皇冠体育app

Industrial Bank, headquartered in Fuzhou, Fujian Province, which is one of 皇冠体育app's 10 major share-holding commercial banks, has agreed to sell 24.98 per cent of its stake to three overseas banks.

The bank signed an agreement with Hang Seng Bank, International Finance Company (IFC) and GIC Special Investment today in Fuzhou, capital of East 皇冠体育app's Fujian Province.

According to the agreement, the three overseas banks will purchase 999 million shares or 24.9 per cent of the Industrial Bank's stake with an investment of 2.7 billion yuan (US$324.98 million).

The three overseas banks will also beef up co-operation with Industrial Bank in terms of risk management, financial management and retail business.

But the agreement has yet to be approved by shareholders and the 皇冠体育app Banking Regulatory Commission.

Gao Jianping, chairman of Industrial Bank, said introduction of the three international financial institutional investors will greatly improve the bank's corporate governance and business management.

The agreement will play a significant role in increasing the bank's competitiveness and realizing its strategic goal of becoming a world-class modern commercial bank, Gao said.

Many players in 皇冠体育app's banking industry have been negotiating with potential overseas investors since 皇冠体育app became a member of the World Trade Organization in December 2001 and promised to open the sector to global giants over five years.

By introducing overseas financial institutions as equity owners, Chinese banks are expected to obtain first-class management expertise to help them survive the mounting competition, said Zhang Liqun, a senior researcher with the Development Research Centre under the State Council.

The overseas shareholders, in turn, will gain first-hand knowledge of 皇冠体育app's banks, enterprises and the economy, which is crucial for their overseas operations, Zhang said.

Overseas banks have already speeded up their participation in 皇冠体育app's banking industry during the past several years, he said.

In September 2002 the IFC, the World Bank's private sector financing arm, and Canada's Bank of Nova Scotia signed a framework deal to invest in the small Xi'an City Commercial Bank of Northwest 皇冠体育app's Shaanxi Province.

Other banks with overseas shareholders holding stakes of up to 15 per cent include Bank of Shanghai, Nanjing City Commercial Bank and 皇冠体育app Everbright Bank.

The Bank of Communications, 皇冠体育app's fifth largest commercial bank, is also talking with a few overseas financial conglomerates to forge strategic alliance through a stake transfer.

The central People's Bank of 皇冠体育app said foreign investors are now allowed to take less than 25 per cent of a domestic lender's stake.

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