(7 September 2004 – China) Commonwealth Bank has said it is in the advanced stages of taking a stake in China’s Jinan City Commercial Bank (JNCCB).The bank said nothing had yet been signed and any arrangement would be subject to regulatory approval by the China Banking Regulatory Commission (CRBC).
If approved the deal would be the first time an Australian bank has invested in China’s mainland banking market.
As things stand, foreign banks may only take a 20 percent stake in China’s domestic banks, however CBA is discussing an 11 percent stake with options to take 20 percent.
JNCCB has total assets of some A$4 billion and five percent of Jinan’s savings and loans markets.
JNCCB, which is located in Shandong Province, is among China’s top 10 large city commercial banks by assets.