CCB set to buy controlling stake in Xingtai Trust
23 May 2008
China Construction Bank (CCB) is set to buy a controlling stake in Anhui-based Hefei Xingtai Trust in a bid to diversify its business and lessen the lender's dependence on loans, the South China Morning Post reported. The state-owned bank has agreed to pay around US$490 million for a 67% stake in the trust company, pending regulatory approval. Xingtai Trust is a unit of financial conglomerate Xingtai Holding. Analysts said that by taking a controlling stake in trust firms, banks could restructure them into professional wealth management institutions. Last year, CCB established a financial leasing joint venture with Bank of America, which holds an 8.5% stake in the Chinese lender.