Australian Bank Seeks Stake in Chinese Bank

Published on:
12 September 2006 at 10:18 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00006328-australian-bank-seeks-stake-in-chinese-ba/

AFTER more than two years of seeking opportunities in China, the Commonwealth Bank has reached an in-principle agreement to buy a stake in a third-tier bank, Jinan City Commercial Bank (JNCCB).

If Chinese banking authorities approve the deal, CBA would become the first Australian bank to enter the domestic commercial and retail banking sectors in China.

JNCCB, regarded as one of the 10 largest commercial banks in the country, has assets of $4 billion, and shareholders’ capital of $200 million.

Commonwealth Bank group executive, international financial services, Garry MacKrell, told The Australian that CBA would initially purchase an 11 per cent stake.

Under Chinese regulations, a single foreign institution can purchase a 20 per cent stake in a Chinese bank.

The deal would be worth $25 million initially.

For this complete story, please visit Australian Bank Seeks Stake in Chinese Bank.