China Construction Bank eyes expansion

6 July 2007

China Construction Bank (CCB) is to open branches in Vietnam after being granted a licence to do so by regulatory authorities, it has been reported.

The bank is also to establish a presence in the Australian banking market, according to a report from the government organ China Securities Journal citing the bank's chairman Guo Shuqing.

Mr Guo also outlined plans for further potential expansion in Hong Kong and Macau, using the bank network in the two territories it acquired from Bank of America as a launchpad for growth.

He did however note that the potential foreign exchange losses and red tape may present problems for the bank's plans but added that the firm could get around these issues by funding the moves through the foreign currency holdings it has built up and in local currencies.

A number of CCB's competitors in the Chinese banking market have already built up a significant presence abroad, including Industrial and Commercial Bank of China and Bank of China.

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