Bank of Communications will invest HKD 7.9 billion ($1 billion) to establish a retail and private banking subsidiary in Hong Kong, the Shanghai-headquartered bank said in a statement on Friday.
The investment in the new firm, Bank of Communications (Hong Kong) ‘aims to expand and intensify the bank’s retail and private banking businesses,’ the company said in a statement on its website.
Bank of Communications already has a corporate banking subsidiary in Hong Kong, which will remain separate. ‘This signifies a clearer and more focused separation in the servicing of different customer groups and both the Hong Kong Branch of the Bank and Bank of Communications (Hong Kong) can design products and services of a more professional and satisfactory quality,’ the bank said.
Mainland China’s private banks have been expanding into Asian financial centres to service demand from overseas high net worth individuals.