SATURDAY, DECEMBER 29, 2001
HSBC to acquire stake in Bank of Shanghai
HONG KONG: Banking giant HSBC Holdings announced Friday that its unit Hongkong and Shanghai Banking is to acquire an 8 per cent stake in China's Bank of Shanghai for 517.92 million yuan ($62.6 million).
It said the deal will be signed on Saturday, marking the first time that a foreign commercial bank will take a stake in a Chinese bank.
The World Bank's private sector arm, the International Finance, took a 5 per cent stake in the Bank of Shanghai in September 1999 for $22 million.
HSBC Holdings did not say where the agreement will be signed but press reports said it would be in the port city of Shanghai.
The Bank of Shanghai is one of several medium-sized banks being eyed by foreign banks wanting a toehold in China's vast but still largely closed financial sector. ( AP )
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