Daily Management Review

Deutsche Bank Sells Stake in Chinese Bank


12/29/2015


Deutsche Bank AG is going to sell its stake of 20% in the Chinese Hua Xia Bank Co. to companies PICC Property and Casualty Co., declared the bank in a statement. The deal is related to the plan the bank’s head John Cryan to reduce the credit institution's presence and increase capital reserves.



Björn Laczay via flickr
Björn Laczay via flickr
The transaction value is estimated at 25.7 billion yuan ($ 4 billion), according to Deutsche Bank. Sale of the asset will add 30-40 basis points to the current 11.5% of the base capital of the first level (Common Equity Tier 1).

John Cryan, the general director of Deutsche Bank who took the post in July, is selling assets and reducing bonuses to strengthen the bank’s financial position without involvement of shareholders' funds. Following its rivals Banco Bilbao Vizcaya Argentaria SA, Goldman Sachs Group Inc. and Bank of America Corp., Deutsche Bank sells stake in Chinese financial institutions, as being a minority shareholder in credit institutions has become more expensive with the introduction of new international rules.

"Well, it's done, but it is only a small step on a long journey, and this deal does not propel them forward. It was clear that they could not achieve significant success as a minority shareholder", - believes Christiane Hamann, an analyst at Hamburger Sparkasse.

source: dw.de






Science & Technology

Facebook may start production of its own microprocessors

Long-Term Alcohol Monitoring Could Be Possible With A New Injectable Chip Developed By U.S. Researchers

Sweden Now Has The First Electrified Road In The World

Over 270,000 Account Globally Banned From Twitter For Promotion Of Terrorism

Device Capable Of Hearing The Inner Voice Developed By Researchers

New mobile technologies will warn about natural disasters

The brewing industry welcomes blockchain

Asset-Sharing App Of Ryder Is Meant For Commercial Vehicles

Credit Suisse: China will become the leader in AI sphere

Five new technologies that will change the world

World Politics

World & Politics

Debates over Google are heating as a new EU directive is about to be introduced

Will Merkel accept Macron's plans for Europe?

USA and China are pushing North Korea to denuclearization

Germany's dilemma: Will the atomic energy win?

A Forceful Response To Syria Attack Will Be Given By U.S.: Trump

Is Trump’s Maximum Pressure Tactic On North Korea Succeeding Because Of China?

Why are Turkey-EU relations moving back?

Record-Breaking $39 Million raised for Rare Cancer Research in 2018 by Cycle for Survival