ICBC, China’s largest lender by assets, along with two other asset managers have picked stakes in embattled lender Bank of Jinzhou.
Hong Kong-listed Bank of Jinzhou has been going through troubled times and failed to publish the 2018 annual results. Earlier this year, the bank’s auditor departed citing loan inconsistencies.
ICBC took a stake of 10.82% in Bank of Jinzhou through ICBC Investment.
In a stock exchange filing, ICBC confirmed that it inked share transfer agreement to invest up to RMB3bn ($435.1m) for the holding.
According to ICBC, the deal is an aim to “serve the financial supply-side reform of the country and to enhance the ability to serve the real economy”.
The transaction is subject to regulatory approval.
“The Investment does not constitute a connected transaction or a major asset restructuring by the Bank, and is not required to be submitted to the shareholders’ general meeting of the Bank for approval,” ICBC said.
Additionally, China Cinda Asset Management picked a 6.49% stake in Bank of Jinzhou through its subsidiary Cinda Investment.
China Great Wall Asset Management also agreed to buy a stake in Bank of Jinzhou, though financial terms of the deal were not divulged.
The latest deal comes shortly after the takeover of Baoshang Bank by Chinese regulators to manage its increasing credit risks.