Background
Not much is known about Li Jun’s origins. Li Jun was born in 1956 in China.
军 李
Not much is known about Li Jun’s origins. Li Jun was born in 1956 in China.
He completed a masters degree in economics from Huazhong University of Science and Technology in Wuhan, China in 1995, five years after he joined the Bank of Communications in 1990.
However Li has been involved in the Chinese banking and finance sector since August 1975, first working with the People’s Bank of China, Wuhan branch, in Hubei Province. He stayed there for the better part of ten years before moving to the Industrial and Commerce Bank of China (ICBC). He was with the Wuhan branch of ICBC from October 1985 until October 1990, when he joined BOCOM, starting as vice general manager and later director of the Wuhan branch. In April 1998, Li Jun was transferred to the BOCOM headquarters in Shanghai. He has gone through nearly every department in the bank, having passed through stints as auditor general, director in many of the bank’s operating divisions, managing director, executive director, and vice governor (executive vice president).
Li handled BOCOM’s fund management division for a while and made it the premier funds manager in China. He also developed an innovative system for internal analysis and rating of loans granted by the bank, the credit management information system, an idea which he may have started developing while working as manager of the technological renovation credit division at the Wuhan branch of ICBC. One of his most admired innovations is the ‘Zhanyetong’ credit support program that is targeted towards helping small businesses. The Zhanyetong program administers BOCOM’s loan portfolio to small and medium-size enterprises. At the time of his election as president of the Bank of Communications, Li Jun’s Zhanyetong program had 100 billion yuan (US$12.5 billion) in total assets, which was about equivalent to the Industrial and Commercial Bank, a bank with a bigger asset base than BOCOM. The program has earned the approval of China’s bank regulatory authorities, which have spoken of plans to replicate the program throughout the whole domestic banking industry.
Li’s closest rival for the presidency of BOCOM played an important role during the marketing efforts in Hong Kong for the bank’s IPO and public listing. Li Jun, however, was a key architect of the bank’s joint equity reform plan, which included asset restructuring, the introduction of new capital and the infusion of new money through the public offering. Eventually, Li was chosen for his knowledge of the economy and finance, and his extensive experience in the management of diverse bank interests, which was deemed necessary to steer the bank into the future. Li will face growing competition, however, not only in the banking business in general but also in investor relations. Following BOCOM’s public offering, China Construction Bank, the Bank of China, Industrial and Commercial Bank of China (where Li used to work), China Merchants Bank and CITIC Bank have all conducted their own IPOs in the past three years. In addition, the BOCOM board is reputedly confrontational in dealing with management, which will pose a challenge for the low-key Li Jun.
Within a year of Li’s assumption to the presidency, the Bank of Communications posted significant improvements in operating results. From its first half of 2007 interim report, as of end of June 2007, the total assets of BOCOM had reached 2.133 trillion yuan (US$273 billion with an exchange rate of 7.8 yuan per US$), which was 24.33 percent higher than 2006. Net profit for the first half of 2007 was 8.918 billion yuan, which was a 37.43 percent increase on the first half of 2006. With the continuing growth in bank assets and net profits, Li pushed the domestic listing of BOCOM. In May 2007, BOCOM had its domestic public offering and sold over 3 billion A shares on the Shanghai stock exchange.
Li is known to be a brass tacks manager. He keeps a very low profile. Instead of becoming a public personality, which would be understandable as president of one of the biggest Chinese banks, Li focuses on internal operations and has a reputation for extreme attention to detail. A very hands-on manager, he tends to keep track of all assignments he gives to subordinates. He will need all this command of intricate detail and extensive experience to bring the Bank of Communications to greater heights. Li Jun is also vice chairman of the board for China Eastern Airlines Corporation and a director in the Yangtze River United Economic Development (Group) Co., Ltd.