China Business

Sep 30, 2005

BoA team arrives at CCB

BEIJING - An expert team sent by the Bank of America Corporation (BoA) arrived officially at the China Construction Bank (CCB) on September 28 to provide consulting services for the bank. The team was part of the historic deal reached by the two banks in June 2005.

According to the June agreement, the BoA, as a strategic investor of CCB, will increase its investment in CCB in phases, ultimately obtaining 19.9% of the stock of the Chinese bank, which is now preparing to be listed on overseas stock markets. BoA's initial investment of US$2.5 billion will be used to buy the share held by the Central Huijin Investment Co Ltd.

The BoA-CCB deal was the largest single investment ever committed by a foreign bank to a Chinese company. BoA will

thus take a seat on CCB's board of directors. For CCB, it was a major strategic decision to choose the Bank of America as a strategic investor, and the deal will have a profound influence on the future development of CCB, according to Guo Shuqing, chairman of CCB's board of directors.

Through launching deep, wide cooperation with its American partner in key business fields, CCB hopes to acquire advanced management methods and banking technology to improve its operations, management capabilities and service to customers in an all-round way.

(Asia Pulse/XIC)

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