The market for Chinese banks is about to close

The market for Chinese banks is about to close. Since Beijing opened its commercial banks capital, 26 foreign financial institutions have invested in total more than 22 billion dollars in local institutions. Cannot develop on networks capable of competing with tens of thousands of agencies already installed by their Chinese competitors, all major groups in the world have tried to associate with the banks in the country with a right to work on the whole of the territory. As of January 2003, Citigroup had secure 5 of Shanghai Pudong Development Bank. In June 2005, Bank of America had made the financial press by spending 3 billion a record up to 9 in China Construction Bank. Two months later, it is ICBC allowing Goldman Sachs, Allianz, and American Express. Bank of China transferred shares in Royal Bank of Scotland, Merrill Lynch, UBS, the Li Ka-shing and Temasek Foundation.

Yesterday evening, the staffs of major foreign banks still not served, were a State of their ultimate investment opportunities in the Chinese sector. They are scarce. Instead, for the most significant size banks with valuable license of national activity, rather than small local networks and active institutions much more limited, they were at the end of their three potential targets census: Minsheng Bank, China Citic Bank and Everbrigt Bank.

Minsheng Bank. Founded in Beijing in 1996, the private institution is very well established in the cities the most rich of the country and this much healthier than its local competitors financial accounts (rate of 1.19 doubtful end of June 2006). Regarded as one of the most dynamic banks in the country, Minsheng was introduced in the Shanghai Stock Exchange in 2000 and has already allowed 7 investors including Singapore Temasek (less than 3.9) and the IFC of the World Bank (1.08). Its introduction on the place of Hong Kong has however been rebutted and his staff, who already met with several large foreign banks, appears to be reluctant to cede a significant part of its capital. "It is a little too beautiful", blows a banker in Beijing.

China Citic Bank. The establishment belongs to the great China International Trust and Investement Corp. (Citic) founded in 1979 by Rong Yiren, former Vice-President of the people's Republic of China, known as the "red capitalist". Quite avant-garde, the Bank, established in 1987, has installed in cooperation with American Express for the first ATM in currency of the country. It was in May 1992. Previously exclusively oriented companies, it is now for individuals and develops in the carrier market credit cards. Seeking capital, she prepares an introduction of $ 2 billion on the place of Hong Kong and discussed openly with a potential foreign strategic investors. BNP Paribas, GE Capital, Santander, Barclays and Banco Bilbao Vizcaya Argentaria (BBVA) investigated a possible purchase of 5 or 10 of its capital. According to the "South China Morning Post", an agreement with BBVA could also be announced in the next few days.

China Everbright Bank. Founded in 1992, the Bank was the first to let capital a foreign entity, China Everbright Hong Kong (21), a subsidiary of the company to state China Everbright Group holding, on the other hand, 24 of the institution. Claiming for several years a public recapitalisation to fill its losses due to the forced resumption, in 1999, a structure of State screened debt loans. Usually little generous with banking corporations, the Government would be ready to spend EUR 2 billion to help the Chinese Bank to recover financial health. Many investors are awaiting this payment before investing in Everbright Bank. The British Standard Chartered would be particularly interested in an entry of 19. An agreement could intervene by end 2006.