Standard chartered Bank is talking with several Chinese lenders to form a strategic partnership with one of them, said an official of the lender.
Peter wong, a director of the Hong Kong operations of UK-based Standard Chartered Plc, said earlier this week that the lender is talking to some banks on the Chinese mainland with the aim of developing a long-term partnership.
"We have the intentions of forming a partnership," said an unidentified official of Standard Chartered Bank China. "But it is not the proper time to announce details of any potential deal."
Wong said the bank plans to buy a minor stake in a domestic bank initially, which could gradually increase to 15 percent.
An overseas lender is allowed to hold a maximum 15 percent stake in a mainland bank under the current banking rule on the Chinese mainland.
"In China we continue to make progress and it is a market that will remain high on our agenda in the coming years," said Standard Chartered Bank in its 2003 interim report.
However, the bank also said the growth of market opportunities in China is dependent on regulatory change.
Under china's commitment to the World Trade Organization, the mainland banking market will be fully opened to overseas investors by 2007.
Hsbc and Citibank have already bought stakes in the Bank of Shanghai and Shanghai Pudong Develop-ment Bank respectively.
(Shanghai Daily August 14, 2003)
