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China's march to global dominance continues

Four Chinese banks are now in the global top 10, with Industrial Commercial Bank of China making significant headway by moving into third position, pushing HSBC out of the top three.
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China

China’s banks have continued their advance up the global rankings in 2012 and have had their best year to date. The country's highest ranked bank, Industrial Commercial Bank of China (ICBC), has had a particularly good year, making it into the global top three banks by knocking HSBC from third to fourth place. ICBC has been climbing steadily up the global rankings in the past few years, ranking seventh in 2010 and sixth in 2011. While in previous years ICBC was significant for breaking into the global top 10, it is now firmly cemented among the world's top banking names.

Elsewhere in the top 10 global rankings, China Construction Bank edged its way up the table going from 2011’s eighth place to sixth this year. Bank of China stayed in ninth place, while Agricultural Bank of China moved into 10th place from last year's 14th.

Six Chinese banks are now in the global top 50, while 12 are in the top 100. The presence of China’s banks stretches across the Top 1000 rankings, from third-placed ICBC all the way down to Shouguang Rural Commercial Bank in 989th place.

In the global top movers table, China is again dominant, with 16 of the country’s banks featuring in the global top 25 highest movers. The highest mover in China was Haikou Rural Commercial Bank, which had a Tier 1 capital change of 626.24%, putting it at the top of this table.

China Resources Bank of Zhuhai, which was China’s second highest mover, was also ranked second in the world in terms of change in Tier 1 capital, which was 387.43%. The bank was also China’s second highest new entrant, with a Tier 1 capital of $1.1bn. China's largest new entrant in terms of Tier 1 capital was Hangzhou United Rural Commercial Bank, which had Tier 1 capital of $1.2bn.

The dominance of China's banks is also reflected in their global profit share. In 2007, China's banks accounted for 4.6% of profits recorded by banks in the Top 1000, and by 2011 this figure had increased to 20.7%. In 2012, China's share of the Top 1000 profits had risen to 29.3%, recording a year-on-year increase of profit share of 41.55%, and an increase of 536.96% compared to 2006.

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