German bank raises stake in lender
By Maggie Zhang |
May 7, 2010, Friday
|
Print Edition
Print Edition
DEUTSCHE Bank yesterday said that it has agreed to pay up to 5.75 billion yuan (US$842 million) to boost its stake in Hua Xia Bank.
The German bank's injection is part of a private share placement worth up to 20.8 billion yuan by Hua Xia Bank to its three largest shareholders.
With the latest capital injection Deutsche Bank's stake in Hua Xia Bank will rise from 17.12 percent to 19.99 percent, the maximum single foreign ownership level permitted by Chinese law.
"The long-term cooperation with Hua Xia Bank is the spearhead of our private and business client strategy in China," said Rainer Neske, head of private and business clients and a board member of Deutsche Bank. "We are proud to continue this fruitful and reliable partnership."
Deutsche Bank first invested in Hua Xia Bank in May 2006 and has two seats on the Chinese lender's board.
"China is central to Deutsche Bank's overall Asia strategy," said Robert Rankin, chief executive officer, Deutsche Bank Asia Pacific.
"Our stake in Hua Xia Bank provides high quality direct participation in the development of China's retail and commercial banking market, which is experiencing one of the world's highest growth rates," Rankin said.
To grow organically, the German bank has a locally incorporated subsidiary in China. The bank also has stakes in Harvest Asset Management and Zhong De Securities.
Shares of Beijing-based Hua Xia Bank fell to 11.45 yuan in Shanghai yesterday, almost hitting the 10 percent daily trading cap. The Shanghai Composite Index tumbled 4.11 percent to close at 2,739.70.
The German bank's injection is part of a private share placement worth up to 20.8 billion yuan by Hua Xia Bank to its three largest shareholders.
With the latest capital injection Deutsche Bank's stake in Hua Xia Bank will rise from 17.12 percent to 19.99 percent, the maximum single foreign ownership level permitted by Chinese law.
"The long-term cooperation with Hua Xia Bank is the spearhead of our private and business client strategy in China," said Rainer Neske, head of private and business clients and a board member of Deutsche Bank. "We are proud to continue this fruitful and reliable partnership."
Deutsche Bank first invested in Hua Xia Bank in May 2006 and has two seats on the Chinese lender's board.
"China is central to Deutsche Bank's overall Asia strategy," said Robert Rankin, chief executive officer, Deutsche Bank Asia Pacific.
"Our stake in Hua Xia Bank provides high quality direct participation in the development of China's retail and commercial banking market, which is experiencing one of the world's highest growth rates," Rankin said.
To grow organically, the German bank has a locally incorporated subsidiary in China. The bank also has stakes in Harvest Asset Management and Zhong De Securities.
Shares of Beijing-based Hua Xia Bank fell to 11.45 yuan in Shanghai yesterday, almost hitting the 10 percent daily trading cap. The Shanghai Composite Index tumbled 4.11 percent to close at 2,739.70.
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