New | Chong Hing Bank gears up for push into China
HK lender poaches leading bankers as it shifts focus to Guangzhou
Chong Hing Bank, a Hong Kong institution, is set to incorporate itself in China as it shifts its gaze to Guangzhou.
The move comes after Yuexiu Holdings, Guangdong province's government investment arm, bought a 75 per cent stake in the bank last year.
With the newfound backing of the Guangdong State-owned Assets Supervision and Administration Commission as a result of its Yuexiu connection and its parent's near-sovereign credit, Chong Hing is flush with capital raised from last year's stake sale. In a gradual shift in orientation, it has been expanding lending to state-owned enterprises and poaching high-flying Chinese bankers and former regulators.
The bank has snapped up Zong Jiaxin, who was the second-in-command at ICBC Asia, to spearhead its China entry. Zong has rich regulatory experience and relationships as a result of his tenure at ICBC in Beijing and Shenzhen. Zong has brought in with him senior bankers from top Chonese lenders who will work with him on building up the branch network in Guangdong.
Beijing, Shanghai, Shenzhen each has its own home champions to cater for its provincial and city-level business interests. "Guangzhou has never had a bank that looks the part," said Margaret Leung Ko May-yee, Chong Hing vice-chairwoman, who announced the makeover plan on Tuesday.
The bank has submitted applications for branch expansions and is waiting it out to fulfil the China Banking Regulatory Commission's minimum operational experience requirement before it can receive local incorporation status.
