CCB buys In­done­sian lender

Chi­nese banks are on glob­al­iza­tion drive as they face pres­sure in the do­mes­tic mar­ket

China Daily (USA) - - BUSINESS - By JIANG XUEQING jiangx­ue­qing@ chi­nadaily.com.cn

China Con­struc­tion Bank Corp took another step for­ward in its glob­al­iza­tion drive by com­plet­ing the ac­qui­si­tion of a ma­jor­ity stake of PT Bank Windu Ken­t­jana In­ter­na­tional Tbk.

Ear­lier this year, the sec­ondChi­nese com­mer­cial lender by as­sets re­ceived ap­proval from Chi­nese and In­done­sian reg­u­la­tors for the ac­qui­si­tion of a 60 per­cent stake in Jakarta-based Bank Windu.

Listed on the In­done­sia Stock Ex­change, Bank Windu has a net­work of 82 of­fices through­out In­done­sia. As of the end of 2015, its to­tal as­sets hit 10.09 tril­lion In­done­sian ru­piah ($779 mil­lion) and to­tal li­a­bil­i­ties reached 8.68 tril­lion ru­piah.

The bank also holds a 100 per­cent stake in Surabayabased PT Bank An­tar­daerah, which has 30 of­fices across In­done­sia and a strong­hold in small and medium-sized en­ter­prises.

China and In­done­sia have de­vel­oped close eco­nomic, trade and in­vest­ment re­la­tions. Last year, trade be­tween the two coun­tries reached more than $54 bil­lion.

The CCB said on Thurs­day af­ter be­com­ing the con­trol­ling stake­holder of Bank Windu that it will en­ter the In­done­sian mar­ket to de­velop busi­ness and en­hance its abil­ity to pro­vide ser­vices in global fi­nan­cial mar­kets. Based on the ex­ist­ing busi­ness of Bank Windu, the CCB will of­fer qual­ity fi­nan­cial ser­vices to Chi­nese and lo­cal cor­po­rate and in­di­vid­ual clients in in­fra­struc­ture project fi­nanc­ing, trade fi­nanc­ing and the ren­minbi busi­ness.

The CCB made huge progress in its over­seas ex­pan­sion dur­ing its tran­si­tion to­ward in­no­va­tive smart bank­ing with com­pre­hen­sive busi­nesses and di­ver­si­fied ser­vices, as Chi­nese banks are fac­ing the pres­sure of eco­nomic re­struc­tur­ing, in­ter­est rate lib­er­al­iza­tion and the im­pact of in­ter­net fi­nance.

Wang Hongzhang, chair­man of the bank, said ear­lier that the bank de­vel­oped a plan for over­seas devel­op­ment in 2012, mak­ing com­pre­hen­sive ar­range­ments for the bank’s global ex­pan­sion, train­ing and busi­ness devel­op­ment.

“At the same time as do­ing busi­ness with the joint ef­forts of over­seas and do­mes­tic branches, the CCB also in­sists on do­ing busi­ness lo­cally,” Wang said.

So far, theCCBhas setup29 tier-one over­seas branches in 27 coun­tries and re­gions. As of the end of June, the to­tal num­ber of over­seas in­sti­tu­tions of the bank ex­ceeded 140.

Its to­tal as­sets of over­seas com­mer­cial banks were 1.34 tril­lion yuan ($201 bil­lion), up by 12.85 per­cent over the end of last year. The net profit of its over­seas com­mer­cial banks was 2.91 bil­lion yuan, a year-on-year in­crease of 31.6 per­cent, ac­cord­ing to its interim re­sults an­nounce­ment.

Guo Tiany­ong, di­rec­tor of the re­search cen­ter of the Chi­nese bank­ing in­dus­try at the Cen­tral Univer­sity of Fi­nance and Eco­nom­ics, said it is in­evitable for Chi­nese banks to go global, and each bank should find the right path that is most suit­able for its busi­ness devel­op­ment.

year-on-year in­crease in net profit of CCB’s over­seas busi­ness last year

XU JINBAI / FOR CHINA DAILY

An em­ployee of China Con­struc­tion Bank helps a client at a branch in Ha­ian, Jiangsu prov­ince. CCB has set up 29 over­seas branches in 27 coun­tries and re­gions.

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