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To Sell Stake in Ping An Bank

16th Feb 2007 08:15

HSBC Holdings PLC16 February 2007 HSBC SIGNS AGREEMENT TO SELL ITS STAKE IN PING AN BANK HSBC, which owns 19.9 per cent of Ping An Insurance (Group) Company of ChinaLimited (Ping An Group), has entered into an agreement to sell its 27 per centstake in Ping An Bank Limited to Shenzhen Commercial Bank Company Limited(SZCB), which is an 89.36 per cent owned subsidiary of Ping An Group. The transaction is part of Ping An Group's consolidation of its bankingbusinesses within SZCB. HSBC is supporting its Chinese partner in thisendeavour. The consideration is expected to be US$29.4 million (approximatelyRMB228.7 million), subject to a review of Ping An Bank's audited net asset valueas at 31 December 2006. Vincent Cheng, Chairman of The Hongkong and Shanghai Banking CorporationLimited, said: "We will continue to invest in and expand our operations in Chinaas well as strengthening our relations with our strategic partners comprisingPing An Group, Bank of Communications and Bank of Shanghai. These strategicinvestments are a core component of our growth strategy in China. Additionally,we are in the process of locally incorporating our China business to allow us tofurther expand our network and range of services." Ping An Bank, previously named Fujian Asia Bank, was established in mainlandChina in 1993 as a Sino-foreign equity joint venture bank. It had assets ofRMB1.1 billion (approximately US$143.7 million) at the end of December 2005. In2003, Fujian Asia Bank was acquired by HSBC and China Ping An Trust &Investment, a subsidiary of Ping An Group. Ping An Bank is currently headquartered in Shanghai and has one branch inFujian. The bank offers a range of foreign currency services to local andforeign customers, as well as renminbi-denominated services to corporatecustomers and foreign individuals. Completion of the transaction is subject to agreeing final terms and toobtaining the necessary approvals. 1. The Hongkong and Shanghai Banking Corporation LimitedThe Hongkong and Shanghai Banking Corporation Limited is the founding and aprincipal member of the HSBC Group which, with around 9,500 offices in 81countries and territories and assets of US$1,738 billion at 30 June 2006, is oneof the world's largest banking and financial services organisations. 2. Ping An Insurance (Group) Company of China LimitedChina Ping An Trust & Investment, which holds 73 per cent of Ping An Bank, is a99.881 per cent owned subsidiary of the Ping An Insurance Group. Established inShenzhen in 1988, Ping An Insurance (Group) Company of China Limited has thesecond largest life insurance operation and the third largest property andcasualty insurance operation in mainland China as at June 2006. It has over 31million life insurance customers, over 8 million property and casualty customersand around 240,000 employees at June 2006. In December 2005, it had achieved atotal gross written premium and policy fees of RMB59 billion. 3. Shenzhen Commercial Bank Company LimitedEstablished in 1995, Shenzhen Commercial Bank is a local joint-stock commercialbank with its head office in Shenzhen. The bank provides a wide-range ofservices in both commercial and personal banking. At December 2005, it had totalassets of RMB69.9 billion and an extensive network in Shenzhen comprising 46branches. Shenzhen Commercial Bank is currently 89.36 per cent owned by Ping AnInsurance (Group) Company of China Limited. This information is provided by RNS The company news service from the London Stock Exchange

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