Bank of China Hong Kong (BOCHK) has agreed to sell its 70.49% of stocks in wholly-owned subsidiary Chiyu Banking to Xiamen International Investment and the Committee of Jimei Schools for HK$7.685bn.

Chiyu Banking, which has been registered as the 39th licensed bank in Hong Kong since 1947, operates 24 branches in Hong Kong, one branch and two sub-branches in Xiamen and one branch in Fuzhou.

BOCHK said that the proposed disposal, which is subject to the satisfaction of all the conditions precedent set out in agreement, may or may not proceed to completion.

BOCHK vice chairman and CEO Yue Yi said: “The proposed disposal is a pivotal initiative in implementing Bank of China Group’s strategy of driving global expansion and optimising overseas business. Given its strength, experience and reputation, XIL is an ideal buyer for Chiyu Bank. We believe XIL will be able to provide good services to customers and arrangements for employees, as well as to ensure the sustainable development of Chiyu Bank.

“Following the share disposal of Chiyu Bank, we will explore opportunities for further expansion by investing in our businesses in Hong Kong and in the Southeast Asia. We have completed the acquisition of Bank of China (Malaysia) Berhad and opened the first BOCHK Brunei Branch. We are making steady progress in the acquisition of the other ASEAN banking operations of our parent bank, Bank of China, including Thailand, Indonesia, the Philippines, Vietnam and Cambodia.”