ScotiaBank buys into Chinese bank
12/12/2003 16:39
The Canada-based ScotiaBank is expected to get the go-ahead next month to
purchase shares from the Xi'an Commercial Bank, according to a senior manager
with ScotiaBank, the Beijing Morning Post reported.
The ScotiaBank, one of
North America's leading financial institutions, opened its Chinese business in
1982, with two banks in Guangzhou and Chongqing and a representative office in
Beijing.
In September last year, ScotiaBank and International Finance Corp
signed a memo with the Xi'an Commercial Bank, each buying one percent of shares
into the Xi'an lender. However, the SARS outbreak delayed the time period for
examination and approval.
According to regulations, ScotiaBank needn't wait
for one year to open other branch banks in China, nor will it be restricted to
handling Renminbi business in the country.
The China Banking Regulatory
Commission (CBRC), the banking industry watchdog, issued a series of new
measures to further open the domestic banking sector to foreign investors
including simplifying examination and approval procedures for foreign financial
institutes to buy into Chinese banks, and raising the upper-limit on the number
of share purchases from 15 to 20 percent.
Wendy Zhang/ Shanghai Daily news
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