BOC eyes acquisitions in the US market
22 January 2007
Bank of China (BOC) is identifying possible takeover targets with a view to breaking into the US market, the South China Morning Post reported. People familiar with the bank's strategy said it was looking for a consumer finance firm valued at about US$2 billion. It is said that BOC, whose primary focus is on foreign exchange and trade finance, would use the technology and know-how gained from an overseas acquisition to support expansion efforts in China. The bank is keen to develop its lending to small and medium-sized enterprises as well as credit card and wealth management services, analysts said. However, rising interest rates in the US are expected to cut consumer appetite for further borrowing, making the market difficult to navigate.