British banking giant HSBC Holdings Plc. will sign an agreement on Saturday to acquire an eight percent minority stake in the Bank of Shanghai, a report said.

The deal makes the Hong Kong and Shanghai Banking Corporation (HSBC)the first foreign bank to take an equity stake in a mainland bank since China's accession to the World Trade Organization this month, the South China Morning Post reported.

HSBC said in a statement on Friday that the acquisition of the Shanghai-based small commercial bank would cost 517.92 million yuan (US$62.65 million).

The World Bank's International Finance Corp.(IFC) also has a five percent equity stake in the Bank of Shanghai.

The Bank of Shanghai had assets of some US$11.6 billion by December 31, 2000.

(China Daily December 29, 2001)