Chinese bank to invest in US
(9 October 2007 – China) China Minsheng Bank has planned the first strategic investment in a bank in the United States by a Chinese bank.
The mid-sized Chinese bank has announced plans to buy 9.9 percent of UCBH Holdings Inc for up to US$317 million (A$355 million), with the option to increase its stake to 20 percent in the future.
Shanghai-based analyst with Industrial Securities, Wang Qian, said that acquiring the stake in UCBH is targeted at being able to use its branch network, because it mainly serves ethnic Chinese in the United States.
He also said that this will facilitate Minsheng’s ambition of expanding overseas. Minsheng bank currently has no branches outside of China.
The bank backed this by saying that with the 70 branches across the US, investment in UCBH will provide the company with a platform to access the US market.
The two phase investment plan is still subject to US and Chinese regulatory approval.
UCBH provides commercial banking to small and mid-sized companies, and also provides retail banking.
Shanghai-based analyst with Industrial Securities, Wang Qian, said that acquiring the stake in UCBH is targeted at being able to use its branch network, because it mainly serves ethnic Chinese in the United States.
He also said that this will facilitate Minsheng’s ambition of expanding overseas. Minsheng bank currently has no branches outside of China.
The bank backed this by saying that with the 70 branches across the US, investment in UCBH will provide the company with a platform to access the US market.
The two phase investment plan is still subject to US and Chinese regulatory approval.
UCBH provides commercial banking to small and mid-sized companies, and also provides retail banking.
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