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ICBC, Goldman Sachs team up

(Shanghai Daily)
Updated: 2006-03-19 08:34

Industruial and Commercial Bank of China, the country's largest lender by assets, has entered a strategic cooperation agreement with Goldman Sachs Group Inc as more overseas financial players vie for China's lucrative banking sector.

The two sides set up a commission to implement cooperation. ICBC's President Yang Kaisheng and Goldman Sachs' Asia Chairman Michael Evans will act as co-heads of the commission, ICBC said in a statement yesterday.

The two sides set up seven teams to carry out the cooperation in different areas such as risk management, assets management, investment banking and training.

"ICBC's pursuit of overseas investors is not only for capital but also for international expertise and technology to boost its corporate management," said Jiang Jianqing, chairman of ICBC, in the statement.

Goldman Sachs, Wall Street's No. 1 financial adviser, will help ICBC create a more efficient organization including improving information disclosure practice.

The two sides will also make use of each other's clients in investment banking, including selling assets-backed securities.

Evans said in the statement that the commitment to ICBC is unprecedented. It will send its best professionals to partake in the cooperation.

ICBC's affiliate Hong Kong-listed ICBC (Asia) Ltd will also team with Goldman Sachs to issue bonds and raise capital.

In January, ICBC said a Goldman Sachs-led group including Allianz AG and American Express Co would buy a 10 percent stake in the bank for US$3.78 billion.