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Postal Savings Bank of China Co., Ltd.
Postal Savings Bank of China is a large Chinese bank that takes deposits and makes loans, mostly through branches located inside post offices across the country.
Postal Savings Bank of China is one of the country's biggest banks, and its main job is simple: it takes in people's savings and lends money to households and businesses across China. What makes it unusual is where it does business. It grew out of the postal system, so it reaches customers in small towns and rural areas where big-city banks often don't bother to open branches. Many of its locations sit inside post offices, which gives it a huge footprint without having to build everything from scratch.
The bank serves two broad groups. On one side are ordinary people and small businesses who deposit money, take out mortgages and personal loans, and buy savings products; it also runs a big wealth-management business selling investment products to retail customers. On the other side are companies and government-linked borrowers who need loans and other financing. It also holds a large pile of bonds and other financial assets, and the interest it earns on loans and investments minus what it pays depositors is the core of how it makes money. Its special advantage is its rural and small-town network, which brings in steady, cheap deposits from millions of everyday savers. Those deposits are its raw material, and the bank earns a spread by lending them out. That reach also makes it a policy tool for the government: it helps channel money into farming communities and small businesses, a role that can be both a strength and a source of pressure, since policy goals don't always line up with pure profit.
The bank listed in Hong Kong in 2016 in one of the world's largest IPOs of that era, with international investors and major Chinese companies buying stakes. Like the rest of China's banking sector, it faces a slowing economy, a weak property market, and pressure on the interest margins banks earn, plus a large, heavily regulated state-linked shareholder base. It pays dividends to shareholders, an increasingly important draw for investors hunting for income in Chinese stocks.
Saved answer · last researched 12 Nov 2026