Skip to main content
CCB Wants To Buy Bank of America (Asia)
Bank of America Briefly The World's Biggest

China Construction Bank (CCB), China's third largest commercial bank, is interested in buying Bank of America (Asia), after failing to buy out Asia Commercial Bank in February. CCB is apparently reviewing the financials of Bank of America (Asia), an affiliate of the US-based bank, and an offer has yet to be made. A detailed plan is still under negotiation between CCB's newly-established investment banking department and Bank of America. Bank of America, the parent company, is a strategic investor in CCB, with a 9% stake. Early this year, CCB was linked to a possible buyout of 20% of New York brokerage and investment house Bear Stearns. Bank of America (Asia) has 17 branches in Hong Kong and Macau offering a wide range of consumer and commercial banking products and services. This news comes at a time when Bank of America briefly became the world's biggest bank, surpassing Citigroup yesterday in market cap. Though by the end of the day Citigroup had reclaimed its crown for the time being.

This reflects investors' preference for a growth story, which is giving kudos to Bank of America. Bank of America seems to be hitting on all cylinders domestically. In contrast, Citigroup has run into growth bumps that are taking longer to fix than many investors would like - Chuck Prince's strategy to invest in branches and people comes at a time when othe rbanks are more interested to put in great numbers. Prince's strategy was called into question by substantial shareholder Alaweed - I tend to side with Chuck, I think he is doing the right thing. When you are number one but not by a large margin - you need to distance yourself by getting the better people, as you already have the leverage in almost all other areas (cost of funds, branches, network reach, economies of scales, etc... ).

Being bypassed is not a definitive gauge of Citigroup's long-term prospects, but might be a blow for a bank that prides itself on its size and reach in more than 100 countries.


Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.

My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.

I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.

My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

PUC - An Assessment

PUC has tried to reinvent itself following the untimely passing of its founder last year. His younger brother, who was highly successful in his own right, was running Pictureworks in a number of countries in Asia.

The Shares Price Rise & Possible Catalysts

Share price has broken its all time high comfortably. The rise has been steady and not at all volatile, accompanied by steady volume, which would indicate longer term investors and some funds already accumulating nd not selling back to the market.

Potential Catalyst #1

The just launched Presto app. Tried it and went to the briefing. Its a game changer for PUC for sure. They have already indicated that the e-wallet will be launched only in 1Q2018. Now what is Presto, why Presto. Its very much like Lazada or eBay or Alibaba. Lazada is a platform for retailers to sell, full stop. eBay is more for the personal one man operations. Alibaba is more for wholesalers and distributors.

Presto links retailers/f&b/services originators with en…

How Long Will The Bull Lasts For Malaysia

Are we in a bull run? Of course we are. Not to labour the point but I highlighted the start of the bull run back in January this year... and got a lot of naysayers but never mind:

p/s: needless to say, this is Jing Tian ... beautiful face and a certain kind of freshness in her looks and acting career thus far

I would like to extend my prediction that the bull run for Bursa stocks should continue to run well till the end of the year. What we are seeing for the past 3 weeks was a general lull where volume suddenly shrunk but the general trend is still intact. My reasons for saying so:

a) the overall equity markets globally will be supported by a benign recovery complemented by a timid approach to raising rates by most central banks

b) thanks to a drastic bear run for most commodities, and to a lesser extent some oil & gas players, the undertone for "cost of materials" have been weak and has pr…