China Development Industrial Bank (CDIB, 開發工銀), a banking arm under China Development Financial Holdings Co (開發金), yesterday said it planned to accelerate its investment expansion into China by teaming up with provincial governments or large-scale venture capitalists there to operate private equity (PE) fund businesses, a company executive said yesterday.
“By mapping out such a business model, we don’t have to chip in a lot of capital, yet we can maximize our investment returns or bring in steady fee incomes for the bank,” bank president Simon Dzeng (曾垂紀) told a media briefing.
The bank’s brand and expertise in fund management will be an attractive option for potential Chinese partners, he said, promising to set up a fund management joint venture there “within two years.”
Without detailing the bank’s planned China-bound capital injection, Dzeng said the size of PE funds in China could range between 300 million yuan (US$43.9 million) and 1 billion yuan.
Once Taiwan signs a proposed trade accord with China, the bank may also consider acquiring a Chinese bank to tap into the commercial banking market, he said, adding that the Chinese market offers higher net interest margins, looser banking regulations and convenience for Taiwanese banks.
The goal is to boost its assets under management 10-fold to NT$1 trillion (US$31.2 billion) in five years, Dzeng said.
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