Standard Bank's shares bounced nicely after Africa's biggest bank sold a 20% stake to the world's biggest bank - which is Chinese - the Industrial & Commercial Bank of China Ltds. A friend of mine who works at Standard Bank says the bank is pleased about the deal because they wanted - needed - added liquidity.
China's investment into Standard Bank represents the largest capital inflow to any South African company to date. China has professed 'great interest' in the whole of Africa, having stripped the resources - thanks to the substantial fraction of the world population that the Chinese make up, and now heading toward 1.5 billion individuals - in mainland China
Averting Exposure?
One wonders if this move had anything to do with the credit strain banks are under at present. If not, it's a strange coincidence isn't it?
For Bloomberg's take on this story, go here.
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