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China Construction Bank board approves plan for NZ subsidiary

China Construction Bank, the world's second biggest lender by market value, has got board approval to set up a subsidiary in New Zealand.

The bank's board, which counts former prime minister Dame Jenny Shipley among its directors, unanimously approved a proposal to set up a subsidiary in Auckland, with a capital injection of $US50 million.

The resolution was one of 18 passed at a March 22 meeting and announced in a statement to the Hong Kong Stock Exchange.

The Chinese lender already has branches in Germany, South Africa, Vietnam, Russia, the US, Korea, Australia, Singapore, Taiwan and Japan, and a wholly-owned subsidiary in the UK.

It also plans to establish a new Macau branch and inject more capital into its London unit.

China Construction Bank yesterday announced a 14 percent gain in net profit to 193.6 billion yuan in calendar 2012, on 16 percent growth in interest income to 353.2 billion yuan.

New Zealand currently has 22 registered banks, with Heartland New Zealand the most recent to receive a licence in December last year.

(BusinessDesk)

Comments and questions
8

http://www.scmp.com/topics/china-construction-bank A good source of information on this bank.

Kiss of death.

The Chinese are looking for a 'glove puppet'. An ex-PM or an All Black?
Could have been anyone.

Shipley - an honorary Chinese - for as long as she is of use to them. The 'local' face of the bank.

You will see more and more of this sort of news. No matter whether you like or not, it is going to happen. Calm down and get used to it. No need to cry or scream.

I have no problem with the bank coming here, but anything with a kindergarten teacher / ex-PM on the board should post a red flag. After Mainzeal, how can anyone take her seriously? Board members should be appointed on merit, and merit only.

There is cause for concern as this is a Chinese state-owned company with massive amount of debt in China and a corporate culture of fraud - the last two CEOs have been jailed in china for corruption (and that takes some doing in a very corrupt country). Furthermore, CCB uses forced demolition of ordinary Chinese homes (with very little compensation for the families) as the main thrust of its development policy. Sounds like a great bank to me and the kind of company we want to attract!

Sure, Spaghetti. The EQC needs this bank now. Wasn't Shipley's husband, Burton, a Westpac banker of sorts? If so, here we go. Ashburton's on a role.