Reuters Summit-FACTBOX-Foreign investors in China financial cos http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-09-05T114649Z_01_PEK19365_RTRIDST_0_FINANCIAL-SUMMIT-CHINA-FOREIGNBANKS-FACTBOX.XML&rpc=66&type=qcna
Tue Sep 5, 2006
(For other news from the Reuters China Century Summit, click http://today.reuters.com/summit/SummitDetails.aspx?details=true&name=chinacenturySummit06&pid=500)
BEIJING, Sept 5 (Reuters) - Foreign banks have long viewed China as a potential gold mine and several began buying billion-dollar stakes in mainland lenders in 2004. Others are still prowling for acquisitions. Now more than 70 banks from 21 countries operate in China, many of which have bought shares in local lenders to complement their own fledgling branch networks as the market opens further in December, in line with China's WTO obligations.
Top executives from the Bank of China (3988.HK: Quote, Profile, Research) (601988.SS: Quote, Profile, Research), China Construction Bank (0939.HK: Quote, Profile, Research) and Citigroup (C.N: Quote, Profile, Research) are speaking this week at the Reuters China Century Summit about opportunities and challenges.
Following is a list of the largest foreign investors in China's financial services sector:
HSBC HOLDINGS PLC. (HSBA.L: Quote, Profile, Research) (0005.HK: Quote, Profile, Research)
HSBC has spent about $5 billion on China investments and its holdings now include:
-- 19.9 percent stake in Bank of Communications (3328.HK: Quote, Profile, Research), the country's fifth-largest lender, which is now worth $5.8 billion. -- 19.9 percent stake in Ping An Insurance Co. (2318.HK: Quote, Profile, Research), the second-largest life insurer, which is now worth $4.1 billion. -- 15.98 percent of Industrial Bank through its Hang Seng (0011.HK: Quote, Profile, Research) subsidiary in Hong Kong, for which it paid $208 million.
BANK OF AMERICA (BAC.N: Quote, Profile, Research)
-- in June 2005, North Carolina-based Bank of America agreed to invest $2.5 billion for 9 percent of China Construction Bank (0939.HK: Quote, Profile, Research), and an additional $500 million when the mainland bank goes public later this year. Its stake is now worth $8.4 billion.
TEMASEK HOLDINGS [TEM.UL]
-- Temasek, Singapore's state investment arm, owns a 6 percent holding in Construction Bank with a market value of $5.8 billion.
-- 2.8 percent stake in Bank of China (3988.HK: Quote, Profile, Research) worth $5.1 billion -- 3.9 percent stake in China Minsheng Banking Corp. (600016.SS: Quote, Profile, Research) worth about $214 million
ROYAL BANK OF SCOTLAND (RBS.L: Quote, Profile, Research) -- Royal Bank, Europe's second-largest lender, owns 5 percent of Bank of China, a stake worth $9.2 billion.
AMERICAN INTERNATIONAL GROUP (AIG.N: Quote, Profile, Research)
-- 9.9 percent stake of top non-life insurer PICC Property & Casualty (2328.HK: Quote, Profile, Research) worth about $415 million
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