Investment in Banking Continues

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Chinas banking sector continues to attract as much investment as interest. In the latest round the Industrial and Commercial Bank of China (ICBC) has agreed to sell 10 percent of the bank in a US$3.78 billion deal with Goldman Sachs, American Express and Allianz.

Meanwhile a consortium led by Citigroup has been named as the preferred bidder for Guangdong Development Bank. The group is bidding almost US$3 billion for 85 percent of the bank, in a groundbreaking deal that would allow majority foreign ownership of a Chinese bank for the first time (pending approval from Beijing). Despite this deal, it is expected that the government will retain majority ownership in the main state banks.

These deals takes total committed foreign investment in the sector to over US$20 billion. With the investment capital, expertise in risk management, corporate governance and IT that come with it, it is hoped that the Chinese banks will continue to improve performance at home and, for the Bank of China, ICBC and China Merchants Bank, in their upcoming overseas IPOs.

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One Response to “Investment in Banking Continues”

  1. Archive » The ICBC IPO. All Part of The Plan.| China Business Blog Says:

    […] mong them will join the ranks of those already listed, and will push up still further the US$20 billion of foreign money that had been invested in the sector by February this year. So, […]

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