Wed, Jan 04, 2012 - Page 11 News List

Hua Nan stays mum on rumor of buying Chinese bank share

By Crystal Hsu  /  Staff Reporter

Hua Nan Commercial Bank (華南銀行), the banking subsidiary of state-run Hua Nan Financial Holdings Co (華南金控), yesterday remained mum on a newspaper report that it wants to acquire shares in a Chinese bank.

The Chinese-language Economic Daily News said yesterday that Hua Nan Bank is seeking a 20 percent stake in Fujian Haixia Bank (福建海峽銀行), the largest city-level lender in Fuzhou, in China’s Fujian Province.

The paper said Hua Nan Bank is conducting due diligence review on Fujian Haixia Bank and expects to spend more than NT$10 billion (US$333 million) to secure the 20 percent stake later this year, if doing so proves desirous and feasible.

“Nothing is final yet. The report is purely speculation on the media’s part,” a Hua Nan official, who requested not to be named, said by telephone.

The newspaper said Hua Nan had shortlisted four Chinese banks, including Fujian Haixia Bank, as its potential investment targets. The other three include Bank of Wenzhou (溫州銀行), Bank of Jiaxing (嘉興銀行) and Chongqing Three Gorges Bank (重慶三峽銀行).

In a filing to the Taiwan Stock Exchange yesterday, Hua Nan said: “Plans to invest in Chinese lenders remain in the internal study and planning stages,” and that it will “make a pubic disclosure once a decision is finalized.”

Hua Nan and Fujian Haixia inked a memorandum of understanding in May to spur operation, business and professional exchanges. Hua Nan has also inked agreements with the Bank of China (中國銀行) and the Bank of Communications (交通銀行).

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