Deutsche Bank ups stake in Hua Xia to 20%

BERLIN: Deutsche Bank AG is increasing its equity stake in China's Hua Xia Bank to just shy of 20 per cent.

Germany's biggest bank says it signed a binding agreement to subscribe to newly issued shares in Hua Xia for approximately euro636 million (nearly $822 million).

Pending regulatory approvals, the move will increase Deutsche Bank's equity stake in Hua Xia from 17.12 per cent to 19.99 per cent, the maximum single foreign ownership level permitted under Chinese rules, it said Thursday.

Frankfurt-based Deutsche Bank has two seats on Hua Xia's board and the two companies operate a joint credit card business in China.