China's Era of Bank JVs May Be Ending
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With China Ocean Shipping Company (Cosco) planning to offload its 20% stake in ICBC Credit Suisse Asset Management, market observers across China worry the sale could mark the last of the great banking joint-venture deals in China. ICBC holds a 55% stake in the JV and Credit Suisse 25%.
The pilot regulations governing the formation of such JVs may not be extended beyond this autumn, says Hubert Tse, head of international business at Yuan Tai PRC Lawyers. Even signed deals—such as Huaxia Bank's agreement with F&C Asset Management and Bank of Beijing's deal with Bank of Nova Scotia—look uncertain, adds Tse, and could get overturned.