ANZ has expanded in Asia by buying a 19.9 per cent stake in China's Shanghai Rural Commercial Bank (SRCB) for $328 million.
"This strategic partnership provides the opportunity to play a role in one of the fastest growing banking markets in the world," ANZ chief executive officer John MacFarlane said.
"It combines ANZ's expertise in risk management and retail and small business banking with SRCB's franchise and knowledge in Shanghai's retail and small to medium enterprise market."
SRCB is the largest rural commercial bank in China and the 17th largest bank by assets in China. It has 2.5 million retail customers with assets of RMN 137 billion ($22 billion).
Shanghai is a leading business centre that accounts for 5 per cent of the total Chinese Gross Domestic Product.
Aspect Huntley equities analyst David Walker said: "Both SRCB and ANZ bring complementary qualities to the table. SRCB has the franchise, local experience and market share and it is interested in the risk management, retail and small business banking capabilities of ANZ. ANZ sees itself as having an Asian growth strategy and plans to leverage off the recent growth there. It has taken a modest step."
ANZ will provide technical assistance to SRCB over three years in a $6.5 million program.
It was the first Australian bank to open a representative office in China, which was in 1986 in Beijing. ANZ has had a branch in Shanghai since 1993.
ANZ share price fell 4 cents to close at $27.83 yesterday.
