Deutsche Bank Faces No Hurdle to Move Huaxia Proceeds, SAFE SaysBloomberg News
Foreign exchange regulator says it supports ‘compliant’ deal
Deutsche Bank is selling $3.9 billion stake in Huaxia Bank Co.
Deutsche Bank AG faces no hurdle to move proceeds from the sale of its $3.9 billion stake in a Chinese bank offshore, China’s foreign exchange regulator said, denying that efforts to limit capital outflows are creating a potential headache for the German bank.
Chinese foreign exchange regulators support an authentic, compliant cross-border equity transfer deal, the State Administration of Foreign Exchange said on its website. A media report on its talks with Deutsche Bank on moving money from China is untrue, the regulator said in the statement.
People familiar with the matter told Bloomberg News that the regulator is reviewing applications to move large amounts of money on a case-by-case basis and its focus is on preserving currency stability. One option the regulator has proposed is for Deutsche Bank to remit the proceeds from selling its Huaxia Bank Co. holding in batches rather than in one go, the people said, asking not to be named as the informal discussions are private.
Deutsche Bank agreed in December to sell its 20 percent Huaxia holding as Chief Executive Officer John Cryan seeks to bolster capital. Since then, investor concerns about the lender’s financial health have deepened. The Frankfurt-based bank’s shares dropped to a record low on Monday.
— With assistance by Christian Baumgaertel, Justina Lee, Cathy Chan, and Steven Yang