Caixin OnlineFinance & EconomicsTop Stories Finance Closer Look: Developers Build Banking Ties with Stake Purchases
01.27.2014 18:22

Closer Look: Developers Build Banking Ties with Stake Purchases

Both Evergrande and Vanke have bought parts of financial institutions recently, moves that could see people living in their properties get access to more bank services
By staff reporters Wu Hongyuran and Li Shen

(Beijing) – A booming property market – some would say bubble – doesn't appear to be enough for some developers. Now they're branching out into banking.

Hong Kong-listed Evergrande Real Estate Group expanded into banking by acquiring a 4.5 percent stake in Beijing-based Huaxia Bank for 3.3 billion yuan last week.

A source close to the property developer said the purchase is a strategic investment. Huaxia has a strong balance sheet that can improve Evergrande's financials. It may help Evergrande finance at a lower cost, he said.

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