Deutsche Bank to Increase Stake in Hua Xia
Deutsche Bank has announced today its desire to increase its stake in the Hua Xia Bank of China from 9.9 percent to 13.7 percent.
The bank purchased its original stake two years ago. Increasing it by 3.8 percent will cost the largest bank of Germany around US$550 million.
The proposal is yet to materialize because it still requires approval by the Chinese regulatory authorities. Deutsche Bank Asia Pacific Chief Executive Officer Colin Grassie described the bank's collaboration with Hua Xia as crucial to its plan of having direct access to China's banking and financial services markets. The Chinese bank has hundreds of branches in 31 cities across the country.
The lucrative emerging banking and financial services markets of China are highly appealing to foreign investors who are seeking direct access to a deposit base worth multi-trillion dollars.
However, regulations by the Chinese government keep any foreign bank from having or acquiring a stake of over 20 percent whilst no Chinese bank is permitted to sell more than 25 percent to any overseas investors. If you enjoy reading this article, you'll surely be interested in reading The Guide To Banking Services.
on 2008-10-14 at 01:17:45
I'm just amazed by leaps and bounds China has made to improve their economy. The recent Olympics is just a testament to the grand things that this country can do.on 2008-10-08 at 23:23:07
China is probably one of the best (if not the best) markets today in the whole world. It's got a huge population of people with enough purchasing power, so it's understandable that foreign banks want to do more business in it. Asian markets are also not as affected as Western markets by the current financial crisis.on 2008-09-18 at 18:52:25
Typical of the Chinese government to assure a majority hold on any of their establishments, especially banks. But then again, I guess that's part of what made China rise so fast as a superpower.