Case ID: HKU751     Solution ID: 27983

Minsheng Bank Case Solution


Established in 1996, China Minsheng Banking Corporation Limited (Minsheng) was the first private business bank in China. By 2006, Minsheng had obtained just about US$130 billion altogether resources and built up right around 330 managing an account workplaces the country over. The Banker magazine reliably adulated Minsheng's advancement, positioning it number 310 in its main 1,000 business banks on the planet in 2004, number 287 in 2005, and number 247 in 2006. In ahead of schedule March 2008, Minsheng acquired the green light from the China Banking Regulatory Commission to purchase a 4.9% stake in US-based managing an account holding organization, UCBH Holdings, Inc. (UCBH) for US$95.7 million. The arrangement would in the long run take Minsheng's stake in UCBH to 9.9%, totalling around US$200 million. The procurement not just recognized Minsheng as the first Chinese territory establishment to put resources into a US bank, but on the other hand was seen as a point of reference for Chinese banks entering the US and worldwide markets. On the other side, UCBH would soon utilize this chance to make its own particular moves into China, utilizing its association with Minsheng to totalingacquire other Chinese banks. This case looks at the procedure of worldwide extension through acquisitions in the managing an account industry and the situating of a developing bank in the worldwide business sector, covering issues, for example, esteem creation, effect of government regulation and universal hindrances, the Chinese keeping money industry and its advancement, and the related dangers.

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