Banks: Investment jigsaw takes shape
Investment by foreign banks and investors in domestic Chinese banks is not over, but it seems that the recent frenzy of activity has abated, with most of the big deals now signed or at least agreed.
Investment by foreign banks and investors in domestic Chinese banks is not over, but it seems that the recent frenzy of activity has abated, with most of the big deals now signed or at least agreed [see table below].
One of the latest investors is Singapore investment company Temasek Holdings, which has committed $6 billion of capital to two of China's largest state lenders in addition to the investment it already holds in the privately held China Minsheng Bank.
Having already committed itself to paying $2.4 billion for a 7% stake in China Construction Bank, which is expected to list in Hong Kong before the end of this year, Temasek signed an agreement in August to invest $3.6 billion for a 10% stake in Bank of China, which is also expected to list.
With Temasek's investments and the $3 billion investment in Industrial & Commercial Bank of China by a consortium led by Goldman Sachs, Allianz and American Express, it appears that big investments in the key state owned banks are complete. Although investment banks continue to court these listing candidates for lucrative IPO mandates, the serious investing is over.
Quite who has got the best deal will not become clear for some time.