Further in 2015, China’s state-owned commercial bank, which has presence in New York, Los Angeles and Chicago, also plans to sell asset-backed securities (ABS) due to a rise in cross-border investment between the countries.
Bank of China US president and chief executive officer Xu Chen told Bloomberg that as part of its plans, the bank is considering setting up branches in Washington DC and San Francisco.
Further he added the expansion plan has to overcome strict regulations put in place by the US on foreign banks, restricting its development.
In 2014, the investment unit of Bank of China purchased an office building for about $600m in midtown Manhattan.
After occupying up to 50% of the space, the unit plans to rent out the remaining portion upon completion of the deal, which is expected to take place later in April, Xu said.
Founded in 1912 by the Republican government to replace the Imperial Bank of China, Bank of China issued banknotes on behalf of the government until 1942 along with the Farmers Bank of China, Bank of Communications and Central Bank of the Republic of China.
It is said to be the second largest lender in China overall and the fifth largest bank globally by market capitalisation value.
Data and analytics company Real Capital Analytics said the year 2014 witnessed a $5.95bn investment in the US commercial property by Chinese companies, which represents an increase when compared with a year earlier.
Image: Bank of China headquarters in Beijing, China. Photo: courtesy of Yoshi Canopus
