HSBC denies China bank stake discussions
(22 April 2005 – China) HSBC has dampened down rumours that it was seeking to take a stake in China Construction Bank.
Responding to stories that emerged mid-week that the bank was one of a number of potential foreign investors speaking to Construction Bank, HSBC said a stake in the Chinese Bank was not on the agenda.
HSBC said it had made several investments in financial services companies in mainland China and did not want to stretch its resources by adding to these acquisitions for the time being.
Construction Bank is seeking to list on the local stock exchange and wants to raise an initial public offering of US$5 to 10 billion in 2005.
The bank, which is one of China’s four major lenders, has been reportedly in talks with a number of international banks, including HSBC.
In January, HSBC was given regulatory approval to extend its branch network in western China, including upgrading its offices in Chongqing and Chengdu into major branches offering foreign currency services.
HSBC said it had made several investments in financial services companies in mainland China and did not want to stretch its resources by adding to these acquisitions for the time being.
Construction Bank is seeking to list on the local stock exchange and wants to raise an initial public offering of US$5 to 10 billion in 2005.
The bank, which is one of China’s four major lenders, has been reportedly in talks with a number of international banks, including HSBC.
In January, HSBC was given regulatory approval to extend its branch network in western China, including upgrading its offices in Chongqing and Chengdu into major branches offering foreign currency services.
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