Friday, June 03, 2005

So, it seems that the deal between Citibank and China Construction Bank has collapsed. In January 2004, Citibank had won out over HSBC, JP Morgan, and Deutsche Bank to serve as chief advisor to CCB's impending IPO. Supposedly, Charles Prince himself promised that Citibank would acquire over 2 billion USD worth of CCB shares upon IPO, or roughly 10% of CCB shares. Although the Chinese press makes it seem like it is Citibank's internal problems that led to to the collapse of the deal. Citibank management instead might have done some clear-headed thinking and realized that a state-owned bank is still too risky a proposition in which to sink over 2 billion.

Although as "strategic investor," Citibank would have been entitled to send one and possibly two VPs to CCB, would they have had any power as outsiders and non-party members. Despite Guo's promise, it remains to be seen how much power outsiders will exercise in CCB and other large state banks. The market has also reassessed the risk of investing in CCB. Note that the current strategic partner with CCB, Bank American, will only sink 1.2 billion for a 5% share, half of what Citibank had supposedly promised. In truth, I share Citibank's circumspection because it remains difficult for the Chinese government to refrain from interfering in a large bank such as CCB. Citibank and other large foreign banks hoping to get into the Chinese market would do much better to invest in mid-size joint-stock banks and good city commercial banks since most of their business is on the prosperous coastal region. Frankly, much of the inland banking market is just not worth very much in the foreseeable future.



这一变化对花旗集团是一次沉重打击,它已与摩根士丹利(Morgan Stanley)一起为建行股票的海外上市工作了15个月。此前,花旗集团在全球范围内遭遇了一系列监管问题。




“他们已被‘取消(与会)邀请’,因为这家中国银行对花旗买入股份的承诺已失去耐心,”一位人士说。去年1月,花旗集团击败汇丰银行(HSBC)、JP摩根(JPMorgan)和德意志银行(Deutsche Bank)等竞争对手,赢得了建行上市顾问的资格。


尽管进行了数月的谈判,花旗集团仍未能与建行达成交易。而且据悉建行已与花旗的竞争对手美国银行(Bank of America)进入了后期谈判。美国银行提出将出资约12亿美元,持有建行5%的股权。




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