ICBC takes controlling stake in US bank
May 12, 2012 | BY
clpstaff &clp articlesWednesday signaled a breakthrough for Chinese financial institutions as the Industrial and Commercial Bank of China became the first mainland bank to acquire a controlling stake in a US counterpart
The US Federal Reserve released the Order allowing ICBC to buy an 80% stake in the Bank of East Asia alongside two other approvals for branch offices in New York and Chicago of the Agricultural Bank of China (ABC) and the Bank of China (BOC), respectively.
“A signal has been sent that the US banking market is continuing to open up for branching and acquisitions and other equity investments by mainland Chinese banks in particular and international banks in general,” says White & Case Partner Ernie Patrikis, who represented ICBC and the Bank of China.
The move also shows a change in attitude towards China's state-run enterprises. While industry experts and media have consistently questioned the accuracy of Chinese accounting methods, the Order stated: “There is no evidence that Chinese accounting methods or practices at large Chinese banks, such as ICBC, are unreliable.”
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now