HONG KONG (Reuters) - Bank of Communications (3328.HK) (601328.SS) said it plans to invest HK$7.9 billion ($1.01 billion) to set up a wholly-owned subsidiary in Hong Kong, which will focus on the retail and private banking business.
The bank said in a statement on Friday it proposes to transfer the assets and liabilities, which constitute the retail and private banking businesses in Hong Kong of the Hong Kong Branch of the bank, to the new subsidiary, Bank of Communications (Hong Kong).
After the transfer, the existing Hong Kong branch will focus primarily on providing corporate banking services.
"The investment aims to expand and intensify the bank's retail and private banking businesses by building on its strong foundation in Hong Kong," it said in the statement.
"This demonstrates the bank's long-term commitment to Hong Kong and its customers, employees and business partners."
Reporting by Clare Jim; Editing by Jacqueline Wong