26 Jul 2016

China Construction Bank hands NZ branch $140m

4:15 pm on 26 July 2016

One of China's largest banks is eyeing growth in New Zealand after giving its local branch a substantial capital injection.

CCB is the fifth largest bank in the world with nearly 15,000 branches.

CCB is the fifth largest bank in the world with nearly 15,000 branches. Photo: AFP

The world's second biggest bank by capitalisation, China Construction Bank Corporation, has pumped $140 million into its two-year-old New Zealand subsidiary, lifting its capital to $200m.

The local branch has tax expert John Shewan, who carried out the recent government-commissioned review of New Zealand's foreign trust laws, and former prime minister Jenny Shipley on its board.

The deputy chief executive of the New Zealand operation, Lloyd Cartwright, said the bank had found ready business in financing projects and trade, along with home loans.

He said the cash injection would give them the resources for the next step up.

"The bank is giving us a vote of confidence in terms of the ability to continue business in New Zealand, by giving us a large capital injection," he said.

Mr Cartwright said the bank also had ambitions to expand into retail banking, but with a digital platform rather than bricks and mortar.

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