Bank of Ching Hong Kong acquires stake in rival

by Richard Kilner

Story link: Bank of Ching Hong Kong acquires stake in rival

The Bank of China Hong Kong has acquired a stake in rival Bank of East Asia, buying 4.94% of shares for 3.95bn Hong Kong dollars.

The Bank of East Asia is the biggest independent local bank in Hong Kong, with total assets (in June of this year) of 343.2bn Hong Kong dollars.

The move is intended to widen the Bank of China Hong Kong’s investment portfolio and will be paid for by internal resources.

The seller is anonymous, and understood to be a third party.

The Bank of China Hong Kong has said it does not wish to involve itself in the bank’s management, and neither has nor desires board representation.

The two banks will continue to be run independently, with only the usual inter-bank relations taking place.