SHANGHAI, China, 27 July 2011
The Bank of Communications, China’s fifth biggest lender, said on Wednesday it would invest 300 million yuan ($46 million) for a 20 percent stake in a new regional bank in Tibet.
The banking regulator said on Sunday it had approved the establishment of the bank to strengthen financial support and speed up economic development in the Tibet Autonomous Region, with BoCom as a strategic investor. The regional bank will have an initial capital of about 1.5 billion yuan and will be the first regional corporate and commercial lender to operate in the autonomous region. The bank, which will be registered in Lhasa, will be funded by 15 institutions, including the regional government, local banking institutions and several Chinese enterprises.
No timetable has yet been given for the establishment of the bank. Bank of Communications gave details about its investment in a statement.
China has put Tibetan capital Lhasa under tight security over the past few weeks, according to exiled Tibetan groups, and has also banned foreign tourists, nervous of attempts to disturb government celebrations marking the 90th anniversary of the founding of the Chinese Communist Party. ($1 = 6.441 Chinese Yuan)