Minsheng to buy up to 20% of US bank

时间：2007-10-09 08:20:14

（单词翻译:单击）

Oct.9 - China Minsheng Banking1 Corp, the country's 7th-largest bank by market value, will buy up to 20 percent of UCBH Holdings Inc - the biggest bank serving the Chinese community in the United States, the Chinese lender said Monday.

 

The deal would be the first strategic investment in a US bank by a Chinese mainland financial institution and give UCBH a stronger exposure to the mainland market.

 

"The stake purchase will serve as Minsheng's platform to explore the overseas market," said Gu Junlei, a banking analyst2 with Orient Securities.

 

According to a Minsheng statement, the stake purchase will be divided into three phases: Minsheng will initially3 buy 5.4 million shares for $96 million, representing a 4.9 percent stake. Before March 31, 2008, the bank will increase its ownership to 9.9 percent. And by June 2009, it may increase its holding to 20 percent, becoming the largest single shareholder4 in UCBH.

 

"The acquisition will have limited impact on Minsheng's financial status, given the portfolio5 in the bank's total assets," Gu explained.

 

However, as 77.16 percent of UCBH's loans are related to the real estate business, the bank's returns largely depend on the US property market, Gu added.

 

UCBH, the holding company of United Commercial Bank, has $10.7 billion in assets and 70 branches in the US and one in Hong Kong, with quite a number of its clients foreign citizens of Chinese origin.

 

It plans to use the proceeds from the initial sale for a pending6 acquisition in China which will be closed in the fourth quarter, a UCBH statement said.

 

In March, UCBH said it would buy China's Business Development Bank Ltd for $205 million to gain a foothold in the world's fastest-growing major economy.

 

Minsheng's deal follows China Development Bank (CDB) taking 5 percent in Britain's third largest lender Barclays in July.

 

"More and more Chinese banks will take stakes overseas as they expand overseas business," Wu Yonggang, an analyst with Guotai & Junan Securities, told China Daily.

 

"And it is also an effective way to deal with the appreciation7 of the renminbi," Wu added.

 

Minsheng shares closed at 16.3 yuan ($2.17) Monday, up 3.1 percent from the previous trading day.

 
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1 banking aySz20     
n.银行业，银行学，金融业
参考例句：
  • John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
  • He possesses an extensive knowledge of banking.他具有广博的银行业务知识。
2 analyst gw7zn     
n.分析家，化验员；心理分析学家
参考例句：
  • What can you contribute to the position of a market analyst?你有什么技能可有助于市场分析员的职务？
  • The analyst is required to interpolate values between standards.分析人员需要在这些标准中插入一些值。
3 initially 273xZ     
adv.最初，开始
参考例句：
  • The ban was initially opposed by the US.这一禁令首先遭到美国的反对。
  • Feathers initially developed from insect scales.羽毛最初由昆虫的翅瓣演化而来。
4 shareholder VzPwU     
n.股东，股票持有人
参考例句：
  • The account department have prepare a financial statement for the shareholder.财务部为股东准备了一份财务报表。
  • A shareholder may transfer his shares in accordance with the law.股东持有的股份可以依法转让。
5 portfolio 9OzxZ     
n.公事包；文件夹；大臣及部长职位
参考例句：
  • He remembered her because she was carrying a large portfolio.他因为她带着一个大公文包而记住了她。
  • He resigned his portfolio.他辞去了大臣职务。
6 pending uMFxw     
prep.直到，等待…期间；adj.待定的；迫近的
参考例句：
  • The lawsuit is still pending in the state court.这案子仍在州法庭等待定夺。
  • He knew my examination was pending.他知道我就要考试了。
7 appreciation Pv9zs     
n.评价；欣赏；感谢；领会，理解；价格上涨
参考例句：
  • I would like to express my appreciation and thanks to you all.我想对你们所有人表达我的感激和谢意。
  • I'll be sending them a donation in appreciation of their help.我将送给他们一笔捐款以感谢他们的帮助。

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