Industrial Bank, the eighth largest Chinese bank by assets, said in an announcement on the Shanghai Stock Exchange yesterday (in Chinese) that it plans to set up Industrial Bank International Financial Holdings in Hong Kong with registered capital of RMB 3bn ($450m).
Services include securities investment, bond underwriting, equity financing, merger and acquisitions, as well as asset management, it said. “It will gradually apply for the relevant license to establish the investment bank and asset management subsidiary,” the statement said.
It already has a Hong Kong branch, which is a restricted license bank, with investment banking and corporate banking businesses. Also under consideration is the launch of a private banking business, according to the bank.
The approach might be similar to that of Bank of Communications, which has BOCOM International mainly serving as the investment banking arm that opened in 2007. BOCOM itself launched a private banking service in Hong Kong in 2010.
The bank’s Hong Kong office could not be reached for comment.
