China financial firms eyeing distressed assets

Hong Kong

CHINESE financial firms are targeting purchases of distressed banking assets coming on the market in Europe, having been urged by Beijing to expand their reach beyond emerging markets.

The first Chinese purchase of a European investment bank was announced last week, with Haitong Securities agreeing to pay 379 million euros (S$618 million) for an investment bank in austerity hit Portugal. Banco Espirito Santo de Investimento SA (BESI) is being sold by Novo Banco, the bank carved out of Banco Espirito Santo after it was rescued in August.