China Inaugurates Agricultural Bank

Now, Agricultural Bank of China, with sound modernized corporate governance, is ready to begin its journey as a modernized commercial bank and greet the challenges ahead.

On the inauguration ceremony, the China Banking Regulatory Commission proclaims its reply to the request of ABC on its shareholding reform and pronounces the Bank's new financial license. The State Administration for Industry and Commerce gives a brief introduction of the new corporate business license conferred to Agricultural Bank of China. The Organization Department of the CPC Central Committee announces the name list of the senior management of the Bank, and the Ministry of Finance announces the name list of the members of the Board of Directors and the Board of Supervisors of Agricultural Bank of China. Mr. Su Ning, Deputy Governor of the People's Bank of China, Mr. Li Yong, Vice Minister of the Ministry of Finance, Mr. Lou Jiwei, Chairman of Board of Directors of the Central Huijin Investment, and Mr. Xiang Junbo, Chairman of the Board of Directors of ABC, address the inauguration ceremony successively.

Agricultural Bank of China Limited shall fully assume its previous assets, liabilities, business, establishments and personnel, and have a registered capital of RMB 260 billion. The Ministry of Finance and the Central Huijin Investment each hold 50% equity of the Bank and exercise the initiators' rights and obligations in conformity with legal provisions.

Agricultural Bank of China has been earnestly carrying out the financial and economic policies of the country at all times and developing extraordinarily since its first establishment in 1951, particularly since the Bank's re-establishment in 1979 when China adopted the reform and opening-up policy. The Bank has been vigorously improving and strengthening its financial services in rural areas, persistently expanding its various business, and continuously enhancing its risk management, therefore, making great contribution to the economic and social development of China, especially in the rural areas. From 1980 to 2008, the accumulated agro-related loans of the Bank stood at RMB 12.1 trillion, with an average of RMB 410 billion per year, accounting for 40% of its total accumulative loans. The Bank makes great strides in various regards. Diversified modern financial product lines with complete functions have been established, an extensive network with 24,500 branches and outlets covering both urban and rural areas set up, a vast clientele developed, and a workforce of 447,000 people engaged. At the end of 2008, its total assets, both at home and abroad, stood at RMB 6.9 trillion, total deposits over RMB 6 trillion, various loans RMB 3 trillion, and net profit RMB 51.1 billion. Meantime, its non-performing loan ratio fell to about 4%.

Agricultural Bank of China has been preparing for its shareholding reform after the CPC Central Committee and the State Council's strategic decision to reform the state-owned commercial banks into shareholding companies. With the assistance and guidance from competent authorities, the Bank upholds its restructuring principles identified by China's National Financial Work Conference of 2007, and vigorously prepares for its shareholding reform. It engages auditors, appraisers, law firms and other intermediary agencies renowned both at home and abroad to conduct special audits, asset evaluations, due diligence and other necessary preparatory work for the reform. In October 2008, the State Council approved ABC's comprehensive shareholding reform plan. Since then, the Bank has been earnestly carrying out the decision and arrangement of the State Council, and assisting the State Council's leadership group to implement the shareholding reform.

Meantime, Agricultural Bank of China has been actively reforming and innovating its internal operation and management system to meet the requirements on modern commercial banks. Substantial progress has been made in serving agro-related sectors, reforming human resources management, adjusting organizational system, managing economic capital, reengineering work flows, improving risk management, and developing corporate culture. All these achievements have set a sound foundation for the shareholding reform of the Bank and its future development.

Mr. Xiang Junbo, the Bank's first Chairman of the Board of Directors, expressed that Agricultural Bank of China will continue to follow the guidance of CPC Central Committee and the State Council, and will uphold the philosophy of customer-orientation. Guided by the Scientific Outlook on Development, the Bank identifies its goal of establishing a modern financial enterprise system, and sets its mission of serving agro-related sectors. It will spare no efforts in improving and innovating its products, services and management to build itself into a modernized universal bank that plays a pillar role in serving agro-related sectors, with diversified business lines covering both urban and rural markets and with the largest distribution and cross-selling network across the world. The Bank is committed to providing quality financial services to its extensive clientele, making its core competitiveness indexes internationally advanced, so to meet the requirements of the State and the requirements of the Bank's shareholders, clients and employees.

Approved through specified procedures, Mr. Xiang Junbo is elected as Chairman of the Board of Directors and Secretary of Agricultural Bank of China Party Committee; Mr. Zhang Yun as Vice Chairman of the Board of Directors, President of the Bank and Deputy Secretary of ABC Party Committee; Mr. Che Yingxin as Chairman of the Board of Supervisors and Deputy Secretary of ABC Party Committee; Mr. Yang Kun and Mr. Luo Xi as Executive Directors, Executive Vice Presidents and members of ABC Party Committee; Mr. Zhu Hongbo as Secretary of the Party Discipline Committee and Member of ABC Party Committee; Mr. Guo Haoda and Mr. Pan Gongsheng as Executive Vice Presidents and Members of ABC Party Committee; Mr. Li Zhenjiang as Secretary to the Board of Directors.

By Agricultural Bank of China Limited