China Mobile, ICBC to focus on emerging markets

The heads of two of China’s largest state-owned companies have said that they would focus on emerging markets as part of their overseas acquisition strategies. Jiang Jianqing, chairman of Industrial and Commercial Bank of China (ICBC), said his bank will look at strategic acquisitions in emerging markets, the Wall Street Journal reported. Jiang, speaking in the wings of the closing ceremony of ICBC’s 80% acquisition of Seng Heng Bank in Macau, said the bank would probably not buy into global banks, such as Credit Suisse and Citigroup, that have received capital from sovereign wealth funds. ICBC is looking for overseas assets and revenue to make up 10% of its overall business, up from 3% currently. In October the bank paid US$5.5 billion for 20% of South Africa’s Standard Bank Group. Meanwhile, China Mobile chairman Wang Jianzhou said at the World Economic Forum in Davos, Switzerland that he hoped falling stock prices would give him the chance to buy into companies in emerging markets, the Daily Telegraph reported. China Mobile bought a controlling stake in Pakistan’s Paktel last year for US$284 million.