Global Finance’s ranking includes all 25 Chinese banks that are rated by at least one of the three major credit-rating agencies.

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CHINA’S BANKS: AA TO BB

Chinese banks run the gamut, from some of the safest in the world to those with ratings deep in sub-investment-grade territory.

The two strongest banks, China Development Bank and Agricultural Development Bank of China, feature in our Global 50 Safest Banks ranking (at 47th and 49th). Export-Import Bank of China narrowly misses placing in the Global 50. We name a further five Chinese banks in our Emerging Markets 50 Safest Banks ranking.

These eight hold ratings in the AA or A range. Below them are four banks that hold ratings in the BBB range. After those come nine banks whose aggregate ratings are on or just below the investment-grade/sub-investment-grade divide, and finally there are four banks with much lower, sub-investment-grade ratings.

Ten of the banks have ratings from all three agencies, six are rated by two, and the remaining nine hold a single rating. When scoring these banks we use the same methodology that we use for scoring our country-by-country list.

Our ranking of Chinese banks sets no minimum asset size for eligibility, since we want to capture all rated Chinese banks. However, in practice, even the smallest bank, Bank of Suzhou, falls comfortably among the largest 500 banks in the world.

METHODOLOGY: The scoring methodology used by Global Finance to rank the Safest Chinese Banks follows that used in its other Safest Banks rankings. A rating of AAA is assigned a score of 10 points, AA+ receives a score of nine points, down to BBB- which scores one point and BB+ which scores -1 point, and so on. When a bank has only two ratings, an implied score for the third rating is calculated by taking the average of the other two and deducting one point. When a bank has only one rating, an implied score for the second rating is calculated by deducting one point from the actual rating, and an implied score for the third rating is calculated by deducting two points from the actual rating.

 

Safest Banks in China 2017

Rank

Group Name

Ratings

Total Score

Assets ($mn)

Statement

Date

Fitch

Moody’s

S&P

1

China Development Bank

A+

A1

AA-

19

1943930

12/31/15

2

Agricultural Development Bank of China

A+

A1

AA-

19

644401

12/31/15

3

Export-Import Bank of China

A+

A1

AA-

19

479776

12/31/16

4

Industrial and Commercial Bank of China

A

A1

A

16

3473088

12/31/16

5

China Construction Bank

A

A1

A

16

3016447

12/31/16

6

Bank of China

A

A1

A

16

2611426

12/31/16

7

Agricultural Bank of China

A

A2

A

15

2815917

12/31/16

8

Bank of Communications

A

A2

A-

14

1209123

12/31/16

9

China Merchants Bank

BBB

Baa1

BBB+

8

855033

12/31/16

10

Shanghai Pudong Development Bank

BBB

Baa2

BBB

6

842796

12/31/16

11

China Everbright Bank

BBB

Baa2

N/R

5

578440

12/31/16

12

China CITIC Bank

BBB

Baa2

N/R

5

853413

12/31/16

13

China Minsheng Banking

BB+

N/R

BBB

0.5

848352

12/31/16

14

Ping An Bank

BB+

Baa2

N/R

0.5

424967

12/31/16

15

Bank of Shanghai

N/R

Baa3

N/R

0

223164

12/31/16

16

Bank of Nanjing

N/R

Baa3

N/R

0

152816

6/30/16

17

Bank of Ningbo

N/R

Baa3

N/R

0

125448

6/30/16

18

Shanghai Rural Commercial Bank

N/R

N/R

BBB-

0

102,296

12/31/16

19

Bank of Chongqing

N/R

N/R

BBB-

0

53,690

12/31/16

20

Industrial Bank

BB+

Baa3

N/R

-1

875694

12/31/16

21

China Guangfa Bank

BB+

Baa3

N/R

-1

294626

12/31/16

22

Hua Xia Bank

BB+

N/R

N/R

-6

339036

12/31/16

23

Bank of Beijing

BB+

N/R

N/R

-6

304518

12/31/16

24

China Zheshang Bank

N/R

Ba1

N/R

-6

177861

6/30/16

25

Bank of Suzhou

N/R

Ba2

N/R

-9

35558

12/31/16