BoComm eyes more share in overseas retail market

Bank of Communication (BoComm) <601328><3328>, partly owned by global lender HSBC Holdings Plc<5>, plans to snatch more retail market share overseas, said Chairman Jiang Chaoliang.

The fifth-largest bank in the country is in talks with several U.S. and European financial companies on potential stake purchase plans as the meltdown in U.S. subprime loans provides a good buying opportunity, Jiang said, adding that the cash-rich bank favors to hold the controlling stakes in overseas acquisition.

Shanghai-based BoComm is also planning to add one or two branches abroad this year to reduce its reliance on domestic operations as government measures to tame inflation, such as credit control, will cut the bank's high-yield assets, according to Jiang.

Currently, BoComm operates seven branches overseas in New York, Tokyo, Singapore, London, Soul, Frankfurt and Macao.

Earlier reports said its shareholder HSBC will raise stake in the Chinese lender. But Jiang said it should depend on a change of Chinese rules as well as HSBC's willingness.