Daily Management Review

Deutsche Bank Sells Stake in Chinese Bank


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

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

Fuchsia will kill Android by 2023: Top 5 facts about the new OS

New Study Finds Goats Interact More With Happy People

More than 32 thousand "smart" houses under threat of hacker attack

Internet addiction and children: Global plague

Apple takes up to develop Apple Watch for health monitoring

Hyperloop is growing in Europe

Analysts: US gamers prefer mobile games

Google Assistant Winner Of Head-To-Head Test Of Digital Assistants, Beats Siri And Alexa

World Politics

World & Politics

Ex-Brexit Minister Said A ‘Reset’ Is Needed For Brexit Talks

10 countries with the best healthcare systems

Foreign Experts To Be Allowed By North Korea For Permanent Destruction Of Missile Sites

Ireland recovers €14.3 billion from Apple

Is China going to cancel its birth limit policy?

The US is ready to start negotiations with China

US and China start 5G race

Is Czech Republic posing a threat to the European Union?