Postal Savings Bank of China (PSBC)

History

2023: China Mobile buys 6.8% of Postal Savings Bank of China for $6.54  billion

On March 30, 2023, it became known that the telecommunications company China Mobile entered into an agreement to acquire a stake in Postal Savings Bank of China, a Chinese postal savings bank. The deal amounted to 45 billion yuan (approximately $6.54 billion at the exchange rate as of March 30, 2023).

According to Bloomberg, the mobile operator acquired 6.8 billion shares of one of the largest banks in the PRC as part of a private offering. As a result, China Mobile became the third largest shareholder of Postal Savings Bank of China with a 6.8% stake. Documents on the transaction have already been sent to the Shanghai Stock Exchange.

Postal Savings Bank of China is China's fifth largest bank in terms of deposits

It is noted that Postal Savings Bank of China is the fifth largest bank in China in terms of the number of deposits. It also specializes in providing loans in rural areas. The main area of ​ ​ activity is working with private clients, and the retail banking division provides more than half of the revenue. The organization has about 40 thousand branches - more than any other Chinese lender. At the same time, Postal Savings Bank of China, like the operator China Mobile, is controlled by the government. Telecommunications company China Mobile also owns an 18% stake in Shanghai Pudong Development Bank Co., a Chinese commercial bank based in Shanghai.

Bloomberg adds that China's state-owned enterprises traditionally invest in local banks. So, in 2018, Agricultural Bank of China (agricultural bank of China) held a private offering of class A shares in the amount of 100 billion yuan ($14.53 billion) and attracted as investors the Chinese national tobacco corporation China National Tobacco Corp. and the government company Central Huijin Investment Ltd.^[1]

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