Best bank: Bank of China
In a year marked by historic lending growth in China, state-owned banks have taken the lead, defying the traditional dominance of smaller banks in driving loan expansion. Among these state-owned giants, Bank of China (BoC) has emerged as a standout performer, securing its position as China’s best bank this year.
While most Chinese banks have managed to increase profits solely through the reduction of impairment losses, effectively thinning their security buffers, BoC has delivered robust financial performance. The bank reported revenue of Rmb624.1 billion ($85.9 billion), representing 6.4% year-on-year growth, with net interest income rising by 1.6% to Rmb466.6 billion and non-interest income rising by an impressive 23.9% to Rmb157.6 billion. BoC maintained a low non-performing loan ratio of 1.27% as of the end of 2023, a decrease of 0.05 percentage points from 2022.
As China navigates an interest rate cutting cycle, putting pressure on banks’ profitability, BoC’s extensive overseas presence has proven to be a key advantage. With the largest exposure and branch network abroad among Chinese banks, BoC has successfully leveraged strong interest rates in international markets to create a buffer against narrowing net interest margins in mainland China.
Best investment bank: CICC
In a tumultuous year for China’s investment banks, marked by a muted IPO market and stricter regulatory oversight, CICC has emerged as the undisputed leader. While prominent Chinese investment banks, such as Citic, have faced investigation case filings from the regulator, CICC has solidified its position at the forefront of the industry, particularly in the domestic M&A space.
While there has been a significant decline in both onshore and offshore IPOs for Chinese companies over the past year, M&A has surfaced as a new significant opportunity in the economic downturn. CICC has established itself as the clear leader in this area, outperforming the global firms. It secured the top spot in the financial advisers’ league table in China, with 87 deals and a total value of $79 billion, representing a 19% share of the total deal value.
A standout deal was Air China’s $1.45 billion acquisition of a 66% stake in Shandong Aviation Group and the subsequent tender offer for Shandong Airlines Limited’s B-shares. This landmark transaction represents a significant move in bailing out the beleaguered civil aviation industry and marks the first acquisition in China’s civil aviation sector since the turmoil of 2020. As the exclusive financial adviser, CICC successfully navigated the complex negotiations between central and local state-owned enterprises and the extensive regulatory communication. This milestone transaction, the first tender offer for a B-share listed company aiming for delisting, showcases CICC’s innovative approach to promoting B-share market reform.
Beyond its domestic mandate, CICC has played a pivotal role in facilitating Chinese companies’ offshore IPOs, ranking as the top investment bank supporting Chinese firms’ Hong Kong listings. The successful $168 million IPO of Tuhu Car in Hong Kong, the largest in the tech sector in 2023, exemplified CICC’s prowess in this space.
Best international bank: HSBC
Throughout 2023, HSBC expanded its presence in the mainland Chinese market, strengthening its operations and advancing strategic initiatives across many sectors.
Its banking network now encompasses more than 50 cities in mainland China. Operating income was up by 6% to Rmb15.85 billion ($2.18 billion) with total assets growing by 3.32% to Rmb616.68 billion.
The year 2023 showcased HSBC’s strength in environmental, social and governance initiatives. The bank launched the Rmb30 billion Green Credit Fund and pioneered the first sustainability-linked panda bonds for Hong Kong corporates in the Chinese onshore bond market. It also bolstered its Greater Bay Area (GBA) Sustainability Fund to $9 billion, supporting clients in transitioning to achieve net-zero emissions within the GBA region.
In line with fostering innovation and supporting the new economy in China, the bank introduced the $3 billion HSBC New Economy Fund in 2023. This fund is dedicated to investing in high-growth, innovative companies that drive economic transformation.
The bank has also expanded its footprint in wealth management through strategic acquisitions and growth initiatives. The acquisition of Citi’s retail wealth management portfolio in mainland China led to a 53% increase in wealth management assets compared to the previous year, accompanied by a rise of over 30% in the total number of wealth management customers.
The bank has also intensified its digitalization efforts. The launch of HSBC ECom Direct in April 2023 enabled sellers in mainland China to collect sales receivables in yuan directly from overseas ecommerce platforms. Additionally, HSBC introduced e-renminbi services for corporate customers, distinguishing itself as one of the pioneering international banks offering such services to both corporate and retail clients.
Best international investment bank: Morgan Stanley
In 2023, a turbulent environment marked by volatility and regulatory shifts, Morgan Stanley intensified its investment efforts in China.
The firm acted as a crucial conduit for cross-border business activities. The firm played a significant part in Anta Sports’ successful fundraising of approximately $1.5 billion, which included an additional share sale initiative. Additionally, Morgan Stanley facilitated a $1 billion two-tranche convertible bond issuance for Nio, a prominent Chinese electric vehicle manufacturer.
In M&A, the bank provided strategic advisory services in the year’s key transactions, including Saudi Aramco’s $3.6 billion investment in Rongsheng Petrochemical and China Southern Power Grid International’s acquisition of an 83.2% stake in Enel Distribution Peru, along with full ownership of Enel X Peru.
Morgan Stanley expanded its footprint in China’s Sci-Tech Innovation Board by establishing an alternative investment subsidiary. This move allowed the firm to participate in initial public offerings of cutting-edge science and technology firms, providing a platform for investors to engage with high-potential companies in China’s innovation sector.
Best digital bank: China Merchants Bank
China Merchants Bank (CMB) is establishing itself as a leader in digital solutions in the Chinese market. By the end of the awards period, the bank’s total number of retail customers reached 197 million, up 7.1% year on year. This growth is largely down to CMB’s digital transformation efforts, particularly the release of the China Merchants Bank App version 12.0 in 2023, which now has over 200 million users.
The bank invested Rmb14.13 billion ($1.94 billion) in digital initiatives in 2023, equivalent to 4.6% of its operating income. The bank also allocated over 9.1% of its workforce to research and development activities.
Its digital services for corporate clients have also performed well. Through its Enterprise Digital Financial Butler service brand it achieved online corporate service adoption of 92.28% in 2023. CMB further streamlined its corporate lending processes with innovations such as the automated loan review model, Zhao Qi Dai, achieving fully online migration. Online foreign exchange transactions increased to 75.34%, marking a 9.85% year-on-year rise.
CMB continues to accelerate its digital transformation efforts in wealth and asset management. The bank introduced customized wealth products and enhanced its online self-service wealth management model. As a result, the balance of retail wealth management products grew to Rmb3,499 billion, reflecting an 11.51% increase year on year.
Best bank for SMEs: China Guangfa Bank
In 2023, China Guangfa Bank (CGB) supported the growth of small and medium-sized enterprises through the development of its digital lending products.
Serving 130,000 SME clients across China, the bank saw the balance of loans to SMEs rise to Rmb178.6 billion ($24.6 billion), reflecting an increase of Rmb19.4 billion, or 12.18%, from the beginning of the year.
Its products for the segment include include Tax-Bank Link, Technology E-Loan, Specialized and Innovative E-Loan and Small and Micro E-Second Loan, among others.
Recognizing China’s diverse regional economic characteristics, CGB has empowered its local branches to tailor products to meet specific regional needs. In Guangdong, for example, the bank introduced specialized credit products for Cantonese chefs, Guangdong technicians, and South Guangdong housekeeping. In Jilin, the Hui Nong E-Loan project was launched to support rural development.
CGB has also been active in the cross-border e-commerce sector. In 2023, the bank upgraded Guang Shang Hui to version 2.0, achieving coverage of mainstream Amazon sites in the US, Europe, Japan, and Australia. This platform supports multi-currency collections, including US dollars, euros, yen and Australian dollars, enabling cross-border e-commerce customers to streamline collections and access precise financing and lending services.
Best bank for ESG: Bank of China
Bank of China’s domestic green credit balance reached Rmb3,106.7 billion ($427 billion) in 2023, marking a year-on-year increase of 56.34%. As one of China’s most active bookrunners of sustainable bonds, the bank underwrote Rmb341.66 billion in domestic green bonds and $29.76 billion in overseas deals. The bank’s inclusive finance green loan balance, which supports the sustainable development of small and medium-sized enterprises, reached Rmb16.74 billion, up 41.69% for the year.
In 2023, BOC achieved several milestones in green finance globally. It led the largest single-plant wind power project syndicated loan in central Asia and successfully issued the first mainland provincial government renminbi biodiversity-themed green bond in Hong Kong. Additionally, the BOCHK Greater Bay Area Climate Transition exchange-traded fund was listed successfully on the main board of the Hong Kong Stock Exchange.
Using the BOC Green+ global brand, launched in 2023, BOC introduced dozens of green financial products and services across various categories including deposits, loans and bonds. The bank offered a total of 49 green-themed wealth management products, such as ESG Premium, and 50 green-themed public funds to retail customers in 2023. Funds raised through these products are directed towards investments in green industries such as environmental protection, low carbon technologies, new energy and new materials.
Best bank for corporate responsibility: Societe Generale
During Societe Generale’s inaugural Green Week in China, the bank launched six initiatives focused on reusing resources and energy conservation. These efforts saw active participation from 410 employees, resulting in 1,867 kilometres of green transportation and 212 training hours. Collectively, these initiatives contributed to a total reduction of 569 kilograms of CO₂ emissions.
In July 2023, Societe Generale’s running club participated in the Beijing Mountain Cross-Country Environmental Protection Activity in the capital. The event resulted in the sorting of nearly 100 kilograms of non-biodegradable garbage.
Societe Generale remains committed to community engagement. Since 2008, the bank has donated a total of Rmb3.1 million ($426,000) to the Shanghai True Love Dream Charity Foundation, focusing on improving education for children in remote areas. These donations have impacted 1,430 classrooms and benefited 23,694 students.
The bank continued its public welfare fruit promotion project initiated in 2021. In 2023, the charity fruit initiative expanded to three offices of Societe Generale in China.
Best bank for diversity and inclusion: Citi
Citi prioritized creating an inclusive workplace culture and achieving significant milestones in diverse representation by the end of 2023. Overall, female representation among employees reached 58.19%. Notably, female representation in leadership positions also surpassed targets, with 52.43% at the assistant vice president level and above, 46.67% among managing directors and 52.17% among directors.
To advance gender inclusivity and equality, Citi commemorated the 2023 International Women’s Day under the theme #EmbraceEquity. The event featured a senior panel with male allies, I am Remarkable workshops, and various activities attracting participation from over 1,150 employees across China.
Citi also supports employee networks focusing on generational diversity, family inclusivity and LGBTQ+ Pride. Throughout 2023, these networks organized diverse events such as the Pride Fitness Challenge, Fireside Chats, skin health workshops and baby shower events.
Beyond internal initiatives, Citi actively engages with communities to advocate for diversity, equity and inclusion. In partnership with the Shanghai Better Educational Development Centre, Citi China launched the Be Better, Be Her initiative – a financial competency programme aimed at marginalized young women. This provided comprehensive financial literacy training through both online courses and offline workshops, benefiting around 5,000 young females in urban areas.
Best bank for corporates: ICBC
ICBC served nearly 11 million corporate clients by the end of 2023, with corporate loan balances surpassing Rmb14.6 trillion ($2 trillion). The bank extended Rmb3.8 trillion in loans last year, marking a growth rate of close to 30%. It also played a pivotal role in promoting sustainable development with its green loan portfolio growing to nearly Rmb5.4 trillion in 2023. These funds were dedicated to sectors such as energy conservation, environmental protection, clean production, clean energy and green infrastructure upgrades, underscoring ICBC’s commitment to environmental sustainability.
The bank continued to innovate in digital banking, enhancing corporate operations through its digital platform DCOM. By the end of 2023, DCOM had 3.7 million customers, streamlining and improving corporate banking services. The bank serves over 120,000 foreign-invested enterprises in China.
Through ICBC Global Payment, the bank facilitated cross-border transactions exceeding Rmb3 trillion in 2023.
