Llinks Advised on the First Acquisition by Foreign Commercial Banks of a PRC Domestic Bank

Llinks recently advised as PRC legal counsel on the acquisition of equity stakes in the Bank of Shanghai by HSBC and Shanghai Commercial Bank(Hong Kong). This is the first case of foreign commercial banks acquiring equity stakes in a PRC domestic bank. After completion of the acquisition, the total foreign equity stakes amounted to 18 per cent of the total capital of Bank of Shanghai, which is the highest percentage that foreign investors have ever owned in a PRC domestic bank. The Share Subscription Agreements and the Technology Support Agreement were signed on December 29, 2001. Two years ago, Llinks advised on the allotment of shares of Bank of Shanghai to IFC, which was the first equity stake of a PRC docmestic bank by the World Bank Group.