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BOC eyes U.S. consumer finance firm
click rate:1786 issue time:2007-03-10 08:12

Jan. 22, 2007 (China Knowledge) – Bank of China (BOC) <3988><601988>, the Mainland's second-largest bank, is strategizing its entry into the U.S. market by buying a U.S. consumer finance firm for about US$2 billion.

Other possible takeover targets have also been identified, sources told the South China Morning Post on Monday, adding that overseas acquisitions are part of BOC’s strategy to acquire new technology and other expertise for expansion in China.

With the opening up of China’s banking industry, foreign banks are expanding their presence in the Mainland while Chinese banks are seeking assets abroad. Media reports have mentioned Mainland lenders as possible suitors for banks in Indonesia, Korea and Hong Kong, where family-run banks including Wing Lung Bank<96>, Chong Hing Bank <1111> and Bank of East Asia <23> look appealing.

BOC had 600 overseas outlets in 27 countries at the end of August. ICBC maintains just over 100 outlets overseas.