China Construction Bank has become the first Chinese bank to open its doors as a standalone branch in New Zealand – signalling a significant change in its local investment focus.
Local chief executive Jun Qi said the bank was excited by the potential it created for a greater involvement in funding New Zealand infrastructure.
Previously the China Construction bank (CCB) has operated as a subsidiary company in New Zealand – as the other major Chinese banks do.
That meant it was required to restrict its lending to locally held capital - around NZ$200 million.
But after getting fully accredited by the Reserve Bank late last year, it will now be freed up to operate on a much larger scale, with the ability to leverage the balance sheet of the global bank.
That translated to considerably more investment firepower and opportunity to participate in local infrastructure projects, said Qi. (more…)