The China Beijing Equity Exchange linked up with Shanghai Pudong Development Bank as strategic partners on Tuesdayand will work together on offering financing to mergers and acquisitions.
The bourse will act as a platform for member firms to gain access to the bank's financing resources. The Beijing bourse is set to sign a similar deal with China Construction Bank, an unnamed source said Tuesday. No credit quota was given for the deal with Pudong Bank.
"The tie-up with Pudong Bank helps us to work closer with state-owned enterprises in Beijing, which will be able to access capital from the bank," said Fu Jianhua, president of the Shanghai bank.
The Beijing bourse, which deals in equity and asset transactions throughout the country, has already signed a cooperation deal with the Beijing branch of the Industrial and Commercial Bank of China. Beijing Capital Group Co, a member company of the bourse, signed a deal with ICBC for a 5-billion-yuan (US$732 million) loan to buy a water treatment plant.
China allowed banks to offer loans for M&As in December in line with the central government's measures to boost the economy as M&A activities are set to keep asset prices stable and counter deflation.
(Shanghai Daily February 18, 2009)
