Royal Bank of Scotland in talks for stake in Suzhou Trust
Royal Bank of Scotland, which holds 8.25 per cent of Bank of China, is in talks to buy 19.9 per cent of Suzhou Trust to secure a foothold in the fast-growing asset management sector.
'The two parties have got initial results in negotiations over key issues such as the selling price and the size of the stake,' the mainland's 21st Century Business Herald quoted sources as saying. No price was disclosed and neither company could be reached for comment.
Suzhou Trust, based in Jiangsu province, is a non-bank financial institution providing advisory and investment management services. It had assets of 6.7 billion yuan at the end of last year.
An analyst from a United States brokerage said foreign banks were keen to expand on the mainland.
'To take a stake in the trust company is the only way they can tap the trust sector as no new licence will be issued,' said the analyst, adding that the profit contribution to Royal Bank of Scotland initially would not be very large.
It would be the second purchase by Royal Bank of Scotland on the mainland.