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AgBank forays into new fields
By Wang Yanlin |
September 30, 2010, Thursday
|
Print Edition
Print Edition
AGRICULTURAL Bank of China, whose initial public offering last month was the world's biggest, will diversify into financial leasing and private banking, it said yesterday.
The bank has set up the headquarters of the two new business units in Shanghai, which may help the city to meet its ambition to transform into a global financial center.
The mission of ABC Financial Leasing Co Ltd, registered in Shanghai with a capital of 2 billion yuan (US$294 million), is to innovate the way agricultural firms and projects in small- and medium-sized enterprises are funded.
"The rich resources in the Agricultural Bank of China will support our leasing services hugely," said Yang Kun, vice president of the bank and head of the new leasing firm. "It will complement the bank's business network and optimize our business model."
A leasing company grants the use of fixed assets such as land and buildings for a set of period of time in exchange for rental income.
China has lowered the capital requirement for domestic financial leasing firms from 500 million yuan to 100 million yuan as it hopes to nurture them.
Industrial and Commercial Bank of China was the first domestic lender to open its wholly owned financial company in 2007, followed by Bank of Communications and China Minsheng Banking Corp.
AgBank also announced the setup of its Shanghai-based private banking unit yesterday, which will target rich individuals and help them in managing their wealth.
The bank said it plans to launch 12 branches that will offer private banking services this year in big cities, including Beijing, Shanghai and Guangzhou.
AgBank raised US$22.1 billion in its IPO as it exercised an over-allotment option which helped it beat ICBC at the world's share sale in August.
The bank has set up the headquarters of the two new business units in Shanghai, which may help the city to meet its ambition to transform into a global financial center.
The mission of ABC Financial Leasing Co Ltd, registered in Shanghai with a capital of 2 billion yuan (US$294 million), is to innovate the way agricultural firms and projects in small- and medium-sized enterprises are funded.
"The rich resources in the Agricultural Bank of China will support our leasing services hugely," said Yang Kun, vice president of the bank and head of the new leasing firm. "It will complement the bank's business network and optimize our business model."
A leasing company grants the use of fixed assets such as land and buildings for a set of period of time in exchange for rental income.
China has lowered the capital requirement for domestic financial leasing firms from 500 million yuan to 100 million yuan as it hopes to nurture them.
Industrial and Commercial Bank of China was the first domestic lender to open its wholly owned financial company in 2007, followed by Bank of Communications and China Minsheng Banking Corp.
AgBank also announced the setup of its Shanghai-based private banking unit yesterday, which will target rich individuals and help them in managing their wealth.
The bank said it plans to launch 12 branches that will offer private banking services this year in big cities, including Beijing, Shanghai and Guangzhou.
AgBank raised US$22.1 billion in its IPO as it exercised an over-allotment option which helped it beat ICBC at the world's share sale in August.
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