Yue Xiu Group to take control of Chong Hing Bank Ltd

First foreign takeover of a Hong Kong bank since 2008.

Yue Xiu will buy three quarters of Chong Hing Bank US$1.5 billion. Yue Xiu is the trading arm of the Guangzhou city government and is engaged in real estate, securities and transportation infrastructure.

Chong Hing, one of Hong Kong's four family run banks, is the second bank in Hong Kong to receive takeover offer. The purchase of Chong Hing by Yue Xiu will be the first takeover of a Hong Kong bank since Wing Lung Bank went to China Merchants Bank for US$4.7 billion in 2008.

Yue Xie said the deal will help it enhance its recognition in the market, and build its market position as an integrated financial service provider in the Pearl River Delta Region. The deal will also give Yue Xiu access to Chong Hing's 53 branches.

Hong Kong's Liu family owns some 60% of Chong Hing Bank. Mitsubishi UFJ Financial Group Inc, Japan's largest bank, owns 9.7%.