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DBS in tie-up to set up consumer finance company in China
DBS Bank has agreed with Postal Savings Bank of China (PSBC) and five other Chinese corporates to set up a consumer finance company - China Post Consumer Finance Company Limited (CPCFC) - which will be registered in Guangzhou city.
DBS Bank will be investing 120 million yuan (S$25.83 million), representing 12 per cent of CPCFC's registered capital. This makes the wholly-owned subsidiary of DBS Group Holdings the second largest shareholder and only foreign shareholder in CPCFC.
As the major sponsor, PSBC - one of the largest banks in China - will be contributing 61.5 per cent of the registered capital.
The transaction is not expected to have any material impact on DBS Group's financial position for the financial year ending Dec 31, 2015.