Agricultural Bank of China (AgBank) and Asia-focused lender Standard Chartered have deepened a strategic alliance under which the two banks plan to set up a joint venture, AgBank said yesterday.
Earlier this year, Standard Chartered invested $500m (£315m) as a cornerstone investor in AgBank’s initial public offering in Hong Kong. AgBank, China’s third-largest lender by assets, had raised a combined $22.1bn from its dual-listing in Shanghai and Hong Kong in the world’s biggest ever IPO.
The planned joint venture will provide support to China’s fast-growing small and medium businesses, AgBank said. Under the tie-up, AgBank will give priority to Standard Chartered as its partner for its trade and cash management businesses. The two banks will also kick off a collaboration for cross-border business. A strategic alliance team had been set up to implement those plans, the Chinese lender said. No financial details of the planned joint venture were given.
City A.M. Reporter