China’s capital markets have undergone profound shifts in recent years: cross-border investment channels such as the Qualified Foreign Investor (QFI) scheme and Bond Connect have made China’s markets more accessible to global investors. At the same time, the growth of mutual funds and quantitative investment has raised expectations for security, efficiency and expertise. Custodians must therefore combine the infrastructure needed to support assets at scale with integrated, intelligent and global services. China Construction Bank (CCB) is advancing this shift from traditional custody towards a comprehensive institutional asset-servicing platform, supported by its scale, broad service capabilities, expanding global network and digital transformation. More than two decades of custody expertise underpinned by financial strength Founded in 1954 and headquartered in Beijing, CCB listed in Hong Kong in 2005 and is one of China’s four largest state-owned commercial banks. Its total assets reached RMB 45.6 trillion (approximately $6.49 trillion) at end-2025. Its balance-sheet scale supports one of China’s largest custody franchises. Sustained growth in assets under custody Assets under custody are a key indicator of a custodian’s operating capacity. According to CCB, the bank ranked first among China’s four largest state-owned banks by assets under custody in 2024. At end-2025, its assets under custody approached RMB 24 trillion (approximately $3.42 trillion), providing a solid foundation for systems investments, operational improvements and service innovation. A broad institutional client ecosystem CCB’s longstanding institutional relationships help it understand the needs of different investor groups and support them across the investment lifecycle. At end-2025, it provided custody services to more than 3,000 institutional clients. This combination of scale and client reach supports CCB in establishing itself as a leading benchmark in China’s custody industry, Broad licensing and product coverage meet diverse investor needs Institutional clients now expect custodians to support multiple products, investment strategies and market environments, alongside asset security and efficient settlement. CCB holds custody qualifications across more than ten broad categories and over 20 product types, including mutual funds, insurance assets, securities and QFI services. Its end-to-end service model covers a wide range of assets and investment scenarios. Diversified mutual fund custody CCB has built a diversified mutual fund custody system covering multiple products and strategies. It offers custody operation support encompassing valuation, accounting, transaction settlement and investment oversight, supporting continued product innovation by asset managers. CCB reports leading positions in money market, equity and Qualified Domestic Institutional Investor (QDII) fund custody. According to the bank, it serves as custodian for several market-first exchange-traded funds (ETFs), as well as the market’s leading money market ETF and commodity ETF in terms of scale and ranks among the top custodians for QDII funds by assets. The bank is a major custody partner for China’s mutual fund industry. In 2025, its share of mutual fund assets under custody among the four largest state-owned banks exceeded 30%, while its clients included 72% of fund managers. This gives CCB broad reach across China’s mutual fund industry. Specialised cross-border custody Cross-border custody is one of CCB’s established areas of focus. The bank launched custody services for overseas institutional investors in 2003 and, by 2025, served more than 220 global institutions across 22 countries and territories. Supported by a head-office specialist team, its systems and a global custody network, CCB reports that it ranks first among Chinese peers by number of QFI custody clients. Its capabilities support overseas investors in accessing the China market and conducting onshore operations. Prudent insurance asset custody Insurance assets constitute CCB’s largest single custody product in terms of custody scale. Its operating capabilities and risk management framework support the long-term asset allocation needs of insurers, for which security, continuity and service breadth are critical. CCB reports that it remains among the leading Chinese banks in insurance assets under custody, serving 64% of insurance companies, including several of the country’s largest insurers. By expanding its coverage of asset classes and service processes, CCB is strengthening long-term institutional relationships and adapting to more complex asset management needs. As custodians evolve from back-office providers into long-term asset-servicing partners, comprehensive product coverage is becoming essential. A global network connecting China and international markets Cross-border custody is becoming an important infrastructure as China’s capital markets open further. International investors need both market access and a custodian that understands local rules and can operate to global standards. CCB has established cross-border custody capabilities that connect Chinese assets with global capital, supporting global allocation and cross-border investment. Supporting global investors in China Beyond account management and trade settlement, foreign investors require help navigating market rules, improving operational efficiency and maintaining stable cross border processes. Since launching its overseas institutional investor custody service in 2003, CCB has built relationships with more than 220 institutions across 22 countries and territories. These include leading commercial banks, asset managers, securities firms, insurers, quantitative investors and commodities companies. QFI custody is a core part of this proposition. At the end of the first quarter of 2026, CCB reported that it ranked first among Chinese peers by number of QFI custody clients and had added more QFI clients than any other peer over the preceding five years. Its support includes qualification applications, regulatory liaison and ongoing operations, helping foreign investors participate in China’s capital markets. As China’s capital markets open further, CCB aims to draw on its local-market expertise and experience to improve investor access and operating efficiency. CCB is expanding its global custody network through a combination of direct operations and international partnerships. It collaborates with global custodian banks, extending its service coverage to more than 100 markets. In parallel, it is strengthening the local custody capabilities of overseas branches and coordinating client development across its network. This model supports two-way investment flows. CCB can help overseas institutions enter China by combining local knowledge with global connectivity, while providing infrastructure for Chinese institutions investing abroad. As market opening progresses, the bank plans to deliver more accessible, efficient and integrated cross-border asset services. Specialist support for quantitative and other complex strategies The expansion of foreign quantitative investors and hedge funds in China is creating demand for custody services that extend beyond safekeeping to include settlement efficiency, data support and operating resilience. Stable, high-performance systems are particularly important for high-frequency strategies. CCB has targeted international quantitative investors by improving system support, operating efficiency and specialist services. In 2025, it completed several system upgrades to support QFI high-frequency quantitative strategies, market-making and liquidity arrangements. These capabilities extend custody from basic operations towards investment infrastructure designed to support more complex strategies. Technology supports custody operations and client experience Technology has become a central driver to custody transformation as institutional investors seek more digital and intelligent services. CCB is upgrading its operations through a new generation custody system, its Smart Custody platform and artificial intelligence applications. A new-generation custody system supporting efficient operation CCB uses digital technology to support stable operations across large volumes and multiple asset types. Its new-generation system covers core processes including instruction handling, transaction settlement and asset valuation. In 2025, the bank added over-the-counter bond functionality, fiduciary risk-monitoring rules, investment oversight requirements for new client products and market-value analysis by bond duration range. It also upgraded SWIFT messaging standards and enhanced XBRL periodic and monthly reporting. Three custody operating centres and a multi-centre disaster-recovery framework support business continuity, stability and security. Smart Custody modernises service delivery CCB’s Smart Custody platform is organised around four areas: intelligent business management, operations, risk control and data services. It integrates data management, risk controls, transaction processing and client service, with the aim of improving transparency and response times. The bank is also expanding robotic process automation to increase processing efficiency at scale. AI supports more intelligent custody services CCB is applying AI to custody knowledge management, contract review and the configuration of investment oversight rules, while strengthening data governance and reporting. The bank is using data capabilities and intelligent tools to support more tailored institutional services. Further advances in AI and big data are expected to support more efficient and secure asset servicing. Centralised operations strengthen service resilience Technology is supported by a systematic, centralised operating model that combines standardised processing with specialist client service. CCB describes its integrated, three-location custody operating centre, directly managed by head office, as an industry first. Its Asset Custody Department oversees business management, the three centres handle centralised operation processing, and branches provide client service and business coordination. In addition, three custody operating centres and a multi-centre disaster-recovery framework support business continuity, stability and security. This model is designed to improve processing efficiency at scale while allowing more tailored and secure client support. It also reinforces custody’s role as infrastructure linking asset managers, investors and financial markets, and supports CCB’s development as a long-term asset-servicing partner. Towards an open and intelligent institutional asset-servicing platform China’s custody industry is entering a new phase. Deeper capital-market opening, larger institutional allocations and more diverse strategies are shifting the custodian’s role from asset safekeeping towards comprehensive institutional asset servicing. CCB reflects this transition through its scale, broad product coverage, global network and technology innovation. Future growth will depend increasingly on the integration of infrastructure, specialist expertise and technology. CCB plans to deepen its digital transformation, expand its global capabilities and enhance client services to provide institutional investors with more efficient, secure and professional access to domestic and international markets. Through these actions, the bank aims to play a more significant role in the continued opening of China’s capital markets and the development of its asset management industry.
