Bank of Communications says talks still on
( 2004-01-18 09:28) (eastday.com)
Bank of Communications said Thursday that its overseas capital infusion programs are still in the pipeline, a response to recent market speculation that two foreign financial institutions have been shortlisted.
The Shanghai-based bank is currently involved in negotiations with several foreign financial institutions on potential equity investment in it, said Ying Xiaoming, an official of the bank, which is the fifth-largest lender in China's mainland.
"To attract overseas investors is of strategic importance for our bank," said Ying. "But it is not the right time to release any information on the issue."
Media reports had earlier said that Standard Chartered PLC and the Hongkong and Shanghai Banking Corp are talking with the bank on equity investment.
"The reports are inaccurate and we will release related information when the time is right," said Ying.
Meanwhile, HSBC and Standard Chartered yesterday also blamed market speculation for saying that they intend to purchase stakes in the local bank.
"As a general principal, we always remain open to investment opportunities in China," said Lavina Chan, a senior corporate affairs manager of Standard Chartered. "However we prefer not to comment on market rumors."
UK-based Standard Chartered announced earlier this week its intention to incorporate its Hong Kong business to take advantage of a free-trade pact signed between the Chinese mainland and the special administrative region.
"This is a signal of our confidence in Hong Kong and China's mainland," said Bryan Sanderson, Standard Chartered's chairman.
"Hong Kong is our largest market and the mainland is at the heart of our growth strategy."
Under the mainland and Hong Kong Closer Economic Partnership Arrangement signed last year, the minimum global asset requirement for a mainland branch application has been lowered to US$6 billion from US$20 billion for Hong Kong banks since the beginning of this year.
In addition, Standard Chartered sold its 0.4 percent share in BOC Hong Kong (Holdings) Ltd earlier this month, which is part of the UK lender's long-term strategy for China in response to recent developments in the banking environment in Hong Kong and the Chinese mainland, said Chan.
"The proceeds from the selling of the shares will be used by the group to further its long-term organic growth, particularly in China's mainland," Chan added.
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