BOC buys stake in Swiss firm

Bank of China’s UK subsidiary is expanding its private banking business in overseas markets, state media reported. The bank said it would buy a 30% stake in Swiss Heritage Fund Management (HFM) for US$8.7 million. According to Bank of China (BOC), the deal has already been approved by UK and Swiss regulators. Bank of China (UK) Ltd plans to increase its stake in HFM to 70% later through the purchase of new shares. HFM will be renamed Bank of China (Switzerland) Fund Management Company. HFM is a subsidiary of Heritage Bank, an independent Swiss private bank based in Geneva. A BOC spokesman praised HFM’s fund management and its wide range of investment products, which have been performing well for several years. He also said that HFM’s location, in Geneva, would help BOC share market resources and promote private banking businesses in Europe. BOC’s UK unit started business in 2007. Among the US$362 million funds managed by HFM, Chinese funds account for about 50%.