NAB tests the water in China

MELBOURNE: Australia’s biggest bank National Australia Bank Ltd has made its first significant foray into the Chinese market with a A$50 million (K126 million) stake in a property trust.
But the bank was keen to clarify the 20% stake in Union Trust and Investment Ltd (UTI) did not signal the start of any strategy to increase its exposure in China, or Asia more generally.
Instead, the bank’s chief executive John Stewart said the investment fitted within nabCapital’s business portfolio and was in line with the bank’s objective to “leverage its key capabilities in new areas”.
“Drawing on elements of its ‘originate, warehouse and distribute’ model, nabCapital has the right blend of skills and capabilities to help develop UTI’s business in China,” Mr Stewart said.
The bank already has a representative office in Beijing and its stake in UTI is the maximum allowed under foreign-ownership rules.
The purchase is believed to be worth around A$50 million although the bank did not disclose the price. – AAP
 

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