London-based Barclays Bank Plc seems certain to be allowed to buy a 20 per cent stake in New China Trust & Investment Co., one of China's oldest trust firms. The deal - following more than one year of negotiations - would make Barclays the first foreign bank with a stake in a Chinese trust firm. Others - such as Morgan Stanley and UBS - are still locked in talks with potential Chinese partners.
New China Trust was established in 1979 and manages assets worth more than RMB7bn, with registered capital of RMB500m. After the purchase, Barclays will be the second-largest shareholder in New China Trust and will appoint representatives to the board, which is controlled by a Chinese investment firm.
Under Chinese law, a single foreign investor is prohibited from buying more than a 20 per cent stake in a Chinese trust company, while a group of foreign investors can own a combined stake of up to 25 per cent.
News & Interviews 
London-based Barclays Bank Plc seems certain to be allowed to buy a 20 per cent stake in New China Trust & Investment Co., one of China's oldest trust firms. The deal - following more than one year of negotiations - would make Barclays the first foreign bank with a stake in a Chinese trust firm. Others - such as Morgan Stanley and UBS - are still locked in talks with potential Chinese partners.
(0 vote)
