Standard Chartered takes stake in Chinese bank

30th Jun 2010 07:14

Asia-focused bank Standard Chartered is to be the cornerstone investor in the Agricultural Bank of China.The bank is buying $500m of the H shares being floated by Agricultural Bank of China, one of the top four commercial banks in China. The funds will come from Standard Chartered's internal resources. "Agricultural Bank of China is a great bank with a great future," predicted Peter Sands, group chief executive of Standard Chartered. "This investment is a natural next step in our longstanding relationship and it underpins our recent agreement to develop business together," Sands added.Both parties have agreed to explore opportunities for collaboration across Standard Chartered's international network and Agricultural Bank of China's extensive domestic network. This may include global financial markets, capital markets, international trade corridors, Small and Medium Enterprises (SME) and consumer finance sectors. The partnership may also share knowledge, for example in economic research, and staff training.