StanChart to buy stake in Bohai Bank
Hong Kong: Standard Chartered is said to be acquiring a 20 per cent stake in Bohai Bank, a new private bank in northern China, to catch up with international rivals in the Chinese domestic market.

Bohai Bank, headquartered in Tianjin, was established on the initiative of Dai Xianglong, the former central bank governor who is now mayor of the port city, near Beijing.

Although the commercial bank has been given a national licence, rarely granted in recent years, the government wants the lender to focus on China's north-east, which has lagged the coast and southern China in economic development.

In recent times, HSBC and Citigroup have stepped up their investments in China to tap the vast potential of its domestic market as China's rules allow foreign lenders to own up to 20 per cent of Chinese banks.

StanChart is also widely believed to be in talks with China Everbright Bank.
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