Owner of Chong Hing in talks to sell stake

Chong Hing Bank, Hong Kong's smallest family-run lender, said its controlling shareholder was still in talks to sell a stake in the company.

The owner of Liu Chong Hing Investment, the bank's parent company, "remains in dialogue with certain independent third parties" regarding a possible sale, the companies said in a joint statement yesterday. Liu Chong Hing is controlled by the bank's founding Liu family.

The announcement follows a statement last month that a buyer had approached the owners.

Takeover speculation has mounted since November last year, when Lau Wai-man was named the first chief executive of the bank from outside the family, which controls about 60 per cent of the lender.

Shares of Chong Hing Bank have doubled since his November 28 appointment.

The controlling shareholder "has not reached any commitment nor entered into any agreements" on a sale and would provide monthly updates until there was a decision on whether to make an offer or not, the statement said.