People’s Insurance Company of China acquires $4 billion minority stake in Huaxia Bank

Overview:

• People's Insurance Company of China (PICC) has acquired a minority stake in Huaxia Bank from Deutsche Bank for $4 billion.
• JunHe and Davis Polk & Wardwell acted for the seller.
• Haiwen & Partners and Freshfields Bruckhaus Deringer acted for the seller.

More information

Through its Hong Kong-listed subsidiary, PICC Property and Casualty, PICC will pay $4 billion in cash for a 20% in the Beijing-based bank.

Huaxia Bank has $316.6 billion in assets and over 600 branches in 87 Chinese cities. 

Frankfurt-based Deutsche Bank first bought into Huaxia Bank in 2006 and increased its stake to 20% in 2010.

The German bank plans to use the proceeds to increase its capital adequacy ratio under new co-chief executive John Cryan’s strategy to sell off assets and boost its balance sheet.

Adam Majeed - Asia editor