Banking News
- CITIC Bank considers BBVA venture
Date: 29-Nov-2007 Sources: (Shenzhen Daily)
CHINA CITIC Bank Corp. is considering setting up a capital market trading joint venture with Banco Bilbao Viscaya Argentaria SA (BBVA), as part of efforts to deepen cooperation with the strategic investor, CITIC Bank vice president Ouyang Qian said yesterday.
Another possibility is for the two companies to set up a relatively independent internal business unit, in which the two parties will share costs, Ouyang said in a speech at the 4th EU-China Business Summit.
The planned entity will carry out transactions such as derivatives or swaps trading with a primary focus on the mainland capital market, Ouyang said. The two parties also plan to jointly develop derivative products, he said.
He said the two companies have yet to make a final decision on this plan.
CITIC Bank hopes to take advantage of BBVA's advanced technology and expertise in capital market trading, Ouyang said.
CITIC Group introduced BBVA as a strategic investor in two of its units in March. Under the deal, BBVA acquired a 4.83 percent stake in CITIC Bank for 4.89 billion yuan (US$660.81 million) and a 15 percent stake in Hong Kong CITIC International Financial Holdings Ltd. for HK$4.88 billion (US$628.06 million).
Ouyang declined to say whether CITIC Bank is considering introducing more strategic investors. He said BBVA is CITIC Bank's preferred business partner, but added that multilateral cooperation is always good for banks.
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