Commonwealth Bank close to China bank stake

Hard on the heels of ANZ Bank's move to buy a stake in Shanghai Rural Credit Cooperative, Commonwealth Bank of Australia was reported taking steps to acquire an 11% stake in Jinan City Commercial Bank (JNCCB), which just received approval from the China Banking Regulatory Commission (CBRC) to go ahead with the sale. CBA will have one seat on the board of the Shandong bank and hold RMB1bn (US$120m) in equity. In the past, the CBRC has said it would encourage private Chinese and foreign investors to buy stakes in joint-stock commercial banks to help them upgrade.