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· Posted on
February 21, 2024

CBA sells its 10% stake in China's Bank of Hangzhou and let the exit strategy begin

As Australia-China relations hit a low point, we're seeing a trend of Aussie companies leaving China.

What's the key learning?

  • CBA is selling off a 10% stake in Bank of Hangzhou for a whopping $1.8 billion
  • While CBA says it's all about prioritising growth closer to home...we're seeing a wider trend of Aussie companies leaving China
  • As things between Australia and China have become politically sour, businesses and investors have been working on their China exit strategy.

Background: CBA have got their banking fingers in a few pies. We're talkin' BNPL company Klarna, property exchange network PEXA...and China's Bank of Hangzhou (to name a few).

 

What happened: CBA is now selling off a 10% stake in Bank of Hangzhou for a whopping $1.8 billion. It'll hold on to its remaining 5.75% as a strategic investment.

 

What else: While CBA says it's all about prioritising growth closer to home...we're seeing a wider trend of Aussie companies leaving China.

 

🔔 What's the key learning?

 

💡As things between Australia and China have become politically sour, businesses and investors have been working on their China exit strategy.

 

💡Over the last 2 years, the Chinese government has made some pretty significant obstacles for Australian exporter to China. We've seen tariffs on wheat, wine and beef.

 

💡Westpac quit its operations in Hong Kong and mainland China just a year after it opened...and now, we're seeing CommBank reduce its investment in Bank of Hangzhou. 

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