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SHANGHAI: Deutsche Bank is set to become the largest shareholder in China's Huaxia Bank after agreeing to increase its stake in the mid-sized lender to 17.12 per cent, the Chinese bank said on Thursday.
Deutsche Bank will buy 171.2 million shares, or a 3.43 per cent stake, from German private investment firm Sal Oppenheim Jr and Cie for 81.6 million euros (121.8 million dollars), Huaxia said in a statement to the Shanghai Stock Exchange.
After the deal is completed, Deutsche Bank, which currently owns 13.69 per cent of Huaxia Bank, will overtake state-run steel maker Shougang Group as the Chinese lender's largest shareholder.
The stake a single foreign investor can hold in a Chinese bank is capped at 20 per cent while combined foreign ownership must not exceed 25 per cent, according to Chinese regulations.
Although foreign banks have little influence in large state-run lenders in China, they have a relatively stronger foothold in small and mid-sized banks.
Deutsche Bank, Germany's largest bank, also has a 30 per cent stake in Harvest Fund Management Co, China's second-biggest asset manager and holds a 33 per cent stake in Zhong De Securities, a joint venture with Chinese brokerage Shanxi Securities.
- AFP/so
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