China's CCB plans expansion overseas; sees regulatory hurdles in US
China Construction Bank (CCB) (HK 939, SHA 601939), one of the country's five biggest state-owned banks, is seeking to expand its presence overseas, but it is encountering regulatory difficulties in the US as regulators there are restricting its access to the market, according to its chairman Guo Shuqing.
Guo told reporters during the 17th Communist Party Congress that CCB will continue to look into opportunities overseas, including Japan, but he said the bank's efforts to open branches in the US have not yet made any progress, adding that Washington is treating Chinese firms unfairly.
""We have applied to set up branches in the US, but we have been subject to unequal treatment,"" Guo said.
He noted that CCB could enter into retail banking operations in the US, even though Bank of America -- which holds a strategic stake in CCB -- has agreed not to do such business here in China.
""According to the agreement that we signed, we can set up branches in US for retail banking operations,"" he said.
Guo added that if CCB were to set up in the US, it would not impact BoA's operations there, while the Chinese lender could also introduce clients to the US bank.
Guo said CCB aims to expand in countries that have a strong relationship with China, but he did not give details of specific targets.
'I cannot tell you who we want to acquire as that is a commercial secret, "" he said.
He added, however, that CCB is not currently interested in taking a stake in US investment bank Bear Stearns.
China's Citic Bank is reportedly interested in taking a stake in Bear Stearns.
Separately, Guo said CCB has measures in place to deal with potential overheating in the personal loan and housing loan markets.
He said CCB's debt quality has improved, but he added that rules on the provision of private credit remain unclear.
CCB joined the Shanghai Composite Index yesterday after listing on the mainland market on Sept 25. |
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