Bank Of Communications 3328.HK

-- HSBC <0005.HK> is looking to increase its stake in Bank of Communications (BoCom)<3328.HK> by 0.75 percent to a total of 19.9 percent, BoCom Chairman Hu Huaibang said.

Blogged with the Flock Browser

China banks cleared to buy insurer stakes

SHANGHAI, April 10 (Reuters) - China's insurance regulator has given Bank of Communications <601328.SS><3328.HK> and Bank of Bejing <601169.SS> approval to buy into domestic insurers, the official China Securities Journal reported on Friday.

The approvals mark an acceleration of the development of financial conglomerates in China, the paper quoted a source at a state-run commercial bank as saying.

The China Insurance Regulatory Commission has given Bank of Communications, China's fifth-largest lender, approval to buy a stake in Shanghai-based China Life-CMG Insurance Co, the paper said, citing sources.

The insurer is a joint venture between Commonwealth Bank of Australia <CBA.AX> (CBA) and China Life Insurance <2628.HK> <601628.SS>.

The regulator has also approved the purchase by Bank of Beijing, which is 16 percent owned by ING Groep NV <ING.AS>, of a stake in Pacific-Antai Life Insurance Co, the paper said.

The report did not specify the size of the stakes or the financial terms of the purchases.

China is relaxing its rules and allowing banks to enter the brokerage, fund management and insurance businesses to reduce their reliance on lending in a weakened economy, as well as to develop and deepen the country's financial services sector. (Reporting by Edmund Klamann; Editing by Jonathan Hopfner) ((edmund.klamann@reuters.com; +86 21 6104 1799; Reuters Messaging: edmund.klamann.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

Blogged with the Flock Browser

HSBC says aims to up stake in China's BoCom (3328.hk)

BEIJING, March 6 (Reuters) - HSBC Holdings <0005.HK><HSBA.L>, Europe's biggest bank, will increase its stake in China's Bank of Communications <3328.HK><601328.SS> by around 1 percent to the limit of the government's permitted level should opportunities arise, a senior executive said on Friday.

The bank currently owns about 19 percent of China's fifth-biggest lender and under current regulations, a foreign bank cannot own more than 20 percent of a Chinese bank.

"Our U.S. business has contracted and there is room for us to seek opportunities in the Asia-Pacific region," HSBC executive director and chairman for Asia-Pacific Vincent Cheng told reporters.

"We will increase our stake in BoCom if opportunities arise."

BoCom has granted HSBC an option to increase the global bank's stake in the Chinese bank to 40 percent by August 2012 subject to Chinese government approval.

HSBC and BoCom shares opened down 3 percent and 2 percent, respectively, on Friday, on continued worries over the financial health of the banking sector.

HSBC shares have lost nearly a quarter of their market value this week after it reported a bigger-than-expected profit drop in 2008 and proposed a rights issue to raise nearly $18 billion

Blogged with the Flock Browser