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Regarding a New York Times report about the non-performing loans in China's banking industry, China Construction Bank Corporation issued a statement today, claiming the report "is absolutely untrue and ungrounded." The following is the full text of the statement:

 

China Construction Bank Corporation (CCB) is aware of a recent report from New York Times regarding the non-performing loans in China's banking industry, including CCB. We would like to solemnly state that the report's allegation on CCB's intention to withhold information about the bank's non-performing loans in 2004, which is based on the information from a source, is absolutely untrue and ungrounded.

 

CCB has strictly complied with the laws and regulations of the People's Republic of China (PRC), as well as the regulatory requirements of the judiciary district, in which the bank's shares are listed. As a listed public company, we have made all necessary information disclosure required by the laws and regulations. We have developed stringent loan classification standards in accordance with the requirements of the regulatory authorities of China and our place of listing, and with reference to the international practices. A set of loan classification procedures is also developed based on the standards. All financial statements disclosed in our IPO prospectus, including the information on our asset quality, have been audited by an independent accounting firm (KPMG), which has also provided its unreserved audit opinion.

 

We believe media and public supervision is an integral part of the corporate governance system of modern banks. As a listed company, we will continue to provide accurate information for shareholders and the public in accordance with the laws, market rules and Articles of Association. We also hope that the concerned media can adhere to the principle of objective and neutral reporting, and reveal truly the facts of our operations. We reserve the right to take legal actions against any damage on our reputation and infringement of our shareholder interests.

 

(Xinhua News Agency November 15, 2006)