Scottish bank RBS has won the approval of financial watchdogs, leaving the way clear for it to buy a stake in a Chinese financial firm.
The bank is now set to purchase 20% of the Suzhou Trust. Under the terms of the deal, the Chinese firm – which is based in the eastern city of Suzhou – will issue new shares to RBS. An official statement on the sale is now expected.
The move comes as part of RBS plans to increase its corporate presence in China, particularly in the corporate banking and wealth management services. It follows a successful $24 billion rights issue, which has recently been completed by the bank. The cash call, the largest by value in UK banking history, sold 97% of its new stock to investors.