BOC Hong Kong Says Hasn't Agreed To Sell Subsidiary, Responds To Share Price Move

Tom Burroughes

25 October 2016

, which has been reviewing whether to dispose of some business units, as reported earlier this year, is continuing to examine whether to sell its interest in Chiyu Banking Corp. However, it has not made any binding agreement to do so, it said in a statement yesterday in response to market speculation.

The bank gave no assurance any transaction will take place, but said it will make future announcements if or when necessary.

The statement came after the bank’s board had “noted recent speculation with regard to a potential asset disposal by the company”, the firm said.

Yesterday, BOC Hong Kong shares rose as much as 4.45 per cent after the publication Hong Kong Commercial Daily said the bank had agreed to sell the subsidiary to Xiamen International Bank for $3 billion.

BOC Hong Kong, which includes private banking in its offering, saw a big jump in attributable profit for the first six months of this year, at HK$42.73 billion ($5.5 billion), surging 219 per cent from a year ago. The bank disposed of shares in Nanyang Commercial Bank during that period.