Date
28 July 2017
Nanyang Commercial Bank is reported to have drawn the interest of state-backed China Resources Group. Photo: HKEJ
Nanyang Commercial Bank is reported to have drawn the interest of state-backed China Resources Group. Photo: HKEJ

China Resources Group said to join the race for Nanyang Bank

China Resources Group is believed to be among the contenders for Nanyang Commercial Bank, which is being offloaded by BOC Hong Kong (Holdings) Ltd. (BOCHK, 02388.HK).

The state-backed conglomerate has expressed interest in the Hong Kong lender, and could put in a binding offer by next month’s deadline, according to Bloomberg. 

BOCHK has put Nanyang Bank on the block at the Beijing Financial Assets Exchange, aiming to sell the subsidiary for a minimum of HK$68 billion (US$8.8 billion). 

The Hong Kong Economic Journal quoted Jim Antos, banking research head at Mizuho Securities Asia, as saying that China Resources may take political factors into consideration in weighing a bid for Nanyang.

Given the precedence of Yuexie Group’s takeover of Chong Hing Bank (01111.HK), it is likely that non-banking groups will join the bid for Nanyang Bank, he said.

China Cinda Group is another entity that is expected to be a bidder for the Hong Kong lender.

[Chinese version中文版]

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