China's Baoshang Bank to be taken over by local govts, state firms

Huishang Bank

21/01/2020 05:45

BEIJING, Jan 21 (Reuters) - China's troubled Baoshang Bank
will be taken over by local governments and a group of state
firms, a central bank official with direct knowledge of the
matter said, as Beijing looks to shore up some of the country's
weakest lenders.      
    The governments of China's Inner Mongolia Autonomous Region
and the region's city of Baotou will lead the acquisition of at
least a 50% stake in a reorganised Baoshang Bank  BAOTO.UL ,
according to the official, who declined to be identified given
the sensitivity of the matter. State firms in Inner Mongolia
will also participate in the takeover, the official said.
    Other strategic investors in the revamped Baoshang Bank
include Huishang Bank  3698.HK , China Construction Bank (CCB)
 0939.HK  601939.SS  and a national deposit insurance fund
managed by the central bank, the official said.

 (Reporting by Rong Ma and Ryan Woo; additional reporting by
Yawen Chen and Zhang Yan; Writing by Cheng Leng; Editing by
Guijuan Qu and Christian Schmollinger)
 ((tony.munroe@thomsonreuters.com; +86 10 6627 1288; Reuters
Messaging: tony.munroe.thomsonreuters.com@reuters.net))