance of loans to MSEs with a maximum of RMB 10millionRMB 18.774
billionBalance of inclusive nance loans related to “agriculture,rural areas and farmers”RMB 520.312 billionBalance of personal loans(excluding credit card)
We continue to deepen our strategic positioning as “a financial service provider for SMEs,” andprovide inclusive nancial services with the distinctive characteristics of Hua Xia Bank to MSMEsand private enterprises to support their healthy development.
Supporting theDevelopment ofMSEs
Shaoxing Branch oers nancial services to SMEs which are also members of the Shaoxing Hubei Chamber ofCommerce.
RMB 565.47 billion
Balance of loans for MSEs ,accounting for
26.58%
of the total loans issued by the BankRMB 74.721
billion
Balance of loans for MSEs increased
As of the end of 2022
Leveraging policiesand productadvantages
Accelerating creditdelivery to high-quality MSEs in themanufacturing industry
Increasingauthorization supportfor specialized andsophisticated SMEs
Increasingsupport for MSEs
We have reviewed the marketing “whitelist” of loans for sci-tech enterprises, and implementedthe latest review standards of the People's Bank of China that give priority to these enterprises;meanwhile, we have increased support for high-quality clients and key projects in science andtechnology, and started the application for the People’s Bank of China’s re-lending program forscientic and technological innovation.
We have made adjustments to the credit rating forgranting credit to MSE clients in the manufacturingindustry that have been included in the assessment ofthe increase in inclusive nance lending to micro andsmall business, optimized the repayment methodsfor medium to long-term loans, and increased theproportion of loans for manufacturing MSEs as well asmedium to long-term loans.
We have delegated more authority to certainbranches for approving pledged loans for specializedand sophisticated SMEs, and opened the approvalaccess path of the Department of Inclusive Financeat the headquarters for these branches. In addition,we have conducted research on the development ofexclusive “Loans for Specialized and SophisticatedSMEs.”
To boost the development of MSEs in the private sector, the Bank has comprehensively improvedits service capabilities, increased eorts in product innovation, and utilized nancial technology toexpand its service scope while enhancing the quality and eciency of nancial services.
Upgrading services
Changchun Branch upgrades "specialized and sophisticated" support servicesKunming Branch explaining the Flower Grower Loan (Hua Hui Loan) to a customer.
Products targeting MSEsRMB 26.741 billionBalance of online business loans forMSEs
705,400
MSE customers of online business loans
Outlets providing inclusive nancialservices for MSEs
As of the end of 2021
We have launched the “Smart Supply Chain
Product under the Hua Xia Bank InclusiveFinancial Services for Private Enterprises,”realizing the deep integration of “digital nance +scenario-based service.”The Bank has launched its first dual platform
for “Business Management of Financial Servicesfor Private Enterprises,” to achieve full-processrisk management and control. The dual platformallows the Bank to stay up-to-date on businessoperations progress, while core enterprises canstay informed on the supply chain's upstream anddownstream dynamics in real-time.
We have launched four series of inclusive loans to businesses in the private sector, including the “Ding Hui Loan,
Zhuan Hui Loan, Ju Hui Loan, and Smart Loan.”With the “Loans for Specialized and Sophisticated SMEs,” we oer special nancing services to outstanding SMEs
as well as SMEs recognized by provincial governments.We have launched the latest version of the House Loan Express inclusive loan which comes that includes new
features such as in vivo detection, credit contracts conrmed by clients, loan contracts, and online contract
signing, etc. In addition, we have extended the loan term up to a maximum of 30 years and increased the
maximum loan amount to RMB 30 million.
The Bank has created a new WeChat official
account - the Hua Xia Bank Inclusive FinancialServices for Private Enterprises. Throughintelligent identity recognition, assistance fromexternal risk control data, electronic signature,etc., we provide customers with online servicescovering applications, guarantees, withdrawals,etc.
Improving service quality and
eciencySupporting MSEs’ supply chain
development
Creating an exclusive account
for inclusive nance
Innovating in nancial products
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20225958
The Bank implements national policies aimed at easing the diculties of businesses and stabilizingthe market. By leveraging inclusive financial products for MSEs, and offering services such asdeferral of principal and interest payments, we have managed to alleviate the challenges faced byenterprises in accessing aordable nancing, and played a positive role in maintaining the stableoperations of market entities.
Easing the diculties of businesses
Hangzhou Branch has implemented a loan renewal product system to alleviate the pressure of loantransfer on MSEs. This system has been improved based on Hua Xia Bank's "annually reviewed" loanproduct system, and provides loan renewal services to MSEs without requiring them to repay theprincipal. As of the end of 2022, Hangzhou Branch has extended loans to a total of 1,043 clients,amounting to RMB 3.298 billion.
Providing MSEs with loan renewal services without repaying principal
RMB 160.904 billionBalance of loans to MSEs with a maximumof RMB 10 million
16.56%
Increased from the beginning of the year
12.90
percentage pointshigher than the average growth rate of allloans of the Bank
As of the end of 2022
Launching products and services to support the resumption of work andproductionThe Bank has launched a variety of digital nancial products to assist businesses in
accessing nancing, such as the Unity Loan (Zhong Zhi Loan), Production ResumptionLoan (Fu Gong Loan), and Credit Enhancement Loan.We have specially set up 18 MSE financial service centers in Beijing to enhance
communication with the loan service center and the loan renewal center in the city.Improving the mechanism for deferral of principal and interest payments.We require each branch to investigate the assess the status of loans due or extended
for MSE clients; meanwhile, we negotiate with MSEs, self-employed individuals, truck
drivers, etc. in accordance with market-based principles, and provide them with
reasonable loan extension services.As part of our eorts to support MSEs, we have implemented time-limited interest rate
cuts for eligible borrowers. Our branches and relevant departments have conducted
a thorough verification process to identify eligible customers and determine the
appropriate reduction amounts for selected loans.
Proactively lowering feesWe have waived 24 fees for MSE clients, including commitment fees and transaction
processing fees.We have launched functions such as the optimized imaging system service fee
transaction for MSEs, ensuring the payment of nancing costs, validation of bills, and
registration of data through technological means.
Easing the diculties ofbusinesses
Case
Wenzhou Branch visiting a local curtain shop owner.
A construction company in Shaanxi has gained an RMB 4.5 million loan dedicated to easing the diculties of the businesses from Xi’an Branch. Thismarks the rst instance of Hua Xia Bank issuing such loans to companies operating in the Xi'an National Civil Aerospace Industrial Base. The loan, alsoreferred to as the "Aerospace Industrial Base Bailout Loan," “Aerospace Industrial Base Bailout Loan,” targets MSMEs operating in the aerospace industrialbase area who require funding. The program boasts several advantages including high approval limits, fast processing times, low interest rates, and long-term maturities.
Nanjing Branch has increased its support for manufacturing MSEs by oering mortgage loans. For instance, a local limited company specializing inautomation engineering faced a shortage of funds that prevented them from purchasing a new factory building. After learning of their situation, NanjingBranch provided them with a factory loan that only required a 30% down payment, helping the company overcome its nancial challenges.
Issuing the rst loan for easing the diculties of businesses in the Xi’an National Civil Aerospace Industrial Base
Oering mortgages for MSEs
Case
Case
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20226160
We have developeddistinctive localbusinesses to increasethe local incomes ofcollective economiesand further enhancethe self-sufficiencyof areas receivingassistance.
We have helped toincrease the sales of localagricultural products byimplementing a seriesof measures, suchas purchasing goodslocally, buying tradeunion delivery cards,purchasing goods fromthe Beijing ConsumptionAssistance Center,as well as contactinge-commerce platformsto provide support forsecondary processing andadvertising shooting, andutilizing new media forpromotion.
We have activelysupported thelocal communityin addressing theirdaily life concerns,such as education,medical service,and employmentthrough variousmeasures. Theseinclude contributingto local infrastructureprojects, makingdonations, payingvisits, and offeringskills training, etc.
Boosting local
industries
Increasing salesof local products
Improving public
welfare
As a major participant in promoting rural vitalization through nancial services, Hua Xia Bank iscommitted to implementing the central government’s decisions and plans. We constantly innovateour targeted assistance models to consolidate and expand the achievements in poverty alleviation.Additionally, we continue to improve the quality of our financial services, and are dedicated toproviding more financial support for all-around rural vitalization and contributing even greatereorts toward achieving common prosperity.Supporting RuralVitalization
The Bank has set up a rural vitalization leading group headed by Li Minji, Party Secretary andChairman of the Bank. This group is tasked with dening the responsibilities of each member unitof the rural vitalization working group and coordinating the overall rural vitalization eorts of theBank. We have issued the Hua Xia Bank Implementation Plan for Comprehensively PromotingRural Vitalization in 2022 to ensure the eective implementation of related measures. We havealso dispatched competent ocials to rural areas to support poverty alleviation, conducted specialtraining on rural vitalization, and implemented an assessment mechanism for supporting industriesrelated to agriculture, thereby injecting new impetus into rural vitalization.
Enhancing rural vitalization systems and mechanisms
RMB 271.538 billionBalance of agriculture-related loans
Rural outlets
Outlets opened in old revolutionary baseareas, areas inhabited by ethnic minoritygroups, remote and border areas, andpoverty-stricken areas
As of the end of 2022
RMB 18.774 billion
Balance of inclusive agriculture-related loansRMB 2.038billion
Increased over the gure at the beginning ofthe year
12.18%
Increase percentage
8.52
percentage pointshigher than the average loan growth rate ofthe Bank
Urumqi Branch donates funds to support the reconstruction and expansion of vocational schools in Xinjiang
Chengdu Branch cooperates with Junyi Village in toilet renovation
Zhengzhou Branch promoting the sales of unsold agricultural products.
RMB 6.227billionLoans extended to counties andprefectures in Inner Mongolia,Xinjiang, and Qinghai receivingpaired assistance from Beijing
As of the end of 2022
26,400
Job opportunities created for locals
Hua Xia Bank is actively participating in the national eort to align poverty alleviation and rural vitalization.The bank has taken concrete actions to consolidate and expand the achievements in poverty alleviationwhile promoting rural vitalization. For instance, we have made steady progress in oering paired assistanceto counties and prefectures in Inner Mongolia, Xinjiang, and Qinghai, and innovated in the sustainableassistance model.
Consolidating and expanding the achievements in poverty alleviation
Chongqing Branch dispatches the First Secretary to assist in industrial vitalization
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20226362
We continue to introduce innovative management methods and increase resource allocation to support inclusive nance, thereby making nancial servicesin rural areas more accessible and convenient. Our eorts to further optimize the rural nancial ecosystem, have helped to boost the supply of nancialservices for rural vitalization.Improving the environment for rural vitalization Services
Changsha Branch promoting the “One Village, One Agency” nancial education program
To promote the development of local industries, Yinchuan Branch and Xiji County Rural Vitalization Bureau entered into a strategic cooperation agreement on extending credit to thewhole village. The Bank provided RMB 5 million in loans to targeted assistance village, Zhangqi Village, to support their economic activities.
Changsha Branch has been exploring new guarantee models andworking closely with guarantee companies to provide working fundsfor fishery enterprises and farmers. The branch has applied the“bank + guarantee + leading enterprises + upstream and downstreamcooperation” model to introduce mature sh breeding and ngerlingcultivation technology, driving the development of the local specialtyindustry. The branch has issued RMB 10 million in loans to FuminAquatic Products and Aquaculture Co., Ltd. in Xiangyin County.
Extending credit to the whole village to promote the development of rural industries with loans
Boosting the development of the local specialtyindustry with a new guarantee model
We continue to implement preferential interest rates
for loans related to “agriculture, rural areas andfarmers.”We have set up an express service channel for loans
related to “agriculture, rural areas and farmers.”Through this channel, we expedite the credit approvalprocess, maximize the line of credit, and issue loans asfast as possible.We have made signicant strides in extending personal
loans to borrowers from poverty-stricken areas. Wehave diversied the credit enhancement methods forloans related to “agriculture, rural areas and farmers”have been constantly diversified to provide targetedlending to as many borrowers as possible. Thisapproach has not only enabled us to extend mutualassistance to farmers, but also promoted collaborationbetween the Bank, enterprises and farmers.
In order to promote digital nance in rural areas, we
have introduced self-service card issuance machines,mobile banking, online banking, direct banks, and otherfacilities and channels to continuously expand basicnancial services to towns and villages.By continuously exploring users’ needs and opening
more county-level outlets and community branches,Hua Xia Bank has been expanding its services to reachlower-tier markets to provide greater access to ourservices and expand our service coverage.To enhance financial literacy in rural areas, Hua Xia
Bank has provided training sessions such as theConsultation Desk, the Financial Culture Wall, andthe Financial Knowledge Lecture, and by distributingbrochures, we teach financial knowledge such aspayment and settlement, credit-related business, etc.
Enhancing theaccessibility ofnancial servicesIncreasing credit
support for“agriculture, ruralareas, and farmers”
Case
Case
Hua Xia Bank has utilized its rich and unique resources as a nancial institution to cater to the nancial needs of dierent regions for rural construction.By creating innovative nancial services and products, the Bank has supported rural vitalization and bolstered the development of specialty industries inrural areas. This has provided signicant nancial support for local rural vitalization work.
Creating innovative nancial products for rural vitalization
Hua Xia Bank has partnered with Beijing Agricultural Guarantee Co., Ltd. to launch the Farmer and Commerce Loan (Hui Nong Xing Shang Loan), which oers two types of loans -“Bank-Guaranteed Loans” and “Market Loans”. The product is designed to cater to the nancial needs of MSEs that specialize in animal husbandry, agriculture, and the productionand distribution of agricultural products in the Beijing-Tianjin-Hebei region, with the goal of fueling their growth.
Changzhou Branch has introduced the "Hua Nong Loan," a new online nancing service model for farmers, family farms, and cooperatives to access funds and make repaymenteasily through credit or guarantee security methods. This model has resolved the challenges of meeting high bank access and guarantee requirements, as well as complicated loanprocedures faced by farmers, thereby greatly satisfying their nancial needs during the transformation towards modern agriculture. As of the end of 2022, Changzhou Branch hasgranted a total of RMB 36.08 million in the “Hua Nong Loan” to 116 clients.
Hohhot Branch has played an active role in providing nancial support for local businesses and increasing the issuance of agriculture-related loans, contributing to the economicgrowth of Inner Mongolia. For example, the branch has underwritten the ultra-short-term nancing bonds of a dairy group, which were mainly used for facilitating the modernization,expansion, and standardization of ranches in Inner Mongolia. Through cooperation with a dairy group, the branch has provided unsecured loans to MSEs on the group’s supply chain. Inaddition, the branch has extended loans to leading companies in poverty alleviation, such as a livestock company in Inner Mongolia, a livestock company in Xilingol League, and a dairycompany in Inner Mongolia These eorts have eectively driven the development of the dairy industry chain cluster in Inner Mongolia, contributing to consolidating the achievementsin poverty alleviation and rural vitalization.
Supporting the development of rural MSEs with Farmer and Commerce Loan (Hui Nong Xing Shang Loan)
Supporting local agricultural development through the “Hua Nong Loan”
Supportting and driving dairy industry chain development
We have increased our nancial support for key areas, such as grain and cotton production, and supported the development of agricultural sectors,including forestry, fruit growing, and livestock farming. While comprehensively enhancing the allocation of nancial resources to rural areas, we strive tomeet the credit needs in key areas in rural modernization, such as road transportation, logistics and transportation, communication, clean energy, watersupply, and power supply.Increasing nancial supply for key areasShaoxing Branch's "Yirong Tong" loan product provides nancial support for planting farmers
Case
Case
Case
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20226564
Oriented toward the needs of the people, we have continually innovated our product oerings andexpanded the scope of our inclusive nancial services. Through these eorts, we strive to supportindividuals in their aspirations towards a better quality of life.
Oering FinancialServices to Benetthe People
Following the trend of personal consumption upgrading, the Bank has upgraded consumer nancialproducts, and transformed its service channels from traditional banking outlets to an “online +offline” multi-channel service system. Through this approach, we have extended our financialservices to benet a wider range of customers.Serving personal consumption
Hua Xia Bank proactively undertook the project to enhance the payment environment for brick-and-mortar storeslocated in key blocks of the Beijing 2022 Winter Olympics, oering transaction services for foreign bank cardsand UnionPay. Through the “smart payment + smart operation” service model, we successfully completed theimprovement of payment terminals and the construction of payment scenarios in key blocks and business areas ofthe Beijing 2022 Winter Olympics.
Supporting the development of consumption scenarios for the Beijing 2022Winter Olympics
As of the end of 2022
To meet customers’ needs for consumption
and financing, Hua Xia Bank has launchedits online consumer loan product - the EliteE Loan (Jing Ying E Loan), which offersservices such as online application, directconnection to provident fund, intelligent riskcontrol, etc.
To reduce the cost of consumer loans, we have
increased our support for consumer credit. Forexample, we have launched preferential interestrate coupons for consumer loans, and improvedthe customer experience on our online channels.We have implemented policies for loan repayment
deferral, and participated in the government-initiated action of “ensuring the delivery ofhousing, people’s livelihoods, and stability” withefforts made to ensure that our personal loanrepayment deferral service remains accessible tothose in need.
The Bank has created specialized consumer
finance scenarios such as home decoration andparking, and provided flexible combinations ofconsumer nance products and scenarios throughproducts such as the Decoration Loan (Zhuang XiuLoan) and the Parking Space Loan (Che Wei Loan).We have also supported popular consumer
service scenarios, and increased the distributionof consumer loans to meet customers’ demandfor nancial services during promotional eventson e-commerce platforms, such as the “DoubleEleven” and “Double Twelve” events.
Focusing on the new demands of citizens for
consumption and funds, we have optimized thefeatures for the Hua Xia e Loan to promote the organicintegration of credit products and new consumptionscenarios.
Supportingconsumptionupgrading
Product
upgrading
Serviceupgrading
Scenarioupgrading
Case
In response to the reform of the social security system and the upgrade of retirement consumption, and to support rst-time home buyers and people inimproving their housing situation, Hua Xia Bank provides customers with a package of aordable and convenient nancial and lifestyle services throughexible and diverse business models.Supporting projects vital to people’s well-being
Hua Xia Bank has launched the innovative “CREATE” ve-step cyclic working method for investment advisory services, and expanded the depth and breadth of its professionalservices by standardizing the service process. We have created the “Smart” series product and service toolbox for private banking clients to meet the investment and nancingneeds of high-net-worth clients and their families, as well as businesses. The toolbox includes four major product and service sequences: “Smart Investment, Smart Financing, SmartInnovation, and Smart Enjoyment.” Moreover, we have built a “commercial banking + investment banking + private banking” professional service toolbox to provide services in areassuch as enterprise investment and nancing, client and family wealth planning, equity services, etc. By oering comprehensive nancial services that cover "individuals, families,businesses, and society" throughout their entire lifecycle, the bank is able to meet the diverse needs of its clients.
Nanjing Branch of Hua Xia Bank has extended a loan of RMB 1.9 billion to a Nanjing-based construction company, which is an aliate of the Nanjing Municipal State-owned AssetsSupervision and Administration Commission. The company is mainly engaged in the development and operation of health care and elderly care projects, including the demonstrationproject of the Nanjing Elderly Care Center. The loan was provided to facilitate the elderly care project of the company, utilizing the insurance debt investment plan.
The “payment of wage arrears owed to rural migrant workers” program is an importantplan formulated by the Party Central Committee and the State Council to protect therights and interests of rural migrant workers. After communicating with the JingmenMunicipal Labor Security Supervision Bureau, Wuhan Branch has gained access to the“Jingmen Real-name Management Information System for the Construction Filed,” tomonitor the funds in the special account for migrant workers’ wages, thus promoting theresolution of wage arrears owed to rural migrant workers.
Developing standardized processes for private banking investment advisory services
Supporting the development of the health care and elderly care industry
Undertaking the project for paying wage arrears owed to rural migrant workers
Wuhan Branch paying wages to rural migrant workers.
Hua Xia Bank has established an oce dedicated toproviding nancial services to clients in the elderlycare market, and provided comprehensive nancialservices to them through the “Hua Xia Yi Yang”product portfolio.The Bank has launched the private pension
business system to provide third-pillar privatepension services to customers.The Bank has provided comprehensive services
based on private pension accounts, and launched aseries of nancial products for elderly care to fullybuild its own nancial service brand in the elderlycare market.
We support the policy formulated by the Ministry
of Housing and Urban-Rural Development onpromoting a diversied housing supply, and haveexplored nancial services in the rental market.We have established reasonable loan standards
for first-time homebuyers among new urbanresidents. In addition, we conduct scientificcredit evaluations, and continue to enhance theconvenience of borrowing and repayment, makingthe process more accessible and user-friendly.We have implemented dierentiated housing loan
policies, and dynamically adjusted housing loanstrategies while prioritizing the support for rsttime home buyers or people in improving theirhousing situation.
Meeting people’shousing needs.
Oering nancial
services forelderly care.
Case
Case
Case
RMB 520.312billion
Balance of personal loans(excludingcredit card)
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20226766
FOCUSING ONINNOVATION
to Accelerate Empowering throughTechnology
Accelerating business optimization and innovation-driventransformation to promote the development of digital finance.
Strengthening financial service capability to improve theaccessibility of financial services.
We continue to pursue technology-driven innovation, constantly improvingour digital infrastructure and upgrading our services in accordance withspecic needs of our customers. We have expanded our service scenarioswith an emphasis on the online and oine dual-drive approach, to enhancethe overall nancial service experience for our customers.
Sustainability practices
In 2022
82.7939
millionTransactions handled by the mobile bankingapp
Outlets set up priority counters for vulnerablegroups
Outlets with accessible facilitiesw
As of the end of 2021
We continue to promote innovation in industry-specific digital finance, integrating industrialservices with financial services to provide customers with a more efficient and intelligentexperience in a broader range of nancial scenarios. Our digital transformation eorts are focusedon providing customers with more ecient, intelligent and high-quality services.
AcceleratingDigitalTransformation
In response to China’s digital economy development strategy, the Bank, guided by the Hua Xia Bank2021-2025 Digital Transformation Action Plan, aims to become a leading smart and eco bankthat promotes both the industry-wide digital ecosystem and the consumption digital ecosystem.We have set six themes, namely the open ecosystem, precision marketing, smart operation,smart risk control, legal compliance, and value management, and reshaped our data-driven andtechnology-driven capabilities as well as capabilities in building a exible organization and talentteam. Additionally, we have established six mechanisms for incentives and fault tolerance to build acorporate-level agile organizational structure.
We have enhanced our data governance and digital asset management by reinforcing data controlfrom source to application and unlocking the value of data resources to achieve data transformationand value realization.
Improving top-level design
Promoting data governance
Assuring the quality of source data
Building data and information platforms
Reshaping the data governance structure
Strengthening data management capability
Designing data application scenarios
We strive to improve the quality of our source data by focusing on 20 key tasks in important dataapplication scenarios such as retail and operation management.
We planned to build a corporate-level data center that utilizes the "four horizontal and two vertical" dataarchitecture and "two warehouses and two lakes" technology foundation. In addition, we are planning tolaunch our corporate-level blockchain technology service platform and privacy computing platform.
We rebuilt the three-tiered pyramid organizational structure containing planning, business application,and technical support.
We promoted the establishment of corporate-level and project-level data management standards toidentify and narrow gaps accordingly.We designed a framework for data application scenarios based on the four themes of "precisionmarketing, smart operation, smart risk control, and legal compliance".
We have strengthened communication and exchange with upstream and downstream partners and research institutions through digital transformation.By utilizing advanced technology theories and methods, we aim to facilitate the commercialization of sci-tech achievements and promote multilateralcooperation, and achieve win-win benets for all parties involved.Achieving win-win cooperation
Optimizing resource allocation
With digital capability building as the core, we built a multi-tiered digital training system focusing on digital professional competence, application skills, andgeneral knowledge.
We have signed a strategic cooperation agreement with the BeijingAcademy of Blockchain and Edge Computing to promote researchon the establishment of "blockchain + supply chain" applicationscenarios.
We introduced the horse racing mechanism of "three groups and nine lines" to improve the benet-sharing mechanism and facilitate resource integration.
We have worked in collaboration with leading steelcompanies such as HBIS Group and Jianlong Steelto explore the use of digital technologies such as bigdata, IoT, 5G, as well as digital assets accumulatedby them.
In cooperation with institutions such as XMXYGCorporation, we have established a collaborativenetwork of partners integrating warehousing,warehousing supervision, logistics, finance andother services, to enhance trade digitalization andcommodity circulation eciency.
We established smart application scenarios such as digital audits after integrating internal resources, so that management eciency could be improved.
Strengthen employees' digital capability
Increasing support for digital innovation
Enhancing the application of digital information
Conducting researchcooperationServing thereal economy
Building acollaborative circleof partners
Hua Xia Bank attending the 5th China Digital Inclusive Finance Conference (CDIFC)
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20227170
The Bank intensied its eorts in cybersecurity to ensure stable operations of information systems, protecting customer privacy and assets. In 2022, allimportant information systems of the Bank maintained stable operations, achieving an overall availability rate of 100% during main business hours.
Protecting information security
Putting into use a new intra-city data center, with a totalcapacity that can meet theneeds of the Bank for 5-10years.
Revising the ImplementationRules of Classified DataSecurity Managementof Hua Xia Bank and theImplementation Rules ofExternal Data IntroductionManagement of Hua Xia Bankto clarify the requirements fordata security management inevery aspect.
Conducting risk assessmentand security review, toimprove emergency responseplans and prevent any systemoperation risks and customerinformation leakage.
Strengthening thedetection and remediationof vulnerabilities, andconducting cybersecuritypenetration testing.
Participating in the ChinaCybersecurity Week campaign,and organizing variouspublicity activities such ascybersecurity knowledgecompetitions, lectures, andcloud exhibitions.
Building a distributed andintelligent operation andmaintenance structure with 4tiers, 3 domains, and 1 centerto enhance the capabilityof mobile and intelligentoperation and maintenance.
Consolidating the securityprotection boundaries ofthree centers in two places,optimizing the cybersecurityprotection strategy, andestablishing a comprehensivecybersecurity protectionsystem to eliminate hiddensystem operation risks.
Ensuring system
operation
Protectingcustomerinformation
Expanding storage
Institutional arrangementSecurity reviewTechnical supportCybersecurity publicity
Improving the operation and maintenance systemEstablishing protection systems
By utilizing nancial technologies, we have expanded the coverage of corporate nancial services,and boosted platform development, which promoted product and service innovation and created aninterconnected and intelligent service ecosystem for enterprises.UpgradingCorporate BankingServices
We have accelerated the use of technology to empower corporate banking services and furtherupgraded digital platforms such as the cloud platform for intermediary service, the corporate-level audio and video platform, and the dual platform of inclusive financial services for privateenterprises. These eorts have enabled us to achieve full-chain business risk control and providecustomers with convenient and secure corporate banking services.
The Bank oers systematic service solutions to industries such as logistics, construction, steel,energy, chemicals, government procurement and etc. Through a focus on the diverse transactionscenarios across industry chains, the Bank provides targeted products and optimized services toenhance digital nance's ability to serve the real economy.
Advancing platform development
Facilitating product and service innovation
Wuhan Branch has established a collaboration with an online supply chain management platform, to initiate apioneering pledge mechanism for digital warehouse receipts against liquid petrochemical products using advancedtechnologies such as 5G, the Internet of Things, blockchain, big data, and digital twins. This marks a signicantmilestone in the Bank's industry-specic digital nance 3.0 mode, and serves as a benchmark for the development ofthe Bank's industry-specic digital nance business.
The rst pledge loan against digital warehouse receipt
Launching industry-
specific digitalnance 3.0 productssuch as the nancingof commoditydigital warehousereceipts, railwayfreight loans, anddigital governmentprocurement loans.Becoming the first
in the industryto launch thecommodity nancingproductLaunching the
Smart Supply ChainProduct of HuaXia Bank InclusiveFinancial Services forPrivate Enterprisesto achieve deepintegration of "digitalfinance + scenario-based services".
Launching services
such as interbankfund management,electronic letterof confirmation,electronic letter ofguarantee, purchaseand payment offoreign exchange andetc., on the corporateonline bankingchannelLaunching e-CNY
corporate walletson online channelsincluding mobilecorporate banking.Launching automatic
payment on bank-customs connectivityproduct
Digital product and service innovation
Productinnovation
Serviceinnovation
Case
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20227372
We have built and consolidated the "headquarters-to-headquarters" communication platform to support the reform and development of key companies.In 2022, the Bank signed strategic cooperation agreements with 8 enterprises and government agencies, including China Chengtong, Beijing StockExchange, National Equities Exchange and Quotations, Xinjiang Production and Construction Corps, Beijing Municipal Medical Insurance Bureau, ChinaNational Agricultural Development Group, Beijing State-owned Capital Operation and Management Company Limited, and China Overseas. Thesepartnerships aim to establish strategic cooperation and provide nancial services to keycompanies more eectively.
Strengthening strategic cooperation
Hua Xia Bank signing the strategic cooperation agreement with China Chengtong in Beijing
Hua Xia Bank signing the strategic cooperation agreement with China National Agricultural Development Group in Beijing
At Hua Xia Bank, we are committed to providing customer-centric financial services that areconvenient, ecient, and comprehensive. We continuously strive to improve our services by activelylistening to and responding to customer feedback and suggestions. Our focus on high-qualityservices is driven by our dedication to meeting the diverse nancial needs of our customers andhelping them achieve their life goals.
Improving ServiceQuality andEciency
With the goal of improving customer experience and creating value, we are fully committed topromoting the transformation and upgrading of our outlets from 1.0 to 2.0. Focusing on digitalempowerment and scenario incubation, we accelerate the transformation and upgrading of ouroutlet services towards scenario-based eco-services, integrating comprehensive and characteristicfinancial and non-financial businesses. By the end of 2022, the Bank has carried out outlettransformation in 27 branches and reopened 42 outlets after renovation.The Bank has optimized its self-service banking systems, transferring over 90% of frequentpersonal counter services on the systems. The improved equipment performance and customerservice capabilities have signicantly enhanced customer experience and accelerated the digitaltransformation of outlets. This has eectively reduced counter services and prevented operationalrisks.
Accelerating outlet transformation
Self-service banking facilities at Zhengzhou Branch
Transformed and upgraded the outlet of Kunming Branch
Branches in total
Cities above prefecture levelcovering all provincial capitals(except for Tibet) across thecountry
As of the end of 2022
Self-service banking facilities
3,054Self-service banking machines
3.09
Machines for each outlet onaverage
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20227574
As a customer-oriented nancial institution, we strive to enhance the sense of security, trust, and satisfaction of our customers. To achieve this, we haveconsolidated our service foundation, improved our service system, and optimized our service modes.
Our focus has always been on providing customer-centric services that create value. We are dedicated to continuously improving the quality, eciency,and overall satisfaction of our services, as well as making every eort to oer considerate nancial services.
Improving service eciency
Optimizing customer service
Valuing customer experienceWe have strengthened our services across dierent elds and customer groups to deliver superior products and services that are both convenient andecient, thus ensuring an enhanced customer experience.
Expanding
servicechannels
ExpandingservicecoverageStrengtheningthe professional
ability of theservice team
Building the
customerpoints andrights systemDevelopingdierentiatedcustomerservices
We have improved intelligent service scenarios to enable customers to modify relevant information through WeChatBank and the mobile APP. We have added new functions such as ETC detail inquiry to facilitate customer consultations,complaints, and feedback.
We have explored new practices of customer-friendly and well-regulated service, and deeply integrated the evaluationof these practices into the construction and management of our outlets. while meeting the diversified needs ofcustomers.
We have built a digital ecosystem of customerservices and drawn customer portraits throughbig data, which allows us to develop customizedstrategies for dierentiated customer service.We have also launched special products andactivities targeting three customer groups,including senior citizens, new citizens and carowners. We have also expanded our financialservices in multiple dimensions to benefitcustomers' work and life.
We have built a unified value-added servicesand rights system based on the customerlifecycle for all outlets, upgraded the personalcustomer points and rights system and launchedactivities such as the Lantern Festival PoetryCongress and the Earth Day Challenge. In 2022,the points and rights system received over 48million visits, and over 2.3 million customersredeemed their points.
We have strengthened the management of operation personnel in outlets by issuing differentiated managementguidance for operation personnel in outlets and carrying out targeted training on products and services.
Customer satisfaction management
Serving customers with special needs
We conduct regular surveys on customer satisfaction to gauge customer satisfaction with ourservices, and actively collect customer feedback and suggestions. By closely monitoring andresponding to changes in customer demands, we strive to continuously improve our services andenhance customer satisfaction. In 2022, customer satisfaction with the Bank's 95577 hotline was
99.63%.
We prioritize the needs of customers with special requirements by providing tailored financialservices and enhancing our care for the elderly, inrm, sick, disabled, and pregnant individuals, tocomprehensively improve customer services.
Nanjing Branch establishes a mobile nancial service teamWuxi Branch improves service experience for special groups
Outlets with accessible facilitiesput in place
As of the end of 2022
Outlets with priority countersfor vulnerable groups set up
5.2938
millionElderly clientsWe have created a barrier-free environment with accessible passageways andconvenient service facilities such as magnifying glasses, rst-aid kits, and priority seatsin outlets
To provide better services for customers with special needs, we have set up prioritycounters and oer one-on-one services for vulnerable groups such as the elderly, inrm,sick, disabled, and pregnant. We have optimized our mobile and internet applications tomake them more friendly for the elderly. Additionally, we provide extended services forcustomers with special needs.
Setting accessible channels
Providing supporting services
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20227776
GUARDING ANDPRACTICING
the Green Philosophy
Promoting green finance by diverting the stream of financialresources to greener and cleaner sectors
Strengthening our climate risk management, and establishingsystems and procedures for environmental risk management
Enhancing biodiversity conservation and publicity
Conducting green procurement, promoting green offices andengaging in a variety of eco-friendly public activities
To deepen our green nance strategy that supports China's goal of carbonpeak and carbon neutrality, we make every effort to promote ecologicalprogress, develop green nance as a new characteristic and a new edge. Ouraim is to become a leading player in the green nance sector during China'slow-carbon era.
Sustainability practices
As of the end of 2022RMB 247.035
billionBalance of green loansRMB 252.145
billionBalance of climate-related nancing business
RMB 28.969
billionAccumulative value of ESG-themed assetsunder management
2.6179
million
ETC cards users in total
The Bank highly values the development of green nance and aims to put forward the strategicgoal of “making every eort to develop green nance as a new characteristic”. To this end, we haveadopted measures to transform the credit structure, increase green investments, innovate greenproducts, practice ESG philosophy and enhance international cooperation. We aim to maximizethe positive impact of green nance on promoting social and economic green transformation, andamplify the external positive impact of our investments and nancing activities on the environment.DevelopingGreenFinance
In line with the Bank's commitment to supporting national goals of carbon peak and carbonneutrality, we have implemented credit and nancing policies aimed at advancing our green nancestrategy. This has included a strong focus on industry policies and regulatory supervision of thegreen nance sector, as well as ongoing eorts to improve management practices and leverage thelatest technologies to capitalize on the current momentum in the national green nance movement.
Supporting green credit
Shaoxing Branch is engaged in practicing the green development idea. It oers customized nancing services andsolutions for businesses with high energy consumption, such as a packaging limited company and its associatedenterprises. Through green loans, the businesses were able to introduce the most advanced packaging production linein China and complete their technical transformation for energy conservation and carbon reduction two years aheadof schedule, thus promoting their green transformation.
Shijiazhuang Branch formulated a comprehensive green nance plan for an energy comprehensive developmentlimited company in Hebei Province, and provided it with working capital loans worth RMB 100 million to cover theexpenses of desulfurization and denitration. The Branch’s nancial support of the place where the company is locatedin improving energy eciency and building a greener environment has yielded signicant environmental and socialbenets.
Shenyang Branch focused on supporting the construction of a sewage treatment plant in a chemical industry park inLiaoning Province. The total investment of the project was RMB 383 million and RMB 243 million was borrowed bythe Bank. The loan was used primarily for Phase I of the construction project, which aimed to reduce pollution aroundtributaries and minimize the impact of pollution on surface and underground water.
Green loans facilitate energy conservation and carbonreduction
Boosting energy eciency and utilization rate by upgrading
Oering green loans to underpin sewage treatment
RMB 247.035 billionBalance of green loans
RMB 38.558 billion
Increase from the beginning of the year
18.49%
Increase percentageEquals to
1.175
million tons
Standard coal equivalent saved
2.786
million tons
CO2 reduced
11.214
million tons
Water saved
As of the end of 2022
Case
Case
Case
We continue to develop distinctive investment businesses for green nance, strengthen the greenapplication of nancial products and interaction with our branches and other businesses, and strivefor innovative green nance products and business patterns.Developing innovative green productsGuangzhou Branch facilitates the intelligent manufacturing of new energy vehicles
Xiamen Branch and Hong Kong Branch jointly supported the Trac Group in issuing the rst green USD bonds forFujian SOEs and Fujian Zhanglong Group Co., Ltd, the rst investment-grade green sustainability-linked overseasbonds in Fujian Province Each bond is worth USD 500 million and has a bond maturity of 3 years.
Kunming Branch issued the rst green sustainable USD bonds under a “dual-ESG architecture”, raising USD 230million and investing USD 30 million. These bonds are unique as they are the rst to have dual-ESG certicates, whichare not seen in SDG nance both domestically and internationally.
Zhengzhou Branch supported Pingdingshan Tianan Coal Mining Co., Ltd to issue sustainability-linked bonds worthRMB 1 billion with a 3-year bond maturity.
Fujian SOEs witness the rst green bonds denominated in USD
Issuing the first green sustainability-linked USD bonds under “dual-ESGarchitecture”
Issuing sustainability-linked bonds
RMB 21.111 billionBalance of green investment
As of the end of 2022
Case
Case
Case
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20228180
The Bank integrates ESG factors (environment, society and governance) into the entire investmentand decision-making process. We are committed to implementing the ESG philosophy throughoutthe Bank, strengthening our eorts towards the informatization of green nance, improving ourstandardized management, and actively participating in ESG-related research and exchanges.Through these initiatives, we aim to reinforce our commitment to building climate banking systems.
Practicing ESG philosophy
Since 2020, Hua Xia Wealth Management Co., Ltd. has been a signatory of the United Nations-supported Principlesfor Responsible Investment Association, and as such, actively promotes responsible investment principles across thecountry.In 2022, Hua Xia Wealth Management Co., Ltd. and the Chinese University of Hong Kong, Shenzhen released AnnualReport on ESG Investing in China’s Asset Management Industry 2022 for the third consecutive year. It also joinedhands with the Climate Initiative Bonds (CBI) and the Chinese University of Hong Kong, Shenzhen to release theReport on Research Results of China's transition in Finance. Hua Xia Wealth Management Co., Ltd. was also involvedin developing three national ESG group standards that have already been issued. It was invited by the Ministryof Finance of the People’s Republic of China, Beijing Municipal Administrative Center, Principles for ResponsibleInvestment Association and other organizations to share its TCFD and ESG practices, demonstrating its contributiontowards building a climate banking system.
On December 29, Hua Xia Wealth Management Co., Ltd. held the 4th ESG Investing Forum for Asset Managementin China virtually. The forum focused on the national carbon goals and discussed the future trends of economicdevelopment, leading-edge policies of carbon peak and carbon neutrality, and the new paradigm for ESG investment.The event attracted over 3.23 million online viewers.
Hua Xia Wealth Management Co., Ltd. continues to tap into SDG nance
The 4th ESG Investing Forum for Asset Management in China
RMB 2.631 billion
ESG-themed assets undermanagement
RMB 28.969 billionAccumulative value of ESG-themedassets under management
In 2022
As of the end of 2022
Assisting in demonstration project of the rooftop distributed photovoltaic and new energy vehicle photovoltaicstorage and charging of Yuhuan Commercial Exhibition Center in Taizhou
Case
Case
We continue to facilitate international cooperation on green nance and foster close partnerships with organizations such as the World Bank, AsianDevelopment Bank, Agence Fran?aise de Développement and other international nancial organizations. We continue to optimize policies and improve ourprofessional capacity, project management and executive capacity to better leverage our role in promoting high-quality development via green nance.
Regarding green nance as a major development target, the Bank makes every eort to pursue “Green Growth for a Better China”. To achieve this, wehave increased publicity for green nance to raise sta awareness and help them foster the value of eco-friendliness. We champion a green lifestyle andconsider oering green nancial services to customers as a code of conduct for our employees. By doing so, we aim to cultivate and prioritize a greenculture within the Bank.
Facilitating international cooperation
Cultivating green culture
Tianjin Branch distributes green loans to support the PV generation project of a central SOE.
The Beijing-Tianjin-Hebei Air Pollution Control Financing Innovation Project, our relending project from international nancial organizations, has taken eect. This project involvesthe largest amount of capital in the history of China's cooperation with the World Bank and marks the World Bank's rst energy project that uses the results-based nancingapproach. We have provided strong nancing support to the sub-projects to boost energy eciency, promote renewable energy and control pollution in the Beijing-Tianjin-HebeiRegion.
Improving the environment with various partiesCase
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20228382
In line with China’s domestic development dynamics and in compliance with the requirementsof supervision under the market and government, the Bank is committed to deepening its greenfinance development strategy and continuously improves its environmental and climate riskmanagement practices to support the goals of carbon peak and carbon neutrality. In 2022, theBank issued the Report on 2021 Environmental Information Disclosure, the rst head oce-levelenvironmental information disclosure report among national joint-stock commercial banks that metthe disclosure requirements of the People's Bank of China and the Task Force on Climate-RelatedFinancial Disclosure (TCFD).
AddressingClimate Change
Governance architecture
Strategies
The Board of Directors establishes our green credit
development strategy and tightens the supervision of itsimplementation and reviews the green credit objectivesformulated by the senior management department and thegreen nancial reports.It formulates risk management policies for environmental
risks and climate risks, and assesses the status of riskmanagement.
Board ofDirectors
Comprehensivemanagement
The Green Finance Management Committee ensures a
coordinated approach to implementing the green financestrategy and reviews plans related to green nance.It works to ensure coordinated cooperation among sectors on
green nance and sound implementation of relending projectsfrom international organizations.It coordinates corporate aairs concerning environmental risk
management.
The GreenFinanceManagementCommittee
Forging ahead
The Head Office Green Finance Center sets development
targets and plans for green nance, and improves relevantsystems and processes.It manages corporate affairs including green financial
business, marketing procedures, product research anddevelopment and brand management. It conducts environmental and social risk management.
The Head OceGreen FinanceCenter
15 key branches have green nance departments.The departments are responsible for branches’ green nance
operations and management, marketing procedures andenvironmental risk management.
Green nancedepartmentsat dierentbranches
We operate in accordance with the guidelines of the CPC Central Committee and the State Council,and have established systems and mechanisms for green finance as well as environmental andclimate risk management.The 2021-2025 Development Plan of Hua Xia Bank aims to “make every effort to developgreen nance as a new characteristic”, showing our growing support for the green industry. Weformulated the Rules of Green Finance Management of Hua Xia Bank, Guiding Opinions on theCredit Business Environment and Social Risk Management for Legal Persons from Non-nancialInstitutions of Hua Xia Bank, and Green Code of Conduct in Hua Xia Bank. The policies clarifygovernance responsibilities and help optimize our environmental and social risk managementmechanisms. We have also built an assessment system for green nance in an attempt to promotegreen oces and sustainable development within the Bank.
Policies
The Bank continues to improve its governance architecture for green finance, including themanagement of environmental and climate risks, and strives to establish a sound system for thedevelopment and management of green nance.
Giving priority to environmental risk management, we identify, measure, monitor and manage the environmental risks in the credit business. We carryout stress tests to quantify environmental and climate risks. In line with the principles of full coverage, classied management, and dynamic control, wecontinue to improve our environmental risk management mechanism throughout the entire process. Our objective is to improve our capacity to manageenvironmental and climate risks.Risk management
Targets
Physical risk
Full coverage principle
Principle of classied management
Principle of dynamic controlTransformation risk
limate disasters such as floods,typhoons and super heat waves; risingtemperatures and sea level
The risk management practices cover the entire process
of credit business for legal persons from non-financial
institutions.
We put in place differentiated management strategies to
address various degrees of environmental risks.
We pay constant attention to customers’ environmental
performance as long as their credit businesses are eective.Carbon pricing and environmentallitigation; green technologicaltransformation; selection of investorsand customers; negative public opinions
We will strengthen our support for the green industry and continue toimprove the proportion of green loans and the total amount of greennancial business.
We will strengthen environmental risk managementto avoid credit business losses caused by poorenvironmental and climate risk management.
We will practice green operations, implement low-carbon management and strive to achieve our owncarbon neutrality by 2025.
Targets
Identication
ofenvironmental
and climate
risks
Principles ofenvironmentalriskmanagement.
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20228584
We fulll our social responsibility by contributing to the conservation of biodiversity and managingthe risks associated with our investment and nancing activities. To our corporate ecological value,we develop sustainable nancial products and provide stronger nancial support for biodiversityconservation.In 2022 in the second phase of COP15 held in Montreal, Canada, the Bank issued the CommonAction Plan for Banking Sector to Support Biodiversity Conservation in cooperation with ChinaBanking Association and domestic and foreign nancial institutions, which positioned the Bank asone of the rst batch of businesses that have registered in the “Environmentally and FinanciallySupported Project Management System” developed by the Ministry of Ecology and Environmentof the People’s Republic of China. We further increased project reserves and innovated newapproaches to loan distribution to provide more sustainable nancial products.
ProtectingBiodiversity
Fuzhou Branch and Fujian Provincial Department of Ecology and Environment sign the Framework Agreement onBank-government Cooperation of the Department of Marine Fisheries.
The Chinese alligator is one of the top 20 most endangered animals in the world and is under rst-class stateprotection in China. Hangzhou Branch provided a loan of RMB 19 million to Zhejiang Chinese Alligator ReserveManagement Co., Ltd. to replenish its oating capital. This loan will enable the company to allocate more funds towardbiodiversity conservation.
Fuzhou Branch and the Fujian Provincial Department of Ecology and Environment signed the Framework Agreementon Bank-government Cooperation on Marine Fisheries. This agreement aims to provide nancial support for theconstruction of major environmental projects, the pilot model of environmental protection-oriented EOD, greencircular economic development, and other sectors. By working together, our customers in the environmental sector inFujian Province will have access to better services, and we can help Fujian Province build itself into a green economiczone.
Protecting Chinese alligators
Framework Agreement on Bank-government Cooperation on Marine Fisheriessigned with Fujian Provincial Department of Ecology and Environment
Case
Case
We uphold green travel and green transactions and call upon the public to foster a green lifestyleand raise environmental awareness.BuildingGreener Life
In accordance with national policies, we have introduced electronic toll collection on expresswaysand bridges, allowing customers to save transit time, relieve trac congestion, reduce air pollution,and promote green travel.
With a focuse on the paperless transformation of the counter, we continuously promote thecomprehensive integration of counter transactions, achieving the digitization of paper vouchers,customer signatures, and bank seals, and further deepening green and low-carbon financialservices.
Encouraging green travel
Facilitating green transactions
2.6179
millionETC card users signed
69,800Increase over the end of 2021
4,052,590,400Electronic transactions completed
16.4%
NOx reduction
71.2%
Carbide reduction
71.3%
CO reduction
48.9%
CO
reduction
99.42%
Services handled via main e-channels
3.2788
millionETC cards issued in total
826,030,600Transactions increased over the beginning ofthe year
As of the end of 2022
As of the end of 2022
It is estimated that an LDV on ETC driveways instead of on manual toll driveways can realize
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20228786
We acknowledge the impact of our corporate operations on the environment and promote greenoffices and green procurement. We actively engage in eco-friendly public activities to reduceresource consumption, improve energy utilization rates, and decrease harmful emissions, therebycultivating a culture of green and low-carbon living.PracticingGreenOperations
Adhering to green philosophy, the Bank upholds green production to reduce energy consumption,and seeks to raise staff awareness of frugality, environmental protection and a sense ofresponsibility. By taking small steps towards greener workplace culture, we aim to foster a healthyand sustainable work environment.Green oce
Indicators202020212022
Total water consumption ofHead Oce (ton)
33,193.1334,423.635,248.58Total power consumption ofHead Oce (kWh)
51,340,078.6260,577,508.364,336,569.73Total fuel consumption fromcompany-nanced vehicles ofHead Oce (litre)
24,607.2627,808.2218,589.04Total paper consumption ofHead Oce (ton)
20.8320.8917.61
Energy conservation We have installed LED bulbsand other energy-efficient consumer equipmentin our green oces. To save energy, we introducemeasures to ensure lights and taps are turned o ifnot used, and reduce printers and materials.
“Clean your plate” campaign Our staff canteensrestricted food quota to reduce kitchen waste andthe sta was encouraged to eat at home or outside.
Green travel We strictly implemented requirementsto manage company-nanced vehicles and deployedthe vehicles reasonably. We encouraged employeesto commute by bus, subway or bike or on foot, thuscontributing to fewer exhaust emissions by motorvehicles.
Waste sorting Waste sorting facilities were set up inoces. Specications were in place for employeesto sort waste, improving waste sorting eciency.
Energyconservation“Clean yourplate” campaign
GreentravelWastesorting
We conducted centralized procurement and established over 10 policies such as the Administrative Measures for Centralized Procurement, AdministrativeMeasures for Tendering, Bidding and Procurement and Working Rules of the Centralized Procurement Committee, aiming to improve the transparencyand standardization of our procurement work and promote green procurement.
We organize various eco-friendly public activities to engage employees in environmental protection, such as volunteering at garbage collection stations intarget communities, signing a letter of commitment on waste sorting, cleaning up community garbage, and conducting voluntary tree planting. By activelyreducing carbon emissions and promoting green initiatives, we strive to contribute to building a greener and more eco-friendly country for all.
Green procurement
Green charity
Nanjing Branch holds a themed public welfare activity on Tree-planting Day.
For more information on green nance and the environment, please refer to the Environmental Information Disclosure Report.
Green requirementsin centralizedprocurement system
Professional management departments are encouraged toprioritize the procurement of innovative and green products.The Rules define the parameters for suppliers who wish todo business with us, including their green capacity and socialresponsibility performance.
Suppliers failing to fulfill their social responsibilities anddenounced will not but admitted to our supplier base.Project accreditation index and index weight design shouldconsider the elements of environmental protection.
On March 4, Chongqing Branch joined hands with the volunteer team of the Chongqing Youth League and the community to provide voluntary sanitaryservices. The volunteers were organized to collect the garbage scattered around Binjiang River Dam, exemplifying Lei Feng's spirit through practicalactions. The service helped enhance employees’ awareness of labor, environment, and social responsibility, taking a step forward toward sustainabledevelopment.
Voluntary sanitary serviceCase
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20228988
OPERATINGHONESTLY
to Achieve Sound Development
Ensuring compliance in operations while following laws andregulations, improving the internal control and compliancemanagement mechanisms, and promoting a culture of the rule of law
Strengthening risk prevention and control, improving the long-term risk management mechanism, and pursuing professional riskmanagement
Safeguarding the legitimate rights and interests of customers andcarrying out nancial knowledge publicity and education activities.
To pursue high-quality development while maintaining prudent operation,we comprehensively promote the construction of long-term mechanisms forcompliance management and operations, enhance risk prevention capability,and protect consumers’ legitimate rights and interests.
Sustainability practices
In 2022
3,624
Training sessions on compliance held3,734Training sessions on anti-money laundering
28,453Public education sessionsAs of the end of 2022
1.75%
Non-performing loan (NPL) ratio
158.99%
Provision coverage ratio (PCR)
To safeguard the bottom line of compliance, the Bank improves its internal control and compliancemanagement mechanisms, prevents illegal financial activities, provides precedents to promotevigilance, and fosters a culture of the rule of law and compliance to ensure honest and compliantoperations.
To improve the compliance operations of the Bank, we organized activities of various themes, suchas optimization of systems, case presentation, compliance information quizzes, and management ofauthenticity problems of credit business. We conducted 1,413 case presentations at dierent levelsand categories, covering over 44,400 participants; 26,939 people studied and participated in thelegal compliance information quizzes; 1,835 people were alerted to be compliant; 738 problemswere detected in the examination of the authenticity of credit business, thereby effectivelyimproving the compliance operation of the Bank. Through these programs, we encourage employeesto operate in accordance with the law and raise awareness of compliance to contribute to acompliance culture.
The Bank launches campaigns of “Pursing Long-term Development inStability with Full Compliance” and “the Comeback Year of Authenticity ofCredit Business”.
3,624
Training sessions on complianceheld118,533Participants in total
Lectures and training sessions onanti-nancial crimes organized
32,573Participants in total3,734
AML training sessions held137,755Participants in total
In 2022
To achieve sound development, we ensure compliance in operations by improving an internalmechanism for compliance management and promoting the construction of a compliancemanagement system based on the requirements of regulators.
Improving the internal control and compliance system
Improving theinternal controland compliancesystem
We have established a grid supervisionand inspection mechanism coveringthe Head Office and Branches atthe operation management level bystrengthening the "second line ofdefense" and improving the quality andeciency of the "rst line of defense".
As we promote the digital empowermentof business system management, wehave built an enterprise-level policyframework for businesses, constructeda database for group businesses, andfacilitated the integration of the policyframework with business development.
The Bank has revised the Measures forRisk Management for Compliance, andestablished a joint review mechanismfor compliance risks under the co-management of the rst and second linesof defense. We have also consolidatedthe primary responsibility of businesslines and exercised gate-keeping forbusiness lines with compliance, toenhance the prevention and control ofrisks from the source.
Promoting supervision andinspectionEnhancing employeeconduct managementManaging risk againstnon-compliance
Establishing policy frameworkat the enterprise level
We revised the Measures for theManagement of Employee Conduct andhave implemented the corporate cultureconcept of “integrity, standardization,efficiency and progress” to promote anhonest and upright nancial culture.
Case
Shenzhen Branch’s activity on “Pursuing Long-term Development in Stability with Full Compliance”
The Bank promotes the rule of law in various ways. In addition to strengthening our legal risk control, we organize educational seminars on the rule of law,advance the construction of our legal professional team, and reinforce our collectivized legal risk management to foster a workplace culture of integrity.
Protecting intellectual property rights. The Bank is committed to protecting the legitimate rights of its own intellectual property rights and and defending
its brand reputation and service quality. We regulate the use of intellectual property rights, and prevent and control the risk of infringing others'intellectual property rights, thereby demonstrating our responsibility for fair competition in the market.
Promoting the rule of law
Optimizingcontrol systemfor legal risks
The Bank prioritizes compliance with laws and regulations in managingimportant matters of major projects.
We enhance the Bank’s legal risk prevention and control capability, wehave organized special training on Personal Information Protection Lawand the Civil Code of the People's Republic of China.
With a focus on the legal risk prevention and controlneeds across various business areas, we have formulatedand issued judicial interpretations and actual businessoperations, thereby enhancing our foresight in preventionand control.
We conduct special inspections on the prevention,control, and resolution of major risks of our subsidiariesto promote the Group's risk management strategy, urgingour subsidiaries to abide by the law and prevent risks, andenhancing their legal risk management capabilities.
Special inspections have been conducted to supervisethe eective implementation of various legal risk controlrequirements.
We have promoted the improvement of a training andincentive mechanism for legal professionals to ensure thecoverage of the professional legal team in all branches.
EnsuringCompliance
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20229392
Among our efforts to consolidate risk prevention and control defenses, Hua Xia Bank actively prevents illegal financial activities by investigatingemployees’ abnormal behavior, deepening the accountability system and showing precedents to promote vigilance.Ramping up to guard against crime risks
We have eectively prevented hidden risks by implementing a risk-examination mechanism, improving the verication of irregular behaviors, andinvestigating serious illegal and irregular problems such as illegal lending and improper capital transactions with customers.To improve compliance and crime prevention awareness, we have strengthened the risk warning in business areas such as inter-bank deposits,counter business, and elderly customer service.
We have carried out regular anti-crime eorts by strengthening credit management and enhancing the gate-keeping,monitoring, and evaluation of cooperative institutions.We have established a close collaborative working mechanism to prevent and combat illegal nancial activities such as
illegal fundraising, illegal lending, and nancial fraud. We launch the publicity on the Anti-organized Crime Law of the People’s Republic of China.
We conduct regular and comprehensive troubleshooting with 100% coverage.We have strengthened our special investigation of "ying bills" (the practice of a sales clerk processing orders
through other companies rather than their own), which is conducive to preventing fraudulent activities.We have optimized the monitoring system and model for abnormal transactions in employees' accounts to improve
the scope and accuracy of monitoring and warning.
We optimize the accountability system and deter employees from committing nancial crimes through accountability andeducation, creating a strict atmosphere of accountability.We have issued notices on accountability, analyzed common problems and specied the requirements for accountabilitymanagement.We conduct a self-examination of irregularities in investment responsibility operations to strengthen the accountability
arrangements.
We organize the “Guard Your Money to Ensure a Happy Family” campaign to prevent illegal fund-raising. We have won the Organization of Excellence in the “Fighting Fraud and Boosting Compliance” Financial Fraud Prevention Knowledge Quiz.To encourage the eective prevention of risky behaviors and enhance risk prevention awareness, we have established the Award for Stopping
Financial Crimes and Handling Risk Events.
Strengthening therisk prevention
and controlmechanism
Preventingillegal nancial
activities
Examiningthe abnormalbehavior ofemployees
Improvingaccountabilitymanagement
Strengtheningpublicity andeducation on the
rule of law
We continue to improve the internal control system for anti-money laundering. By strengthening self-examination and intensifying publicity eorts, theBank comprehensively enhances its awareness of money-laundering risks and improves the quality and eciency of its management.Reinforcing money laundering risk management
Reinforcing money
laundering risk
management
We have organized a special agenda to reinforce ourAML efforts, thoroughly identifying weaknesses andformulating optimization plans to improve our AMLmanagement.
We take measures to enhance our anti-money launderingtraining system, strengthen the construction of its anti-money laundering team, and cultivate the idea that“preventing money laundering is a shared responsibility”To promote this idea, we have organized a series of four-in-one publicity activities in “ lobby + outdoor + media +Internet”.
We have revised ve systems, including the method forhandling customer money laundering behaviors, riskassessment and classification for terrorist financing,and the business procedure for risk classificationof customers involved in money laundering, furtherstrengthening the foundation of our anti-moneylaundering management.
To enhance the eectiveness of our AML managementsystem, we conduct self-assessments of moneylaundering and terrorist nancing risks for institutions,develop self-assessment models, evaluate riskysituations and the effectiveness of relevant controlmeasures, and identify areas for improvement.
Improving the quality and eectivenessof anti-money laundering tasks
Carrying out publicity andtraining activities
Rening the internal controlsystem for anti-money laundering
Strengthening money launderingrisk management
Nanjing Branch raises the public awareness of AML at the entrance of its sub-branch.Hangzhou Branch conducts AML promotion especially for elderly customers.
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20229594
Hua Xia Bank has enhanced the comprehensiveness, effectiveness, and advancement of its riskmanagement efforts by refining its long-term risk management mechanism, upgrading its toolsfor risk control, accelerating the application of digital technologies, and fostering a culture of riskawareness.Strengthening Enterprise Risk Management
The Bank fully implements the decisions and deployments of the Central Party and governmentauthorities and complies with national policies. Guided by our aim to serve the real economyand prevent financial risks, we have improved our risk management systems, strengthened riskprevention and control in key areas and key links, enhancing professional management of specicrisks. We have also accelerated the digitalization of our risk control system and fostered a cultureof risk awareness. We are committed to guarding against systemic risks and ensuring high-qualitydevelopment.
Building a FirmDefense Line
1.75%
Non-performing loan (NPL) ratio
159.88%
Provision coverage ratio (PCR)
As of the end of 2022
We have built a quantitative transmission mechanism for risk preference,established a quantitative index system for risk appetite and expected revenue,and implemented risk preference assessment in a quantitative manner. Byimproving our annual risk management strategies and clarifying our annual riskcontrol targets, we have strengthened our control over bank-wide operationsand management, leading them in the correct direction. We have also tightenedquota management, such as concentration risk, country risk, and online loanbusiness, to prevent major risks.
The Bank has launched special actions to promote a culture against risks,which includes the proactive promotion of a culture of “pursuing progress insteadiness”, and the enhancement of a unied concept and code of conduct forrisks. To strengthen the establishment of a professional training system for riskmanagement, we have raised the risk control awareness and professional abilityof all sta.
Through the initiation of "The Year of Digitalization of Risk Control" activities,we have completed and promoted previous projects for the digitalization of riskcontrol, such as industrial digital nance. Additionally, we have created digitalcredit and risk control models, and integrated data internally and externally. Bydeepening the application of big data in the eld of credit and risk control, wehave enhanced the eciency and accuracy of our risk control measures.
Strengtheningall-round riskcoordination
Advancinga cultureagainst risks
Acceleratingdigitalization ofrisk control
To improve the asset lifecycle management, we have actively worked to strengthen the formulation
and implementation of policy systems, and optimized business structure, ensuring continued stabilityand improvement of asset quality.The Bank traces and interprets important national policies and economic operation to timely rene its
policies and measures; We also orderly review and update the regional credit granting strategies, andcontinue to guide branches to eectively support the development of local real economy.We enhance our post-loan management by broadening our warning monitoring dimensions and
establish normalized monitoring and analysis to manage the access and monitoring in key areas,eectively preventing new risks.We improve the asset preservation operation management mechanism, strengthen the centralized
and classied management of non-performing assets, greatly promoting the quality and eciency ofcollection and disposal.In line with the Measures for the Administration of the Large Capital Exposures of Commercial Banks,
we actively strengthen the management of large capital exposures and monitor and report all thedetails on a quarterly basis, in order to steadily promote the establishment of the large capital exposuresystem. The risk control of key accounts at the headquarters and branches has been continuouslystrengthened.
We closely monitor changes in the market to better
understand market changes and related risks. We haveimproved the identification, and reporting mechanismsfor market risks, which has helped strengthen our riskprevention and management eorts.Hua Xia Bank has optimized setting methods and indicator
systems for quotas to strengthen quota monitoring andcontrol.By launching a market risk management system and
rening the counterparty credit risk measurement system,the Bank has multiplied its market risk measurementcapability.
The Bank has been continuously strengthening risk prevention and resolution in key areas to secure overall control of various risks.Preventing and Controlling Specic Risks in Key Areas
“Dragon Shield” wins Financial Insights Innovation Awards - FIIA
We have enhanced the capabilities of the big data risk identication and earlywarning system – “Dragon Shield” to promote the utilization of big data incustomer marketing, credit investigation, examination and approval, post-loaninspection, and asset preservation. This deepens our implementation of big datain credit and risk control, leading to improved eciency and accuracy in riskmanagement. The "Dragon Shield" system was awarded the Financial InsightsInnovation Awards - FIIA by IDC China Digital Finance Forum.
“Dragon Shield”- Intelligent Risk Control guards against business risks dynamically
We have rened our assessment standards as well as audit and verication mechanisms to
improve the quality and eectiveness of operational risk and self-assessment.Covering risks in key risk areas and key links, our management has improved the indicator
system for key risks r early warning, so as to . improve our operational risk monitoring
capability.The Bank has also upgraded the management mechanism for operational risk events, and
made adjustment to the operational risk management system's functions, including the
cleaning and replenishment of lost historical data. These measures have adequately prepared
us for the ocial implementation of the new standard law.
Credit risk managementMarket risk management
Optimizing operational
risk managementReputation risk
management
The Bank has optimized systems and mechanisms by improving the
reputation risk management system and mechanism and workow fordisposition.The Bank raises risk awareness, maintains a focus on problem
identification, and fosters a culture that prioritizes reputation riskmitigation.The Bank places significant emphasis on strengthening operational
work, consolidating primary responsibilities, enhancing risk warningmechanisms, and taking proactive measures to mitigate reputationrisks, thereby eectively improving management practices.
Case
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20229796
Hua Xia Bank places significant emphasis on safeguarding customer rights by strictly adheringto various requirements for customer protection. This approach ensures that customer rights andinterests are protected in an orderly manner.Putting people first, the Bank complies with relevant policies and regulations, and activelyimplements the requirements of the Board of Directors (Supervisors) and the senior management.We remain committed to enhancing comprehensive customer rights protection and servicesby involving all employees across business lines and processes. Our efforts focus on improvingcustomer rights protection in areas including top-level design, business operation, customerprotection review, public education, internal training, supervision and inspection, informationdisclosure, complaint and dispute handling, performance evaluation, etc.
Protectingcustomer rightsand interests
We attach great importance to the implementation of customer protection reviews and have strictly controlled the integration of customerprotection into product design, business systems, and marketing promotion. We have further enhanced the embedding of customer protectioninto all business lines to build both online and oine customer protection review mechanisms that bring risk threshold forward.
Functional departments responsible for customer protection at all levels have reinforced their duties to improve themanagement of customer rights protection. We have also strengthened coordination and supervision, and improved themanagement of key links. Through fullling our management responsibility, promoting the integration of business lines, andfacilitating the implementation of key tasks, we ensure the construction and eectiveness of a comprehensive customerprotection system across all business lines and processes.
The Bank remains highly vigilant about customer rights protection and has successfully integrated it into thecorporate governance, culture, and business development strategies. As a result, we have strengthened thecustomer rights protection mechanisms by deeply embedding them into our operations.
Promoting the management of the customerprotection review system and strengtheningcontrol and management at the source
Promoting the comprehensiveimplementation of customer protection
tasks in an innovative way
Promoting the awareness andcustomer protection mechanisms
Through exploring new practices of customer-friendly and well-regulated service, we have incorporated the customer-friendly and well-regulated service evaluation system into the construction and management of outlets’ services to meet the diverse needs of nancial customers.This enables the Bank to better serve the diverse needs of nancial customers, expand the coverage and depth of its nancial services, andfacilitate the integration of well-regulated service and customer rights protection.
We continuously improve the construction of our customer complaint handling systems, clearing complaint channels andhandling customer complaints in a proper and active manner. We use mediation mechanisms to resolve customer disputesand put emphasis on assessing customer complaints, while strengthening accountability, traceability and rectication.Through these measures, we are eectively fullling our responsibility of complaint handling, improving the managementof customer complaints, and utilizing customer complaints positively to improve corporate governance, promote businessdevelopment, and enhance nancial services.
The Bank strictly adheres to regulatory requirements and tailors training content for dierent participants. Wealso conduct special training on issues found in the dynamic management, and promote multiform, multi-channelcustomer protection training in online +oine, centralized +self-study, and special +joint forms. By combining thetheoretical foundation of customer protection with business operations, we aim to enhance our ability to protectcustomer rights and interests.
We have diligently followed the relevant requirements set by regulatory authorities and industry associations regarding customer protectioneducation and publicity. As part of our institutionalized and diversied eorts to provide long-term and eective customer protection educationand publicity, we established a Branch Manager's Lecture on Customer Protection program, which serves as an education and publicity brand.Additionally, we created various forms of public education and publicity, and improved our online and oine risk warning systems. All thesemeasures are part of our eorts to fulll our responsibility of education and publicity for customer protection.
Strengthening service quality andeciency to support each other to
improve customer protection
Unblocking complaint handlingchannels to assume the responsibilityof complaint handling
Strengthening customerprotection training andimproving the training content
Creating our own education andpublicity brand to strengthenrisk education
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 20229998
The Bank has always attached great importance to the managementof nancial customer complaints. Guided by regulatory authorities andled by the Party Committee of the Bank, the Board of Directors, andthe management team, Hua Xia Bank has always regarded complaintmanagement as a key task in applying the people-centered developmentphilosophy as an SOE.We continuously improve the construction of our customer complainthandling systems, clearing complaint channels and handling customercomplaints in a proper and active manner. We use mediation mechanismsto resolve customer disputes and put emphasis on assessing customercomplaints, while strengthening accountability, traceability andrectication. Through these measures, we are eectively fullling ourresponsibility of complaint handling, improving the management ofcustomer complaints, and utilizing customer complaints positively toimprove corporate governance, promote business development, andenhance nancial services.We handle complaints in a timely and proper manner, strictly followingthe established procedures and never rejecting any complaint withoutjustifiable reasons. In 2022, the Bank further strengthened theidentication and early warning of complaint data. Based on the principleof accepting all possible complaints, we have expanded complaint
channels and further strengthened the management and applicationof complaint data. Throughout 2022, the Bank received a total of112,980 customer complaints (including all complaints received by theHead Oce, the credit card center, and all branches, and through thecustomer feedback worksheets). We completed the handling of 99.99%of customer complaints within 15 days, and resolved all customercomplaints we received in 2022, achieving a 98.04% customersatisfaction rate for complaint handling.Complaints concerning credit cards were mainly from Guangdong,Shandong, and Henan, and complaints involving other banking serviceswere mainly from Beijing, Jiangsu, Guangdong, and Tianjin. Due to theeconomic challenges in 2022, complaints were mainly related to loanrepayment consultation, repayment of personal loans (mainly mortgageloans and online loans), debt collection, credit adjustment services,and product returns related to wealth management and other nancialproducts. In response to the above situation, while receiving andhandling complaints in a proper manner, the Bank focused on complaintanalysis and source control, and urged the continuous optimization ofbanking processes or services, leveraging the positive role of complaintmanagement to provide better services for nancial customers.
Responding to customer complaints
Branch Manager’s Lecture on Customer Protection organized by Wenzhou Branch
To actively implement the requirements of regulatory authorities and industry associations such asthe People's Bank of China and the China Banking and Insurance Regulatory Commission, we havestrengthened public education and publicity on customer rights and interest protection. Througha variety of channels such as online and offline lectures, social media platforms, and financialeducation events, we aim to help key and vulnerable groups improve their understanding of nancialknowledge and skills, and increase their risk prevention awareness and ability.
Carrying out public education on nance
The rst nance-themed train in Henan Province co-created by Zhengzhou Branch
Financial knowledge publicity in rural areas by Guangzhou Branch
On September 26th, the first finance-themed train co-created by Zhengzhou Branch in HenanProvince was launched. The train carriage was decorated with original customer protection postersand slogans, and the branch's original customer protection cartoons were played on the TV. On theday of the launch of the train, Zhengzhou Branch organized its employees to disseminate nancialknowledge to passengers on the train by distributing leaflets, centralized lectures, and award-winning Q&A. This practice not only fullled the Bank's social responsibility, but also improved thenancial literacy of the public.
The rst nance-themed train in Henan Province co-created by Zhengzhou
By the end of 2022,the Bank had
Case
RMB 5,443,500
Invested in public education
Themed activities held
28,453
Activities held in 2022
millionAttendees in total3,605,900Copies of brochures and leaetsdistributed
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022101100
BUILDING AHARMONIOUSSociety Through Joint Eorts withLoving Care
Safeguarding employee’s basic rights and ensuring equalemployment and democratic management
Empowering employee’s career development and building a multi-level and full-coverage training system
Protecting employee’s physical and mental health and striving foremployees’ satisfaction and happiness
Engaging in community-based charity and improving people’swell-being
Always being people-oriented, we prioritize the well-being and careerdevelopment of our employees. In addition to providing platforms for self-development, we work to build a team of outstanding financial talents.Through our active participation in social welfare activities with employees,we fulll our social responsibility, demonstrating our commitment to makinga positive impact.
Sustainability practices
As of the end of 20226,913Employee training sessions organized
Employees in need received assistance
RMB 21.3853 millionCharitable donations
We abide by the Labor Law, Labor Contract Law and other Chinese laws and regulations strictly.Following the principles of transparency, fairness, and impartiality, we have established a diversiedtalent recruitment system that fosters an equal working environment where employees respect oneanother and their basic rights are protected.
Paying CloseAttention toEmployees Rights
Strictly abiding by relevant laws and regulations such as the Employment Promotion Law, the Bankprovides equal and transparent employment opportunities to workers and ghts against any formof discrimination regardless of race, gender, religious belief and cultural background, forging adiversied, harmonious and inclusive labor relationship.
Hua Xia Bank has optimized its compensation management system. In line with the performance-based pay structure,we correlate employees’ compensation with their performance appraisal. Thissystem incentivizes continuous personal development and improvement among employees.
Promoting equal employment
Improving compensation and benets
100%
Labor contract signing rate100%Social insurance coverage rate
39,938
Employees in total
51.39%
Percentage of female employees
1,962
Ethnic minorities
14.49%
of the employees held amaster’s degree or above
54.52%
of them were aged 35 andbelow
32.74%
aged 36-45
1.37%
aged 55 and above
21.90%
an associate degree orbelow
11.37%
aged 46-55As of the end of 2022
regarding the
structureregarding the
educationalbackground
63.61%
a bachelor’s degree
The Bank signs collective
contracts, collectivecontracts on salary, andlabor contracts withemployees in accordancewith the law, and ensurestimely and full payment ofvarious social insurancesfor employees.The Bank sets reasonable
working hours andensures timely and fullpayment of remunerationto employees.Every employee is entitled
to statutory holidays andpaid leave.
The Bank constantly
optimizes the assessmentand incentive mechanismand salary distributionsystem.We strengthen the
assessment of theprotection of consumerrights.The bank has incorporated
social responsibilitiessuch as serving the realeconomy, MSE services,and agriculture-relatedand rural vitalizationinto its performanceevaluation.
Performance
evaluationCompensationand benets
We have deepened our democratic management mechanism to respect the rights of employees todiscuss and express their opinions. We provide unimpeded channels for employee feedback throughvarious forms, such as the Employees’ Congress, and the Homes of Employees and sta meetings,to better understand employee needs and demands.Advancing democratic management
Chongqing Branch holds a sta meeting for young employees
Employees of Wenzhou Branch cast their votes at the Employees’ Congress
Constructive suggestions received
100%adopted and implemented
Employees’ Congress meetingsheld
5,395
Participants in total
Proposals received
Sta meetings held2,134
Grassroots employees attended
In 2021
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022105104
To enhance employees’professional knowledgeand skills, the Bank hasorganized professionaltraining sessions in fivemajor areas: digitalization,retail finance, corporatenance, nancial marketsand risk management.
Hua Xia Bank remains committed to its strategy of enhancing the Bank through a high-qualityworkforce. To support the development of key talents and a professional team, the Bank has builta well-rounded and multi-level training system. This system oers customized courses to meet theneeds of employees at dierent levels and in various roles, promoting their career advancement.Caring AboutEmployeeDevelopment
New employees of Guangzhou Branch participates in “the Young Hawk Training Program”
Guangzhou Branch organized the third phase of the “Young Hawk Training Program” andmentorship for new employees over a period of three weeks. The training program aimed to assistnew employees in adapting to their workplace by focusing on ve themes: “building self-image”,“following the rules”, “learning business procedure”, “improving skills” and “expanding horizons”.As a participant in the Second National HR Innovation Competition, the program won the TalentDevelopment Innovation Brand Award.
Guangzhou Branch organizes “Young Hawk Training Program”
6,913Employee training sessions held640,050
Participants in total1,269
Training sessions on CSR, with153,804
Participants in total
Training sessions on environmentalprotection, with7,400Participants in total
As of the end of 2022
Enhancingprofessionalskills
Strengthening
abilities andcompetencies
To expand employees’ vision,enrich their workexperience, and build acomposite talent team,the Bank has carriedout exchanges betweenocials, launched a talentmarket, implemented starotation, and enabled freshgraduates to gain practicalexperience by shadowingsenior employees.
Case
We place importance on the physical and mental health of employees, enrich their spiritual life,and improve their physique and create a good workplace by introducing new cultural and sportsactivities, building Homes of Employees, etc.
Caring AboutEmployeeWell-being
As an advocate of a healthy lifestyle, we organize and upgrade cultural and sports activities, enrichthe cultural life of employees, and provide a platform for employees to demonstrate their talents,cultivating a relaxed working environment.Keeping a work-life balance
The Hong Kong Branch holds badminton matches
Wuhan Branch sets up a Running Association.
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022107106
The Bank keeps building the Home of Employees, equipped with tness equipment, reading rooms,lounges, and other amenities. This is a reflection of our commitment to creating a democratic,happy, and caring environment that serves as a place for learning and business startups.Building home of employees
Employees of Hangzhou Branch read in the reading room of Home of Employees.
The activity room of the Home of Employees of Xining Branch
Homes of Employees built in total,including
Models of Homes of Employees
Qualied Homes of Employees
As of the end of 2022
Employees in need helped
RMB 844,000Living allowances distributedRMB 324,100
Medical subsidies distributedRMB 309,000Disaster relief subsidies distributed
As of the end of 2022
Representatives of Wuxi Branch visit and show support to employees in need.
Shijiazhuang Branch launches visits during Spring Festival.
Female employees of Wenzhou Branch cultivate potted-plant on Women’s Day.
The Bank has established an employee relief fund to provide assistance and support to employeesin need, particularly during major festivals. Our focus on the diverse needs of employees and ourcommitment to humanistic care have led us to establish channels for delivering aid to employees inneed. We also carry out activities on dierent topics, to show our concern for retirees and femaleemployees and meet the diverse needs of employees.
Visiting and helping employees
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022109108
The Bank promotes volunteerism by establishing a volunteer service system that is “based in Beijingand serves the whole country”. We have carried out various public welfare activities.Engaging inPublic WelfareUndertakings
The Bank pursues volunteerism by actively taking on urgent and difficult tasks, makingcontributions to important events such as the Games, and supporting security eorts.Participating in the Beijing 2022
Beijing 2022 volunteers
Hua Xia Bank was acknowledged for its eorts during theBeijing 2022. The Bank received a letter of appreciationfrom the supporting group of the opening and closingceremonies. Selected young employees played a vital rolein the supporting work of the Organising Committee for theOlympic Winter Games Beijing 2022 on-site, efficientlyhandling the organization and trace-tracking of morethan 60,000 spectators through programming scripts,examining the data of more than 40,000 spectators, andconducting on-the-spot surveys four times. With a "10,000people participate, 1,000 cars involved, respond in theshortest possible time" approach, the Bank demonstratedits courageous and seless dedication.
Volunteering for the Beijing 20221,756Volunteer activities organized17,523
Employees involved18,625
hoursVolunteer activities oered
As of the end of 2022
Committed to public welfare, the Bank encourages employee participation in volunteeractivities. We continue to carry out various initiatives such as providing care for the elderly andunderprivileged children, and charitable donations, contributing to the promotion of a harmoniousand civilized society.
Supporting charity
The Bank continues to place emphasis on the growth of children of sanitation workers and haslaunched the “Biodiversity - Embrace a Sustainable and Better Future” - Hua Xia Bank “2022 Planfor the Growth of Children of Sanitation Workers” on August 22. Through remote live broadcastingand interacting with others, the program provides an opportunity for the children to learn aboutbiodiversity conservation from a global perspective, and the concept of sustainable developmentwas upgraded from sanitation and environmental protection, reecting the Bank’s determination toprotect the environment and care for the children of sanitation workers, and spreading the conceptof “the more sustainable and the better”.
Launching “Plan for the Growth of Children of Sanitation Workers”
Case
Case
With Beijing as the main base of the youth’s voluntary service, the Bank organizes young volunteers to actively carry out voluntary services such as “givingway to pedestrians at zebra crossings”, “garbage sorting” and “sending warmth in winter”. We also implemented the "With Bright Love-Happy Journey"project, accompanying orphaned children and children with special needs in Beijing's Bright Love School. The Bank and the volunteers were honored withthe outstanding organization and volunteers in Beijing on the Centenary of the Founding of the Youth League.
The Bank organizes voluntary services within its branches across the country. For instance, the Shenzhen Branch carried out poverty alleviation activitiesunder the theme of “caring for stay-at-home children”; the Youth League Committee of Shijiazhuang Branch created the program of “how much love hasthe inch-long grass” to provide warmth and care to local elderly widows and orphans; the Youth League Committee of Taiyuan Branch joined hands withthe Taiyuan Education Bureau to set up the “House with Love” public welfare brand.
We have carried out various public welfare activities that is based in Beijing and serves the whole country
Volunteers from the Head Oce carry out voluntary service activities.
Volunteers from our branches carry out voluntary service activities.
Case
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022111110
The year 2023 marks the beginning of a new journey towards high-quality development and thefull implementation of the guiding principles of the 20th CPC National Congress. Standing at thestarting point of the new era, the Bank will adhere to the theme of “Serving a New Era and Buildinga New Hua Xia Bank”, rmly executing the concept of sustainable development. We will continueto prioritize our mission of serving the real economy, while also deepening inclusive nance andpromoting green nance. As we move forward, we will remain dedicated to fullling our economic,environmental, and social responsibilities, ensuring that the benets of nancial development reachmore people and contributing our eorts to the new development stage.
Outlook
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022113112
Reporting Index
GRI Content IndexAppendix
GRIstandard
Disclosure itemPageRemarksGRI 1:Foundation 2021GRI 2:General disclosures 2021
2-1Organizational detailsP62-2Entities included in the organization’s sustainability reportingP12-3Reporting period, frequency and contact pointP12-4Restatements of informationP114-115No information
is restated2-5External assuranceP119-1202-6Activities, value chain and other business relationshipsP62-7EmployeesP6、P1042-9Governance structure and compositionP7-92-11Chair of the highest governance bodyP4-52-12Role of the highest governance body in overseeing the management of impactsP112-13Delegation of responsibility for managing impactsP112-14Role of the highest governance body in sustainability reportingP122-16Communication of critical concernsP132-22Statement on sustainable development strategyP4-52-23Policy commitmentsP112-24Embedding policy commitmentsP4-52-28Membership associationsP112-29Approach to stakeholder engagementP132-30Collective bargaining agreementsP104GRI 3: Material Topics 2021
3-1Process to determine material topicsP123-2List of material topicsP123-3Management of material topicsP12
EconomicGRI 201 Economic Performance 2016201-1Direct economic value generated and distributedP15201-2Financial implications and other risks and opportunities due to climate changeP8
GRI 203 Indirect Economic Impacts 2016203-1Infrastructure investments and services supportedP38-43203-2Signicant indirect economic impactsP44-51GRI 205 Anti-corruption 2016
GRIstandard
Disclosure itemPageRemarks
205-1Operations assessed for risks related to corruptionP94-95205-2Communication and training about anti-corruption policies and proceduresP94-95GRI 207: Tax 2019207-1Approach to taxP13207-3Stakeholder engagement and management of concerns relatedP13EnvironmentalGRI 302 Energy 2016302-1Energy consumption within the organizationP88302-4Reduction of energy consumption302-5Reductions in energy requirements of products and servicesP80、
GRI 304 Biodiversity 2016304-3Habitats protected or restoredP86GRI 305: Emissions 2016305-5Reduction of GHG emissionsP80、
GRI 308: Supplier Environmental Assessment 2016308-1New suppliers that were screened using environmental criteriaP89SocialGRI 401: Employment 2016401-2Benets provided to full-time employees that are not provided to temporary or part-time employeesP107-109GRI 404: Training and Education 2016404-1Average hours of training per year per employeeP106404-2Programs for upgrading employee skills and transition assistance programsP106GRI 405: Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employeesP104405-2Ratio of basic salary and remuneration of women to menP104GRI 413: Local Communities 2016413-1Operations with local community engagement, impact assessments, and development programsP66-67、P101GRI 414: Supplier Social Assessment 2016414-1New suppliers that were screened using social criteriaP89414-2Negative social impacts in the supply chain and actions takenP89GRI 416: Customer Health and Safety 2016416-1Assessment of the health and safety impacts of product and service categoriesP98-99GRI 417: Marketing and Labeling 2016417-1Requirements for product and service information and labelingP98-99
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022115114
P80、
PRB Content IndexPrinciples forResponsibleBanking
Reporting and Self-Assessment RequirementsPageNote
Principle 1:
Alignment
Business modelDescribe (high-level) your bank’s business model, including the maincustomer segments served, types of products and services provided,the main sectors and types of activities across the main geographiesin which your bank operates or provides products and services. Pleasealso quantify the information by disclosing e.g. the distribution ofyour bank’s portfolio (%) in terms of geographies, segments (i.e. bybalance sheet and/or o-balance sheet) or by disclosing the number ofcustomers and clients served.
P5P6P11-14P15-18P37P57P69P79P103
Message from the ChairmanAbout UsCSR ManagementCSR PerformanceServing the Real Economy under the Guidance ofOur Original AspirationOering High-Quality Services in InclusiveFinanceFocusing on Innovation to AccelerateEmpowering through TechnologyGuarding and Practicing the Green PhilosophyOperating Honestly to Achieve SoundDevelopmentBuilding a Harmonious Society Through JointEorts with Loving CareStrategy alignmentDoes your corporate strategy identify and reflect sustainability asstrategic priority/ies for your bank?Please describe how your bank hasaligned and/or is planning to align its strategy to be consistent with theSustainable Development Goals (SDGs), the Paris Climate Agreement,and relevant national and regional frameworks.
Principle 2:
Impact andTarget Setting
2.2 Impact Analysis
Show that your bank has performed an impact analysis of its portfolio/s to identify its most signicant impact areas and determine priorityareas for target-setting.
P5P11-14P15-21P58-61P80-83P84-85P86P87P88-89
Message from the ChairmanCSR ManagementCSR PerformanceSupporting the Development of MSEsDeveloping Green FinanceAddressing Climate ChangeProtecting BiodiversityBuilding Greener LifePracticing Green Operations
2.2 Target Setting
Show that your bank has set and published a minimum of two targetswhich address at least two dierent areas of most signicant impactthat you identied in your impact analysis.
2.3 Plans for Target Implementation and Monitoring
For each target separately: show that your bank has implemented theactions it had previously dened to meet the set target.
Principle 3:
Clients andCustomers
3.1 Client engagement
Describe how your bank has worked with and/or is planning to workwith its clients and customers to encourage sustainable practices andenable sustainable economic activities.
P38-51P52-53P54-55P58-61P62-65P66-67P73-74P75-77P80-83P84-85P86P87
Facilitating the Development of NationalStrategic DevelopmentAccelerating Industrial Transformation andUpgradingServing China’s Opening-upSupporting the Development of MSEsSupporting Rural VitalizationOering Financial Services to Benet the PeopleUpgrading Corporate Banking ServicesImproving Service Quality and EciencyDeveloping Green FinanceAddressing Climate ChangeProtecting BiodiversityBuilding Greener Life
3.2 Business opportunities
Describe what strategic business opportunities in relation to theincrease of positive and the reduction of negative impacts your bankhas identied and/or how you have worked on these in the reportingperiod.
Principles forResponsibleBanking
Reporting and Self-Assessment RequirementsPageNote
Principle 4:
Stakeholders
4.1 Stakeholder identication and consultation
Please describe which stakeholders (or groups/types of stakeholders)you have identied, consulted, engaged, collaborated or partnered withfor the purpose of implementing the Principles and improving yourbank’s impacts. This should include a high-level overview of how yourbank has identied relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.
P13CSR Management
Principle 5:
Governance &Culture
5.1 Governance Structure for Implementation of the Principles
Please describe the relevant governance structures, policies andprocedures your bank has in place/is planning to put in place to managesignicant positive and negative (potential) impacts and support theeective implementation of the Principles..P7-10
P11-14P80-83P86P87P88-89P92-95P96-97P98-10P106
About UsCSR ManagementDeveloping Green FinanceAddressing Climate ChangeProtecting BiodiversityBuilding Greener LifePracticing Green OperationsEnsuring ComplianceBuilding a Firm Defense LineProtecting customer rights and interestsCaring About Employee Development
5.2 Promoting a culture of responsible banking:
Describe the initiatives and measures of your bank to foster a culture ofresponsible banking among its employees.
5.3 Policies and due diligence processes
Please describe what due diligence processes your bank has installedto identify and manage environmental and social risks associatedwith your portfolio. This can include aspects such as identication ofsignicant/salient risks, environmental and social risks mitigation anddefinition of action plans, monitoring and reporting on risks and anyexisting grievance mechanism, as well as the governance structuresyou have in place to oversee these risks.
Principle 6:
Transparency &Accountability
6.1 Assurance
Has this publicly disclosed information on your PRB commitments beenassured by an independent assurer.
P1P70-72P80-83P84-85P113P118-120
About This ReportAccelerating Digital TransformationDeveloping Green FinanceAddressing Climate ChangeOutlookIndependent Assurance Report
6.2 Reporting on other frameworks
Does your bank disclose sustainability information in any standards andframeworks such as GRI, SASB and CDP.
6.3 Outlook
What are the next steps your bank will undertake in next 12 month-reporting period.
6.4 Challenges
What challenges have you prioritized to address when implementingthe Principles for Responsible Banking.
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022117116
P91
P84-85
Independent Assurance Report
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022119118
Thank you for reading the Hua Xia Bank Co., Limited Social Responsibility Report 2022. In order to provide you and other stakeholders with more valuableinformation and improve our CSR fulllment, we sincerely invite you to share your comments on this report and send your feedback as follows:
Tel: 010-85237056Fax: 010-85239000Email: zhshzr@hxb.com.cnPostal code: 100005Address: 22 Jianguomennei Street, Dongcheng District, BeijingWhat kind of stakeholders do you belong to?□The Government
□Regulatory authority
□ Shareholder and investo
□ Customer
□ Employee
□ Partner
□ The Environment
□Community □ Media
□ Other( )Do you think the Report completely covers your expectation of Hua Xia Bank?□Yes □ No, what else would you like to know( )What do you think of the readability in terms of the content arrangement and layout design of the Report?□Good □Average □ BadWhat other comments and suggestions do you have on our social responsibility work and our report?
Feedback Form
HUA XIA BANK CO., LIMITEDSocial Responsibility Report 2022121120