Cash for Barclays, expertise for CDB
Updated: 2007-07-24 08:56
It will provide expertise and advice in fields including risk management, corporate governance and IT strategy and procurement.
"This strategic and financial collaboration is the next step in the evolution of CDB into a commercially operated financial institution," said Chen Yuan, the Chinese bank's governor, adding the investment in Barclays represents a unique and compelling financial opportunity.
CDB is the first of the three policy banks which the Chinese government has planned to transform into commercially operated financial institutions.
Expert Views
"CDB's investment in Barclays reflects the central government's efforts in encouraging Chinese financial institutions to tap the international market with their foreign reserves and release pressure on the yuan."
May Yan
Analyst, Moody's Asia
"The move reflects the Chinese government's efforts to encourage capital outflow to reduce its overall balance of payments surplus. The deal may also indicate that there could be other similar deals in the pipeline in banking and other sectors."
Sun Mingchun
Economist, Lehman Brothers Asia
"It is an inevitable trend that Chinese financial institutions will tap into the global market, and equity investment is a natural choice for their expanding business needs. Through cooperation with leading foreign players, domestic banks will gain experience and deeper understanding of the global market."
Zhao Xijun
Professor, Renmin University of China
"The deal made CDB the first mainland lender to make a strategic investment in an international financial firm. Barclays has a long-standing relationship with CDB. The two banks are very complementary."
John Studzinski
Senior managing director, Blackstone
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