CCB, ICBC to take stakes in asset management firms

China Construction Bank (CCB) is planning to buy up to 30% China Cinda Asset Management in order to expand into the brokerage business, the South China Morning Post reported. China’s second-largest bank has been in talks with the Ministry of Finance, which owns Cinda, to acquire 20-30% of the firm, CCB Chairman Guo Shuqing announced. The deal is expected to see CCB pay no less than US$1 billion to buy into Cinda. Industrial and Commercial Bank of China, in a similar deal, is expected to inject at least US$1 billion into China Huarong Asset Management. The banks hope to develop into financial conglomerates by moving beyond their traditional lending businesses.