Yuexiu Group acquires HK bank

Chong Hing Bank was founded in 1948. In addition to its head office in Hong Kong, it operates a network of 51 local branches as well as three branches in Shantou city of Guangdong province, Macao and San Francisco and two representative offices in Guangzhou and Shanghai. [Photo/yuexiu.com]

GUANGZHOU - Yuexiu Group, a State-owned enterprise in Guangzhou city, announced on Monday that it has completed the acquisition of Hong Kong's Chong Hing Bank (CHB) for HK$11.64 billion($1.5 billion).

Yuexiu Group purchased 326.25 million CHB shares, accounting for 75 percent of its total stake.

"It is the first time in 27 years that a non-financial institution has purchased a Hong Kong Bank," said Leung Ko May Yee Margaret, CHB deputy chairman and managing director.

Guangzhou is building itself as a regional financial center and Hong Kong is to become an offshore business center for the Chinese currency renminbi, she said.

Yuexiu Group is committed to building CHB into an international banking group that keeps a foothold in Hong Kong and Guangzhou and has an expanding influence in the whole country and the Asia-Pacific region, said Zhang Zhaoxing, the group chairman.

Yuexiu Group was established in 1985. It had total assets of about 200 billion yuan ($32.76 billion) at the end of 2013 with real estate, transport infrastructure and finance as its major businesses.

CHB was founded in 1948. In addition to its head office in Hong Kong, it operates a network of 51 local branches as well as three branches in Shantou city of Guangdong province, Macao and San Francisco and two representative offices in Guangzhou and Shanghai.