CCB takes option on Jian Sing

China Construction Bank (CCB) has exercised its option to increase its shareholding in Jian Sing Bank to 70 per cent from 40 per cent.

It said the move was made after it received regulatory approval from the People's Bank of China and the Hong Kong Monetary Authority.

The share enlargement showed its confidence in Hong Kong's future development and continued status as an international financial centre, it said.

The increase in its stake would benefit Jian Sing's long-term development, especially in provision of banking services to customers who traded across the border between the mainland and the SAR.

China Construction Bank bought a 40 per cent interest in Hongkong Industrial & Commercial Bank (HICB) in May 1994 for $97.8 million and renamed it Jian Sing.

The one-branch bank's share capital was then raised to $300 million from $150 million.

Dah Sing Bank had bought HICB in August 1987 from the Government for about $531 million. It then gradually absorbed its 22 branches, leaving HICB with only one office, in Central.

HICB came under government control in June 1985 when its 63 per cent owned parent - Overseas Trust Bank - was rescued by the Government.