The Hong Kong-listed arm of Bank of China, one of the country’s big four lenders, has acquired nearly 5 per cent of local rival Bank of East Asia for HK$3.95bn to diversify its investment portfolio.

The deal underlines the increasingly acquisitive nature of Chinese banks. The Financial Times reported this week that three major Chinese banks had approached Temasek, the Singapore state investment agency, to discuss the possible acquisition of its 17 per cent stake in Standard Chartered, the UK-based emerging markets lender.