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…)

China Construction Bank (CCB), the world’s second biggest bank, wants to become more involved in funding New Zealand infrastructure and housing projects as the country becomes less reliant its traditional lenders - Australia’s big four banks.

CCB New Zealand, which gained a local banking licence in 2014, already has a balance sheet worth $1 billion.

It has already supported some large corporate transactions and is involved in the mortgage market. Its New Zealand mortgage book - lending to its mostly Chinese customer base - stands at $400 million. (more…)