(25 May 2004 – Hong Kong) HSBC has reportedly opened discussions with China’s Bank of Communications with a view to securing a stake in what is the smallest of the five state-owned banks.The reports have not been confirmed by either bank.
Bank of Communications recently ended talks with Standard Chartered but is searching for a strategic partner before it launches a public share offering. Foreign banks are allowed to own 25 percent of Chinese banks.
Late last year, HSBC and Standard Chartered vied for a stake of South Korea’s Koram Bank, which was eventually sold to Citigroup for US$2.7 billion in March.
HSBC has stakes in Chinese organisations Bank of Shanghai, Industrial Bank and Ping An Insurance.