HSBC and Chinatrust discuss mainland alliance, reports say
Benjamin Scent
Tuesday, May 06, 2008
HSBC (0005) is in talks with Taiwan's Chinatrust Financial Holding on an alliance in the mainland, and may sell a stake in a mainland bank to Chinatrust, according to Taiwanese media reports.
Amid anticipation that Taiwan president-elect Ma Ying-jeou will allow Taiwanese banks to become more active in the mainland, Chinatrust is seeking a foreign strategic partner to offer onshore exchanges of the yuan and the New Taiwan dollar, the Economic Daily News quoted sources as saying.
The report said Chinatrust is talking to both HSBC and Citi about doing banking business together in the mainland. Chinatrust is Taiwan's fourth-largest financial firm by market capitalization. Subsidiary Chinatrust Commercial Bank may also consider acquiring a stake in a mainland bank, by buying some shares from another foreign bank that has already bought into a Chinese lender, the report said.
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HSBC holds a 19 percent stake in Bank of Communications (3328) and an 8 percent stake in Bank of Shanghai.
"We have no comment at all on it," a spokesman for HSBC said.
Chinatrust Financial Holding chief financial officer Hsu Miao-chiu declined to confirm or deny the report.
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