Chinese investors came off of the October golden week in a buying mood. The A share market gapped higher and never looked back. At mid day break, the Shanghai Composite Index is up 3 percent, or 166 points at 5718, yet another record high.
Speaking of buying, over the weekend, China Minsheng Bank agreed to acquire a 10 percent stake of San Francisco based United Commercial Bank. The term only calls for a slight premium, between 5 to 10 percent over UCB’s current stock price. UCB focuses on the overseas Chinese community and companies doing business in both the US and China, seemingly a strategically logical expansion of Minsheng’s current operating geography. The deal marks the first foray of a Chinese financial institution onto US soil, of course pending approval by regulatory bodies from both countries. Minsheng also took an option to buy an additional 10 percent of UCB by the end of 2009. United Commercial Bank currently sports a market capitalization of USD $1.91 billion and its stock closed at USD $18.33 a share on NASDAQ last Friday.
Jay Sheng is Shanghaiist’s Business Editor. Email tips, news and gossip about business in Shanghai and China to biz at shanghaiist.com.