Reporters' Log

CITIC Group says Spain's BBVA eager to raise stake

By (Agencies)
Updated: 2009-03-05 15:01

The chairman of CITIC Group, China's top financial conglomerate, said on Thursday Spain's second-largest bank, BBVA, has a strong desire to raise its stake in CITIC Bank.

China CITIC Bank and BBVA executives signed an agreement earlier this year to extend their cooperation to include auto financing and private banking, Kong Dan told reporters on the sidelines of the annual parliamentary meeting.

Related readings:  BBVA to double stakes in CITIC  BBVA pays 989 mln euros for China's CITIC stake  CITIC to privatize arm listed in HK  Citic Group estimates slight drop in annual net profit

"They have a strong desire to increase their stake," he said.

BBVA agreed last year to raise its stake in CITIC International Financial Holding to about 30 percent, and its holding in CITIC Bank to 10.07 percent from 4.83 percent, with the option to buy another 5 percent in the bank.

Kong also said there were no plans to inject capital into into steel-to-property conglomerate CITIC Pacific beyond the $1.5 billion rescue package already promised.

CITIC Pacific warned late last year of up to $2 billion in losses from unauthorized foreign exchange trading.

"Currently the financial situation with CITIC Pacific is very stable," Kong said.

Kong also said China's top brokerage, CITIC Securities, was looking at overseas opportunities as the global investment banking industry undergoes a profound consolidation, but said there were also rising risks.

"We need to be aware of overseas opportunities, but compared to previously we also need to be more aware of market changes and risk," he said.

The group's brokerage, on the other hand, was not looking at acquisitions domestically, said Kong.

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