HONG KONG, August 13, SinoCast -- China Construction Bank (Asia) recently inked a contract to acquire a 100 percent stake in AIG Finance (Hong Kong) Ltd. from American International Group, Inc (NYSE: AIG) for USD 70 million, China Construction Bank (CCB, SHSE: 601939, and SEHK: 0939) said on August 12.

As another strategic move the top Chinese real estate and mortgage lender takes to fuel expansion overseas after it took a 100 percent stake in Bank of America (Asia) Ltd. from Bank of America Corp. (NYSE: BAC) for HKD 9.71 billion in August 2006, the deal is expected to be completed before the end of October this year. Both sides have not gained approval from concerned authorities for the deal. But in insiders' opinion, there is no doubt that it will obtain green light from the authorities, as capital involved is not a large sum.

CCB's assets in Hong Kong and Macao will hit about HKD 200 billion after the deal, with the number of local employees totaling about 2,000.

CCB Asia will take charge of the liquidation of AIGF Hong Kong's USD 557 million loans and deposits, AIG said in a statement. Statistics show that AIGF Hong Kong's total assets reached HKD 9.2 billion as at the end of June 2009, with net assets and loans standing at HKD 1.11 billion and HKD 4.83 billion, respectively. It focuses credit card business in Hong Kong and has issued over 500,000 credit cards. With about 480,000 cardholders, it seizes fiver percent share in the market.

AIG, hurt by the global financial crisis, is trying selling some assets to pay back loans gained from the US government. It had sold part of the assets in Japan, Argentina, Columbia and etc. Sources said on August 12 that it earned approximately USD 1.9 billion via selling energy and infrastructure investment assets recently. AIG suffered a net loss of USD 4.35 billion in the first quarter of this year but embraced a profit of USD 1.82 billion in the second quarter, the first time in the past seven quarters.

CCB Asia's total assets touched HKD 60.9 billion as at June 30, 2009, soaring 65 percent from the start of 2007, with loans and deposits amounting to HKD 44.2 billion and HKD 40.9 billion, up 67 percent and 57 percent, each. Non-performing loan ratio is 0.41 percent, currently.

(USD 1 = CNY 6.83 and USD 1 = HKD 7.75)