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Asia's OCBC Highlights China Growth Potential As It Enters Talks To Buy WHB
One of the top executives at Oversea-Chinese Banking Corp, or OCBC, has stated the importance of China as a market, both in its offshore and onshore channels, as the bank announced its exclusive agreement to potentially acquire Wing Hang Bank.
One of the top executives at Oversea-Chinese Banking Corp, or OCBC, has stated the importance of China as a market, both in its offshore and onshore channels, as the bank announced its exclusive agreement to potentially acquire Wing Hang Bank, as reported earlier this week.
“Greater China is one of our four core markets together with Singapore, Malaysia and Indonesia,” Darren Tan, chief financial officer at OCBC Bank, said in a statement yesterday.
“Banking with businesses serving the China market onshore and offshore, and developing a customer franchise in Hong Kong, Macau (and Taiwan) to tap into the fast growing offshore yuan market have been a key focus for us,” he said.
Depending on the outcome of discussions, OCBC has said that it could acquire all of WHB, subject to the usual regulatory approvals. The move would extend OCBC’s market reach. The latter bank is the parent of Bank of Singapore, the private bank.
Warming to his theme about the importance of China to OCBC’s strategy, Tan continued: “In 2011, we set up a Greater China Business Council to follow the economic and regulatory developments in the Greater China region including the rules associated with the offshore yuan, and in 2012 we established the China Business Office in Singapore to focus on Chinese companies expanding outside of China.”
He pointed out that the bank opened its new corporate headquarters for its China banking subsidiary in September last year and now has 16 branches in the country.
“Both Taiwan and Hong Kong are important parts of our Greater China strategy, with Hong Kong being a de-facto gateway to China and the offshore yuan clearing hub playing a strategic role. We will continue to deepen and grow our presence in Greater China,” he added.
As previously stated by the bank, responding to press reports, OCBC denied it has forged a binding agreement to buy WHB.
