According to the CCB Board of Directors, China Construction Bank (CCB) plans additional investments of US$300 million and US$800 million in CCB International and CCB (Asia) respectively.
This will be the second time that CCB has increased its investment in CCB International since it was set up four years ago. The Hong Kong-based investment bank previously received an increase in investment of US$300 million in 2007.
Insiders indicated that the new investment by CCB in Hong Kong does not have any specific target.
With regard to the increased investment of US$800 million in CBB (Asia), analysts said that this suggests that integration has been almost completed, and that these funds will be of great help in its future development. CCB acquired Bank of America (Asia), now CBB (Asia), from Bank of America in 2006.
However, other views have also been expressed. Wang Yonggang and Wang Yong, two of the Bank's Directors, think further reflection is required on the strategy of increased investment in CCB (Asia) and the extent of that investment. They abstained from voting on this proposal. Xie Xiaoyan, an Independent Director, differed on the size of the sum involved and also abstained on the vote.
According to Zhang Jianguo, President of the China Construction Bank, CCB always pays close attention to the international financial situation, in order to react rapidly and manage its investments.
He noted that Chinese banks face two major challenges. On the one hand, increasing prices of energy, raw materials, and other resources are impacting on business costs; on the other hand, they face the prospect of possible investment transfer from a number of foreign economies.
(China.org.cn by Wang Wei August 26, 2008)
