Thursday, March 10, 2005

BANKING_Deutsche Bank to buy stake in China's fifth biggest fund

Deutsche Bank AG, Europe's third-biggest bank, has bought 20 per cent of Harvest's Fund management Co., China's fifth-largest fund managers, and would seek to increase the stake to 49 per cent, amid the running of foreign fund managers to tap into Chinese market.

Deutsche has already hold 20 per cent of Harvest's shares through the deal with the shareholders of the company, according to the latest report from its website. (Reuters and Bloomberg have also reported the deal, but failed to disclose that the Bank has already owned the 20 per cent shares).

The Bank has also interested in buying the bad debt of China Avation Oil Singapore Corp., the Singapore-listed Chinese branch who has suffered a $550- million betting on derivatives, according to Reuters. It has offered to buy CAO's debt for 40 per cent of its face value upfront in $648 million, compared with the 41.4 per cent CAO is offering. But a main creditor SK Energy Asia Pte Ltd. has refused to accept the bank's offer two weeks ago.

Though there is no evidence to show the relations between two events, they shows that the Deutsche Bank has not only interested in Chinese funds, but also in Chinese debt.

1 comment:

Amy Gu said...

one thing still confusing me is that how they repackage the bad debts and make money? It is still debts, isn't it?