BEIJING: Bank of China Ltd. is buying a stake in French bank LCF Rothschild and says the two will develop private banking and asset-management services for China's newly rich.
China's fast-growing banking industry is eager to expand its foreign ties, and the latest deal announced late Thursday came despite industry turmoil following the failure of Wall Street house Lehman Brothers.
Bank of China said it will buy a 20 percent stake in La Compagnie Financiere Edmond de Rothschild for 236.3 million euros (US$340 million) and the two will develop private banking and asset-management services.
"This partnership forms part of Bank of China's global development strategy," Bank of China chairman Xiao Gang said in a statement. "We expect to further strengthen our asset management operations and product design capabilities in private banking business, and widen the product and service offerings to our clients."