Wells Fargo considers selling Hong Kong bank stake

Wednesday 26 January 2022 11:07 CET | News

Wells Fargo has announced considering a sale of its minority stake in a Hong Kong lender, as the US-based bank continues to unload assets as part of a turnaround plan. 

Wells Fargo has been studying a divestment of a 20% stake in Shanghai Commercial Bank that it’s owned for decades. The holding, which Wells Fargo considers as non-strategic, could fetch nearly USD 1 billion, according to Bloomberg.

The potential sale would follow a string of disposals by the bank. In 2021, it agreed to sell its asset management business to a private equity consortium for about USD 2.1 billion. It’s also unloaded a commercial real estate firm and a retirement plan services unit in recent years.

Shanghai Commercial Bank is part of a small remaining group of closely held local lenders in Hong Kong, which are seen as gateways to the mainland Chinese market thanks to regulations allowing them to expand their networks across the border.

No final decisions have been made, and Wells Fargo could decide to keep its stake for longer, according to Bloomberg

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Keywords: banks, investment
Categories: Banking & Fintech
Countries: China
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