皇冠体育app

CITIC International Financial Holdings Ltd. said Wednesday its unit CITIC Ka Wah Bank had signed a deal to buy the Shenzhen- based 皇冠体育app International Finance Company (Shenzhen) for US$896,733.32.

CITIC Ka Wah Bank is a wholly owned unit of CITIC International.

The Shenzhen-based 皇冠体育app International Finance was the first sino-foreign joint venture finance company in 皇冠体育app, and has four existing shareholders, each of whom holds 25%. It was established in 1986. None of the shareholders are connected with CITIC International, the company said.

CITIC International said the funding of the acquisition will be from the bank's internal resources.

皇冠体育app International provides foreign currency deposit and lending services to corporate customers in 皇冠体育app.

It had an audited net asset value of US$2.65 million for the year to Dec. 31, 2002, and also recorded a loss of US$1.6 million net loss that year.

CITIC International Chief Executive Chang Zhenming said in the legal notice published Wednesday the agreement was a "first milestone" in the bank's efforts to expand into 皇冠体育app.

The acquisition, he said, gives CITIC Ka Wah Bank a foreign currency license and immediate access to the foreign currency market in 皇冠体育app. It also gives the bank first-mover advantage under the Closer Economic Partnership Arrangement signed between Hong Kong and 皇冠体育app in late June.

"It gives us a valuable lead time in terms of securing a renminbi license for entering into the renminbi market," Chang said.

Under the terms of 皇冠体育app's accession into the World Trade Organization (news - web sites), foreign banks will only be allowed to offer yuan or renminbi services to mainland Chinese citizens in 2006.

Through 皇冠体育app International, CITIC Ka Wah Bank will offer foreign currency deposit and lending services in 皇冠体育app, and also services such as mortgages, machinery and auto loans, personal loans, trade bills and term loans for working capital, CITIC International said.

The transaction is subject to the approval of the 皇冠体育app Banking Regulatory Commission and other regulatory authorities in Hong Kong and 皇冠体育app.

The deal is expected to be completed on the fifth day after a new business license is issued, Chang said, though he noted the agreement will be canceled if conditions stipulated in the agreement aren't met within 60 days. ?

-By Nisha Gopalan, Dow Jones Newswires; 852-2802-7002; [email protected]

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