this article includes a list of references but its sources remain unclear because it has insufficient inline citations . please help to improve this article by introducing more precise citations . june 2008 learn how and when to remove this template message bank of china hong kong limited your premier bank type public company traded as sehk 2388 otc pink bhkly listing is as boc hong kong holdings limited founded 2001 headquarters bank of china tower hong kong key people xiao gang chairman he guangbei ceo products commercial banking revenue us 5 5 billion 2010 net income us 2 8 billion 2010 total assets us 213 7 billion 2010 number of employees 13 900 2011 website www.bochk.com bank of china tower hong kong the bochk bank of china building under construction 1988 viewed from the peak bank of china hong kong limited bochk chinese is the second largest commercial banking group in hong kong in terms of assets and customer deposits 1 with more than 300 branches in hong kong . it was established on 1 october 2001 from a merger of 12 subsidiaries and associates of the bank of china in hong kong and listed on the hong kong stock exchange in october 2002 . as of the end of 2003 the bank had hk 763 billion in assets and earned net profit of hk 8 billion in 2003 . its head office is in the bank of china tower in central . 2 bochk is one of the three banks which issue banknotes for hong kong the biggest member and a founder of the jetco atm and payment system and the designated clearing bank in hong kong for transactions involving the renminbi mainland china s currency . it is legally separate from its parent bank of china boc although they maintain close relations in management and administration and co operate in several areas including reselling boc s insurance and securities services . it also shares its hong kong headquarters the bank of china tower with its parent ; completed in 1988 this was the first building outside of north america to exceed 1 000 feet 300 m . contents 1 history 1.1 bank of china group 1.2 restructuring and listing 2 corporate structure and boc hong kong holdings 3 operations 3.1 renminbi clearing bank 3.2 nanyang commercial bank 3.3 chiyu banking corporation 3.4 jetco 3.5 other operations 4 banknotes 5 bank of china tower 6 corporate governance 6.1 liu jinbao 6.2 new nongkai loan 7 see also 8 references 8.1 general 8.2 inline 8.3 corporate governance 8.4 renminbi business 9 external links history edit this section needs additional citations for verification . please help improve this article by adding citations to reliable sources . unsourced material may be challenged and removed . may 2013 learn how and when to remove this template message bank of china group edit main article bank of china group the opening of a branch of the bank of china in hong kong in 1917 marked the entry of state owned chinese banks into the then colony s banking sector . other banks soon followed suit starting with yien yieh commercial bank in 1918 . by the time the people s republic of china was established in 1949 there were 15 branches of state owned chinese banks in hong kong plus branches of nine mainland incorporated banks that were public private joint ventures . in addition the chinese government established po sang bank in 1949 and nanyang commercial bank in 1950 . both of these were incorporated in hong kong . in 1952 the nine public private banks namely sin hua bank limited china & south sea bank kincheng banking corporation china state bank limited the national commercial bank limited yien yieh commercial bank young brothers banking corporation wo sang bank and national industrial bank of china were grouped into the joint office of joint public private banks . the hong kong branches of the last three of these nine were closed in 1954 when their parents were shut down by the central government and management of the remaining six public private banks were transferred to the hong kong and macau regional office of the bank of china in 1958 . the bank of china later took over management of the hong kong branches of kwangtung provincial bank hua chiao commercial bank and the bank of communications hkse 3328 . in june 1975 the bank of china moved to increase the capital of the public private banks . as all of the new capital were from the chinese government private ownership in the public private banks were substantially reduced in some cases to less than 1 % . the 14 banks were rebranded as part of the bank of china group in the 1980s after a common it platform was established . treasury and foreign currency exchange operations were also centralised . however the individual banks retained their own management . they also are the second largest banking group . restructuring and listing edit the hong kong branch of the bank of communications broke off from the bank of china group in 1998 . the bank of china group started to restructure its operations in 1999 in preparation for an initial public offering . all minority shareholders except for those of chiyu were bought out by the bank of china . formal plans for a restructuring received the approval of the people s bank of china and were launched in january 2001 . the restructuring saw all operations of the mainland incorporated group members merged into po sang bank which was then immediately renamed bank of china hong kong limited . hong kong incorporated nanyang commercial bank and chiyu banking corporation became subsidiaries of bank of china hong kong limited . legislation was required for the merger as hong kong does not allow mergers via the pooling of interests a common procedure in the united states . the bank of china hong kong limited merger ordinance was approved by the legislative council of hong kong on 12 july 2001 and the merger was completed on 1 october 2001 . corporate structure and boc hong kong holdings edit bochk is listed under the name of boc hong kong holdings limited bochk holdings a holding company whose principal 100 % owned subsidiary is bochk . the holding company is listed on the stock exchange of hong kong and as adrs in the us under the symbol bhkly . bochk holdings is a constituent of the hang seng index . the listing of bochk holdings in july 2002 listing was the first international stock listing by a mainland china bank ; until that time other mainland chinese bank listings were done in the domestic a share market . for the 12 months ended 31 december 2003 bochk holdings earned hk 11.6 billion in operating income and hk 8.0 billion in net profit . as of 7 june 2006 65.805 % of bochk holdings is held by bank of china in turn 69.265 % owned by central huijin investment an investment holding company 100 % owned by the government of the people s republic of china . operations edit this section needs additional citations for verification . please help improve this article by adding citations to reliable sources . unsourced material may be challenged and removed . may 2013 learn how and when to remove this template message bochk offers a comprehensive range of financial products and services to retail and corporate customers similar to those offered by most commercial banks . it is primarily known for its interest income business taking deposits from retail customers for loans to corporates although it has been moving into other non interest income areas such as personal loans wealth management and other financial services in recent years . it has hong kong s biggest branch network over 200 branches and 450 automatic teller machines . bochk is the biggest mortgage lender in hong kong in the secondary market ; hang seng bank is the biggest in the primary market . bochk resells the casualty insurance life insurance mandatory provident fund mpf and asset management services of various subsidiaries of its parent bank of china . within mainland china bochk operates 14 branches as of january 2005 update separately from its parent . bochk is treated as a foreign bank more properly banks outside of the territory for regulatory purposes as it is incorporated in hong kong . however partly to clear up confusion between it and its parent in the mainland it shifted all of its mainland based business to nanyang commercial bank in 2007 . renminbi clearing bank edit bochk has been the designated clearing bank for personal transactions involving the renminbi rmb the currency of mainland china in hong kong since february 2004 . this means that bochk acts as a settlement agent for rmb banknotes and funds in hong kong and an intermediary between banks in hong kong and the people s bank of china the central bank of the people s republic of china . in return bochk takes a 0.125 % cut of all rmb deposits in hong kong that are repatriated back to mainland china . the chief executive of hong kong announced on 18 november 2003 that the people s bank of china had agreed to provide clearing arrangements marking for the first time that the renminbi which is fully on the current account but not on the capital account has been allowed to clear outside of mainland china . the scope of such rmb business includes deposit taking exchange remittances and rmb cards . hong kong banks were invited to apply to become the designated clearing bank for rmb business ; the people s bank of china subsequently chose bochk as the clearing bank for a term of three years . according to the hong kong monetary authority the major responsibilities of the clearing bank are to open rmb settlement accounts for participating banks for the acceptance and withdrawal of rmb funds open a settlement account with the pboc s shenzhen sub branch to centralise the acceptance and withdrawal of rmb funds of the clearing bank and the participating banks collect and distribute rmb banknotes provide clearing services for rmb remittances and rmb cards issued by hong kong banks provide services for the participating banks to square their rmb open positions that result from the exchange of rmb into hong kong dollars and vice versa . nanyang commercial bank edit nanyang commercial bank branch in kennedy town hong kong main article nanyang commercial bank founded in 1950 in hong kong nanyang commercial bank is a wholly owned subsidiary of bochk with 42 branches . nanyang primarily focuses on corporate customers in particular small and medium sized trading and manufacturing companies . it also has a loyal following amongst the overseas chinese community especially in south east asia . it relies on bochk for back end office and it support . in 2007 it took over all of bochk s mainland operations corporate and individual . chiyu banking corporation edit main articles chiyu banking corporation and jimei university founded by tan kah kee an overseas chinese in 1947 chiyu banking corporation limited has 23 branches in hong kong and focuses on serving the community of residents of fujian descent in hong kong . chiyu was explicitly created by chen to create a sustainable business with profits to be devoted to education in xiamen and the rest of fujian province in china . since its founding it has spent more than hk 1 billion in education in the province primarily through funding jimei university and its related schools . jetco edit main article jetco jetco traditional chinese joint electronic teller services limited is the biggest network of automatic teller machines in hong kong and macau with nearly 1 700 cash machines . jetco was founded by bochk in 1982 along with the bank of east