China Construction Bank is planning to integrate its operations in Hong Kong by merging China Construction Bank Asia and CCB's Hong Kong branch, as part of a plan to boost overseas business and avoid internal competition.
'We hope to maintain the brand of CCB Asia,' CCB president Zhang Jianguo confirmed with the Post yesterday, adding that the parent bank hoped CCB Asia would develop into a bank with fully fledged commercial banking business.
CCB, the mainland's second largest bank by assets, has been expanding in recent years, setting up two to three offshore outlets every year. It was believed to be hoping that its Hong Kong operation could blaze a trial and nurture talent for future international expansion.
Zhang said the main purpose of the merger was to restructure and consolidate mid-back office operations, save resources and avoid internal competition. He said major layoffs were unlikely.
Its Hong Kong branch was the bank's first offshore foray, with a focus on wholesale banking. CCB Asia, which has about 2,000 staff, is a wholly owned subsidiary but has concentrated more on retail banking since acquiring Bank of America's Hong Kong retail operations in 2006.
Zhang said the bank had drafted and discussed the plans and was applying for regulatory approval.