Bank of China to enter Cape Verde and Guinea Bissau markets by the end of the year

28 August 2009

Macau, China, 28 Aug – The Bank of China plans to be present in the markets of Cape Verde and Guinea Bissau by the end of the year, via cooperation deals with counterpart institutions, the bank’s managing director, Lao Chak Kuong said Thursday in Macau.

Without giving the names of the banks involved, Lao said that negotiations were underway with banks from the two Portuguese-speaking countries to sign cooperation protocols by the end of the year, to come into force in 2010.

In July the Bank of China opened its first branch in Brazil, in Sao Paulo, and plans to extend its presence to Rio de Janeiro, the official said, adding that no deadline had been set, as documentation had yet to be presented to the Brazilian authorities.

“The Brazilian economy is very strong and there are many businesspeople interested in investing in China. So, our presence in that economy will make it easier for investment between China and the Portuguese-speaking countries,” said Lao Chak Kuong.

In March the bank of China set up a cooperation agreement with Banco Internacional de Moçambique (Millenium-BIM) to transfer private funds and investments between China and Mozambique.

By the end of the year, the Bank of China’s presence in the Portuguese-speaking world will cover a total of five markets, including Angola, where the bank has operated via Banco de Fomento Angola (BFA) since 2007, having already generated turnover between the two countries of around 35 million euros.

The expansion to Portuguese-speaking markets is a strategy of the Bank of China as it plans to explore the potential of those expanding economies, via its Macau branch, making use of the role of the Special Administrative Regions as an intermediary.

The Bank of China explains its focus on expanding to Portuguese-speaking countries with the fact that, in Macau, there are few banks with these links, and due to the results fo its presence in Angola, which it has said “have made business between China and Portuguese-speaking countries easier.” (macauhub)