CCB: Reports on non-performing loans 'untrue'

Updated: 2006-11-15 14:46

China Construction Bank Corporation (CCB) denied on Wednesday a New York Times report on non-performing loans of the Chinese banks, saying it reserves the right to take legal action.

In a statement, CCB said 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 China, as well as the regulatory requirements of the judiciary district in which the bank's shares are listed, it states.

As a listed public company, it said, it has made all necessary information disclosure required by the laws and regulations, and has developed stringent loan classification standards in accordance with the requirements of the regulatory authorities of China with reference to the international practices.

A set of loan classification procedures are also developed based on the standards. All financial statements disclosed in its IPO prospectus, including the information on its asset quality, have been audited by an independent accounting firm -- KPMG, which has also provided its unreserved audit opinion, the statement said.

The statement said that media and public supervision is an integral part of the corporate governance system of modern banks. As a listed company, CCB will continue to provide accurate information for shareholders and the public in accordance with the laws, market rules and Articles of Association.

The bank also hoped that the concerned media can adhere to the principle of objective and neutral reporting, and reveal truly the facts of the bank's operations.

"We reserve the right to take legal actions against any damage on our reputation and infringement of our shareholder interests," the statement said.

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