Beijing, Oct 10 (PTI) China today allowed the Asian Development Bank (ADB) to invest USD 75 mn in Bank of China, one of the country's four state-owned banks, for a stake that will be locked up for three years.

(From Press Trust of India)

The deal is the latest in a series of strategic investments by foreign banks seeking footholds in the fast-growing and competitive Chinese banking market.

Chinese banks have been encouraged by the government to seek foreign partnerships to build up their capital and improve management before China fully opens its banking industry to foreign competition in late 2006.

BOC said the entry of ADB, its regulatory approval still pending, would help the bank streamline corporate governance. ADB will also provide technical support for the Chinese bank's internal control and anti-money laundering efforts.

The move showed …