First Sino-foreign housing savings bank opens

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Last updated at: (Beijing Time) Monday, February 16, 2004

First Sino-foreign housing savings bank opens

Sino-German Bausparkasse, the first-ever Sino-foreign housing savings bank, was inaugurated Sunday in north China's port city of Tianjin to extend home loans to customers.

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Sino-German Bausparkasse, the first-ever Sino-foreign housing savings bank, was inaugurated Sunday in north China's port city of Tianjin to extend home loans to customers.

The joint venture was established by the China Construction Bank (CCB), one of the country's "big four" state-owned banks and the Bausparkasse Schwaebishe Hall, currently the largest home savings bank in Germany.

Customers should, as is the practice of housing savings banks, make deposits first in Sino-German Bausparkasse, and are then entitled to obtain from the bank home loans with an annual rate of3.3 percent, far below that of other home loans offered in China.

Customers could reap in interest income and government bonuses from their deposits, said Zhang Enzhao, the CCB president and board chairman of Sino-German Bausparkasse.

The new bank will create a new channel of money collection for common house buyers on the back of the German side's rich experience, advanced technology and service ideas and the CCB's credit in the market, manpower and network resources, he noted.

Zhang said his bank can also help customers address fund shortage problems in accordance with their "concrete situations".

Tianjin Mayor Dai Xianglong, who was formerly governor of the central bank, hailed the bank as "adding a new agency to China's financial service system" and "a significant development in the opening-up of the financial industry".

Interest rate of the bank will be fixed in the form of contractbetween the bank and its client, not to be affected by the rate fluctuation in the capital market.

Sino-German Bausparkasse has a registered capital of 150 million yuan (18.07 million US dollars), with the CCB owning 75.1 percent of the stake and the Bausparkasse Schwaebische Hall, 24.9 percent.

Source: Xinhua

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