Australia and New Zealand Banking Group Ltd (ANZ), Australia's third-largest lender, agreed to buy a 19.9 percent stake in Shanghai Rural Commercial Bank (SRCB) for 252 million U.S. dollars.

The equity investment, ANZ's second in China, is "a significant step in the bank's Asian growth strategy," said John McFarlane, the Australian bank's chief executive officer. In July, the bank paid 111.5 million dollars for a 20 percent stake in Tianjin City Commercial Bank.

More foreign financial institutions will invest in these relatively small local banks, despite their weak performance. Last week, a Citigroup-led consortium signed a 3.06 billion dollars deal for an 85.6 percent stake in Guangdong Development Bank.

These investments are part of a long-term game, with foreign investors expecting to benefit from China's rapid economic growth. "The strategic partnership provides an opportunity to play a role in one of the fastest growing banking markets in the world," McFarlane said.

As part of the partnership, ANZ will provide technical assistance to the Shanghai bank, including a specific program over the next three years through a 5 million dollars technical support fund.

Source:佚名