THE Union Bank of Hong Kong says mainland company China Merchants Holdings has increased its stake in the bank to 62.03 per cent.

It said yesterday China Merchants' wholly owned subsidiary China Merchants Steam Navigation Co had bought the remaining 32 per cent of Modern Concepts - which owns 51.51 per cent of the bank - from Sino Oiltools International.

China Merchants also owns 10.52 per cent of the bank through two other wholly owned subsidiaries.