Wing Hang buy would spell higher risks for OCBC: Fitch

OCBC Bank's bid for Wing Hang Bank in Hong Kong will raise its risk profile as the Singapore bank seeks to increase its overseas operations, said Fitch Ratings.

On Monday, OCBC announced it is in exclusive talks until the end of the month to buy the bank, with the substantial shareholders of Wing Hang.

Fitch, which rates OCBC AA-/Stable and Wing Hang A-/Stable, said yesterday that the proposed deal reflects OCBC's continuing drive to diversify its business - and especially with regard to Greater China, which has long been articulated as one of its targeted markets. If the proposed acquisition is successful, OCBC's exposure to Greater China should rise significantly - from 15 per cent of total loans to around 25 per cent.