Factbox: Foreign banks speed up expansion in China

BEIJING (BestGrowthStock) – A clutch of Western banks that have weathered the financial crisis relatively unscathed are ramping up their presence in China in the hope of profiting from the rapid growth of its financial sector.

Following is a brief summary of deals that have been concluded or are in progress by banks from China and overseas over the past few months.

January 2010

— Spain’s Banco Santander plans to form joint ventures in auto-financing and rural banking sectors with China Construction Bank, China’s No.2 lender, a CCB source told Reuters.

— Singapore’s DBS Group, Southeast Asia’s biggest bank, says it will add several hundred more staff in 2010 to its 1,000-plus workforce in China.

December 2009

— BBVA, Spain’s second-largest bank, raises its stake in China’s CITIC Bank by five percentage points to 15 percent, aiming to take advantage of China’s increasing trade relations with Latin America, one of its core markets.

— Canada’s Bank of Nova Scotia increases its stake in Xi’an City Commercial Bank to 14.8 percent, saying it intends to eventually lift the holding to about 20 percent, the maximum allowed under Chinese law.

— Taiwan’s Yuanta Securities, part of Yuanta Financial, is in talks to buy a stake in Soochow Securities, a mid-sized Chinese securities house, for as much as T$11 billion ($340 million), according to sources close to the matter.

October 2009

— RBS has been actively seeking a Chinese partner to set up a securities joint venture amid a resurgence in the initial public offering market in Hong Kong and China, its Asia-Pacific CEO John McCormick said.

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Factbox: Foreign banks speed up expansion in China