China Construction Bank: US Clients lining up at U.S. office

Discussion in 'Wall St. News' started by ASusilovic, Nov 17, 2009.

  1. MIAMI (MarketWatch) -- China Construction Bank fielded a "tremendous number" of phone calls from U.S. multinationals within just the first four months of opening offices in New York, said John Weinshank, head of corporate banking and trade finance for the U.S.-based branch.

    Large companies were concerned with the risk profile of their U.S. bank loans as the global financial crisis wore on. But Chinese banks represented an alternative. U.S. corporates sought to diversify their portfolio into one of the most liquid and least leveraged markets--China.

    "Usually you chase your clients. This year, it was the other way," said Weinshank on the sidelines of the Annual Assembly of the Latin American Federation of Banks in Miami.

    But China Construction Bank Corp. (CICHY, 0939.HK), which opened shop in New York in July, wasn't biting.

    "Prudent corporations always want to have many relationships. China is the flavor of the year," said Weinshank. "But we will only lend if a company has a strategic tie to China."

    That means that only U.S. companies with an eye to expanding in China or a trade relationship with a Chinese company can receive a loan from China Construction Bank, for now at least.

    "We're not just looking to capture yield," said Weinshank, although he added that's important too. "We're looking to support the home market."

    The tremor of phone calls has waned in the last month, as the global economy appears to be improving. Now, China Construction Bank is focused on building relationships in the U.S. and is taking the lead of clients to go into Latin America.

    The bank has embarked on a feasibility study of opening an office in Latin America, and a decision will likely come within a few months.

    Why not transfering your savings to CCB ? They´re 200 % protected ! 100 % FDIC, 100 % Chinese government !

    :D :D :D
  2. MattF


    does that mean double the time to get your money back if it fails?