中国法律博客

Minsheng Bank , China's first privately owned bank, plans to seek U.S. regulatory approval to increase its stake in UCBH Holdings to at least 50% from 9.6%, a report says.

Minsheng already has an option to raise its stake to about 20%, according to Bloomberg, which cited two people briefed on the matter.

UCBH, which does business mainly with Chinese communities and American companies seeking business in China, in September entered into an agreement with the Federal Deposit Insurance Corp. and the California Department of Financial Institutions for a cease and desist order in which it consented to "enhance the strength and stability of the bank and its operations."

I usually gloss over this type of M&A activity (yes, I know this is not technically an 'M' or an 'A'), deals that should go through without causing the furor, and government oversight, that accompanied deals like UNOCAL and 3COM.

This one is not interesting from a US-China relations standpoint, but it does tell us something about the cautious nature of Minsheng, and perhaps other Chinese companies, in their overseas M&A activities.

UCBH is not a typical US bank. It is a true Chinese-American bank that is rooted in a specific community and deals in cross-border activities as well. A quick look at their website's company profile told me all I needed to know:

United Commercial Bank ("UCB^TM"), a subsidiary of UCBH Holdings, Inc., is a leading bank in the United States serving Chinese communities and American companies doing business in Greater China. Together, the Bank and its subsidiaries, including United Commercial Bank (China) Limited, operate 51 California branches/offices located in the San Francisco Bay Area, Sacramento, Stockton, Los Angeles and Orange counties, nine branches in New York, five branches in metropolitan Atlanta, three branches in New England, two branches in the Pacific Northwest, a branch in Houston, branches in Hong Kong, Shanghai and Shantou China, and representative offices in Beijing, Guangzhou and Shenzhen, China and Taipei, Taiwan. (TheStreet.com)

Seems like a nice fit for Minsheng, purely from a geographic/cultural standpoint. From a business perspective, I have no idea.

I am curious to see how the East Coast of China, including Taiwan, plus the West Coast of the U.S., develops in the future as a focal point of US-China commercial activities. California has always been heavily Asian, but ties have been strengthening in recent years.

A final comment on the Minsheng deal. I would also love to see a bank focus on providing services for folks who live between the US and China (e.g. American expats and ABCs, overseas Chinese living in the US). Could be very convenient if they stepped up with the customer service.

Tags: China Business & Economy, U.S.-China Relations

© Stan for China Hearsay, 2009. |
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