However Hua Xia bank said despite the increase of Deutsche Bank's holdings, it has no controlling or effective controlling shareholder, in accordance with Chinese banking regulations. China's banking regulatory authority does not allow a single foreign institution to hold more than 20% of a Chinese bank, and the biggest combined stake of foreign investors in a Chinese bank cannot be more than 25%. Deutsche Bank now holds 855 million shares with a 17.12% stake, according to Reuters.
According to the statement filed by Hua Xia Bank to Shanghai Stock Exchange, on signing the deal Deutsche Bank surpassed Beijing-based steel maker Shougang Group, which previously was the biggest shareholder with a 13.98% percent stake.The transaction follows the acquisition of Luxembourg-based Sal Oppenheim Jr & Cie.SCA, which held a 3.43% stake in Hua Xia bank.
