FACTBOX-Foreign bank investments in China
Thu Aug 18, 2005
BEIJING, Aug 18 (Reuters) - Royal Bank of Scotland (RBS.L: Quote, Profile, Research), Europe's second-largest lender, said on Thursday it would lead a $3.1 billion investment in Bank of China [BOC.UL] that will give it and co-investors a 10 percent stake.
In its first major investment in China, RBS said its share of the deal will come to $1.6 billion.
China has been urging its banks to seek strategic investments from foreign parties to help shore up domestic lenders before the banking sector opens to foreign competition late next year according to World Trade Organisation pledges.
China's allure is $1.5 trillion in personal savings and a culture that is only beginning to embrace credit.
China allows any single foreign investor to own a maximum of 19.9 percent of a Chinese bank's shares, and combined foreign investment is capped at 25 percent.
Below is a list of other foreign institutions' purchases of stakes in Chinese banks:
* Bank of America (BAC.N: Quote, Profile, Research), the world's second most-valuable bank, in June said it would pay $3 billion for a 9 percent stake in China Construction Bank [CCB.UL].
In July, Construction Bank confirmed that Temasek Holdings, the investment arm of Singapore's government, would also invest $1 billion during the bank's planned IPO.
* Commonwealth Bank of Australia (CBA.AX: Quote, Profile, Research) said it would pay A$100 million ($77 million) for a 19.9 percent stake in Hangzhou City Commercial Bank in April.
The Australian bank agreed to pay about $17 million for an 11 percent stake in China's Jinan City Commercial Bank last November.
* Dutch group ING announced in March it would take up to 19.9 percent in Bank of Beijing, the second-largest city commercial bank in China, for around 1.78 billion yuan ($215.1 million).
The International Finance Corp. (IFC), the World Bank's private equity arm, also took 5 percent of the Beijing lender for 447 million yuan.
* U.S. equity fund Newbridge Capital purchased a contolling 17.89 percent stake in China's Shenzhen Bank (000001.SZ: Quote, Profile, Research) for a reported 1.24 billion yuan in December 2004.
* Standard Chartered Plc. (STAN.L: Quote, Profile, Research)(2888.HK: Quote, Profile, Research) agreed to pay around $120 million for a nearly 20 percent stake in Tianjin-based Bohai Bank in November 2004.
* Canada's Bank of Nova Scotia (BNS.TO: Quote, Profile, Research) and the IFC took 5 percent of Xi'an City Commercial Bank in September 2004.
* Global bank HSBC Holdings Plc. (HSBA.L: Quote, Profile, Research)(0005.HK: Quote, Profile, Research) bought a nearly 20 percent stake in China's Bank of Communications for $1.75 billion in August 2004.
HSBC also owns part of the Bank of Shanghai and its Hang Seng Bank (0011.HK: Quote, Profile, Research) subsidiary paid $209 million for 15.98 percent of China's Industrial Bank Co. in April 2004.
* The International Finance Corp bought 1.08 percent of China's sole private lender, Minsheng Bank (600016.SS: Quote, Profile, Research), for $23.1 million in July 2004.
The IFC also has stakes in Bank of Shanghai and Nanjing City Commercial Bank.
* Citigroup Inc. (C.N: Quote, Profile, Research) bought a nearly 5 percent share of Shanghai Pudong Development Bank (600000.SS: Quote, Profile, Research) for $72 million in January 2003. ($1=8.1 Yuan)
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