China

Research shows banks can profit up to 30% more from loans to SMEs.

Chinese commercial banks will increase investment in life insurers in view of the strong growth potential in the Chinese insurance sector.

HSBC is in advanced discussions to buy the retail and commercial banking assets of Royal Bank of Scotland Group PLC in China, India, and Malaysia, according to a person familiar with the situation as reported in Wall Street Journal. The move is part of HSBC’s drive to expand its reach in Asian banking markets. The emergence of HSBC as the leading bidder comes after exclusive talks between RBS and Standard Chartered PLC over those assets have stalled over price, the person said. It's not clear that Standard Chartered is out of the race completely, but its bid appears to have lost momentum. HSBC is making a push to extend its reach further in Asia's relatively healthy banking markets. It is competing with Singapore's DBS Group Holdings Ltd. to buy the Asian private banking assets of ING Groep NV for around $1.5 billion in a contest that could be decided later this month. Last month, HSBC said it will return the principal office of the group chief executive to Hong Kong, a small but symbolic gesture to China, where it hopes to list its shares. "RBS is in ongoing discussions with bidders for the remaining assets it has decided to sell in Asia and will make further announcements, as appropriate, in due course," said RBS spokeswoman Yuk Min Hui in a statement.

ANZ may take another look at RBS banking assets in China after Standard Chartered PLC pulled out of talks to buy the operations, says spokesman. "ANZ would be prepared to look at the RBS assets in China if financial sense could be made of that," the spokesman said. "At present, however, our priority is around regulatory approvals and integration planning for the assets in the six countries where we have already reached agreement with RBS," he said, in a report in the Wall Street Journal. However, ANZ Bank is currently not in any discussions with RBS on the China operations as of yet, he said. ANZ CEO Mike Smith revealed that the bank hopes to amass 20% of revenues from Asia by emerging as a “super regional bank.” ANZ already has some presence in China. It holds banking licenses in three major cities, and holds stakes in Bank of Tianjin and Shanghai Rural Commercial Bank. It is also in the process of getting local incorporation in China.

Minsheng, China’s first privately owned bank, is seeking U.S. regulatory approval to boost its holding in San Francisco- based UCBH to at least 50 percent from its current 9.6 percent, according to inside sources.The sources have declined to be identified as the talks are private. Minsheng already has an option to raise its stake to about 20 percent, according to Bloomberg News.Daniel Rosen, principal of the Rhodium Group in New York and a visiting fellow at the Peterson Institute for International Economics in Washington, said that Minsheng “has been the vanguard inside China in terms of trying to be more consumer-oriented,” “It doesn’t surprise me they would contemplate doubling down their position in a second-tier niche American bank like UCBH. It would be a good incremental step for them.” Increasing Minsheng’s investment would allow it to learn more about the U.S. banking market and protect its holding in UCBH. Minsheng has plowed $126 million into UCBH since October 2007 and is the bank’s biggest shareholder. UCBH stock has lost 97 percent since then, cutting the bank’s market value to $79 million. The shares advanced 13 percent yesterday.

The bank said it placed all shares with a 1 year lock up from selling to institutional investors as other banks line up to refresh their capital base.

In a stunning move that will have regional banks in Asia wondering when the Chinese will come for them, ICBC has just agreed to fork out $545 million to Bangkok Bank for its 20 percent stake in ACL.

The inauguration of ANZ's first rural branch in China aims to cement its position of being Australia's highest earning bank from its Asian operations.

ANZ became the first Australian bank to enter China’s rural market as it lends support to Liangping's pomelo industry.

The Agricultural Bank of China, China Merchants Bank and China Minsheng Banking Corp will use Deutsche Bank’s payment technology.

Backed by the central government, the winner between Bank of China and the Bank of Shanghai will offer loans at cheaper rates aimed to boost economy.

Chinese government extends maturity of bail-out bonds for another ten years after CCB announced inability to repay loans.

Foreign banks cut investments in CMB since August 2009, with JP Morgan Chase & Co., UBS and Barclays Bank among the said investors.

DBS Bank and Agricultural Bank of China signed an MOU to enhance cooperation in Asia across a wide spectrum of businesses. These include cash management, treasury products, loan syndications, corporate finance, trade finance, asset management and private banking.

StanChart senior executive John Tan said the bank's addition of dealers by two-thirds in three to five years aims to intensify presence in the country.

The two banks set to launch new loan plan to solve financing woes of SMEs.