China Ping An Insurance Group (60138.SH, 2318.HK) has begun planning to overhaul Shenzhen Development Bank (SDB, 000001.SZ) upon completion of a pending merger, Caixin reported. SDB Acting President Richard Jackson said that Ping An plans to raise capital for the bank through a bond issue or other methods, including a direct capital injection from Ping An. SDB will also open six new branches; the bank has only opened one new branch in the past three years. "We will quickly develop a retail business based on Ping An Group’s clients and retailing strengths. Meanwhile we will take advantage of SDB’s trade financing business and connect it with Ping An Bank’s clients who are small- and medium-sized businesses," said Jackson. But he said that corporate business will continue to comprise the bulk of SDB’s business for the next three years.
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