Standard Chartered to create China bank
(AP)
Updated: 2005-09-06 14:01

British bank Standard Chartered PLC on Tuesday announced plans to invest $123 million to help create a new Chinese bank, joining a wave of foreign investors looking for a share of China's banking industry, the Associated Press reported.

A pedestrian passes by a Standard Chartered advertisement billboard in Hong Kong, August 8, 2005. Standard Chartered on September 3 announced plans to invest $123 million to help create a new Chinese bank. [AFP]

Standard Chartered said it would own 19.9 percent of China Bohai Bank, based in the eastern city of Tianjin. It said the founders are investing 5 billion yuan ($600 million) in the bank.

Officials from the investors signed the deal at a ceremony attended by Premier Wen Jiabao and visiting British Prime Minister Tony Blair.

Chinese law limits foreign shareholders to a total of not more than 25 percent equity share in its state-owned banks. Individual foreign banks can only hold up to 20 percent shares.

The other partners are Chinese banks and corporations, including the investment arm of the Tianjin government, Tianjin TEDA Investment Holdings Co. Ltd., with a 25 percent interest, Standard Chartered said.

Other major investors include China Ocean Shipping (Group) Co., with 13.7 percent, and Shanghai Baosteel Group Corp. and the State Development & Investment Corp., each with 11.6 percent.

Yong Zilin, former chairman of the Import-Export Bank of China, has been nominated to be chairman of the new bank, and Ma Teng, formerly of Industrial & Commercial Bank of China, has been nominated to be chief executive, Standard Chartered said.

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