Looking for a Local Partner to Expand Business Scope
Shinhan Bank is considering selling a portion of its stake in Shinhan Bank China to increase the Chinese subsidiary’s capital and expand its sales power by joining hands with a local partner.
Shinhan Bank is reportedly considering selling about 40 percent of its stake in Shinhan Bank China. It plans to increase the affiliate’s capital by issuing new shares along with the sale of old shares.
Shinhan Bank plans to maintain its position as the largest shareholder even after the stake sale. Yet the sales process is not moving forward due to the COVID-19 outbreak.
In 2019, Shinhan Bank China’s total assets and liabilities were 5,451.6 billion won and 4,987.5 billion won, respectively. Its operating profit in 2019 was 226.9 billion won, down 20 percent from the previous year. Its net income increased by 11 percent during the same period to 35.3 billion won.
The planned stake sale reflects the bank’s strategy to strengthen Shinhan Bank China’s sales power. It is looking for a local partner to expand the Chinese subsidiary’s business scope.