ING invests $215 million in Chinese banking sector

Last Friday ING Group has finally signed a contract with Bank of Beijing in to purchase a 19.9% stake in the bank for 1.78 billion yuan (US$215 million). This deal was a significant step to expand ING’s commercial banking business in China. 

However, not only ING Group is interested in investing in Bank of Beijing. The International Finance Corporation (IFC) has also announced its intention to buy 5% stake. The only thing that embarrasses the investors is the Chinese law that limits foreign investments. So, according to the law the stake of a single foreign investor is limited with 20% and 25% is a limit for all foreign shareholdings in the bank. 

"China's banking industry is close to a full opening up," said Yan Xiaoyan, president of Bank of Beijing, at the signing ceremony on Friday in Beijing. "As a Chinese bank, our target is to explore the international market and become an internationally competitive bank."