Financial Times FT.com

Lifeline for Bank of China’s HK arm

By Tom Mitchell in Hong Kong

Published: December 14 2008 20:02 | Last updated: December 14 2008 20:02

Hong Kong’s second largest banking group has issued a profit warning and secured a $2.5bn loan from its state-owned mainland parent.

In a statement, BoC Hong Kong said the subordinated credit facility from its parent, Bank of China, would “strengthen BoCHK’s capital base, providing BoCHK with greater operating flexibility . . . to weather the economic uncertainties arising from the global financial turmoil”.

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