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People's Daily Online>>China Business

Chinese businessman acquires US bank for $60 million

By Zhou Zhou (China Economic Weekly)

16:48, February 21, 2012

Edited and translated by Ye Xin, People's Daily Online

The acquisition of Atlantic Bank of America makes Lin Chunping, a Chinese businessman the focus of global media during the World Wenzhou Entrepreneurs Convention held recently.

Lin Chunping, a businessman based in Wenzhou, east China’s Zhejiang province, acquired the Atlantic Bank of America for 60 million U.S. dollars in June, 2011.

The bank was renamed U.S.A. New HSBC Federation Consortium Inc. and had been put into trail operation since Nov. 11, 2011.

In early 2009, Lin, 42, with 20-year overseas operation experience, began to target the Atlantic Bank right after it declared bankruptcy in 2008 due to the global financial crisis.

He took two years' time to repeat negotiations with the insolvent bank. The controlling shareholders of the bank made a price of 600 million U.S. dollars at first. However, as the government of the Delaware was eager to activate the bank, Lin fortunately acquired it with 60 million U.S. dollars after continuous bargaining.

Since Lin has no direct experience in managing a bank, the profit pattern of his new bank is to earn the price differences of interests. The bank pays interests to the depositors whose savings are less than 20,000 U.S. dollars. When it collects a large batch of personal savings, it will deposit them in large banks and earn much more interests.

Since the financial crisis in 2008, the private capitals in Wenzhou have been urgent to find a value-added channel despite the deteriorated business and policy environment.

Because there is no sign indicating that China's domestic financial policies will be open to the private capital, Lin Chunping and his New HSBC may become a benchmark for private enterprises in Wenzhou. More and more Wenzhou private capitals begin to outflow to overseas financial market.


Leave your comment5 comments

  1. Name

Hahaha at 2012-03-09192.5.85.*
2012年3月6日,针对温州商人林春平收购美国大西洋银行一事,新华社“中国网事”记者收到的美国特拉华州政府的回函确认:林春平的USA NEW HSBC FEDERATION CONSORTIUM INC。(“美国新汇丰联邦财团”)在特拉华州没有金融牌照,不是银行,此外,特拉华州也没有大西洋银行,美国新汇丰联邦财团与大西洋银行之间也没任何关联
telltrue at 2012-03-06121.31.191.*
Such a great joke and cheat report happening in people"s daily?
People's Daily is Accomp at 2012-03-0567.246.124.*
If Lin Chunping is proven to be a liar, People"s Daily is accomplice.
haiyahh at 2012-02-22180.156.54.*
Ohh Mr. Lin....nooo , at first it sounds like something that we can be proud of until I see the name "new HSBC" why Chinese has this copy mentality right down to the name... speechless
Ken at 2012-02-2263.202.114.*
Just did a quick search in FDIC and Federal Reserve Board databases. There is no such a bank called "Atlantic Bank of America " or "U.S.A. New HSBC Federation Consortium Inc". This is a rumor.

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