OpinionGuangdong's ambitions laid bare by pursuit of Chong Hing

It's an enterprise known across the border for building properties and highways, so why is Yue Xiu Group now willing to splash out billions of dollars to buy a Hong Kong bank? Your columnist has been puzzled by this ever since the Guangzhou-based group's pursuit of Chong Hing Bank was leaked.

In the coming days you, will hear some formal explanations from the company for its move, but these are likely to only partly answer this question. More telling, though, is a photo taken last year. In the picture is Vice-Premier Wang Yang, the then Communist Party secretary of Guangdong. He was visiting Yue Xiu's booth in the province's first financial trade fair. Bear in mind that Yue Xiu belongs to the Guangzhou municipal government; Wang's visit was special and its significance grows in the light of the past week's developments.

Wang's successor Hu Chunhua followed suit with a visit to the Yue Xiu booth at this year's event in June.

Then, in August, deputy provincial head Chen Yunxian visited the company's headquarters, saying: "The provincial government will continue to support Yue Xiu Group to grow big and strong. That is in line with our strategy to make the province a strong 'financial province'.

"The country's financial reform is moving towards the deep water … the Yue Xiu Group should grasp this historical opportunity, consolidate your resources, and strive for performance in the Guangdong-Hong Kong-Macau cooperation."

Clearly the province, facing a slowdown in its trade-driven growth, is pinning its hopes on Yue Xiu to make its financial dreams come true.