Barclays eyes stake in China Co.
Barclays PLC plans to take a 19.9% stake in New China Trust & Investment Co., according to a Dow Jones Newswires report.
Barclays PLC plans to take a 19.9% stake in New China Trust & Investment Co., according to a Dow Jones Newswires report.
In an interview, Luo Guang, Chongqing municipality’s vice secretary general in charge of financial affairs, told the news service of the potential deal but didn’t give a price for the stake.
Based in China’s Chongqing municipality, New China Trust has a registered capital of $65 million (500 million yuan).
The move comes as the London-based bank competes with a European bank consortium led by Royal Bank of Scotland Group PLC to buy Amsterdam, Netherlands-based ABN Amro Holding NV.
China’s banking regulator caps foreign investment in local trust companies at 25%, but regulators said they are considering increasing that limit to 49%, according to a China Daily report cited in MarketWatch.
While the two sides appear to have reached a consensus on the stake investment, there remains the possibility it could be altered, according MarketWatch.
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