China Zheshang Bank chairman enjoys stability amid turbulent times

Q: What is the most important thing that your bank has achieved in the past year?  

A: Under our business strategy Total Asset Operation, which we carried out in 2015, our company’s market influence has strengthened rapidly and our transformation progress has paid off in two ways. First, our business expansion and total assets have both grown quickly. By the end of the third quarter of 2015, our total assets had reached Rmb1000bn ($156bn). Our rapid business and profit growth are staying ahead of the national joint-stock commercial banks.

Second, we have enhanced innovation and improved our capacity of process re-engineering. Our innovative product 'Yongjin asset pool' [which provides online business liquidity management] has received huge acclaim in the market. And our customer-oriented service capacity has gained momentum.

Compared to other banks in China, the asset quality of our bank remains strong and maintains our sound performance in the banking industry. 

Q: How did instability in the summer of 2015 (the stock market crash in China and the downward revision of the renminbi) affect your bank and the Chinese banking sector generally? 

A: To some extent, instability in the Chinese economy may affect the banking industry and trigger turbulence. Financial incidents such as the stock market crash this summer have been taken into account as such external shocks affect the financial sector and bring increasing unpredictability to the banking industry. However, to our knowledge, these shocks will just have a short-term impact on the Chinese economy. In the long term, we remain optimistic and believe that the Chinese economy will still be in good shape. The market itself could self adjust to these unstable factors. The banking sector still has tremendous room to develop.

Under our comprehensive Total Asset Operation business strategy, which continues to focus on risk management, we have faith and confidence in our company’s ability to maintain a sound and steady development during this volatile period and under the current economic situation. 

Q: How important is Zhejiang province’s small and medium enterprise (SME) sector to your bank and in what new ways are your supporting it? 

A: We aim to provide financial support to the real economy and to enhance innovation to pursue our goal of becoming the most competitive national joint-stock commercial bank in China, and the most important financial platform in Zhejiang province. Our work is in line with the national policy encouraging individuals to start their own businesses, to innovate, and to explore opportunities in new businesses, new communities and new industries. Our work is also in line with China’s new trend of upgrading its aggregate demand structure and of providing financial services to targeted clients. We also aim to explore new business models following the new trend of growing internet and big data usage.

Loans to SMEs based in Zhejiang province account for 60% of our total loans to SMEs. Our non-performing loans ratio is also lower than the banking industry’s average ratio.

Currently, China has to deal simultaneously with a slowdown in economic growth, with making difficult structural adjustments, and with absorbing the effects of the recent economic stimulus policies. Our bank has withstood this testing economic climate. 

Q: What is your most important objective for the next 12 to 24 months and how are you going to achieve it? 

A: By implementing reform, co-operation, innovative measures and our  strategy, we aim to build an intelligence-intensive bank with an entrepreneurial spirit and competence in the domestic market. We also aim to be the key partner to our counterparts, the most recognised financial advisor to our corporate clients, the closest financial assistant to our small and micro-entrepreneurs looking to start their own businesses, as well as the most reliable wealth manager to our individual customers. Furthermore, based on infusing a range of various financial resources in the Zhejiang region, we strive to be a leading firm with a solid client base and strong market influence in the local financial industry.