Guangdong Development Bank (Simplified Chinese: 广东发展银行; Traditional Chinese: 廣東發展銀行; Pinyin: Guǎngdōng Fāzhǎn Yínháng, abbreviated: 广发行) is a bank based in Guangzhou, Guangdong, People's Republic of China. As was announced in December 2005, Guangdong Development Bank is going to be the first public bank in China which is going to be acquired by a foreign bank. Image File history File links Unbalanced_scales. ... This article or section does not adequately cite its references or sources. ... Traditional Chinese (Traditional Chinese: 正體字/繁體字, Simplified Chinese: 正体字/繁体字) refers to one of two standard sets of printed Chinese characters. ... Hanyu Pinyin (Simplified Chinese: ; Traditional Chinese: ; pinyin: ), commonly called Pinyin, is the most common variant of Standard Mandarin romanization system in use. ... “Banker” redirects here. ... Guangzhou is the capital and the sub-provincial city of Guangdong Province in the southern part of the Peoples Republic of China. ... Guangdong, often spelt as Kwangtung, is a province on the south coast of the Peoples Republic of China. ...

The bank was founded in September 1988 as a joint stock commercial bank.

After a year of battling, a joint bid group led by Citigroup, IBM and China Life (China Life Insurance Company) won the bid at mid November of 2006 over two other bid groups led by Société Générale and Ping An. Citigroup assumed that the initial bid be 40% share but then sought alternatives to abide by the Chinese Law on Foreign share of domestic banks. Citigroup had to form a joint bid with several other firms, such as China Life, to satisfy the requirement. The turnout was Citibank could get 20% of the share and took managerial control. However, managerial control does not necessarily mean that Citigroup will lead the daily operations rather than influence the corporate strategy through its influence in the board of directors. Citigroup Inc. ... International Business Machines Corporation (known as IBM or Big Blue; NYSE: IBM) is a multinational computer technology and consulting corporation headquartered in Armonk, New York, USA. The company is one of the few information technology companies with a continuous history dating back to the 19th century. ... The China Life Insurance Company Limited SEHK: 2628, NYSE: LFC, 601628. ... Société Générale (Euronext: GLE) is one of the main European financial services company with extensive activities in others parts of the world too. ... Ping An of China (Chinese: 中国平安; Hanyu Pinyin: ), full name Ping An Insurance (Group) Company of China, Ltd. ...

Guangdong Development Bank is a mid-size national bank with more than 500 branches in China. Based in the booming Guangdong province bordering Hong Kong, GDB has assets of $47.9 billion, 12 million consumer customers, 9 million bank cardholders, 16,000 small and medium-sized business customers and 12,474 employees. Its problems seem to lie in weak capitalization and a history of bad loans.

Citigroup will have 20% stake, while IBM will hold 4.74%, keeping the two American companies below the 25% threshold for overall foreign ownership. China Life and State Grid will each own 20%, CITIC Trust, 12.85% and Puhua will hold the remaining 8% of the equity being sold.

External links

• Guangdong Development Bank's official homepage (in Chinese)

References

• [1] retrieved at 11Am,Dec 1st, 2006.