[A-List] Bank Give Away

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

If 10% of ICBC, a bank that has 20% of the Chinese banking market and
21,000 branches, is sold for US$3.78, the total valuation of  the bank
is US$37.8 billion. This translated the total banking market of China to
be worth only US$189 billion.

By buying 10% of ICBM for US$3.78, Goldman and Co bought 2,100 ICBC
branches for US$1.8 million each.

Those who run the Chinese banking sector must be very stupid.  Its the
Year of the Dog alright!

Henry C.K. Liu




	ICBC to seal stake sale to foreigners: report 	
 	2006/01/27 08:31

 Industrial and Commercial Bank of China (ICBC) is expected to seal a deal in Beijing
 today to sell a combined 10 per cent stake to three foreign strategic investors for
 US$3.78 billion, market sources said.
   Under attack for looking more like financial investors, Goldman Sachs, Allianz Group and
 American Express have drastically enhanced the strategic element of their share
 acquisition proposals, including a large capital contribution from the United States
 investment bank.
   "There has been a big increase in the strategic focus since this was first reported,"
 said a source who was briefed on the situation.
   Instead of forming a consortium, as previously expected, the investors will sign
 separate investment and strategic co-operation agreements with China's largest commercial
 bank, which has about 20 per cent of the banking market and 21,000 branches throughout the
 country.  <SCMP>