Beijing has since relaxed rules to encourage business diversification to help foster financial conglomerates with enough muscle to take on global rivals such as Bank of America-Merrill Lynch BAC.N and JP Morgan Chase & Co JPM.N. Other banks would likely to follow suit, taking advantage of the policy relaxation to buy lucrative broking firms in the high fragmented industry with more than 100 players.Ĭurrently, China Development Bank, a state policy lender, owns a brokerage unit, while commercial banks, including BoCom, Bank of China 601988.SS and China Construction Bank 601939.SS (CCB), are only allowed to set up investment banking subsidiaries overseas.Ĭhina separated banks from brokerages and insurers in the mid-1990's to ward off escalating risks. A successful bid by BoCom, which already owns leasing, insurance and fund management units, would make it China’s first commercial lender to control a mainland brokerage and fulfill BoCom’s ambition to provide a full range of financial services.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |