China Construction Bank opens Hungarian branch
The opening ceremony of the Hungarian branch of China Construction Bank (CCB), the world's second-largest bank, was held in Budapest on Wednesday evening.
China Construction Bank opens Hungarian branch
The Economics of Geography

China Construction Bank opens Hungarian branch

CCB President Tian Guoli with Hungarian Prime Minister Viktor Orbán (Photo: MTI/Miniszterelnöki Sajtóiroda/Fischer Zoltán)
Mariann Őry 20/04/2023 17:49

The opening ceremony of the Hungarian branch of China Construction Bank (CCB), the world's second-largest bank, was held in Budapest on Wednesday evening.

Tian Guoli, President of CCB, said that the friendship between China and Hungary has a long history and is strong and deep. They expect the financial institution to contribute to the further expansion of Sino-Hungarian economic, financial, and trade relations.

CCB's branch in Hungary will further promote financial cooperation between the two countries and provide higher quality financial services for China-Hungary economic and trade cooperation, Tian Guoli said. The bank also plans to establish a fintech lab to develop financial technology innovations.
Photo: Facebook page of János Csák, Minister of Culture and Innovation
According to Mihály Patai, Vice President of the Magyar Nemzeti Bank (Hungary's central bank), the opening of a new branch results from the increasingly close interconnection between the Hungarian and Chinese financial systems. Bank of China already established itself in Hungary in 2014, he reminded. The central bank is playing an active role in strengthening financial relations between the two countries, and the CCB's representation in Hungary will further enhance the successful cooperation established so far, Patai added.
Photo: MTI/Koszticsák Szilárd
Minister of Economic Development Márton Nagy hopes the branch will open the way for further developments. He added that China Construction Bank will help Hungarian companies to enter the Chinese market and Chinese investments to enter Hungary.

Yang Chao, Chargé d'Affaires of the Chinese Embassy in Hungary, said CCB is a leading player in the Chinese banking sector and an important player in the global financial system. The cooperation between the two countries is continuously deepening, and the branch will be a good bridge and link for businesses. Hungary plays a pioneering role in China's Belt and Road Initiative, and its unique location makes it a strategically important location," he said.
Photo: Xinhua/Attila Völgyi
On Thursday, Prime Minister Viktor Orbán received Tian Guoli and his delegation at a working lunch at his office in the Carmelite Monastery.
Photo: MTI/Miniszterelnöki Sajtóiroda/Fischer Zoltán
In an interview with Eurasia Magazine last year, Tian Guoli said that CCB considered three aspects when considering opening a branch in Hungary. The first is that Hungary has a favourable business environment, being a hub for Eastern and Western Europe. "As one of the first countries to recognise the newly established People’s Republic of China, Hungary has maintained stable and friendly relations with China. Our people have also forged a strong bond. I believe that under the auspices of the Belt and Road Initiative, there are huge opportunities for our countries to cooperate," he added.

The second is that China and Hungary have deepened cooperation in the internationalisation of the renminbi (RMB). Hungary was the first country in Central and Eastern Europe to establish an RMB clearing bank and issue RMB bonds.

The third aspect is that China and Hungary should capitalise on the growing momentum of digital cooperation.

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