The Asian bank has agreed to sell off a majority stake in another lender as part of a re-focus of its business operations.

Bank of China (Hong Kong) Limited has agreed to sell 70.49 per cent of its shares in Chiyu Banking Corp to Xiamen International Investment and the Committee of Jimei Schools.

The total consideration is for HK$7.685 billion.

“The proposed disposal is a pivotal initiative in implementing Bank of China Group’s strategy of driving global expansion and optimising overseas business. Given its strength, experience and reputation, XIL is an ideal buyer for Chiyu Bank," Yue Yi, vice chairman & chief executive of BOCHK (Holdings), said.

"Following the share disposal of Chiyu Bank, we will explore opportunities for further expansion by investing in our businesses in Hong Kong and in the Southeast Asia. We have completed the acquisition of Bank of China (Malaysia) Berhad and opened the first BOCHK Brunei Branch," he said.

"We are making steady progress in the acquisition of the other ASEAN banking operations of our parent bank, Bank of China, including Thailand, Indonesia, the Philippines, Vietnam and Cambodia. We see considerable opportunities arising from the important national strategies such as the Belt and Road Initiative, internationalisation of RMB and Mainland enterprises’ global expansion.

To see a previous report about this transaction, click here.