Chinese banks, widely considered as possible buyers of more U.S. financial assets amid the credit crisis, are becoming picky and cautious because of increasing concerns about investment risks.
After the Chinese state-controlled Citic Securities narrowly avoided taking a bath on a proposed investment in Bear Stearns, the Chinese government is insisting that any major foreign investment by state entities gets approval from the State Council, or cabinet, before a final deal can be reached, according to sources with direct knowledge of the situation.
Even before that, there had been increased caution about doing bank deals.
China Construction Bank, one of the four largest banks in mainland China, has turned down nearly 30 proposals of possible acquisitions over the past year, including opportunities to buy stakes in the troubled U.S. home mortgage lender Countrywide Financial and British bank Northern Rock, the sources said.
Read Complete Story
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment