China's state-owned banks may cooperate with the Russian commercial banks

 China Construction Bank (CCB) did not rule out the possibility of acquisitions of Russian commercial banks or investment in Russian banking field, CCB President Zhang Jianguo stated Monday.

The CCB, China's second largest state-owned commercial bank with its total value ranking the second inside the globe, sees Russia as a important market in CCB's overseas internet site construction, Zhang said at the opening ceremony of CCB's 1st representative workplace in Russia.

"Russia is really a crux industry of Eastern Europe, as the market has enormous potential in economic advancement," Zhang told Xinhua.

He noted that at the moment Russia has a lot more than 900 commercial banks. "We noticed that foreign banks have shown their excellent interests in purchasing the assets of Russian commercial banks," Zhang stated.

"If we have a proper opportunity, we'll not miss this chance (to buy Russian commercial banks)," he mentioned.

CCB's overseas site construction method is to expand its branches abroad and buy foreign assets, he added.

In his speech in the ceremony, Zhang said the opening of CCB's representative office in Russia signaled CCB's latest important move to enlarge its overseas service network.

He told Xinhua that the Moscow workplace was the first step of CCB's overseas web site construction, revealing that the bank intends to upgrade the office into an overseas branch within two years.

"We hope all our within procedures and processes might be completed this year after which we would officially submit an application to the China Banking Regulatory Commission for opening the Russian branch," Zhang mentioned.

"We also hope to receive the approval from Russian Central Bank in 2012," he added.

Zhang admitted that Chinese bankers did not fully recognize the prospective of cooperation between China and Russia inside the past.

"But now, using the bilateral banking cooperation showing its very good improvement potential, CCB would increasingly pay its attention towards the cooperation with Russian banking," Zhang stated.

With regard to long term bilateral cooperation, Zhang mentioned that you will find nevertheless room for additional advancement as four possible fields need to be tapped.

The very first field is investment banking, the second is border trade, the third is supporting Chinese companies' advancement in Russia and supporting Russian companies' listing in Chinese stock markets, as well as the fourth is interbank clearing settlement, Zhang explained.

He added the CCB is expected to play an effective role in promoting Sino-Russian economic and trade cooperation.

In accordance with Zhang, as bilateral cooperation between China and Russia has expanded in numerous fields like politics, trade and economic system, CCB has established strategic cooperation agents with 58 Russian commercial banks.

The CCB has also opened more than 40 border trade settlement accounts with numerous significant Russian banks, Zhang added.

Given that 1995, the CCB has established nine overseas branches, three subsidiaries and two representative offices.

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