SAFE takes small stakes in Australian banks

An investment company owned by China’s State Administration of Foreign Exchange (SAFE) has bought into three of Australia’s largest banks, the Financial Times reported. Australia and New Zealand Bank and Commonwealth Bank of Australia revealed that they had each sold stakes of less than 1% to SAFE Investment Company, which is registered in Hong Kong. Sources at National Australia Bank then confirmed that a company of the same name had purchased a holding of about 0.33% in the bank. The investments, each of which is worth about US$176 million, were made slowly over several weeks so as not to trigger mandatory disclosure requirements or create share price shocks. SAFE eventually admitted to the Financial Times that SAFE Investment Company is a wholly owned subsidiary but denied any knowledge of the Australia deals.