China Beijing Equity Exchange, SPDB tie up for M&A financing

Feb. 20, 2009 (China Knowledge) - China Beijing Equity Exchange (CBEX), a comprehensive equity transaction institution authorized by the Beijing Municipal Government, and Shanghai Pudong Development Bank (SPDB)<600000> clinched a strategic cooperation agreement to jointly provide financing for mergers and acquisitions (M&A) activities, as per industry sources.

The cooperation with the bourse will help the company to offer more financing resources to state-owned enterprises in Beijing, said SPDB, which is partly owned by Citigroup Inc.

According to unnamed sources, the Beijing-based bourse will also sign a similar strategic agreement with China Construction Bank Corp (CCB)<601939><939>, one of the country's Big Four state-owned commercial banks.

CBEX, which deals with equity and asset transactions nationwide, has already inked a cooperation deal with the Beijing branch of the Industrial and Commercial Bank of China (ICBC)<601398><1398>.

Last December, the Chinese government allowed domestic lenders to provide loans for M&As, in a bid to boost the economy as M&A activities are set to maintain stable asset prices and ease deflation.