By offloading NCB, BOC Hong Kong will be able to streamline its operations in the country, Reuters reported, citing people familiar with the matter.
China Cinda Asset Management is said to have shown interest to acquire NCB with an intention to tap cheap sources of funds so as to buy bad loans, reports the news agency.
In a statement to the Hong Kong stock exchange, BOC Hong Kong said that it has plans to conduct a feasibility study in order to review its group’s business as well as assets portfolio.
According to people familiar with the matter, sale of the banking unit could draw interest from other financial institutions and some private enterprises in China.
No final decision has been made till now even though BOC Hong Kong is said to have discussed the potential sale internally.
Following a decision, which is expected to come in the next few weeks, a formal sale process will be soon launched that will be run by BOC Hong Kong’s investment banking unit along with another foreign bank.
BOC Hong Kong was established on 1 October 2001 from a merger of 12 subsidiaries and associates of the Bank of China in Hong Kong, and listed on the Hong Kong Stock Exchange in October 2002.
Image: Bank of China Tower, Hong Kong. Photo: courtesy of WiNG
