NEWSLETTER FINANCIAL SERVICES
Banknotes Two weeks ended 19 December 2014
Title
KPMG China’s weekly banking news summary This publication is a summary of publicly reported information, the accuracy of which has not been verified by KPMG.
News In the news Anbang Insurance raises stake in CMB to 10% - Anbang Insurance Group Bank of Beijing Company Ltd (Anbang Insuarnce) increased its shareholding in China Merchants Bank (CMB) by an aggregate of 1,261 million A shares to 2,522 million A shares, Bank of China representing 10% of the total share capital. Bank of Communications ICBC approved to acquire 60% interest in Standard Bank Plc - Industrial & Bank of Nanjing Commercial Bank of China (ICBC) has received approval from the China Banking Regulatory Commission (CBRC), the Prudential Regulation Authority of the United Bank of Taiwan Kingdom and the South African Reserve Bank for the proposed acquisition of a 60% China Construction Bank equity interest in Standard Bank Plc from Standard Bank Group.
China Development Bank CCB opens Toronto branch - China Construction Bank (CCB) has opened a branch in Toronto, the second CCB branch in North America and the first branch of a China Merchants Bank Chinese bank in Canada. China Minsheng Bank Bank of Beijing to raise up to RMB 15 billion in preferred shares private placement - Bank of Beijing plans to sell no more than 150 million preferred CTBC Bank shares for up to RMB 15 billion in a private placement to boost its additional tier-one Fubon Financial Bank capital.
Industrial and Commercial Bank of China Shengjing Bank raising up to US$1.4 billion in IPO - Shengjing Bank is raising up to US$1.4 billion in an initial public offering in Hong Kong this month. Land Bank of Taiwan CCB to raise RMB 60 billion through preference share offering - CCB plans to People’s Bank of China raise up to RMB 60 billion by issuing preference shares. Shengjing Bank Tencent’s Webank has received approval from CBRC - The CBRC has given a
Taiwan Cooperative Bank greenlight to the operation of Webank, a private bank partly funded by Chinese internet giant Tencent. The Bank of East Asia BEA purchased a mortgage loan portfolio - The Bank of East Asia (BEA) Webank purchased a HK$6 billion mortgage portfolio from PrimeCredit.
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PRC and Taiwan banks agrees on syndicated lending - Ten banks from PRC and Taiwan have signed a memorandum of understanding on syndicated lending with the aim of enhancing financial cooperation. The five banks from PRC are Bank of China, Bank of Communications, Bank of Nanjing, China Development Bank and China Minsheng Bank. The five banks from Taiwan are Bank of Taiwan, CTBC Bank, Fubon Financial Bank, Land Bank of Taiwan and Taiwan Cooperative Bank. Anbang Insurance raises stake in China Minsheng Bank - Anbang Insurance increased its stake in China Minsheng Bank to 10% of the total share capital.
In Brief The HKMA announced the introduction of two measures to promote the HKD bond market - The Hong Kong Monetary Authority (HKMA) will streamline the tenors of Exchange Fund Notes and Government Bonds to minimise overlap in longer tenors and introduce a discount facility for Government Bonds to provide greater flexibility for banks to manage liquidity. China's trust insurance fund to start with RMB 40 billion - An insurance fund for China's trust industry will launch with an initial size of around RMB 40 billion. Each firm in China’s trust industry is required to contribute 1 percent of its net assets. CBRC encourages private funds to rural credit cooperatives – The CBRC issued a notice to encourage more private funds towards rural credit cooperatives and turn them into commercial banks. HKMA provided guidance for disclosure of remuneration receivable in respect of sale of ILAS Products – The HKMA set out several standards in making pre-sale remuneration disclosure in connection with the distribution of the Investment Linked Assurance Scheme (ILAS) product by authorized institutions and announced that authorized institutions should adopt the revised remuneration disclosure statement introduced by the Hong Kong Federation of Insurers.
Sources: AAStocks Financial News, Dow Jones Institutional News, ET Net News, Global Banking News, Industry Updates, Philippines News Agency, Xinhua's China Economic Information Service, Reuters News and various banks’ and regulators’ websites.
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Benjamin Rhys Jeremy Cheung Partner Manager China and Hong Kong SAR China and Hong Kong SAR Tel. +852 2685 7798 Tel. +852 2685 7980 benjamin.rhys @kpmg.com [email protected]
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