China Construction Bank board approves plan for NZ subsidiary

The board, which has Dame Jenny Shipley among its directors, unanimously approves a proposal to set up a subsidiary in Auckland.

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)

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