Industrial and Commercial Bank of China Stock

ICBC (Industrial and Commercial Bank of China) is a Chinese bank based in Beijing. It is the world's largest bank in terms of assets, with $4,913 billion. It also boasts the second largest IPO in the history of the stock market.

Although it is largely owned by the Chinese government, some of the shares can be acquired by private investors.

History of the Industrial and Commercial Bank of China

ICBC was established on January 1, 1984. Its founding was motivated by the decision of the Chinese government to transform the People's Bank of China into a central bank. It is the fourth specialized bank to be established following the decision, the other three being the Bank of China, the Agricultural Bank of China and the Construction Bank of China.

Here are some important dates in the bank's history:

• 2005: acquisition of the Hong Kong subsidiary Fortis Bank, which was transformed into ICBC Asia.
• 2006: ICBC reached 150 million individual customers and 2.5 million professional customers.
• 2008: opening of a branch office in New York, whose office is located in Trump Tower.
• 2011: opening of branches in Madrid (Spain), Karachi (Pakistan) and Islamabad (Pakistan).
• 2012: acquisition of an 80% stake in Standard Bank Argentina.
• 2014: opening of ICBC Kuwait Branch in Kuwait City.
• 2015: acquisition of Turkish bank TekstilBank, which was later transformed into ICBC Turkey.
• 2017: launch of robo-advisor for the bank's wealth management operations.

ICBC bank business lines

ICBC engages in traditional banking activities, offering its customers services such as personal account management, safes, loans, business financing, payment methods and online banking.

ICBC's stock market data

• IPO date : October 27, 2006
• Listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange
• Isin code : CNE1000003G1
• Initial public offering (IPO) : $21.9 billion
• Floating : 22.14
• Annualized return : 5.45
• Change in share price over 5 years : +23.64

Factors that may influence ICBC's share prices

ICBC is a large-scale bank that is positioned as a global leader. Forbes Global has ranked it as the "world's leading company" based on the amount of assets owned, market capitalization, revenue and profits earned. All of this is a strength for the company.

The group also has numerous branches around the world. It is present in Asia, Europe, North America, Latin America, Africa and the Middle East. In total, ICB has over 400 locations in more than 40 countries. This allows it to multiply its sources of revenue and to mutualize risks.

ICBC also finances projects in emerging and developing countries. Among the projects it has financed is the Gibe III dam in Ethiopia. These investments in local government projects strengthen the bank's international presence and improve its image.

Although it operates in many countries, ICBC achieves most of its financial success in China,  providing around 12% of bank credit nationwide. Two thirds of its loans are granted to companies (the bank has 5.8 million companies in its portfolio). As a result, ICBC depends to a large extent on the financial health of Chinese businesses.

One major risk is that the Chinese government holds the majority of the bank's capital (77.86%). Internationally, a boycott of the bank against the backdrop of the political crisis with China remains likely. At the same time, the slight weakness of the free float in the company's capital (22.14%) may generate volatility in the shares.