OCBC raising Ningbo stake to maximum 20%

OCBC Bank is increasing its presence in China to get a larger slice of the action in the world's second-largest economy. Even as it holds talks to acquire Hong Kong's Wing Hang Bank, it is slated to increase its stake in China's Bank of Ningbo to the maximum 20 per cent from 15.3 per cent now.

Trading in Bank of Ningbo shares was suspended yesterday pending an announcement of a private placement plan, according to a statement posted on the Shenzhen Stock Exchange (SSE).

OCBC is expected to increase its stake in Bank of Ningbo to the maximum allowed 20 per cent via the private placement, a source said. Foreigners can own up to a maximum of 20 per cent in a Chinese bank.