China Everbright plans to acquire a trust company

The lender considers joining leading Chinese banks that have built presence in trust business by merging local trust companies.

China Everbright Bank, the flagship banking arm of China Everbright Group, mulls acquisition of a trust company, said Tang Shuangning, chairman of Everbright Group.

Quite a few member companies of Everbright Group have been merged by others or wrote off in the past 20 years. Particularly, China Everbright Trust, founded in 1991 with a registered capital of CNY 4.5 billion ($674.91bln), was once the most active in Hong Kong's merger sector. But it was wrote off in 2002 due to insolvency.

Some leading Chinese banks have built presence in trust business by merging local trust companies.
China Construction Bank this January restructured Hefei Xintai Trust Co. and renamed it CCB Trust Co. The lender now holds 67% of the trust company.

View the full story in Trading Markets.