HSBC China buy doubles in price

BANKING giant HSBC is to pay $2bn (£1.09bn), double what was originally thought, for a 19.9% stake in China's Bank of Communications, according to a report in Chinese newspaper Ta Kung Pao.

The buy would be the largest by a foreign company in the Chinese banking sector but managerial representation and the disposal of bad debts are said to remain sticking points.

HSBC confirmed last week that it was in talks to buy the stake in China's fifth-largest bank, adding that completion of the transaction is subject to reaching agreement on the final terms and obtaining the necessary regulatory approvals.

'The negotiations cover a whole range of issues. Price is not the only issue we are going to talk about,' said HSBC's David Eldon.

Asked if a deal had been reached, Eldon said: 'Not yet. If we can agree all the terms and conditions, the deal will be done. We're all working towards that.'