Sumitomo Trust & Banking Co. said Wednesday it will take a 19.99 percent equity stake in Nanjing Trust Investment Co., becoming the first Japanese bank to join the management of a Chinese financial institution.
The Japanese trust bank will buy the stake from Nanjing Zijin Investment Co., a financial holding company owned by the Nanjing municipal people’s government, in late March for an estimated 119.94 million yuan (¥1.6 billion).
Nanjing Trust is scheduled to begin the trust business around October.
The Chinese financial authority limits a foreign bank’s stake in a domestic financial institution to 20 percent.
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