Guangzhou's Yue Xiu to buy $1.5b in HK's Chong Hing

The Guangzhou municipal government’s trading company Yue Xiu Group will buy up 75% of family-owned Chong Hing Bank for US$1.5 billion, Reuters reported. Chong Hing is the second bank in Hong Kong, Asia’s sixth-biggest loan market, to receive offers recently and takeover talk is also surrounding Wing Hang Bank (0302.HKG). The purchase of Chong Hing by Yue Xiu Group will be the first takeover of a Hong Kong bank since the $4.7 billion deal for Wing Lung Bank by China Merchants Bank in June 2008. Yue Xiu said the deal would help it “enhance its recognition in the market.”