BofA eyes China expansion, happy with CCB link

BEIJING (BestGrowthStock) – Bank of America Corp, the largest U.S. commercial lender by assets, wants to expand in China to offer a wider range of banking services, Chief Executive Brian Moynihan said.

Expansion over the next few years could include both local incorporation and a securities license in China, Moynihan said, although he refused to be drawn on the timing of any moves.

Speaking to reporters on Wednesday on his first trip to China since he became chief executive at the start of this year, Moynihan said BoA enjoyed strong ties with China Construction Bank and was not looking to buy into another Chinese lender.

BoA retains an 11 percent stake in CCB, China’s second-largest lender. It reduced its shareholding from 16.7 percent during the financial crisis, raising $7.3 billion to bolster its frayed balance sheet.

“We are comfortable with where we are. Based on our interaction and the amount of strategic support we have with CCB, I think that relationship is very strong,” Moynihan said.

He said BoA wanted to provide the same range of services in China as it did in its biggest markets, from core working capital loans to investment banking and strategic advice.

Incorporating locally would give BoA the ability to do “a bit more” in China’s debt capital markets than it can do today, Moynihan said.

“We are pursuing China, expanding our powers and capabilities in this country,” he said. “In terms of the licenses and local incorporation, as I said before, we don’t talk publicly about the timing, but we’ll expand our activities.”

Stock Market Research

BofA eyes China expansion, happy with CCB link